LAST month, a massive undertaking was realised for Guyana’s oil-and-gas sector, and for local content. It was the launch of the first phase of the Port of Vreed-en-Hoop. The newly operational shorebase facility is spearheaded by Vreed-en-Hoop Shorebase Inc. (VEHSI).
Situated on reclaimed land in the Demerara River, the facility is the result of meticulous planning and investment by local businessmen Nicholas Deygoo-Boyer and Andron Alphonso, through their joint venture, NRG Holdings, which is a part of VEHSI. The project is the largest local content victory, by the sheer size of investment, in the oil-and-gas sector.

The launch ceremony was a moment of national significance. President Irfaan Ali described it as a historic moment in Guyana’s development. His words captured the idea that this industrial development is a key symbol of progress.
The facility, developed at a cost exceeding US$260 million, was conceived through the marriage of local and international expertise. The project was selected by ExxonMobil Guyana after a highly competitive process, with over 20 proposals vying for the opportunity. In 2022, ExxonMobil Guyana awarded VEHSI the contract, seeking to boost in-country offshore support capabilities.

The facility will also have lasting economic benefits. The offshore support base and fabrication yard will generate employment opportunities for Guyanese workers and provide a direct economic boost to Region Three. These facilities will support offshore oil production by handling logistics, vessel berthing, equipment storage, and fabrication work—critical components of Guyana’s oil supply chain.

The need for enhanced infrastructure was there, as ExxonMobil Guyana’s offshore activities continue to expand. With the Yellowtail project, the fourth major offshore oil development, expected to come online in the fourth quarter of 2025, the timing of the VEHSI launch aligns perfectly with the expected growth in crude oil production.

By the time Yellowtail starts up, Guyana’s total offshore oil output is expected to reach 900,000 barrels per day, more than a barrel per capita. Further, additional developments (Uaru and Whiptail) are in progress and will only increase the need for offshore support.
This project is a monumental win for local content.

The Guyana government has been pushing for greater participation by its people and businesses in the petroleum industry, and VEHSI represents the most significant local content success to date. While international expertise played a role—Belgian engineering firm Jan De Nul invested US$100 million in the project—much of the investment came from Guyanese companies. This achievement shows that local investors can rise to the challenge and are capable of delivering at a scale dominated by foreign firms.

VEHSI has also taken steps to enhance the broader shipping and logistics environment in the country. The company spent US$60 million to deepen and widen the Demerara River Channel. This improvement will facilitate the movement of larger vessels and help reduce shipping costs, yet another example of how this project will be a catalyst for growth.