…as InterOil Group, Mings Products and Services unveil project

CONSTRUCTION of a state-of-the-art Oil and Gas (O&G) Shore Base Inc., unlike anything Guyana has ever seen before, will begin in the coming months.
This development is the ISIKA Shore Base Inc. which was formed on November 20, 2019, following a joint venture between InterOil Group and Guyana’s Mings Products and Services (MPS). It will be built on 330 acres of land along the Essequibo River with approximately 1,500 feet of waterfront and will include industrial areas, offices, warehouses, workshops, spool base, a liquid mud plant, equipment and construction laydown areas for all O&G related activities.

ISIKA’s technical area will be able to accommodate a large facility for the storage of gasoil and gasoline, water and sewage treatment plants and a power plant to ensure continuous power supply to the entire shore base. In addition, there will be a facility for helicopters to support movements to and from the shore base and a fully-integrated residential area which will include a convention centre, clinic, restaurants, a supermarket and banks.

Compared to Georgetown, the ISIKA Shore Base will have several major advantages such as being developed on land above sea level — a significant factor considering the country’s climate challenges. News first broke of the planned operations at the Guyana International Petroleum Exhibition (GIPEX) 2019, where ISIKA Shore Base Inc. had a booth on exhibition with representatives from the companies from which it was formed.

According to a release from the companies, InterOil Group has 40 years of experience in the O&G industry and has participated in the construction, operations and management of similar projects in West Africa and the SONILS Logistic Base in Angola. It is presently operating the Kaombo ultra deep project shore base for Total, ExxonMobil, Sonangol, SINOPEC and GALP. It also owns and operates a fleet of construction barges operating mainly in West Africa and Qatar.

Meanwhile, MPS has 30 years’ experience in the provision of high-quality services operating as the exclusive distributor for industrial equipment from Japanese companies such as Yamaha Motor Co. Ltd. and Mitsubishi Motor Corporation Inc. MPS owns and operates a modern fleet of heavy equipment such as ‘Doosan’, ‘Komatsu’, ‘Caterpillar’ and ‘John Deere’ and is the distributor of a range of construction and building product.

“InterOil Group will bring international operational and organisational expertise, technology and training, while the MPS Group will ensure local ownership and technical support for a fully integrated oil and gas shore base dedicated to Guyana,” the release stated. The companies have assured that the shore base will provide great opportunities for local Guyanese companies to participate in O&G local content-related activities, generating needed employment, skills development and technology transfer.

“This will allow all the Major international operators in the Guyana basin to execute their work programmes in Guyana, resulting in significant cost savings and benefits to the country. In fact, in support of the local content development initiatives, InterOil Guyana Inc and ISIKA Shore Base Inc. are fully committed to working with international and domestic companies in maximising local content in their operations in a sustainable manner, through the use of Guyanese human resources, materials, equipment and services,” the release stated.

As of November 27, the tendering process for civil, marine and dredging works have been completed with the top ten international constructions firms from India, China, Brazil and Europe. Rothschild & Co, an independent international Financial Advisory and Investment Bank, has been appointed as the financial advisor to structure the financing of the ISIKA Shore Base.

Phase 1 is expected to be completed within the fourth quarter of 2020 and full operation within the first quarter of 2021. ISIKA boasts that its logistics management on the Essequibo coast will be “significantly better” than in the congested Georgetown areas.
It was explained that the natural draught of the Essequibo river, in addition to dredging operations mainly for the ocean silted part, will assure a minimum of 8 meters (26 feet) draught CD (at Low-Water-Level) in Phase 1.

The jetty facilities and the entire navigation channel are designed for a final 12 metres (40 feet) draught CD which will be completed in the execution of Phase 2 and Phase 3 of the development. The companies assured that it will be driven by values centered around people, quality, health, safety and international environmental standards. The release stated: “The ISIKA Shore Base is being developed for many strategic and operational reasons and is a significant long-term tangible local content asset for the Guyanese Oil & Gas industry.”