Gov’t formally invites proposals for oil refinery here by 2025

The Government of Guyana, through the Ministry of Natural Resources, has invited proposals for the private construction of a local oil refinery at Crab Island, Region Six (East Berbice- Corentyne).

This facility is expected to refine 30,000 barrels of oil daily.

Based on the Request for Proposals issued by the ministry, the government hopes that an investor will design, finance and construct the refinery on about 30 acres of land at Crab Island, found at the mouth of the Berbice river.

The land, it was noted, will be provided by the government. The government will also supply oil from Guyana’s share of the profit oil produced offshore.

Importantly, it was noted that “generous fiscal incentives” for the project, including a 10-year tax holiday, will be provided.

Even though the government will provide much support, it was noted that the project will be strictly financed and owned by the private sector.

“GoG will not have any ownership or investment interest in the project,” the document stated.

On Friday night, President Dr. Irfaan Ali reminded Berbicians that the government was in support of this project because it will help to cushion the impact of global oil price increases.

“The opportunities this will create for transport and logistics, the construction industry, the services industry (and) the rental industry are enormous and will bring tremendous benefit to the people of the region,” the Head of State said.

Earlier in October, Chief Investment Officer of GO-Invest Dr. Peter Ramsaroop commented that this refinery could help Guyana meet its energy needs, particularly in periods of global shocks like the ongoing Ukraine/ Russian crisis.