DR’s role in oil refinery increases project’s viability- President Ali

Guyana and the Dominican Republic (DR) signed a Memorandum of Understanding (MoU) for the establishment of a new oil refinery in Guyana and President Dr. Irfaan Ali says the Spanish-speaking country’s role in the project increases its viability.

Through the MoU, a feasibility study for the 50,000 barrels per day oil refinery will be conducted.

The Dominican Republic will be the majority shareholder, with a 51 per cent stake. That country’s private sector is expected to partner with the Luis Abinader government to set up the facility and eventually, process oil produced offshore Guyana.

President Ali told the News Room that the Dominican Republic is set to become an “off-taker” of Guyana’s oil; that is, some of the oil produced offshore and refined in Guyana, will be shipped to the country for use.

And President Ali posited, “The DR as an off-taker improves the viability and feasibility of the project which can be an important part of the energy matrix in the region.”

The MoU was inked on Tuesday during President Ali’s visit to the country; it provides a framework for conceptual work to be undertaken to establish a full-fledged proposal by the Government of the Dominican Republic and the private sectors in Guyana and that country.

It is important to note that Guyana has been seeking a private developer to invest in an oil refinery processing about 30,000 barrels of oil daily, which would be enough to satisfy local needs.

Aside from the refinery plans, the countries signed another MoU that will assess the feasibility of the Dominican Republic participating in oil exploration at an oil block offshore Guyana.

And beyond oil and gas cooperation, the two countries agreed to intensify collaboration in the areas of agriculture (particularly corn and soya production), tourism and business-to-business relations.