One week after Guyana and the Dominican Republic signed an agreement for the establishment of an oil refinery here, Vice President, Dr. Bharrat Jagdeo says there are no immediate plans to build a second facility.
“We are still exploring one refinery but we have several interests,” Dr Jagdeo told reporters during a press conference at the Arthur Chung Conference Center on Thursday.
In January this year, it was announced that nine proposals were submitted to the government for the design, financing and construction of a local oil refinery at Crab Island, Region Six (East Berbice- Corentyne).
The Vice President acknowledged those proposals and noted that the first round of evaluation is complete; the government is now awaiting more information.
During a recent State visit to the Dominican Republic, President Dr. Irfaan Ali and his counterpart, President Luis Abinader, signed a Memorandum of Understanding (MoU) for the establishment of an oil refinery in Guyana that could possibly refine at least 50,000 barrels of oil daily.
With this new venture, it was noted that the Dominican Republic will be the majority shareholder, with a 51 per cent stake.
Meanwhile, Dr Jagdeo on Thursday noted that “A number of other countries are sending in proposals… If it goes forward, it has to be on conditions that are good for the country and meet financial and technical requirements.”
He added, “We don’t have the capacity for two refineries now.”
He noted, however, that while this is being reviewed, the government is simultaneously looking at storage and strategic reserves.
“With Trinidad, there were some discussions but if we are doing a refinery, it will be here because it defeats the purpose to have the refining done in Trinidad.”
The Vice President emphasised that one of the reasons the government wanted a refinery was to ensure national energy security.
“We are exploring what it would take to toll some of our crude and what fee we have to pay for tolling it and bringing back refined products and storing them.
“That might, from initial numbers, it could not only guarantee national energy security but also significantly allow for cheaper cost of energy,” the Vice President reasoned.
