ByAlan Caldwell AUG 9, 2023

Guyana and the Dominican Republic have signed a memorandum of understanding to collaborate on attracting companies to build a 50,000-barrel-per-day refinery in Guyana. The refinery would utilize Guyana’s oil resources. Under the agreement, the Dominican Republic government would have a minimum ownership stake of 51% in the project. However, the Guyanese government has expressed no interest in being a shareholder.

During Guyana President Irfaan Ali’s visit to Santo Domingo, the memorandum was signed by Ali and Dominican Republic President Luis Abinader. Ali stated that the Dominican Republic is interested in receiving fuel supply from the refinery, which would enhance the project’s feasibility. The Dominican Republic also expressed interest in exploring oil, food production, and petrochemicals in Guyana.

The prices for crude oil supply to the refinery would be determined through negotiations between the project’s parties under a 30-year contract. As Guyana aims to reach a daily oil output of 1.2 million barrels by 2027, the government is seeking investors to establish facilities that can ensure a stable fuel supply domestically and reduce dependence on imports. Currently, Guyana relies entirely on imported fuel for motor vehicles and power generation.

This agreement with the Dominican Republic is for a second refinery project in Guyana. Authorities in Guyana are currently evaluating bids from four contenders for a separate 30,000-barrel-per-day modular refinery. Both refineries are expected to receive crude oil from Guyana’s share of oil produced by a consortium led by Exxon Mobil, which has discovered over 11 billion barrels of recoverable oil at the Stabroek offshore block.

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