Guyana cautiously weighing refinery proposals

Guyana is considering "more than 10" proposals from foreign companies to build and operate an oil refinery but the government is in no hurry to have one, natural resources minister Vickram Bharrat told Argus.

The government is "cautious" about accepting any of the proposals, "but at some point, we will start that discussion," Bharrat said, without naming any of interested parties.

The prospect of a refinery was raised in a meeting with President Irfaan Ali last week by a group of Mexican firms led by infrastructure developer Grupo Omega, according to Ali's office.

"We have been looking at all the proposals, but we are yet to determine whether we want a refinery, when we want it and what size it will be," Bharrat said. "The prospect of a refinery is still on the table."

The refinery debate is taking place as ExxonMobil works to ramp up deepwater crude production from the Stabroek block to 800,000 b/d by 2026. Current output of 120,000 b/d is all exported.

ExxonMobil increased its estimated recoverable resources from Stabroek by 1bn bl of oil equivalent (boe) to 10bn boe, the company in October.

Guyana supports the construction of an oil refinery, but it will have to be done by private-sector investors and not the government, Ali had said in April 2021.

A refinery would "add value" to the country's oil sector, he said. But the government is cautious in light of problems in nearby countries such as Trinidad and Tobago, where a refinery was forced to close because of a shortage of local feedstock. Refineries have also closed in the US Virgin Islands and the Dutch-controlled islands of Curacao and Aruba.

"If you have the refinery, you must be able to guarantee crude," Bharrat said. "If you can't then you have to import, and that is more expensive, so we are not rushing on this."

Guyana imports about 15,000 b/d of oil products, according to official data.

By Canute James