Guyana’s potential commercial oil reserves have caught the attention of a group of companies willing to invest at least US$ 75 million to set up the first oil refinery here over the next 18 months to three years. However, officials have cautioned that the startup of such a project could take a long time.
President Bharrat Jagdeo in discussion with officials of Prime Energy
The initiative will see the establishment of modular mini refineries in a joint effort by three U.S. – based companies: Prime Energy, Chemex, and Kuai Energy Systems. The mini refineries would create jobs for Guyanese in the near future, and tremendously expand Guyana’s oil- producing capacity. Modular mini refineries can be sited as close as possible to oil wells, thereby reducing travelling costs and the amount of time required for setting up, shipping, erecting, installing and commissioning, required with large oil refineries.
At a public presentation held at Princess Hotel, East Bank Demerara, representatives of Prime Energy – the company spearheading the initiative – explained to several stakeholders the benefits of establishing such a refinery in Guyana. Prime Energy Director Vijai Doerga explained that it would be a win- win situation for both Guyana and the company should the company strike oil and the refinery is established. In his power-point presentation, he weighed the pros and cons of having mini refineries instead of traditional oil refineries.
However, the start- up of the refinery may take some time, since the companies must first get the Guyana government’s permission and carry out several assessments in determining where the site will be and other fundamentals. These feasibility studies would also determine whether the companies need to invest more money.
The figure is also dependent on the demand in Guyana. If successful, it could see Guyana producing between 500 to 20,000 barrels of oil per day.
However, based on Prime Minister Samuel Hinds’s response at the forum, the government may be keen on the initiative. “This is a potential for cost saving. Various persons have been looking to see if we can find oil on Guyana’s side of the Corentyne River near shore, offshore and onshore in the same sorts of volumes that Suriname has found. If we strike oil, this would bring the need for small refineries in Guyana,” he said.
He referred to the 1980s in the Takutu Basin as the only time Guyana has recorded striking oil. In light of this, he reminded the audience that companies have recently set up camp again in this area in hope of having the same luck.
The prime minister admitted that he was quite ‘excited’ to learn about the benefits of mini refineries and their potential application in Guyana, stating that since the world is generally accustomed to traditional refineries, he was unaware of the benefits of mini refineries. “I therefore hope that in two to three months you can hear about a strike down in the Takutu Basin, because that will make the application of the oil re-fineries more perfect and give them a greater advantage, so that both the country and investors can share the benefits,” he said.
