A US-based company plans to make a substantial investment in Guyana’s oil and gas sector, to refine 30,000 barrels of oil per day by the end of the year.

President of Guyana Dr Mohamed Irfaan Ali announced the initiative at the opening of the Guyana Energy Conference and Supply Chain Expo on Tuesday, February 18 at the Marriott Hotel in Georgetown. The project is expected to lower the cost of refined petroleum products for Guyana while creating a regional supply hub extending to northern Brazil and beyond.

“[It] will see refined products coming into Guyana at cheaper prices, and that will see us creating a hub for the rest of the region here in Guyana,” Ali stated.

The venture, which is set to receive a minimum investment of US$300 million in its initial two years, forms part of the government’s broader strategy to maximise benefits from the nation’s growing oil industry. The government is currently finalising the necessary agreements to ensure the project delivers long-term economic advantages.

Ali further noted that the development of a refined product hub will generate significant logistical opportunities, boosting key sectors such as maritime transport and supply chain management. “Imagine us creating a refined product hub for the region, for northern Brazil, here. Imagine the type of other logistical and value creation and opportunity that it will bring. These are the type of investments we are pursuing: transformative investment,” he said.

The proposed refinery is expected to stimulate job creation across multiple industries. Additionally, discussions are ongoing regarding the construction of a separate 30,000-barrel refinery in Berbice, allowing Guyana to refine and distribute various crude oil derivatives.

Dominican Republic to finalise petroleum agreements

Meanwhile, Dominican Republic President Luis Abinader noted that his country is prepared to finalise petroleum exploration agreements with the Guyanese government. This follows a 2023 Memorandum of Understanding (MoU) aimed at strengthening energy cooperation.

Speaking at the Energy Conference, Abinader revealed that negotiations over the Berbice Block location are nearing completion. “Following extensive studies and exchanges between our Commissions, the Dominican Republic is now ready to finalise agreements on the location of the Berbice Block, which will soon be completed with the Ministry of the Environment, hoping to replicate the successful story of your blessed nation,” he said.