Guyana Prepares for New Refinery

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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Guyana has issued a request for proposals for the construction of the nation's first oil refinery as the country prepares to be an energy leader in the Americas.

Earlier this month, the Guyanese government stated it is expecting bids for constructing a 30,000-barrel-per-day (BBL/d) refinery to fulfill local fuel demand. The construction of the new asset is scheduled to start next year, and it will be built by the Berbice River near Crab Island.

Additionally, this new project will be fully owned by the private sector and it will be granted a 10-year tax holiday by the Guyanese government.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Refining Project Database can click here for more details.

Currently, Guyana does not process any of the oil it produces, relying on imports to supply its local demand. This is expected to change as the country seeks to raise further investments and energy developments with the construction of this refinery.

International energy companies such as Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas) have massively invested in the country over the last years as its energy prospects grow ever bigger. So far, Guyana has licensed offshore oil exploration projects, leading to discoveries of nearly 11 billion barrels of oil.

The nation's Stabroek oil block, which a consortium led by ExxonMobil operates, is producing around 350,000 BBL/d based on media reports, though the company expects output to ramp up to 1.2 million BBL/d by 2027.

Since 2015, the U.S. major has made more than 25 oil discoveries in Guyanese waters, prompting the prospects of other companies to explore the nation's seas. So far, ExxonMobil has launched four major oil-producing projects at the Stabroek block.

Guyana became an oil producer in December 2019 when ExxonMobil brought online the Liza-1 project, which has the capacity to produce 120,000 BBL/d. This field is located about 190 kilometres offshore and contains 17 wells which produce the light-sweet Liza oil grade.

Earlier this year, ExxonMobil brought online the Liza 2 platform. This project has an output capacity of up to 220,000 BBL/d, and it counts 30 operational wells.

Additionally, the energy company has announced the development of the 220,000-BBL/d Payara project, which is expected to come online next year, and the Yellowtail field which aims to produce 250,000 BBL/d starting in 2025.

Other international companies, such as Tullow Oil plc (London, England), have launched similar efforts in Guyana, though with less luck. The British energy company conducted several exploration efforts off the Guyanese coast, though they did not yield positive results. The company has since pulled out of Guyana.

Despite its success and defeats, Guyana continuously aims to expand its energy projects, such as the construction of the new refinery. Earlier this month, the Ministry of Natural Resources signed local master plans of 11 companies providing energy services in the country. With this, Guyana hopes to keep cementing its position in the energy sector.

Finally, energy announcements in Guyana have brought hope to its neighbour Suriname, as the former Dutch colony seeks to attract international investments to develop its projects.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).