Guyana’s oil refinery could see partnership with Dominican Republic, Barbados

An oil refinery is being seriously considered by the Irfaan Ali-led administration, allowing citizens to tap into Guyana’s vast offshore reserves and enjoy a cheap, stable supply of fuel and other products.

In a recent Fueled interview, President Dr. Irfaan Ali maintained that an oil refinery, fuel storage facilities and a deepwater port are major infrastructure needed to insulate the country from external conflicts, like the ongoing Middle Eastern conflict which has driven up oil prices.

He also said partnerships will be crucial, particularly as the country develops its oil refinery.

“We are also discussing how the refinery can be integrated with investment from DR (the Dominican Republic) and with Barbados having a play in it also for refined products and their own energy security. And the wider integration with the rest of the Caribbean,” President Ali said.

In 2023, Guyana and the Dominican Republic (DR) signed a Memorandum of Understanding (MoU) to establish a new oil refinery in Guyana, and President Ali said then that the Spanish-speaking country’s role in the project increased its viability.

Earlier this year, on the sidelines of the Offshore Technology Conference (OTC), President Ali told Fueled that investors are interested in establishing such a facility in Guyana but some want a facility large enough to process about 100,000 barrels of oil daily. The government is still assessing various proposals.

As the refinery talks continue, several countries across the Caribbean — namely Barbados, Grenada and Jamaica — are hoping to get into the oil and gas sector, joining the existing players, Guyana, Suriname and Trinidad and Tobago.

“The region is getting very active when it comes to the energy sector, and I hope our local private sector and Guyanese are paying attention,” President Ali said.

“It is a very active energy landscape in the region and you know, it will be competitive. It will require a lot of negotiations and integration, but definitely, Guyana, we must position ourselves as central to this hub that is being created across the region.”