Guyana is also considering developing a 30,000-barrel-per-day modular refinery. Credit: John R Perry from Pixabay.

Guyana has signed a memorandum of understanding (MoU) with the Dominican Republic to explore the construction of a 50,000 barrel per day (bpd) refinery in Guyana, reported Reuters.

The preliminary agreement was signed by Guyana President Irfaan Ali and Dominican Republic President Luis Abinader at a meeting in Santo Domingo, Dominican Republic.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

As per the terms of the agreement, the Dominican Republic Government could own at least a 51% stake in the refinery project.

The Guyanese Government, however, is considering no participation as a shareholder in the refinery project.

Ali was cited by Reuters as saying that the Dominican Republic would receive fuel from the proposed refinery. This could improve the feasibility of the project.

Ali was quoted by News Room as saying: “The DR [Dominican Republic] as an offtaker improves the viability and feasibility of the project, which can be an important part of the energy matrix in the region.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The project’s parties will negotiate the prices for the crude oil supply to the refinery under a 30-year contract.

Ali said: “(The) Dominican Republic is also interested in exploring for oil, food production and petrochemicals,” in Guyana.

By 2027, the Guyanese Government aims to reach 1.2 million barrels per day of capacity. It is seeking investors for facilities capable of securing domestic fuel supply and helping reduce dependence on imports.

Separately, Guyana is assessing bids from four parties for the development of a separate 30,000bpd modular refinery.

The two proposed refineries are expected to receive crude from Guyana’s share of oil produced at the Stabroek offshore block, which is owned by an Exxon Mobil-led consortium.