Guyana has sought proposals from companies to design, finance and construct an oil refinery with a daily production capacity of 30,000 barrel, reported Reuters.
This is the first request for proposal put out by the South American country as it aims to become a force in production of crude oil. Guyana initiated crude production in 2019.
The facility will be situated on public land close to the Berbice river.
Construction of the facility is anticipated to commence by the first half of 2023.
The project is expected to complete after two years from the commencement year.
Companies are required to submit proposals for the project before mid-December.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataA consortium led by Exxon Mobil has rapidly increased oil and gas production to nearly 400,000 bpd this year. This production is completely exported.
At a public event, Guyana President Irfaan Ali said: “In two months’ time, we will be receiving the submissions from those who are interested in building this.
“The opportunities this will create for transport and logistics, the construction industry, the services industry (and) the rental industry are enormous and will bring tremendous benefit to the people of the region.”
The government intends to offer financial incentives for developing the refinery, including a 10-year tax holiday.
Although the government does not intend to have an interest in the facility, it plans to secure all the crude supply needed for the refinery from its share of oil output.
The consortium anticipates pumping 1.2 million barrel per day of oil by 2027.
Guyana plans to hold an auction of oil and gas blocks soon in an effort to draw more firms to its remaining offshore areas.
—————————————————————————————————————–
Image: Construction of the facility is anticipated to commence by the first half of 2023. Credit: John R Perry from Pixabay
