Final ranking for 30,000-barrel oil refinery in 1st quarter this year – Finance Minister
-6000 employed in petroleum sector
During his budget speech yesterday, Minister of Finance Dr Ashni Singh said that the final ranking of bidders for a 30,000barrel oil refinery in Berbice will be completed in the first quarter of this year.
Additionally, he said over 6,000 Guyanese are employed in the oil and gas sector.
In building a “worldclass oil and gas sector” Singh stated that the government’s objectives are to strengthen the sector’s legal and regulatory framework, establish and strengthen institutional structures required by that framework, continue to promote accelerated exploration and production of the resources in the national interest and maximize the positive spillovers of the sector into the non-oil economy.
Singh noted that with the objective of developing a national gas strategy government drafted and presented a discussion paper in 2023 for input from citizens which received 103 comments. “The feedback will be incorporated in the finalization of the country’s national gas plan along with the request for proposals to design, finance, construct and operate the required gas infrastructure to support upstream developments.”
He pointed out that the Request For Proposals for “private investors to submit proposals for the development of this infrastructure was announced just yesterday.”
The gas-to-energy project which is underway is an investment that is a major cornerstone for the country’s economic development and growth in coming years, “I am happy to report that progress has allowed the project to remain on track for a startup by the end of this year”, he announced.
As such in promoting value-added production, in response to a government call, he noted that the government has received nine proposals from interested parties vying to construct a refinery in Berbice, five of which were shortlisted. “These proposals are currently being evaluated and the final ranking is expected to be completed in the first quarter of 2024.”
Following this, the topranked contender will undertake an “ESIA (Environmental and Social Impact Assistance) at Crab Island for a facility designed to process at least 30,000 barrels of oil per day.”
In
October, 2022, the
Ministry of Natural Resources invited proposals for the design, finance and construction of a 30,000 barrel per-day oil refinery to be built in the vicinity of Crab Island, in Berbice, in which it will have no ownership or investment interest.
In the area of local content, Singh yesterday pointed out that the Local Content Act 2021 continues “to bring … fruit and government will continue to implement strategies that promote opportunities for Guyanese nationals and Guyanese companies.”
Since January 2022 to the present, contractors, sub-contractors, and licensees reporting to the local content secretariat have recorded 3938 local hires. “Of those Sir, 824 Guyanese were employed as plant and machine operators, 1203 as professionals; accountants, lawyers, engineers, etc, and another 485 as technicians, this brings to the total, this brings Sir the total number of Guyanese persons employed in the sector to more than 6000 persons.”
“In accordance Sir with the Act, five-year masterplans detailing employment, procurement, and capacity development from 33 companies has been received, these project significant growth in activity in the coming years”, he said.
Also in keeping with the Act, Singh said, that the