Oil Refinery in Guyana will cost US $50B


According to oil expert, Pedro Hass of Hartee Partners who conducted the feasibility study on the oil refinery, it will cost Guyana some US $50B to set up a oil refinery here.
He said it is expected to produce a minimum of 100,000 barrels per day. Considering Guyana’s consumption of 15,000 barrels per day, Minister of Natural Resources Raphael Trotman told the large gathering at Marian Academy public Consultation that government will have to consider the social benefits of the construction of the multi billion dollar refinery.
The minister said that cabinet will have to deliberate on the findings and recommendations that were proposed in the feasibility study. In addition Trotman said “One of the major concerns would be job creation.”
The minister also said “Government is unsure whether the size of the facility would be downsized and whether potential investors in a refinery would go along with incentives for government, taking into consideration it does not become a white elephant.”
He also stated that with the consumption of 15,000 barrels per day government is committed to going green with regards to hydro power, solar and possible wind. That along with what is discovered will have to be looked at which will be brought on shore to provide additional energy.  He also pointed out that the 15,000 barrels per day factor will change if the gas into generation is to replace the heavy fuel used by the Guyana Power and Light (GPL). Meanwhile Hass however warned against the reduction of the refinery to less than 100,000 barrels per day.
“If you have a very high infrastructure cost for a on site facilities would worsen the viability of the project if the cost of infrastructure is high and production is scaled down it hurts the project instead of helping it,” Hans stated.
The representative also noted that the price for crude oil is US $ 46.50 per barrel and has a very little chance of climbing to US $ 100 or more per barrel in the near future. The public consultation was attended by a wide cross section of Guyanese.

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