Four firms bid to build Guyana’s oil refinery

Dec 14, 2022 News

Kaieteur News – Four firms have responded to the Ministry of Natural Resources’ advertisement for Request for Proposals (RFP) to design, finance and construct Guyana’s first oil refinery.

At the opening of tenders on Tuesday at the National Procurement and Tender Administration Board (NPTAB) office, it was revealed that the competing firms are DRL Engineering in joint venture with GESS; Sol Guyana Inc. in collaboration with CH4 Guyana Inc. and Lindsayca Inc.; Freight N Cargo Logistics Inc.; and Berbice Green Refining Inc. in joint venture with ARC Energy, Polaris EPC, and Barson SG.

Kaieteur News understands that DRL Engineering and Freight N Cargo Logistics Inc. are based in the United States of America.

According to DRL Engineering’s LinkedIn page, the company is a full-scale engineering company based in Houston, Texas with offices in Kuala Lumpur, Malaysia, and Moscow, Russia.

With 100 years of combined experience, the company noted, “We specialize in Project Management, Front End Definition, Benchmarking, and Cost Reduction of Upstream and Midstream Oil and Gas Facility Developments. We also undertake Benchmark and Cost Reduction studies for Offshore and Onshore developments including Refining, Renewables and LNG.”

Freight N Cargo Logistics Inc, on its LinkedIn page, said that it is a supply chain management company, based in Westbury, New York.

Kaieteur News had reported that the proposed facility will be designed to process 30,000 barrels of oil per day (b/d) and be located on land provided by the government at the mouth of the Berbice River in the vicinity of “Crab Island.”

Government’s RFP said it expects construction to start by the first quarter of 2023 with project completion no later than two years after start date.

Importantly, government said it will provide several incentives to the successful company.

Along with the estimated 30 acres of land to be provided, government said it will also offer generous fiscal incentives for the project including a 10-year tax holiday, supply of feedstock (oil) from the Guyana Government’s share of profit oil at market prices; and access to the domestic market for sale of refined products (if desired).

The RFP had stated too that this project will be strictly financed and owned 100% by the private sector. “GOG will not have any ownership or investment interest in the project,” the advertisement mentioned.

Back in October, President Irfaan Ali had mentioned that the refinery will open opportunities in transport and logistics, the service industry, the construction industry, the rental industry and much more.

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