Ali making the case for a refinery

Aug 28, 2026 Editorial, News

(Kaieteur News) – “We cannot have crude oil and not have security of supply…and security beings with it stability and then give us some shield against shocks that are currently existing.” We at this paper think that was well-said by President Irfaan Ali. Now he has his heart set on a refinery. Another megaproject that will cost billions of US dollars. A refinery gives Guyana a cushion and, depending on its capacity, the equivalent of a local strategic reserve. The president seemingly had all his cards lined up and is ready to push ahead with a refinery.

“The global environment and imported inflation. Now look at what’s happening in the global environment. We produce crude oil, but we import all refined oil, our gasoline and everything. So, we import back all the price differentials. Since the war, you know what has been happening.” We interpret that to mean that plans for a refinery are well advanced inside the government and at the highest levels. However, there are some points to be shared, which should add sobriety to this development, not a new one, about the building of an oil refinery.

President Ali is engaged with “imported price differentials”, not a meaningless number. He is, however, stubbornly against lifting a finger to urge ExxonMobil to the table of renegotiation over the lopsided 2016 oil contract. The Guyana debt to ExxonMobil of US$55B has been repaid, investment in the fertile Stabroek Block is as close to risk-free as anything can be. Yet, President Ali finds comfort in sheltering behind his conveniently made-up pillar of “sanctity of contract.” Apparently, he was unaware of that inviolable sacredness when he was campaigning to be the president of Guyana. At the time when he firmly committed to “review and renegotiate” all contracts. How does any citizen trust a national leader, who makes such a major commitment, then balks at honouring it?

Our readership needs to take note of this point: dealing with imported inflation is important. But renegotiating the oil contract must be high priority. The contract largely benefits ExxonMobil. The company authored it, took full advantage of that situation, and inserted terms and conditions to ensure its own prosperity, while leaving a great number of Guyanese trapped in poverty. Renegotiating the contract is where big money is, what reduces “imported price differentials” (refined crude oil products) to pennies, in comparison. Rather than President Ali being energised and fixated on building an oil refinery, not necessarily a bad project for Guyana, his prioritising of pushing ExxonMobil to the renegotiating table would serve Guyana far better.

Another position of ours is that citizens have had terrible experiences with highflying projects. The US$2B Wales Gas-to-Energy (GtE) is the latest and largest example. A refinery of size stands to cost multiples of the GtE US$2B. Would that be another six for a nine, another con job, at which the PPPC Government has manifested considerable skill? If such a project were to be launched today, when would that come on stream? When projects of this nature are spearheaded by the PPPC Government, they could take years over the original timeline, with the US billions also increasing. The president further said, “we are hoping that we can have investment in that refinery.” It is almost guaranteed that Guyana will not be short of investors for such a high-priced project. The issue before us is which group would be selected, and with what kind of result for this country. The secrets and denials that have plagued the Wales GtE should put citizens on the alert when they hear about a refinery is needed, and the push is on for it to come to pass.

This is the environment, the type of mindset, that the PPPC Government, under different presidents, has left citizens with. Projects with huge potential to benefit the people encounter roadblocks, end up requiring much more in terms of US millions and time. A GtE in the manner of the Wales project has such high potential. The long and tortured record of where it is currently provides all the proof that anyone should need of what could go wrong and has. A refinery in the hands of this government could duplicate its failures.

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Editorial, ExxonMobil, Guyana Oil, oil, oil refinery, President Irfaan Ali

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