SANTO DOMINGO, Dominican Republic, CMC – The Dominican Republic and Guyana have signed a Memorandum of Understanding (MoU) to establish a new oil refinery in Guyana.
The Dominican Republic will be the majority shareholder, with 51 percent, and a feasibility study for the 50,000 barrels per day oil refinery will be conducted.
Guyana has been seeking a private developer to invest in an oil refinery processing about 30,000 barrels of oil daily to satisfy local needs.
President Dr. Irfaan Ali, who is on an official visit to the Spanish-speaking Caribbean country, is quoted by the pro-government News Room online publication in Georgetown as saying that the Dominican Republic is set to become an “off-taker” of Guyana’s oil and that some of the oil produced offshore and refined in Guyana, will be shipped to the country for use.
“The DR (Dominican Republic) as an off-taker improves the viability and feasibility of the project, which can be an important part of the energy matrix in the region,” he told the publication.
The two countries have also signed an MoU that will assess the feasibility of the Dominican Republic participating in oil exploration at an oil block offshore Guyana.
On Tuesday, the private sector organizations in the two countries signed a memorandum of understanding aimed at cooperating and supporting each other to boost trade and investment between the two countries.
“The activities implemented by this MOU by one of the parties will have the support of the other Party. This support could include knowledge sharing, technical support, consultancy or advisory services provided by either Party to the other Party, or joint project development or promotion,” according to the document.
The MOU, which was signed by the President of the National Council of Private Enterprise, Inc; (CONEP), Celso J. Marranzini, and the President of the Private Sector Commission (PSC), Komal Singh, will be valid for one year and will be automatically extended for consecutive periods of 12 months, unless revoked in writing, before its date, of expiration by the authorized representatives of either side.
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