President Dr Mohamed Irfaan Ali says the proposed national oil company would not be established to invest in or produce oil, but would instead form part of a wider plan to strengthen Guyana’s domestic fuel supply.
The Head of State explained that the concept is centred around the establishment of a local oil refinery, along with increased fuel storage capacity, as the government looks to reduce exposure to fluctuations in international fuel prices.
Guyana currently produces crude oil offshore but imports its refined fuel.
“We cannot have crude oil and don’t have security of supply,” Ali said, noting that a refinery could provide the country with “some shield against shocks that are currently existing.”
Addressing questions about the proposed national oil company, Ali said it is “not as an investor but… one company that looks holistically at the entire ecosystem in terms of the supply.”
The President also pointed to the need for greater fuel storage capacity, saying the current level does not match “the development aspirations of our country.”
According to Ali, the government is examining storage options ranging from 30 to 120 days of fuel supply.
Beyond meeting domestic needs, the President believes the development of refining and storage capacity could eventually allow Guyana to supply fuel to other CARICOM countries.
“We must be an important supplier in the energy market,” Ali said.
