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Start- up of oil refinery could be lengthy process – official

April 7, 2011 By admin

Guyana’s potential commercial oil reserves have caught the attention of a group of companies willing to invest at least US$ 75 million to set up the first oil refinery here over the next 18 months to three years. However, officials have cautioned that the startup of such a project could take a long time.

President Bharrat Jagdeo in discussion with officials of Prime Energy

The initiative will see the establishment of modular mini refineries in a joint effort by three U.S. – based companies: Prime Energy, Chemex, and Kuai Energy Systems. The mini refineries would create jobs for Guyanese in the near future, and tremendously expand Guyana’s oil- producing capacity. Modular mini refineries can be sited as close as possible to oil wells, thereby reducing travelling costs and the amount of time required for setting up, shipping, erecting, installing and commissioning, required with large oil refineries.

At a public presentation held at Princess Hotel, East Bank Demerara, representatives of Prime Energy – the company spearheading the initiative – explained to several stakeholders the benefits of establishing such a refinery in Guyana. Prime Energy Director Vijai Doerga explained that it would be a win- win situation for both Guyana and the company should the company strike oil and the refinery is established. In his power-point presentation, he weighed the pros and cons of having mini refineries instead of traditional oil refineries.

However, the start- up of the refinery may take some time, since the companies must first get the Guyana government’s permission and carry out several assessments in determining where the site will be and other fundamentals. These feasibility studies would also determine whether the companies need to invest more money.

The figure is also dependent on the demand in Guyana. If successful, it could see Guyana producing between 500 to 20,000 barrels of oil per day.

However, based on Prime Minister Samuel Hinds’s response at the forum, the government may be keen on the initiative. “This is a potential for cost saving. Various persons have been looking to see if we can find oil on Guyana’s side of the Corentyne River near shore, offshore and onshore in the same sorts of volumes that Suriname has found. If we strike oil, this would bring the need for small refineries in Guyana,” he said.

He referred to the 1980s in the Takutu Basin as the only time Guyana has recorded striking oil. In light of this, he reminded the audience that companies have recently set up camp again in this area in hope of having the same luck.

The prime minister admitted that he was quite ‘excited’ to learn about the benefits of mini refineries and their potential application in Guyana, stating that since the world is generally accustomed to traditional refineries, he was unaware of the benefits of mini refineries. “I therefore hope that in two to three months you can hear about a strike down in the Takutu Basin, because that will make the application of the oil re-fineries more perfect and give them a greater advantage, so that both the country and investors can share the benefits,” he said.

Another.....Pie-in-de-Sky Dream from Jagdeo

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Former Member

US oil companies to build refinery here

Thursday, 07 April 2011 23:22

DESPITE some growth in the use of renewable forms of energy globally, fossil fuels are going to be around for a long time, so Guyana would be well advised to embrace new methods of refining these traditional sources of energy and benefit immensely from doing so. This point was made by officials of three oil companies based in the United States who met with local stakeholders Wednesday and briefed them on their plans to build an oil refinery here. The meeting was held at the Princess Hotel Guyana, Plantation Providence, East Bank Demerara, under the theme ‘Expanding Guyana’s Energy generating opportunities’. Prime Minister Samuel Hinds, minister responsible for mining and mineral resources, was a guest among many others, including University of Guyana students, staffers of the Guyana Energy Agency, of the Guyana Geology and Mines Commission, GO-INVEST, members of the Diplomatic Corps, opposition politicians and members of the business sector. The presenters included Vidjai T. Doerga International Director of Prime Energy, Mr. Jerry Brooks Project Manager of Chemex, Mr. Raul Arrondo Director of Prime Energy and Mr. Carlos Villegas Director of Finance.

Prime Minister Sam Hinds, in white shirtjac, with oil companies officials

The presenters were unanimous in their opinions that given an anticipated unchanging demand for fossil fuels up to at least 2035, investment in an oil refinery here would be a venture from which both their company and Guyana would derive great benefits. V. Doerga disclosed that the refinery to be built in Guyana would be of a type known as the modular mini refinery, acknowledged as the most up-to-date for distilling crude oil to make various products like gasoline, diesel, and heavy fuels, oils, and also lighter fuels, like naphta, propane and other gases.
He described the mini refinery as a power plant in a box since it was not only affordable but mobile.
Its establishment, or the establishment of more than one, will create jobs and provide high foreign currency savings for Guyana.
He said that the advantages of the mini refineries outweighed the benefits of the older permanent and fixed oil refineries.
The mini refineries also had far less adverse effects on the environment than the traditional larger ones.
Mr. Jerry Brooks spoke on the concept of mini refineries, a technical presentation which outlined the components of its systems, again highlighting the advantages over the traditional large scale refinery.
Mr. Raul Arrondo also spoke of the differences between the traditional and the new refining systems, stressing that this was the modern way.
Comparing fossil fuels with renewable forms of energy, he said, “We accept that hydro electricity is the most cost-efficient form of electricity, but we also know that hydro electric plants cannot produce 100% all the time; there are droughts, there are maintenance issues and so forth.
He stressed that there will always be need for energy from fossil fuels.
Mr. Carlos Villegas said that crude oil has been on top of the list of the sources of energy used worldwide over the past 20 years and will continue to be at the top for the next 24 years.
He noted that studies had shown that 87% of energy used in 1990 came from fossil fuels; 9% from renewable and 4 % from nuclear sources.
He said that after the recent problem in Japan, many countries were considering abandoning the use of nuclear sources of energy.
He charged that the problem with renewable sources of energy is that they are not economically viable.
Projections to 2035 showed that sources of energy being used would amount to 84% fossils, 10% renewable and 5% nuclear.
“It may be true that the world is changing with respect to sources of energy, but it is going take much longer than we think,” he said, adding that the mini refineries were a great source for refining crude oil, given the projections about a continued world-wide dependence as the primary source of energy.
Prime Minister Sam Hinds said he welcomed the team of investors and was intrigued by the concept of mini refineries and its potential for making a great impact on the local situation.
He expressed hopes that local oil exploration efforts would be successful so that the new approach could be implemented here. V. Doerga said that studies will have to be done to identify the exact type of refinery which can be developed here and its location. Following the completion of these studies it is expected that, within 18 months, an estimated US$75M will be spent to establish the facilities. He stressed, “We are going to put up a refinery. It will be a fully private sector operation. We are going to make money out of it; but at the same time; its going to do the country a real good.” An earlier release had stated that the conglomerate, which has been eyeing the Caribbean for a while now, will be sourcing its crude oil from companies in the region, at the beginning.
Dr. Turhane Doerga, another International Director of Prime Energy, had said that the company and its associates are aware of oil exploration efforts here; and if there are successful outcomes, then they will buy the crude for use in the planned refinery.
The Prime Energy officials also met President Bharrat Jagdeo and briefed him on their plans for the refinery here.

Last Updated on Thursday, 07 April 2011 23:24

5/19/135:01 PM

Mr.TI pity the fool

Where is the crude oil that needs refining?

5/19/135:38 PM

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Start- up of oil refinery could be lengthy process – official

The figure is also dependent on the demand in Guyana. If successful, it could see Guyana producing between 500 to 20,000 barrels of oil per day.

He referred to the 1980s in the Takutu Basin as the only time Guyana has recorded striking oil. In light of this, he reminded the audience that companies have recently set up camp again in this area in hope of having the same luck.

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Start- up of oil refinery could be lengthy process – official

The figure is also dependent on the demand in Guyana. If successful, it could see Guyana producing between 500 to 20,000 barrels of oil per day.

He referred to the 1980s in the Takutu Basin as the only time Guyana has recorded striking oil. In light of this, he reminded the audience that companies have recently set up camp again in this area in hope of having the same luck.

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