Page 10 - LatAmOil Week 15 2022

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“We have more than six proposals for refiner- producers. In early March, Richard Rambarran,
ies, small refineries, here in Region Six, and we an economics lecturer at the University of Guy-
have exploration going on that can catalyse the ana, pointed out that this reliance on imports
growth here,” Ali was quoted as saying by Oil- was burdensome at times when world crude oil
NOW.gy. He explained that his administration prices were surging. He urged the government
was working to formulate a “macro vision” for to consider building a modular refinery in order
improving the region’s economy by creating new to insulate the country from fluctuations on
opportunities and more jobs. world energy markets. ™
In response to a question from an audience
member, the president indicated that Guyana’s
government had only recently made a decision
to back private investment in the downstream
sector. As recently as last year, he said, officials
in Georgetown did not favour establishing a
domestic refining industry.
Natural Resources Minister Vickram Bharrat
elaborated on this point by explaining that Guy-
ana had been keen to avoid a repeat of Trinidad
and Tobago’s experience. The Caribbean state
built a refinery after becoming a crude pro-
ducer but was not able to sustain the plant after
its oilfields matured, he explained. It then had to
import feedstock to keep the facility, known as
Petrotrin, operational, he noted.
According to reports from other sources,
Petrotrin has been a headache for officials in
Port of Spain for some time. The government of
Trinidad and Tobago has been trying to sell the
refinery for several years, so far without success.
In January 2022, it indicated that it had decided
to return to the market to make another attempt.
Guyana is completely dependent on
imported petroleum products and is set to
remain so for the foreseeable future, despite Region Six/Berbice-Corentyne is the easternmost
its status as one of the world’s newest crude oil region of Guyana (Image: Government of Guyana)

Shawcor set to sign Yellowtail pipeline

coating contract with Saipem in mid-2022

CANADA’S Shawcor said last week that it the anticipated value of the Yellowtail con-
expected to sign an agreement in mid-2022 tract. However, it did report that Shawcor had
with Italy’s Saipem on pipeline coating services also received formal pipeline coating contract
at Yellowtail, the fourth oilfield slated for devel- awards for two smaller projects in the Gulf of
opment within the Stabroek block offshore Mexico and estimated that the LoI and these
Guyana. two contracts were worth more than CAD50mn
In a statement, Shawcor explained that its ($39.51mn) altogether.
pipe coating division had signed a letter of intent Kevin Reizer, the president of Shawcor’s
(LoI) with Saipem. It said it expected to sign a pipeline performance group, indicated that his
formal contract with the Italian service provider company had been able to strike an agreement
in mid-2022, assuming that the relevant Guy- with Saipem on the Yellowtail project partly on
anese government agencies issue the necessary the strength of its past performance at other sec-
authorisations. tions of the Stabroek block. “The performance
If this deadline is met, the company added, of our coating solution on the Liza Phases 1 and
work on the contract can begin in the first quar- 2 development projects and the more recent
ter of 2023. Shawcor’s facility in Veracruz, Mex- Payara development project in Guyana provides
ico, will provide the pipeline coating services, it evidence that our coating technology is well
stated. suited to be deployed on the Yellowtail develop-
The Canadian company did not disclose ment project,” Reizer stated.

P10 www. NEWSBASE .com Week 15 14•April•2022