Dominican Republic Joins Guyana Oil Exploration to Cut Reliance on Imported Fuel
A Dominican state refinery is part of an oil well project in Guyana that could ease fuel costs, though any payoff is years away.
Key points
- Refidomsa is a partner in a company linked to the Government of Guyana exploring the well.
- According to Acento, the Dominican state will not make an initial capital investment and would get preferential access to any commercial discovery.
- The refinery processes about 30,000 barrels a day, versus national consumption of 140,000 to 145,000.
- According to El Dia, the government projects about RD$50 billion in fuel subsidies by the end of 2026.
The Dominican Republic is taking part in an oil exploration project in Guyana through the Dominican Petroleum Refinery (Refidomsa). According to Samuel Pereyra Rojas, chairman of Refidomsa's board of directors, who spoke to Acento, the project already holds its concession and is in the well exploration phase.
Refidomsa is a partner in a company linked to the Government of Guyana in developing the project. Pereyra Rojas explained that any eventual production could help reduce the country's exposure to swings in international fuel prices. Under the agreement, the Dominican state will not have to make an initial capital investment. If oil or natural gas is found in commercial quantities, the country will have preferential access to the hydrocarbons.
The official clarified that this is a long-term project, so its results would not have an immediate impact. According to Acento, Pereyra Rojas said: "An agreement with Guyana would greatly help us see how we could lower the price."
The Dominican participation stems from a memorandum of understanding signed by both governments on August 8, 2023, in which they agreed to study the country's inclusion in oil projects developed in Guyana. The two nations later signed a contract for the exploration, development and eventual production of oil or natural gas in the Berbice block.
The refinery processes around 30,000 barrels a day of gasoline, diesel and jet fuel. National consumption, however, ranges between 140,000 and 145,000 barrels a day, so the country must import most of what it needs. That dependence exposes it to international market swings.
According to El Dia, the Dominican government projects closing 2026 with about RD$50 billion in fuel subsidies to keep international price increases from being fully passed on to consumers. The issue will be addressed at the event "New Reality: Dominican Republic Facing the Global Impact on Fuel," organized by the ministries of Finance and Economy and of Industry, Commerce and MSMEs.
Why it matters
The country depends almost entirely on imported fuel, so international prices hit consumers directly. A possible discovery in Guyana could ease that pressure, though not immediately.