Chevron has withdrawn funding for the initial studies for the deepwater Berbice port in Guyana. This port is planned as a logistics hub for oil production in the Stabroek block. Previously, Hess Corporation, which was acquired by Chevron last year, had supported the pre-planning studies for this port.
Details of the Berbice Port Project
The American engineering company Bechtel is leading the initial design programs for this port. Bechtel completed the front-end engineering design in 2023, but the feasibility study is still ongoing. Harry Pastuzak, Bechtel's engineering manager in Guyana, stated that Hess funded the engineering and initial design costs of the project. However, Chevron has decided to withdraw from funding other parts of the feasibility study.
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Economic Impacts and Need for Deepwater Port
Through the acquisition of Hess, Chevron now owns 30% of the Stabroek block, one of the valuable oil and gas resources in Guyana. ExxonMobil, the operator of this block, is the largest shareholder with a 45% stake, while China National Offshore Oil Corporation (CNOOC) holds 25%. With production in the Stabroek block expected to increase by 2030, a deepwater facility like the Berbice port is anticipated to enhance energy logistics needs.
The Berbice port project has an estimated cost of between $1 to $2 billion and will include an industrial center featuring data centers, a fertilizer plant, and a refinery. The development of the Berbice port has been in planning for over a decade, and in 2016, the Inter-American Development Bank (IDB) provided a report on the economic prospects of this port. This report highlighted the regional benefits of the project and noted the connection of northern Brazil to the Atlantic coast.
The feasibility study is currently targeting an update of the IDB report findings. Several development partners have expressed interest in the port project, but further progress may only be possible after the completion of the feasibility study. Additionally, the Export-Import Bank of the United States (EXIM) has promised funding for the engineering design study of phase three.
Furthermore, the President of Guyana, Mohamed Irfaan Ali, announced to local media that Qatar has also expressed its willingness to participate in the development of this port. If the port project reaches the final stage, it would mark a significant economic milestone for Guyana.
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