A partnership between Cana-dian oil exploration company CGX Energy Inc and the government could see the establishment of a deep water sea port in the Berbice River, within the next few years.
Following a report in the Guyana Chronicle about the facility, Stabroek News on Thursday contacted Administrative Manager of the local CGX office Taranchandra Khelawan, who said that the sea port “is in the plan”. He declined to provide further details on the project saying that more information will be divulged this week when a team from Canada visits.
Guyana has long talked about building a deep water harbour and studies have determined that the Berbice River is the best location for such an establishment. A team of experts from India spent a week here last year, during which the determination was made. However, there appeared to be little progress being made with the project.
At the commissioning of the Takutu Bridge in September 2009, the link between Guyana and Brazil, then Brazilian President Luiz Inacio Lula da Silva pledged support for several infrastructural projects in Guyana, including a deep water harbour. Guyana is currently engaging Brazilian officials regarding the paving of the Linden to Lethem road.
In December, Suriname signed Memoranda of Understanding (MOU) with two Chinese companies for US$6 billion worth of projects, including a deep sea harbour and a road and railroad to Brazil. It was felt that these developments would challenge Guyana’s bid to become the gateway for business into and out of Brazil.
However, a senior government official said Guyana was way ahead of Suriname in relation to these projects. The official said that Guyana had already conducted feasibility studies in relation to these projects while Suriname would have to start from scratch.
The construction of a deep water port by CGX was first hinted at by its President Kerry Sully in November when he delivered the feature address at the Guyana Manufacturing and Services Association’s (GMSA) 15th Annual Presentation Awards Dinner at the Princess Hotel.
“We at CGX have acquired a 55-acre piece of land in the mouth of the Berbice River… that construction is underway. We’re going to be putting in a port and wharf facility… a portion of that is obviously to support my exploration and development,” Sully said. He further stated that this facility could later provide a “foothold” for other industrial manufacturing opportunities that would result from its oil drilling activities. The facility, he said, “could also be used to serve as an import, export port for the Berbice area”.
During the budget debate last month in the National Assembly, Prime Minister Sam Hinds hinted too at the possible establishment of this facility. “CGX has begun arrangements to support its drilling… in particular, we could note that CGX has begun the development of a dock and storage area in the Crab Island area in the mouth of the Berbice River,” he said. “So here we have another step which could turn out to be a big step in the development of a larger and larger port at the mouth of the Berbice River,” he added.
One source told this newspaper that the initiative is divided into three phases. The first phase, Stabroek News understands, is expected to be completed by the end of the year.
According to the Guyana Chronicle report, the project will be privately financed and is being done in collaboration with a local associate and the government of Guyana, mainly through the Guyana Office for Investment (Go-Invest). When completed, it is capable of accommodating Post Panamax ships — massive supertankers and container vessels.
Contacted on Thursday, Head of Go-Invest Geoffrey Da Silva declined to provide any information on the project, saying that CGX was the entity authorized to speak on the project.
CGX and its partners including Spanish oil giant, Repsol are preparing to drill the deepest well in the region offshore Guyana this year. Following the drilling of the ‘Jaguar 1’, CGX will then drill for oil at its Eagle location in the Corentyne. Sully said that if there is a discovery next year, production can begin within four years. CGX had attempted to drill at the Eagle location in 2000 but was forced off by Surinamese gunboats. The United Nations has since resolved the maritime border between the two countries, largely in Guyana’s favour.
