In a landmark move that deepens energy cooperation between two Caribbean nations, the governments of the Dominican Republic and Guyana formalized a landmark joint development agreement Thursday to explore and potentially bring online new oil and natural gas resources in Guyana’s onshore Berbice block.
Under the terms of the agreement, the Dominican Republic’s state-owned Dominican Petroleum Refinery (Refidomsa) will hold a 10% non-operating stake in the exploration project, requiring no upfront capital contribution from the Dominican state. If exploration efforts successfully identify commercially viable hydrocarbon reserves, the Dominican Republic is guaranteed access to extracted crude oil and natural gas on preferential pricing terms, a provision designed to shore up the country’s long-standing goal of improving national energy security.
This new operational agreement builds on a 2023 memorandum of understanding signed by Dominican President Luis Abinader and Guyanese President Mohamed Irfaan Ali, which laid the initial groundwork for bilateral energy collaboration. Over the past year, technical teams from the Dominican Republic’s Ministry of Energy and Mines, Refidomsa, and Guyana’s relevant energy authorities have worked closely to align regulatory standards, survey requirements, and project frameworks to move the initiative forward.
Officials from both nations have framed the deal as more than a single exploration project: it is viewed as a catalyst for broader economic integration. Should the Berbice block project prove successful, stakeholders say additional joint ventures could follow, including the potential development of a shared regional refinery and petrochemical complex. The partnership also opens new pathways for expanded cooperation across trade, investment, and energy policy as both countries seek to leverage their respective geographic and resource strengths in the global energy market.