The artificial island being built in the Demerara River by Vreed-en-Hoop Shorebase Incorporated (VEHSI), has been partly handed over to ExxonMobil Guyana for use as a shore base, with the consortium confirming that the remainder of the project is expected to be handed over by year-end.
Back in 2022, ExxonMobil Guyana and VEHSI signed an agreement for shore base services. The artificial island in the Demerara River that will provide these shore base services, which had a price tag of US$300 million, has so far been partly handed over.
In an update provided to this publication on Wednesday, VEHSI Director Nicholas Deygoo-Boyer revealed that two out of three phases of this project, comprising roughly 50 per cent, have been handed over to ExxonMobil.
“Two out of three phases have been handed over. It’s just that the third phase is as large as the first two… the two phases that have been handed over have two berths and 10 acres with fabrication pads behind them.”
Boyer, whose company National Hardware Limited is a part of the VEHSI consortium, further confirmed that the third phase of the US multimillion-dollar project is expected to be handed over by this year end.
“Basically, (both) phases were handed over in July. But not at the same time. One was in early July; the second one was at the end of July. The third phase, we expect to hand over in December,” Boyer explained.
Jan De Nul Group, a Belgium-based company undertaking the project that specializes in offshore project development, is undertaking the construction aspect of the project. The multimillion-dollar port, when completed, will feature an offshore terminal; fabrication, umbilical and spooling yards. Additionally, it will feature a dry dock facility; a wharf and berths, and administrative buildings, among other facilities spanning 65 hectares.
In April 2022, ExxonMobil Guyana and the VEHSI signed a 20-year agreement for shore base services to be provided at the port of Vreed-en-Hoop facility to support the US oil giant’s operations offshore Guyana. The sod was subsequently turned in June of that year on the US$300 million facility.
Last year in November, the Shore Base received its first commercial ship, the MV Virtuous Striker.
Additionally, with a cargo of over 26,900 metric tonnes, it was one of the largest payloads to ever be offloaded.
The docking and offloading of the vessel marked a major milestone for the facility. At 190m long, this vessel was the longest to ever enter the Demerara River. It was described by the consortium as a milestone that took them closer to becoming fully operational.
In March of this year, VEHSI had received financing to the tune of US$25 million, approved through the New Hayven Merchant Bank for the landmark project. This financing had also marked a significant milestone in facilitating VEHSI’s first-of-a-kind oil and gas infrastructural project.
Collaborating closely with an external financial entity, New Hayven Merchant Bank spearheaded the structuring and deployment of this financing arrangement, tailored specifically to meet the unique requirements of VEHSI’s project.
The Bank had meanwhile also said that its commitment extended beyond this collaboration, as it would continue to actively engage with other providers of risk capital to deliver bespoke financing solutions and deploy capital across diverse sectors within Guyana.
According to the bank, by facilitating access to capital and fostering strategic partnerships, it aims to catalyse growth and drive economic prosperity throughout the Region. Floyd Haynes, the Founder and Chairman at New Hayven Merchant Bank, had described his bank’s partnership with VEHSI as an example of their commitment to sustainable development.
