Dominican Republic Wins 10% of Guyana Oil Block, No Cash Down
Caribbean · Energy
Key Facts
—The deal. the Dominican Republic Guyana oil agreement, signed May 14, gives the Caribbean nation a 10% stake in Guyana’s onshore Berbice block.
—No cash down. the structure grants the 10% share without direct capital investment, with the state oil refiner Refidomsa representing the Dominican Republic.
—The scope. the contract covers exploration, development and eventual production of oil or gas, with Guyana issuing the exploration license.
—The leaders. Presidents Luis Abinader and Mohamed Irfaan Ali signed the deal, which grew out of a 2023 memorandum of understanding.
—The boom. Guyana’s economy is projected to grow about 24% in 2026, fuelled by an offshore oil surge that has earned it the “Dubai of South America” tag.
—The rationale. the deal hands the import-dependent Dominican Republic strategic access to hydrocarbons in case of commercial finds, without committing public funds upfront.
A Caribbean importer has bought into South America’s biggest oil story without spending a peso upfront. The deal ties the Dominican Republic to Guyana’s boom, with the upside resting on a commercial discovery.
What is the Dominican Republic Guyana oil deal?
The Rio Times, the Latin American financial news outlet, reports that the Dominican Republic Guyana oil deal, signed on May 14, grants the Caribbean nation a 10% stake in the onshore Berbice block in Guyanese territory. The contract covers exploration, development and eventual production of oil or natural gas.
The state oil refiner Refidomsa represents the Dominican Republic in the project, while Guyana issues the exploration license. The agreement grew out of a memorandum of understanding the two governments signed in August 2023.
How does the no-investment structure work?
The model gives the Dominican Republic its 10% share without requiring direct capital investment, sparing public funds in the early, high-risk exploration phase. Officials framed it as strategic access to hydrocarbons should the block yield commercial finds.
In any secondary projects tied to the agreement, the Dominican Republic would hold a majority stake of more than 51%. The arrangement reflects bilateral diplomacy led by the two presidents over several years.
Why does Guyana’s boom matter here?
Guyana has become one of the world’s fastest-growing economies on the back of major offshore oil discoveries since 2015. Its output has climbed toward roughly 900,000 barrels per day, on a path toward about 1.7 million barrels per day by 2030, and its economy is projected to expand about 24% in 2026, drawing comparisons to a Gulf petro-state.
For the Dominican Republic, a net energy importer, a foothold in that boom offers a hedge on future supply. The Berbice block is onshore, separate from the offshore Stabroek discoveries that anchor Guyana’s production and its global reputation.
What are the risks and the upside?
The deal is exploration-stage, so the value of the 10% stake depends entirely on whether the Berbice block yields commercial volumes. Onshore exploration carries its own technical and timing risks, and no production is guaranteed.
The upside is asymmetric: the Dominican Republic gains potential reserves and energy security at little upfront cost. The structure lets it participate in a high-growth sector without exposing taxpayers to early drilling expenses, and preserves the option to scale up through majority stakes in any follow-on projects.
What should investors and analysts watch next?
- Exploration results: whether the Berbice block yields commercial oil or gas.
- Refidomsa’s role: how the state refiner manages its stake and any operating partners.
- Secondary projects: whether the Dominican Republic activates its majority option.
- Guyana output: the broader production curve toward 1.7 million barrels per day by 2030.
- Energy security: how the deal feeds the Dominican Republic’s import strategy.
More: Latin America news in English, every day from The Rio Times.
Frequently Asked Questions
What did the Dominican Republic sign with Guyana?
On May 14 the two countries signed a contract giving the Dominican Republic a 10% stake in Guyana’s onshore Berbice block for exploration, development and eventual oil or gas production.
Does the Dominican Republic pay for the stake?
No. The structure grants the 10% share without direct capital investment, sparing public funds in the early exploration phase, with state refiner Refidomsa representing the country.
Where is the Berbice block?
Berbice is an onshore block in Guyanese territory, distinct from the offshore Stabroek discoveries that drive most of Guyana’s current oil production.
Why does it matter for the Dominican Republic?
As a net energy importer, the Dominican Republic gains a low-cost foothold in South America’s biggest oil boom and potential supply security if the block yields commercial volumes.
How big is Guyana’s oil sector?
Guyana produces around 900,000 barrels per day and is projected to grow about 24% in 2026, on a path toward roughly 1.7 million barrels per day by 2030.
Connected Coverage
The deal plugs the Dominican Republic into the surge mapped in how Guyana’s oil boom is rewriting its future. It joins the regional story told in how Latin America drives global oil supply growth in 2026, within the wider frame of our guide to oil and energy in Latin America.
Reported by Sofia Gabriela Martinez for The Rio Times — Latin American financial news. Filed May 20, 2026 — 20:30 BRT.
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