…after fuel import ban, termination of licence
…seeks $25M in damages
SBF International, a company established under the Guyana Energy Agency Act, has moved to the High Court to reverse a decision by the Chief Executive Officer of the Guyana Energy Agency, Dr. Mahender Sharma to restrain the company from importing diesel fuel into Guyana by the termination of its licence.
In a Statement of Claim filed on February 17, 2021, the energy company told the High Court that the decision of the GEA is unlawful and contrary to Regulation 48 (3) of Petroleum Regulation 10 of 2014.
As such, it wants an Order or Writ of Certiorari quashing the decision made the CEO of GEA on September, 2020 to prohibit SBF International from importing fuel to Guyana. Further, the company wants the High Court to declare that Dr. Sharma’s decision to cancel its Importing Wholesale Licence IL (0029) with effect from November, 2020 is unreasonable and improper.
Additionally, SBF International is claiming for damages in excess of $25M for loss suffered as a result of the unlawful act by both the GEA and its CEO.
The company explained that before its licence was terminated, it held both the Importing Wholesale Licence as well as a Storage Licence, which was renewed every year by the GEA. It was explained that the operation of the importation and sale of diesel took place at the Omai Gold Mines Limited (OMAI) at Christianbug Linden.
Putting the issue into context, the company explained that it entered into an agreement with OMAI for the use of its property at Christianburg, Linden. It said that on April 30, 2020, it received a letter from GEA’s CEO expressing concern about the absence of security at the gate house, and the presence of persons on site with no Personal Protective Equipment. A child was also seen on site during the visit by the GEA officers in December, 2019. Further, the energy company was accused of breaching Regulation 53 (1) of the Petroleum and the Petroleum Products Regulations of 2014.
In a subsequent letter on June 24, 2020, the GEA informed the company that the Wholesale Licence filed indicated at the time that its Lease with OMAI for the rental of the terminal had expired on March 31, 2020. The following day, GEA wrote the company again, this time about a spill of about 27 litres of fuel, which was observed in May, 2020 at the company’s Friendship location. At SBF International’s Christainburg terminal, there was also a spill of 59,000 litres of fuel on June 13.
In response, on June 2025, the company informed the energy agency that it had secured an extension from OMAI to occupy the terminal. It had also assured the GEA that it will make a special effort to operate within the operational guidelines and regulations.
It argued that with corrective steps taken, there was no need to suspend and or cancel its licence.
