Last Updated on February 27, 2020, 2:43 AM AST by Anthony Morris
On Wednesday, the Government of Guyana launched a search for a company to market its share of crude oil.
The crude will be produced at Liza well, offshore.
Exxon Mobil Corp began producing oil at the offshore well in December.
The Government has a share in the oil produced, and the Government has said that it was seeking a company to act as a marketing agent to help the Government to export its share of crude.
Guyana’s Department of Energy on their website said the companies willing to participate should submit an expression of their interest by March 12, 2020.
The oil that has been discovered in the Stabroek Block and it is expected to transform the economy of the nation and is expected to produce some 750,000 barrels of crude per day (BPD).
It is noteworthy that most of the crude produced will be lifted by Exxon and its partners, Hess Corp and CNOOC Limited. Whereas, the rest of the crude will be taken by the Guyanese Government. Due to the lack of any refining capacity domestically or the presence of any national oil company, the company has to sell the crude in the open market.
The Government has already hired the Royal Dutch Shell to lift the first three cargoes. Meanwhile, the current search is for a long-term deal for a marketing agent.
According to the Government, the marketing agent is expected to lift around five cargoes of around 1 million barrels each per year.
The duration of the said contract will be of 12 months. The firms applying are required to have an experience of at least five years oil marketing and trading.
The launch of the search has been declared just before the Presidential elections to be held on March 2.
The People’s Progressive Party which is the opposition at the moment has pledged to review the oil contracts that will be signed under present President David Granger’s Government if it wins the elections.
The Energy Department has said that it would accept any questions from the interested parties and that it will post its responses on its website by March 7.
Anthony Morris covers stories related to politics and regional developments. His in-depth reporting about governance and reforms makes him stand out in regional journalism, with a deep analysis of political trends and their impact on Caribbean communities.
