Bidders for lifting Guyana oil cargo include Exxon, Chevron

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Department of Energy Director Dr. Mark Bynoe and Crude Marketing Specialist, Virginia Markouizou, update the media at a press conference on Monday, December 16, 2019, in Georgetown, Guyana.

Several international oil companies including majors such as ExxonMobil and Chevron are bidding for the opportunity to lift Guyana’s first share of oil cargoes from the Liza field at the Stabroek Block early next year, the country’s Department of Energy (DE) said on Monday.

DE Director Dr. Mark Bynoe told reporters at a press conference while the department is open to full transparency, for commercial and negotiating purposes, the decision on who it was engaging for potentially lifting the first few crude cargoes was meant to be kept private in the initial stages of the discussions.

He said the companies that were invited by the Department did not go through a procurement process since this was not necessary at this introductory stage. When the Request For Proposal (RFP) process gets underway in the coming months, then a procurement process will be activated.

DE Crude Marketing Specialist, Virginia Markouizou said using an RFP would be premature at this stage; she explained that an RFP would involve termed contracts for lifting Guyana’s crude entitlement.

Dr. Bynoe said bidders include Chevron, CNOOC International Ltd., Hess Corporation, ExxonMobil, Shell, ENT Oilfield Group Ltd., BP, Total S.A, and Eni. He said the objective is to have whichever bidder is chosen, introduce the Liza Grade crude to the international market.

ExxonMobil is operator at the Stabroek Block with a 45% interest while HESS and CNOOC are co-venturers on the block with 30% and 25% respectively.

Ms. Markouizou reminded that the bidders are all international oil companies with an integrated value chain and have vast experience and a global refining footprint in the market of the oil and gas industry.

Additionally, Dr. Bynoe explained that while advice will be provided from experts and other parties the final decision on the sale of Guyana’s crude entitlement will be made by the Government.

The international market, traders, and international oil companies are all looking on to see the performance of the grade in the first few months of its incubation and initialization into the market, Ms. Markouizou said.

Oil production at the 120,000 barrels per day Liza Phase 1 Development is expected to get underway before the end of the year.