The United Kingdom’s BP Oil International Limited beat 13 competitors to win a one-year contract for the marketing of Guyana’s share of profit oil from the Liza Destiny and Liza Unity floating production, storage and offloading (FPSO) vessels.
The marketing tender was published in September last and by mid-October, bids were received from several companies. These included BB Energy Trading Ltd (US$5000 per cargo from Liza Destiny and Liza Unity, Tullett Prebon Americas (US$0.0175 per barrel from Liza Destiny and Liza Unity), Petro China International (US$0 per lift), and Shi-Oil (US$0.015 per barrel). BP which has been in the business for 86 years won with the contract with the lowest bid at US$00.00 per barrel. How BP benefits from this deal is not yet clear.
The chart attached to this news item, sourced from the National Procurement and Tender Administration website, shows BP Oil’s pricing compared to other bids.
The award to BP Oil occurred on October 31, 2022. It was deemed the lowest compliant evaluated bidder given that it had a better technical proposal and capacity-building programme for the Ministry of Natural Resources. Its work began this month.
According to tender documents, BP International will be responsible for all marketing functions, assessing regional and global demand centres, selecting customers and making appropriate transportation arrangements, and providing support and guidance to the client in all operating and back-office responsibilities of managing these crude sales. It will also be expected to facilitate timely and cost-efficient crude oil operations and support the ministry in the continued introduction of the grade to multiple geographies and refinery systems.
In addition to the foregoing, the ministry said BP will also be required to provide benchmark performance comparisons of prices paid for the client’s crude while working closely with the client in understanding the behaviour and yields of the Liza blend and how these affect pricing differentials.
Aramco Trading Limited (ATL), a Saudi Aramco subsidiary, was awarded the previous one-year contract in 2021 for marketing Guyana’s crude from the Liza Destiny.
