22 C
Georgetown
Tuesday, April 13, 2021

Guyana exported its first oil cargo for 2021 last week: over US$206M now in account

Must Read

For Guyana, retaining the resource-rich Essequibo region ‘is a life-or-death matter’ – Ivelaw Griffith

Ivelaw Lloyd Griffith, former Vice Chancellor of the University of Guyana and Senior Associate with the Center for Strategic...

Canada-Guyana Chamber says now is the time to invest in economy projected to be world’s most oil intensive by 2025

The expanding oil and gas operations in Guyana will have a significant impact on other industries in the country,...

Touchstone confirms ‘liquids rich’ natural gas discovery in Trinidad and Tobago

Canada-based oil and gas company Touchstone Exploration Inc. said on Monday the completion of flowback testing of the Cascadura...
OilNOW
OilNow is an online-based Information and Resource Centre which serves to complement the work of all stakeholders in the oil and gas sector in Guyana.
  • Government may reopen bids for marketing company

The Guyana government lifted its first oil cargo for 2021 last week, bringing the total number of shipments made by the country to five, which represents its share of crude from the Liza Phase 1 Development since production started in December 2019.

“So far US$ 21.2 million in royalty payments have been made into the fund and there are four payments [for exports],” Vice President, Bharrat Jagdeo told the media on Tuesday. “So, we now have US$206.6 million in the fund… US$185 million so far from the profit oil and US$21.2 [million] from the royalties and then you have some interest…”

The February 2021 cargo was lifted by Hess, as was the 4th cargo in December last year since a marketing company has not yet been contracted for longer-term engagements. Shell Western Supply and Trading Limited was initially contracted by the previous administration to lift the country’s first 3 oil shipments. The new government had moved forward with reopening the tender for a marketing company back in August last year, shortly after being sworn into office.

“So, we went out to tender last year and 29 companies submitted bids. And the evaluation criteria, we believe, that was set by the Department [of Energy], resulted in the evaluators having to disqualify…28 of the 29 basically, so they only had one valid bidder,” Jagdeo pointed out. He explained that the prequalification criteria were ‘nonsensical’ since it allowed for the disqualification of companies with proven track records in marketing crude, including Shell, which had already lifted multiple cargos of the Liza Crude.

“This was not transparent as far as we are concerned; you can’t disqualify 28 of 29 bidders, especially these people are trading billions of barrels per day and they have bigger capacity,” he said.

The Vice President later disclosed that the government is considering whether to invite the same companies to resubmit bids and “change the so-called prequalification criteria” since it is set up in a way that allows for disqualification of proposals for lack of technical capacity, even though, as in the case of Shell, for example, the company had demonstrated it had the capacity.

“So, either simplified prequalification criteria where you can say all of these companies are capable of marketing the oil and then it’s just a matter of the best price, or in that context also we can look at people who may want to buy the oil directly,” the Vice President explained. “For us, it is the best price for oil; that is what we’re looking at because you have hundreds of companies literally that can take this oil and sell it.”

OilNOW TV

Latest News

Canada-Guyana Chamber says now is the time to invest in economy projected to be world’s most oil intensive by 2025

The expanding oil and gas operations in Guyana will have a significant impact on other industries in the country,...

For Guyana, retaining the resource-rich Essequibo region ‘is a life-or-death matter’ – Ivelaw Griffith

Ivelaw Lloyd Griffith, former Vice Chancellor of the University of Guyana and Senior Associate with the Center for Strategic and International Studies says a...

Total, CNOOC enter agreements with Uganda and Tanzania for $3.5 billion pipeline

(Reuters) -Uganda, Tanzania and oil firms Total and CNOOC on Sunday signed agreements that will kickstart the construction of a $3.5 billion crude pipeline...

Touchstone confirms ‘liquids rich’ natural gas discovery in Trinidad and Tobago

Canada-based oil and gas company Touchstone Exploration Inc. said on Monday the completion of flowback testing of the Cascadura Deep-1 well in Trinidad and...

Exxon’s Greater Guyana Initiative brings Zoom Rooms project to University of Guyana

The University of Guyana (UG) on Saturday launched its Zoom Rooms project which it says lays down the first building blocks for its blended-learning...

More Articles Like This