On July 3, 2021, the Guyana government sold its 7th oil cargo when just over 1 million barrels of crude were lifted from the Liza Destiny FPSO. Since production began on December 20, 2019, the government has marketed 7.056 million barrels of crude to the value of more than US$400 million, plus royalty payments.
The July oil sale was executed with Indian Oil Corporation Ltd. (IOC). It was described by Natural Resources Minister, Vickram Bharrat as the country’s “sweetest deal to date”. He said it was the highest sale made so far of the seven lifts since no marketer’s fee was paid.
The government has since disclosed that Aramco Trading Limited (ATL) has been given the greenlight to market the country’s 8th lift – 4th so far for 2021 – scheduled for September 21 – 22.
Mr. Bharrat said the government remains committed to securing the best agreements for the country and will maintain the highest level of compliance and transparency to ensure that the benefits from the oil and gas sector improve the lives of the Guyanese people.
The South American country’s revenue stream from oil sales is also expected to increase further since the Stabroek Block co-venturers have been looking at potentially increasing the production capacity for the Liza Destiny FPSO as well as upcoming floaters.
Already, the Liza Phase 2 development is set to start up in Q1 2022 and Payara will come online by 2024. The government is also reviewing an application for the Yellowtail Development, the fourth project at Stabroek Block.