Guyana’s Department of Energy (DE) has put out a request for Expressions of Interest (EOI) from companies looking to provide marketing services to the country for its share of crude from the Liza Phase 1 Development.
The duration of services is expected to be 12 months with March 12, 2020 being the deadline for submission of the EOI.
The DE said in the absence of a National Oil Company in Guyana, the responsibility of marketing the country’s share of oil must be managed by the Department, pursuant to the Petroleum Sharing Agreement dated June 27, 2016.
Among the scope of services, the successful company must provide support to the DE in all operating and back office responsibilities of managing crude sales and each individual lift. The company must support the DE in the first year of introduction of the grade in multiple geographies and refinery systems. The firm will be expected to work closely with the DE in understanding the behaviour and yields of the Liza Blend and how this affect pricing differentials and advocating for any operational considerations that may affect the pricing of the crude. The company must also conduct training sessions for DE personnel in matters relating to Crude oil Supply and Trading fundamentals, and more specifically, those relevant to the Liza grade pricing.
December 20, 2019 marked a historic milestone for Guyana, as ExxonMobil and its co-venturers Hess and CNOOC produced the first commercial crude from the Liza field, located approximately 120 miles offshore the South American country in the Stabroek Block. The output from the first phase is expected to reach a capacity of up to 120,000 gross barrels of oil per day (bdp), utilizing the Liza Destiny Floating Production Storage and Offloading (FPSO) Vessel. The Stabroek Block is expected to produce up to 750,000 bpd by 2025.
Shell Western Supply and Trading Limited was selected in December as the buyer of the country’s first three lifts of crude.
Greece-registered crude oil tanker, Cap Philippe lifted the first cargo of I million barrels assigned to the government, last week.