Guyana’s Liza crude is set to be included in the Platts European Sour Crude Index (ESCI) on a delivered Europe basis, a move that could boost the country’s price transparency and market visibility in one of its key export markets.
ESCI is a price benchmarking system used to track the value of medium to heavy, sulfuric crudes delivered into Europe.
The inclusion of Liza crude was proposed by Platts, part of S&P Global Energy, in an article published on March 25. This will see Liza crude represented alongside other major medium and sour crude cargoes from Latin America and the Middle East, calculated as a delivered cost, insurance, and freight (CFR) value to Rotterdam. Previously, the ESCI only reflected a Free on Board (FOB) benchmark for Liza.
“This effectively means that Liza crude will be directly represented in the European price index, alongside other major medium and sour crudes from Latin America and the Middle East,” the S&P Global article noted.
For Guyana, the move could improve competitiveness in Europe by reflecting typical delivery points. “The proposal may also allow Guyana’s oil to better compete with other global grades, potentially supporting more favorable trade terms,” the report said. It also introduces net forward calculations for Liza, helping buyers and traders hedge and plan more efficiently.
The change comes amid evolving European crude flows, influenced in part by geopolitical tensions, including the US-Iran conflict, which has affected global energy markets. By joining the ESCI on a delivered basis, Liza crude’s value will now more accurately reflect supply-demand dynamics in Europe, potentially reinforcing Guyana’s standing as a competitive crude exporter.
Platts has opened a consultation period for feedback on the proposed amendments, which will close on April 9. “Platts will consider all comments received and will make comments not marked as confidential available upon request,” the company said.
Guyana’s Liza crude made its trading debut on S&P Global Platts in 2024, “exactly three years” after Platts began assessing crude from the Stabroek Block, operated by ExxonMobil.
Liza crude is among four grades produced offshore Guyana by ExxonMobil. Production at the Liza 1 project achieved highs of 160,000 barrels per day (b/d) but has averaged close to 130,000 b/d in recent months. Europe continues to be the main destination for Guyana’s crudes.
ExxonMobil operates Guyana’s Stabroek Block with a 45% stake, with co-venturers Hess (30%) and CNOOC (25%). The oil major has discovered an estimated 11 billion oil-equivalent barrels there.
