The Guyana government will be selling its own share of crude when production starts at the Liza Phase 1 Development project, just months away, and a tender for this will be put out before the end of the year. So says Director of the Department of Energy (DE), Dr. Mark Bynoe, speaking at a press conference on Monday at the Ministry of the Presidency in the country’s capital, Georgetown.
Dr. Bynoe said Guyana’s share of crude from the 120,000 bpd Liza Destiny FPSO will be marketed Free On Board (FOB) and will be sold in million-barrel cargos with liftings every 8 to 10 days.
“Government will be selling its own share of crude and tender will be issued during Q3 or Q4 of 2019 for a fee-based marketing service to market the government’s share of crude oil,” he stated.
A crude lifting agreement is being finalized and the Guyana government will be a signatory as a lifter of crude along with the Stabroek co-venturers; ExxonMobil, Hess and CNOOC.
Dr. Bynoe said an industry standard document based on the Association of International Petroleum Negotiators Crude Lifting Agreement is being applied. “This sets up a mechanism for allocating the schedule of crude cargo liftings based upon volume entitlements which are calculated taking into account the cost recovery rules of the petroleum agreement,” he indicated.
Development drilling for Liza Phase 1 began in May, laying the foundation for production startup in 2020. ExxonMobil and its co-venturers have so far discovered estimated recoverable resources of more than 5.5 billion oil-equivalent barrels on the Stabroek Block.