Guyana has narrowed down the list of potential partners for its crude marketing contract, selecting three contenders from a pool of 25 bidders. The country’s Vice President, Dr. Bharrat Jagdeo, provided insights into the ongoing selection process and the criteria being used to evaluate the bids. “Soon you will be seeing the award for the marketing of our crude and for all three [floating production, storage and offloading vessels] FPSOs,” Dr. Jagdeo said. He emphasized the importance of “credibility and price” as the two key variables in the decision-making process.
The Vice President expressed satisfaction with the current state of bidding, highlighting a significant shift in the financial dynamics of the deal compared to the past. “We are very pleased now with this bid because we have moved from the early period… where we were paying a marketing commission, to zero marketing commission and now we’re going to get a premium in these bids,” Dr. Jagdeo elaborated. The premium mentioned by the Vice President indicates that the successful bidder will offer a price above the daily Brent average, based on the last five days – he said this is common practice.
Further details about the deal are expected to be made public soon, as the Vice President assured. The marketing services sought are for the competitive marketing of the Liza, Unity Gold, and Payara Gold blends.
The selected marketing service will succeed BP Oil International Limited, which secured a one-year contract after overtaking 13 other competitors and followed Aramco Trading Limited’s tenure.
Production from the Liza 1 and 2 projects is ongoing, contributing to a combined output of approximately 380,000 barrels per day. The inclusion of the Payara blend is anticipated to start in the third quarter of 2023 with the deployment of the Prosperity FPSO. As Guyana’s production capabilities expand, the output is forecasted to surpass 600,000 barrels per day by early 2024.
