Guyana loading third 1mn bl crude cargo

Market: Crude oil
06/08/20

Guyana will complete the loading of a third 1mn bl cargo of Liza crude allotted to the government tomorrow, director of Guyana's energy agency Mark Bynoe told Argus today.

The Norwegian-flagged SKS Spey tanker is loading the cargo from the Liza Destiny floating production, storage and offloading unit (FPSO) at the deepwater Stabroek block.

Guyana awarded the first three cargoes of its share of Liza production to Shell Western Supply and Trading in a restricted opening tender. The first 1mn bl allotment loaded in February 2020 and the second in May.

Liza is produced by an ExxonMobil-led consortium at Stabroek, where output kicked off in December 2019. Production is currently around 100,000 b/d, according to the energy department.

Guyana is currently assessing 19 shortlisted bidders for a one-year contract to market the government's share of Liza crude.

The list was drawn from 34 bidders that applied when the tender closed on 21 April. The shortlist includes ExxonMobil that spearheaded the country's deepwater oil play, along with Shell, BP, Norway's Equinor, France's Total, Swiss-based traders Vitol and Glencore and Brazil's state-controlled Petrobras.

The successful bidder will handle a minimum of five 1mn bl cargoes of 32.1°API Liza crude in 2020-21.

"The technical and financial proposals are currently being evaluated and we hope to be in a position to announce an award as soon as possible," Bynoe said.

"With a new administration in place we will have to give some consideration for it to be fully briefed."

Guyana is installing a new government five months after contentious presidential and parliamentary elections.

By Canute James

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