BP International Limited – a company in the United Kingdom – has been selected to market Guyana’s share of petroleum from the Liza Destiny and Liza Unity vessels.
The Government, through the Ministry of Natural Resources, made the announcement on Thursday, explaining that BP International was selected following a competitive procurement process.
The UK based company is engaged in oil, petrochemicals and related financial activities on an international level. It replaces, Aramco Trading Limited, whose contract has ended.
Detailing the procurement process, the Natural Resources Ministry explained that a Request for Bids was issued on September 16, 2022 with October 11, 2022, as the submission deadline.
Fourteen bids were submitted to the National Procurement and Tender Administration Board (NPTAB).
“The procurement board appointed an Evaluation Committee and that committee recommended BP International for the award of contract as part of its evaluation report. That report was cleared by NPTAB and received the Cabinet’s ‘no objection,’” the Ministry explained.
The contract is for a period of 12 months.
Based on the contract, BP International is expected to provide support and guidance to the Guyanese Government in all operating and back-office responsibilities of managing the crude sales and each individual lift whilst facilitating timely and cost-effective crude operations.
It is also required to support the government in the continued introduction of the grade to multiply geographies and refinery systems, and provide benchmark and performance comparisons of prices paid for Guyana’s crude.
The company will also be working with the government to understand the behaviour and yields of the Liza blend and how these can affect pricing differentials.
“The Guyana Government will continue to employ transparent and international best practices in the management of the nation’s petroleum resources so as to attain maximum returns and advance the livelihoods of all citizens,” the Ministry assured.
Currently, US oil major – ExxonMobil – is producing approximately 389,000 barrels of oil and gas per day, and it is expected by 2027, some 1.2M barrels of oil and gas will be produced daily.
Based on the 2016 Production Sharing Agreement, 75% of the oil produced by ExxonMobil and its co-venturers Hess and CNOOC, is set aside for the companies to recoup investments in their exploration and production operations while the remaining 25% is treated as profit to be divided equally between the Government and ExxonMobil.