Two companies win bids to market Guyana’s crude oil

Two companies win bids to market Guyana’s crude oil

The Minister of Natural Resources has announced that BB Energy and JE Energy have won the bid to market Guyana’s crude oil, beating out 23 other companies.

At a press conference on Tuesday, Minister Vickram Bharrat explained that BB Energy will market the oil produced from the Liza Unity and the Prosperity Floating Production Storage and Offloading (FPSO) vessels, while JE Energy has been awarded a contract to market the country’s crude oil produced by the Liza Destiny FPSO.

He said under the current contracts, Guyana will get a premium for its crude, and will not be required to pay a market fee.

“Twenty-five companies submitted proposals for which we would have identified BB Trading out of the UK to market out crude from the Prosperity and Unity FPSO and they will be paying a premium of 26 cents per barrel – an additional 26 cents per barrel. Now that is not the price that we will receive, that is the additional to what we will receive to the brent price. Of course, they are paying the market price, the average of five days and added to that, they will pay 26 cents per barrel on each lift,” Mininster Bharrat explained.

It is anticipated that in a period of one year, the Liza Unity and the Prosperity FPSOs will generate a total of 11 lifts each, while the Liza Destiny – a much smaller FPSO – will produce a minimum of five lifts.

The Minister said though smaller, the Government has secured a very good deal for the Liza Destiny.

“JE Trading actually submitted a very good proposal. The proposal is 70 cents premium on each barrel that is lifted from Destiny. However, Destiny is much smaller and we expect a minimum of five lifts in a year. We can get six if all things go well,” Minister Bharrat said.

 Guyana’s crude was previously marketed by BP Oil.

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