Guyana Launches Tender for New Agent to Sell its Crude Exports

SEATTLE (Oil Monster): Guyana has launched a tender to choose a marketing agent for its share of Liza crude oil exports, the Natural Resources ministry said on Thursday, following the expiration of a contract with a unit of Saudi Aramco (2222.SE).

A consortium by U.S. companies Exxon Mobil Corp (XOM.N) and Hess Corp (HES.N) and China's CNOOC (0883.HK) is in charge of all production of Guyana's Liza and Unity Gold crudes and the firms market their own barrels, while the Guyanese government separately receives and exports its share of profit oil.

Companies interested in becoming the marketing agent must submit bids on Oct. 11 for a 12-month contract to begin in the last quarter of the year, the ministry said in a release.

Guyana expects to bank about $1.25 billion this year from the sale of its oil share and royalties, up 30% from a prior estimate. Through mid-year, the government exported cargoes worth $307 million and also received $37 million in royalties, it said earlier this month.

So far this year, almost half of Guyana's total oil exports have headed for Europe, up from 16% in 2021, buyers in that region seek alternatives to Russian crude, according to Refinitiv Eikon data.

On Aug. 10, joint production from the two floating facilities operating at the Liza I and II projects reached a record of 390,000 barrels of oil equivalent per day (boepd). The Exxon-led consortium aims to end the year producing around 380,000 boepd, about 40,000 boepd more its initial 2022 target.

 Courtesy: www.reuters.com