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The Noble Tom Madden vessel drilled discovery wells offshore Guyana in the Stabroek Block. (Photo: Hart Energy)

Guyana in search of oil marketing company

The Noble Tom Madden vessel drilled discovery wells offshore Guyana in the Stabroek Block. (Photo: Hart Energy)

The Government of Guyana is on the lookout for oil marketing companies that can sell its share of oiled drilled from the Liza project in the Stabroek block, Director of Energy Dr Mark Bynoe announced last week.

With crude production expected to begin in December and expected to reach 120,000 barrels per day, the Government projects that it will receive its share of oil in March 2020.

“It is not Guyana’s main concern what happens once fuel gets to the transporting vessel, and I’ll tell you why. As I mentioned earlier, we are selling our crude on spot. So, if you have a million barrels, we’re selling it through a marketing agent. Now, how that person that we’re selling to transports it to wherever, that’s their concern. Their issue is insurance, vessels, etc; we’re not getting into that. We’re just selling it on spot from the FPSO (floating production, storage and offloading),” Dr Bynoe explained at a press conference last Wednesday at NCN Studios in Georgetown, Guyana.

Guyana’s Director of Energy Dr Mark Bynoe… “As I mentioned earlier, we are selling our crude on spot. So, if you have a million barrels, we’re selling it through a marketing agent. Now, how that person that we’re selling to transports it to wherever, that’s their concern. Their issue is insurance, vessels, etc; we’re not getting into that.” (Photo: YouTube)

“Now, what I should say to you is that selling the crude has to happen like two months prior to our expected lift. So, if you’re expecting a lift in March, we have to start marketing our crude somewhere in January, assuming my math is right,” the director of energy added.

Once crude production reaches 120,000 bpd, the first million barrels will be lifted by ExxonMobil, Bynoe informed. He explained that this is because ExxonMobil has refineries and will, as a result, ensure the quality of crude being drilled.

“The energy department has already contracted commercial and crude marketing specialists, and plan to sign contracts with petroleum accounting and contract administration specialists soon…”

—Argus Media

Subsequent to the first lift, Hess Corporation, China National Offshore Oil Corporation and the Government of Guyana — the other stakeholder in the Liza project — will receive a million barrels of oil. Each stakeholder will be given a million barrels of oil between every eigh to 10 days.

According to a report from Argus Media, Guyana will be looking to contract an oil marketing agent on a “fee-per-barrel” basis.

“The energy department has already contracted commercial and crude marketing specialists, and plan to sign contracts with petroleum accounting and contract administration specialists soon,” the Argus Media article reports Bynoe saying.

The Liza Destiny Floating, Production, Storage and Offloading (FPSO) vessel arrived in Guyana in September as the country readies for first oil. (Photo: News Room)

The director of energy also disclosed that a fourth drilling rig from contractor Noble is aexpected to arrive on the offshore Stabroek block, which includes the Liza project, this weekend.