Guyana Receives Bids from Major Energy Players for Oil Marketing Contract

Thursday, October 3, 2024

Guyana on Tuesday received bids from major energy companies seeking a 12-month marketing contract to trade the government's share of crude produced in the country, the country's National Procurement and Tender Administration Boardsaid.

A total of 27 offers were received, the board said, including bids by Shell, TotalEnergies, Chevron, ADNOC, Gunvor, Vitol, PetroChina, CNOOC and Eni.

A consortium led by Exxon Mobil controls all oil and gas output in the South American country through three active projects, while the government is entitled to a portion of output as part of a production sharing agreement.

Guyana's light sweet crude grades - Liza, Unity Gold and Payara - have been very well received by refiners since the country inaugurated output in 2019. Last year, a larger portion of exports went to Europe to meet its demand.

The bidders were allowed to make proposals to market crude from a single project or a combination of several. The contract will begin next month, and the government intends to deliver its portion of output in 1-million-barrel cargoes, according to a copy of the tender seen by Reuters.

Guyana expects to receive and deliver for marketing about 23 cargoes in the 12-month period, but final numbers will depend on production rates, the tender added.

Trading firm JE Energy is currently marketing the government's share of crude produced at the Liza 1 project, while firm BB Energy markets the government's share from the Liza 2 and Payara projects, following a similar tender last year.


(Reuters - Reporting by Kemol King and Ahmad Ghaddar, writing by Marianna Parraga)

Categories: Industry News Activity South America Oil and Gas

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