Govt invites bids to market Guyana’s share of crude

Liza Unity

The Guyana Government has invited interested companies to market Guyana’s share of crude oil from the Liza Destiny and Unity FPSO vessels operating offshore in Stabroek Block for the next year.

In a statement, the Natural Resources Ministry said the Invitation for Bids was issued earlier this week in search of a company to competitively market Guyana’s share of oil entitlement.

Interested bidders desirous of obtaining Requests for Proposals (RFP), consistent with the country’s procurement guidelines, were directed to the Permanent Secretary of the Natural Resources Ministry.

As per the bidding document, marketers will also be responsible for, among other things: providing all functions of marketing; assessing regional and global demand centres; selecting customers and making appropriate transportation arrangements; providing support and guidance to the Government in all operating and back-office responsibilities of managing these crude sales and each individual lifting whilst facilitating timely and cost-efficient crude oil operations.

The selected company will have to market Guyana’s crude for 12 months, commencing in the last quarter of 2022.

The deadline for the submission of bids to the National Procurement and Tender Administration Board is 09:00h on Tuesday, October 11, 2022.

Saudi Aramco was contracted last year to market Guyana’s share of profit oil from ExxonMobil-led operations in the Stabroek Block.

With the Liza Destiny and Unit FPSO vessels operating offshore, Guyana is entitled to 13 of 94 lifts from the oil-rich Stabroek Block in 2022.

From this, it is estimated that some US$957.6 million, that is, US$857.1 million earned from Government’s lifts and an additional US$100.5 million from royalties, will be deposited into the Natural Resources Fund in 2022.

Since oil production commenced in December 2019, Guyana has earned some US$607.6 million from its share of nine oil lifts and from royalty payments at the Liza 1 Field in the oil rich Stabroek Block.

Government has injected the entire $126.7 billion into Budget 2022 to accelerate the country’s development.