Govt to market its share of crude oil

─ systems to be implemented to ensure process is efficiently run

DPI, Guyana, Tuesday, July 30, 2019

The Government of Guyana will be selling its share of crude when production commences at the Liza Phase 1.

This was announced by the Director of the Department of Energy, Dr. Mark Bynoe, during a press conference on Monday at the Ministry of the Presidency.

“Government will be selling its own share of crude and tender will be issued during Q3 (third quarter) or Q4 (fourth quarter) of 2019 for a fee-based marketing service to market the government’s share of crude oil,” he disclosed.

According to the Energy Director, a crude lifting agreement is being finalised and “the government will be a signatory as a lifter of crude along with the Stabroek co-venturers.”

It was also announced that an industry standard for international petroleum crude lifting agreement is being applied.

“This is a document which is used throughout the industry worldwide and sets up a mechanism for allocating the schedule of crude cargo liftings based upon volume entitlements which are calculated taking into account the cost recovery rules of the petroleum agreement,” Dr Bynoe explained.

He also added that the agreement also “lays out strict procedures for efficient crude lifting.”

Guyana’s share of crude will be sold Free on Board (FOB) and in million-barrel cargos with liftings every 8 to 10 days.

The Energy Director noted that this will be required an “efficient and smoothly run process.” As such, the Department “has been working with its sister agencies and operators to ensure that such a process is put in place to ensure that it is running as efficiently from day one.”