Guyana’s first share of crude lifted

DPI, Guyana, Wednesday, February 19, 2020

Guyana has lifted its first one million barrels of crude in time for its 50th anniversary as a republic.

The crude was transferred on Tuesday onto the oil tanker Cap Philippe, which was chartered by Shell Western Supply and Trading Limited.

Director of the Department of Energy, Dr. Mark Bynoe, who was on board the Liza Destiny witnessed the transfer and deemed it a historic moment for Guyana.

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Dr. Mark Bynoe, Director of the Department of Energy, Ms. Joanna Simmons, Legal Officer and Ms. Virginia Markouizou, Crude Marketing Specialist with the oil tanker Cap Philippe in the background.

“This has been quite a momentous occasion looking at where Guyana has come from over the last four years, nine months and the conceptualisation of this programme to actual fruition where we see production,” the Energy Director said.

He added that the first lift of Guyana’s crude was not only a dream becoming a reality but that it also brought a level of assurance to Guyanese.

Dr. Bynoe explained that the one million barrels was part of the country’s profit oil allocation and did not include the two percent royalty, which would be paid on gross productions.

“So, even though we are having a million barrels lift in this particular instance, we are also receiving two percent on all oil that is being produced. This gets us away from the perception that all Guyana is getting under the contract is two per cent royalty.”

For 2020, Guyana is entitled to approximately five million barrels of oil plus the two per cent royalty.

Officials from the Guyana Revenue Authority and the Guyana National Bureau of Standards are on board the Liza Destiny to ensure the integrity of the investment is protected and the necessary systems are in place to protect Guyana’s resources.

The offloading takes between 20 to 36 hours and the process was expected to be completed on Wednesday.

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