Refiners invited for “face to face” bidding on Guyana’s Oil

Dec 14, 2019 News

– Bloomberg says arrangement “unusual”

Guyana is expected to receive bids for its oil from at least half a dozen traders from Houston, Geneva and London as early as Monday. Bringing this revelation to the fore yesterday was reputable NY media house, Bloomberg.

The Liza Destiny which will be storing and offloading oil from the Stabroek Block in a few days

The news outfit noted that Guyana which has no experience in trading oil, sent letters to refiners around the globe inviting them to bid for three million barrels of light-sweet oil. But there is a catch.
Bloomberg found out from its sources the buyer must take the “unusual role” of handling “all operating and back office responsibilities” related to exporting the crude. It said that this was outlined in a document it perused.
On top of that, Bloomberg highlighted that the bids must be offered “face to face”. The news agency said that such a voyage is rare for traders, who do most of their business on instant-message platforms and by phone.
Despite the unusual arrangement, Bloomberg pointed out that the oil world is happy to play along with an inexperienced Guyana.
It was further noted that the three cargoes being offered by Guyana to the bidders are an appetizer for a bigger prize. After this sale that is part of an “incubation and launching” phase, Bloomberg said that Guyana plans to sell its crude via long-term contracts.
The government will load its first cargo in February, but the first oil lift will be exported in January by Exxon Mobil, which operates the Liza oil field.
In the meantime, not a word about this bidding arrangement has been made known to citizens. Neither the Department of Energy nor the Ministry of Presidency has made mention of intentions to act in this regard.

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