Govt. seeking marketer for crude from Liza Destiny & Liza Unity vessels

Sep 21, 2022 News

Kaieteur News – The Ministry of Natural Resources on Monday said it is seeking eligible bidders for the provision of marketing services for Guyana’s oil entitlement from two Floating, Production, Storage and Offloading (FPSO) vessels, namely the Liza Destiny and the Liza Unity.

Bidders may bid for one or more lots as defined in the bidding documents. Kaieteur News understands that firms must submit the original and two copies along with two electronic non-editable copies of the Bid for each lot.

The Liza Destiny, Guyana’s first Floating, Production, Storage and Offloading (FPSO) vessel

The bidder shall seal the signed bid in an envelope addressed to the National Procurement and Tender Administration Board (NPTAB).

The envelope shall bear the following identification: – “Ref. No. MNR/2022/ICB/MS-02 – Bid for the Provision of Marketing Services for the Cooperative Republic of Guyana’s Oil Entitlement Lot 1: For the Liza Destiny FPSO Vessel (and/or, where applicable) and Lot 2: For the Liza Unity FPSO Vessel.”

Government said the bids must be sent no later than 09:00 hours on October 11, 2022 at the address: The Chairman, National Procurement and Tender Administration Board, Ministry of Finance, Main and Urquhart Streets, Georgetown, Guyana.

Interested bidders may obtain further information by email at jmckenzie@nre.gov.gy or from the following address: Permanent Secretary, Ministry of Natural resources, Duke Street, Kingston, Georgetown, Guyana.

Kaieteur News previously reported that Aramco Trading Limited (ATL), the London-based trading subsidiary for the State controlled Saudi Aramco, had inked a one-year contract with the ministry to market Guyana’s crude entitlement from the Liza Phase One Project. That contract came to an end last month.

ATL was among 15 bidders in the Brent-linked tender for Guyana’s light sweet Liza grade, and “was identified as the lowest compliant evaluated bidder at the price of $0.025/bl,” the ministry had said.

The other bidders were: Bibi Energy Trading, Shell Western Supply and Trading, Chevron, Petraco Oil, China National Offshore Oil Corporation, Natural Gas Company of Trinidad and Tobago and Heritage Petroleum, Hess, Vitol, Mercuria Trading, Total Energies, Litasco and Trafigura. Proposed commissions ranged from US$0.02/bl to US$0.26/bl.

As for the Liza Unity crude, government has been doing its own marketing. At least two cargoes were already sold but little is known about the buyers and how they were selected.

Importantly, sales agreements for the country’s share of profit oil have not been made public. The International Secretariat for the Extractive Industries Transparency Initiative (EITI) has since called for Guyana to do better on this front.

It has also pointed out that the country is yet to declare consistently, information pertaining to the volumes of oil collected in accordance with the profit-sharing split in the Stabroek Block Production Sharing Agreement (PSA), alongside the identity of the buyer for each oil cargo.

Furthermore, the EITI had flagged Guyana for not publishing descriptions of the process for selecting the buying companies, the technical and financial criteria used to make the selection, the list of selected buying companies, and any material deviations from the applicable legal and regulatory framework governing the selection of buying companies.

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