Bids open for companies to sell Guyana’s oil

Sep 19, 2024 News

Kaieteur News – The Ministry of Natural Resources (MNR) has invited eligible companies to submit bids for the provision of marketing services for Guyana’s Oil.

According to an advertisement released by the MNR, the bidders will be putting their submissions for an opportunity to market Guyana’s oil entitlement from Lot 1 – Liza Destiny FPSO Vessel, Lot 2 – Liza Unity FPSO Vessel, Lot 3 – Payara Prosperity FPSO Vessel, Lot 4 – Any two (2) Lots combined and Lot 5 – Combined Lots 1, 2 and 3.

The advertisement stipulates that bids shall be opened by the National Procurement and Tender Administration Board in the presence of Bidders’ representatives who wish to attend, at 09:00 hrs. on Tuesday 1st day of October 2024 at the National Procurement and Tender Administration Board, Ministry of Finance, Main & Urquhart Streets, Georgetown, Guyana or may request a video link from [email protected].

The bids must be valid for 120 days from the date of opening.  Additionally, bidders inter alia may bid for one or more lots as defined in the bidding documents. At present, two United Kingdom companies market Guyana’s oil share.

Minister of Natural Resources, Vickram Bharrat  had revealed that UK company, JE Energy is the marketer of oil coming from the Liza-1 platform which uses the Liza Destiny FPSO, while BB Energy is the marketer for  oil from the Liza-2 and Payara platforms which use the Liza Unity and Liza Prosperity FPSOs, respectively.

According to the minister the contract stipulates that neither of the companies charge government for the marketing and will instead pay, in the case of BB Energy Limited, US 26 cents on every barrel it sells. JE Energy plans to pay some US 70 cents on each barrel of crude it markets.

The Liza Destiny FPSO is currently producing over 150,000 barrels of oil per day (bpd), up by 30,000 after debottlenecking, a process of optimizing capacity. Its storage capacity is 1.6 million barrels. As for the Liza Unity FPSO, it is also producing 30,000 more barrels than had been announced as it moved from 220,000 bpd to 250,000 bpd after the same optimising process. Its storage capacity is some two million barrels.

• Board, FPSO, Marketing, Ministry of Natural Resources (MNR), provision