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Guyana receives offers from major firms for oil marketing contract
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Guyana receives offers from major firms for oil marketing contract
Oct 2, 2024 10:27 PM

By Kemol King and Ahmad Ghaddar

GEORGETOWN, Oct 1 (Reuters) - Guyana on Tuesday received

bids from major energy companies seeking a 12-month marketing

contract to trade the government's share of crude produced in

the country, the country's National Procurement and Tender

Administration Board said.

A total of 27 offers were received, the board said,

including bids by Shell, TotalEnergies,

Chevron ( CVX ), ADNOC, Gunvor, Vitol

, PetroChina, CNOOC and Eni

.

A consortium led by Exxon Mobil ( XOM ) controls all oil

and gas output in the South American country through three

active projects, while the government is entitled to a portion

of output as part of a production sharing agreement.

Guyana's light sweet crude grades - Liza, Unity Gold and

Payara - have been very well received by refiners since the

country inaugurated output in 2019. Last year, a larger portion

of exports went to Europe to meet its demand.

The bidders were allowed to make proposals to market

crude from a single project or a combination of several. The

contract will begin next month, and the government intends to

deliver its portion of output in 1-million-barrel cargoes,

according to a copy of the tender seen by Reuters.

Guyana expects to receive and deliver for marketing

about 23 cargoes in the 12-month period, but final numbers will

depend on production rates, the tender added.

Trading firm JE Energy is currently marketing the

government's share of crude produced at the Liza 1 project,

while firm BB Energy markets the government's share from the

Liza 2 and Payara projects, following a similar tender last

year.

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