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Global Oil Giants Compete for Guyana’s Crude Marketing Contract

EditorVenkatesh Jartarkar
Published 10/18/2023, 07:41 AM
Updated 10/18/2023, 07:41 AM

On Wednesday, 25 global oil giants, including ExxonMobil (NYSE:XOM), Chevron (NYSE:CVX), HESS, CNOOC (NYSE:CEO), Saudi Aramco (TADAWUL:2222), and Aramco Trading Limited, entered the bidding process for a contract to market Guyana's oil from the Liza Destiny, Liza Unity, and Payara Prosperity FPSO vessels. The Ministry of Natural Resources initiated the process at the NPTAB office, with five lots representing different FPSO vessels or combinations on offer.

Among the bidders are Repsol (OTC:REPYY) Trading from Spain, BP (NYSE:BP) Oil International Limited from the UK, Equinor ASA (NYSE:EQNR) from Norway, PetroChina International from America, and Mercuria Energy Trading SA from Switzerland. ENI (BIT:ENI) Trading & Shipping Inc. from Italy has targeted specific lots only. Several companies including ExxonMobil, BP Oil International Limited, PetroChina International Inc., Petraco Oil Company Limited, and Aramco Trading Limited bid for all five lots while others like ENI Trading & Shipping Inc. and Mercuria Energy Trading SA targeted specific lots.

This initiative is part of Guyana's strategy to optimize its oil sector and maximize the value of its crude oil entitlement from developments in the Stabroek Block. The country is seeking a new marketer after significant discoveries in the Stabroek Block were previously marketed by BP International Limited. The strategy also aims to foster a competitive market for the Liza, Unity Gold, and Payara Gold Blends.

In related news on Wednesday, Dutch firm SBM Offshore secured a Front-End Engineering Design (FEED) contract from ExxonMobil for its Whiptail development in Guyana. This involves designing, building, and installing an FPSO capable of producing 250,000 barrels of oil per day, treating 15.3M m3 gas, injecting 300,000 barrels of water per day, and storing two million barrels of crude oil.

The contract triggers initial funding for SBM's FEED activities and a 10-year operation and maintenance agreement for four rigs, boosting SBM's revenue backlog by US$3Bn. ExxonMobil operates the Stabroek Block, where it green-lit a US$12.7Bn final investment decision for its fifth offshore project following a discovery at the Lancetfish-1 well. Stakeholders CNOOC and Hess Corp (NYSE:HES) also operate in the block which has produced 11Bn barrels of oil and plans to have six FPSOs by 2027 with first oil expected by the end of 2025. The project requires a subsea infrastructure network, with contracts awarded to Oceaneering International (NYSE:OII).

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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