Guyana awards crude oil marketing contract to UK’s BP International

Last Updated on Thursday, 24 November 2022, 21:50 by Denis Chabrol

Guyana has selected the United Kingdom-based BP International out of a total of 14 companies  to market the country’s share of crude oil from the Liza 1 and Liza 11 offshore fields, the Ministry of Natural Resources announced Thursday night.

Under the Production Sharing Agreement, Guyana is entitled to 50 percent of the profit oil share- that is 12.5 percent each to the country and the ExxonMobil-led Esso Exploration and Production Guyana Limited (EEPGL)- and 75 percent goes to cost oil. Guyana also gets 2 percent royalty.

Guyana would be paying US$0.00 per barrel of oil, in accordance with the company’s bid, for the next 12 months. BP International succeeds Aramco which had marketed Guyana’s share for the past year.

ExxonMobil extracts 360,000 barrels per day from from Liza1 and Liza II through the Floating Production, Storage and Offloading vessels – Liza Destiny and Liza Unity

BP International’s 12-month contract is expected to see that company guide and support government “in all operating and back-office responsibilities” of managing the crude sales and each individual lift while facilitating timely and cost-effective crude operations 

BP is also expected to find new markets and refinery systems around the world for Guyana’s grade of crude and provide benchmark and performance comparisons of prices paid for Guyana’s crude. The company, in its bid, also said it would work closely with government to understand the behaviour of yields of the Liza blend and how they could affect prices.