December 20, 2019 marked a historic milestone for Guyana, as ExxonMobil and its partners produced the first commercial crude from the Liza field, located approximately 120 miles off shore the coast of Guyana in the Stabroek Block. The output from the first phase is expected to reach a capacity of up to 120,000 gross barrels of oil per day (bdp), utilizing the Liza Destiny Floating Production Storage and Offloading (FPSO) Vessel. The Stabroek Block is expected to produce up to 750,000 bpd by 2025.

ExxonMobil successfully drilled several deep-water exploration wells, which now makes the Cooperative Republic of Guyana an oil producer.  The seafloor beneath Guyana’s coastal waters contains one of the largest oil discoveries in recent years, placing Guyana in the top 40 reserve holders in the world.

Given the novelty of this experience, Guyana’s government has taken steps to
prepare for the complexities, opportunities and risks that lie ahead.

Most oil producing countries receive a large portion of their revenue from selling the state’s share of oil production. Usually, at the centre of these transactions, is the national oil company (NOC) with a responsibility to sell this oil, and in the absence of a NOC in Guyana, this responsibility must be managed by the Department of Energy (DE), to sell the oil to International Markets, pursuant to the Petroleum Sharing Agreement dated June 27, 2016.

The scope of the Service to be provided include:

To market successfully the Government’s Crude Oil Entitlement, with a Minimum

Production Rate of five (5) Lifts per annum, Specifications as per below: (i)     Crude: Liza Blend Crude Oil, (Assay attached)

(ii)     Delivery: Liza Destiny FPSO,

(iii)     Cargo size: 1,000,000 bbls at 60F,

(iv)     Percent Tolerance: +/- 5% Buyer’s Option subject to Terminal Acceptance

(v)     Total Quantity: as determined by Petroleum Sharing Agreement dated June 27, 2016.

1. To  provide  support  to  DE  in  all  operating  and  back  office  responsibilities  of managing these crude sales and each individual lift,
2. To  support  the  DE  in  the  first  year  of  introduction  of  the  grade  in  multiple geographies and refinery systems,
3. To work closely with the DE in understanding the behaviour and yields of the Liza Blend and how these affect pricing differentials, and advocating for any operational considerations that may affect the pricing of the crude,
4.  To conduct training sessions for DE personnel in matters relating to Crude oil Supply and Trading fundamentals, and more specifically, those relevant to the Liza grade pricing.
5.  To use all reasonable efforts to provide relevant information, documentation and/or training in a timely manner for DE personnel.