HomeFutures and CommoditiesMajor global oil companies vie for contract to market Guyana's crude, intensifying...

Major global oil companies vie for contract to market Guyana’s crude, intensifying competition in the region.

Global Oil Giants Compete for Guyana’s Crude Marketing Contract

Oil Giants Enter Bidding Process for Guyana’s Oil Marketing

On Wednesday, 25 global oil giants, including ExxonMobil and Chevron, entered the bidding process for a contract to market Guyana’s oil. This contract covers the Liza Destiny, Liza Unity, and Payara Prosperity FPSO vessels. The Ministry of Natural Resources initiated the process at the NPTAB office, offering five lots representing different FPSO vessels or combinations.

Reputable Companies Show Interest in Guyana’s Oil Sector

The bidders include Repsol Trading, BP Oil International Limited, Equinor ASA, PetroChina International, and Mercuria Energy Trading SA. Some companies bid for all lots, while others targeted specific ones. This competitive market aims to optimize Guyana’s oil sector, maximize its value, and foster growth in the Stabroek Block.

- Advertisement -

Guyana’s Strategy to Maximize Oil Sector Value

Guyana’s strategy involves finding a new marketer for its significant oil discoveries in the Stabroek Block. This move comes after BP International Limited marketed the previous discoveries. The country aims to create a competitive market for the Liza, Unity Gold, and Payara Gold Blends, boosting the value of its entitlement from developments in the block.

SBM Offshore Secures Contract for Whiptail Development

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

Significant Investments and Growth in the Stabroek Block

The contract triggers funding for SBM’s FEED activities and a 10-year operation and maintenance agreement for four rigs. This boosts SBM’s revenue backlog by US$3Bn. ExxonMobil, CNOOC, and Hess Corp operate in the Stabroek Block, which has produced 11Bn barrels of oil. The block plans to have six FPSOs by 2027, with first oil expected by the end of 2025.

- Advertisement -

This article provides insights into the bidding process for Guyana’s crude marketing contract. It highlights the reputable companies vying for the opportunity and the country’s strategy to maximize the value of its oil sector. Additionally, it discusses SBM Offshore’s contract for the Whiptail development, showcasing the significant investments and growth in the Stabroek Block.

Must Read