Given its inadequacies... Guyana must consider other options before rushing to sell its oil independently

Given its inadequacies… Guyana must consider other options before rushing to sell its oil independently

Aug 31, 2019 News

-University of Houston Instructor

Guyana has opted to sell its own share of the crude that will come from the ExxonMobil operated Stabroek Block.
But, given its inexperience in this complex field and lack of essential mechanisms, authorities may want to carefully consider safer options.
This was suggested by University of Houston Instructor, Tom Mitro.
The official stressed that selling crude requires a good deal of marketing expertise and Guyana would need trained personnel to do this effectively. Mitro cautioned that this could take several years.
Government’s appointed managers of the oil would understand the market firsthand if oil was sold independently. And that would be advantageous but it would take years.
The Oil and Gas Consultant stressed that an alternative for Guyana is for the Department of Energy to rely on the operator being Exxon, to sell the crude. He reminded that this option is already envisioned in the Stabroek Block Production Sharing Agreement (PSA). He said that this can be done right from the beginning while noting that Exxon certainly has the expertise to do it.

Latest News