34 companies bid to market Guyana’s crude

Apr 22, 2020 News

The National Procurement and Tender Administration Board (NPTAB) yesterday opened ¬¬¬¬¬67 bids for three major governmental projects at their Ministry of Finance office situated at Main and Urquhart Streets, Georgetown.
One notable project included the ¬¬¬opening of bids for the marketing of Guyana’s crude. A total of 34 oil majors such as ExxonMobil and Aramco Trading Company, the Saudi Arabian multinational petroleum and natural gas company, and a few trading companies, took the long awaited opportunity to send their bids in to secure the contract for the marketing and sale of Guyana’s sweet oil.
The Department of Energy (DoE) noted that the applicant must demonstrate that it has at least five years of experience in Crude Oil marketing and trading and provide copies of its Certificate of Incorporation. It must also provide details of its capabilities and the volume of crude oil trading and marketing it did by geography, over the last five years.
The Energy Department also wants to see details of previous experience in introducing a new grade into the market as well as the applicant’s Code of Conduct Statement.
Significantly, the bidder has to make provisions to allow the Department of Energy to verify all claims made in submission, and also, to verify that the bidder’s organization is not in receivership, or the subject of any form of insolvency of bankruptcy proceedings or the subject of any form of winding up petition or proceedings.
A written statement confirming that the bidder does not have any Director who has been convicted in any country for a criminal offence relating to fraud or any financial impropriety or criminal misrepresentation or falsification of facts relating to any matter also has to be provided.
Accompanying that statement should be details of any pending litigation the bidder may or may not have.
Kaieteur News understands that the successful candidate will be required to provide support to the Energy Department in all operating and back office responsibilities of managing crude sales and for each individual lift from the Liza Destiny, Guyana’s first Floating Production Storage and Offloading vessel.
The successful Crude Marketing Agent will also have to support the Energy Department in the first year of introduction of the Liza grade in multiple geographies and refinery systems, and work closely with the Department in understanding the behaviour and yields of the Liza Blend and how these affect pricing differentials.
Of note is the fact that it will have to conduct training sessions for personnel attached to the department in matters relating to Crude oil Supply and Trading fundamentals, and more specifically, those relevant to the Liza grade pricing. Kaieteur News understands that the Crude Marketing Agent would have to use all reasonable efforts to provide relevant information, documentation and/or training in a timely manner for Energy Department personnel.
The contract is expected to last for 12 months.

Ministry of the Presidency (MotP)- Department of Energy (DoE)
Provision of Marketing Services for the Cooperative Republic of Guyana’s Oil Entitlement from the Lisa Destiny FPSO Vessel