Government to invite proposals to market Payara crude after startup - Jagdeo

Government to invite proposals to market Payara crude after startup – Jagdeo

Oct 10, 2023 ExxonMobil, News, Oil & Gas

Kaieteur News – The Government of Guyana (GoG) plans to invite proposals to market the country’s crude oil from its third project, Payara, after it commences production activities.

This is according to Vice President Bharrat Jagdeo who during his press conference on Thursday at Freedom House, Robb Street, Georgetown explained that the Ministry of Natural Resources (MNR) only invited proposals to market the resources produced at Liza One and Liza Two, since those contracts were coming to an end soon.

Oil production at the Payara project is expected to start up before year end. Government has been tip lipped on when exactly first oil could be expected however, S&P Global, a distinguished consultancy group in a recent report indicated that oil from this project could commence loading by November 2023.

It said that two 1-million-barrel shipments of Payara are scheduled for loading in November. Notably, one of the Payara cargo loadings, scheduled for November 10-11, is a collaborative effort among the Stabroek joint venture partners. The second Payara cargo, set for loading on November 20-21, will be handled by ExxonMobil Guyana.

Vice President, Bharrat Jagdeo

VP Jagdeo said at his Thursday press conference that he did not want to speculate the startup date of the project, lest delays earn him a negative article.

Meanwhile, as it regards the market of the Payara crude oil, he said, “It’s the startup, so you may have to (wait) because of the startup, it’s not available as yet…the contract will expire shortly, from what I am told, the contract will expire very soon for the existing marketing arrangements, so they probably have to get that and then go out when Payara comes on stream, go out separately for another request for proposal.”

In April this year, the Prosperity Floating Production Storage and Offloading (FPSO) vessel arrived in Guyana. This is the country’s third FPSO and largest to date.

It will produce around 220,000 barrels of oil per day during its initial phase and was constructed to store a total of two million barrels of oil. The vessel was constructed by Dutch ship builder, SBM Offshore.

Presently, two FPSOs are operational in the Stabroek Block, including the Liza Destiny and Liza Unity. The Liza Destiny produced its first oil in December 2019, followed by the startup of Liza Two in February 2022 by the Liza Unity. Currently, the production rate stands at over 380,000 barrels per day. Exxon anticipates that the addition of the Prosperity vessel will boost daily production to around 600,000 barrels per day by 2024. The company stated, “Installation campaigns are ongoing and development drilling is underway to support Prosperity’s start-up later this year.”

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ExxonMobil, Market, oil, Payara, proposals

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