UK companies win new contracts to market Guyana’s crude

Oct 22, 2024 News

Kaieteur News- Two United Kingdom (UK) companies who were previously contracted to market Guyana’s share of crude from the Stabroek Block operations – have won new contracts with the Government of Guyana (GoG).

JE Energy had been contracted as the marketer of oil coming from the Liza-1 platform which uses the Liza Destiny FPSO, while BB Energy had been contracted as the marketer for oil from the Liza-2 and Payara platforms which use the Liza Unity and Liza Prosperity FPSOs, respectively.

Recently, 27 firms including JE Energy and BB Energy, submitted their tender to provide marketing services for Guyana’s oil from the Liza Destiny, Liza Unity and Payara Prosperity Floating Production Storage and Offloading (FPSO) vessels.

In an update on Monday, the Ministry of Natural Resources disclosed that the two companies were selected once again.

FPSO Unity (UK companies win new contracts to market Guyana’s crude)

The contracts were awarded through the National Procurement and Tender Administration Board (NPTAB). BB Energy Trading Limited was awarded the contract to market crude from the Liza Unity and Prosperity FPSOs, while JE Energy was awarded the contract to market crude from the Liza Destiny FPSO.

“In keeping with the Request for Bids, the evaluation was on a lots basis where the most substantially responsive bidder in relation to the combined lots was determined in keeping with the evaluation criteria,” the ministry stated.

Notably, the duration of this contract will be for 12 months commencing in 2024.

The ministry disclosed that the combined premium per barrel to be received by the GoG from these two companies for the crudes from these three FPSOs amounts to US$1.85, reflecting a substantial 93% increase compared to the US$0.96 premium secured in the previous period (2023- 2024).

Speaking on the previous contract with the two companies, Minister of Natural Resources, Vickram Bharrat had revealed that the contract stipulates that neither of the companies charge the government for the marketing and will instead pay, in the case of BB Energy Limited, US 26 cents on every barrel it sells. JE Energy plans to pay some US 70 cents on each barrel of crude it markets.

(UK companies win new contracts to market Guyana’s crude)

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FPSO Unity, Minister of Natural Resources, Stabroek Block, Tender Administration Board (NPTAB), Vickram Bharrat

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