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President Ali announces plans for Guyana to market its own crude
(Kaieteur News) – Guyana will be working to develop its capability and capacity in crude oil trading, President Irfaan Ali told a roomful of private sector players on Thursday at the inaugural energy breakfast hosted by the Georgetown Chamber of Commerce and Industry (GCCI).
President Irfaan Ali
“I will be working with the local private sector and international partners to ensure that we develop our capability and capacity in crude oil trading. We must be able to trade our crude oil from Guyana, with the infrastructure, with the human capital, and with the market skills and that is going to create enormous opportunities for us,” President Ali said.
The head-of-state made it clear that Guyana should not only seek to be suppliers but create industries of its own in the oil sector.
He said the government will be looking for partnerships to realise its bold goals.
The President continued, “So, we have to get those who have already done it for other countries to work with us in transferring the knowledge. Maybe to enter a partnership for the next three, four, five years until we get the experience to do it on our own. These are the bold decisions that we must embrace. These are the bold ideas that will take us from where we are to where we want to be.”
Meanwhile, GCCI President, Kathy Smith in remarks underscored the need for the local business community to work in closer partnership. She said, “Mr. President, just like you, I am strongly in support of joint ventures and consortiums right here in Guyana…we don’t have to travel to go and find business opportunities but there are a lot of Guyanese who are abroad and they want to be part of the growth and development of Guyana and the GCCI would be at the forefront to ensure that happens.”
She said the city chamber can be the avenue used by those individuals who want to come back to Guyana as well as those who prefer to invest from overseas.
Guyana commenced oil production in November 2019. Since then, the country has engaged agents to market its share of profit oil received from the operator, ExxonMobil Guyana Limited.
Currently, there are four Floating Production Storage and Offloading vessels (FPSOs) operating in the Stabroek block. The country’s daily production capacity has increased to 900,000 barrels daily with the recent startup of the fourth project, Yellowtail.
It was reported that United Kingdom (UK) companies, JE Energy and BB Energy won new contracts last year to market Guyana’s crude oil.
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.
In keeping with the terms of the 2016 Exxon contract, 75% of production is recovered by the operator as cost. The remaining 25% is shared equally with Guyana as profit oil. Additionally, ExxonMobil pays 2% of its share of profit to the government of Guyana (GoG) as royalty.
By 2030, ExxonMobil Guyana expects to have total production capacity of 1.7 million oil equivalent barrels per day from eight developments.
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