ExxonMobil will take the first shipment of oil when production begins at the end of this year, with Guyana not expected to sell its first million barrels towards the end of February or March next year. This is according to the Director of Energy, Dr Mark Bynoe.
The Liza Destiny, the Floating, Production, Storage and Offloading Vessel (FPSO) arrived at the end of August, three weeks ahead of schedule. Oil production is expected to now begin in December.
At a press conference at NCN studios in Georgetown Wednesday afternoon. Dr Bynoe explained why the first million barrels of oil will be offloaded to ExxonMobil.
“ExxonMobil is not only a lifter, they are not only the operator, but they also have refineries.
“My understanding is the first lift often comes with a fair amount of impurities. Impurities in your crude can affect the price that you get for that crude, which would not only impact that batch but it could impact subsequent batches.
“So it would make sense for Exxon to take that first lift, which it will then process within its refineries, so that the quality of the crude or the integrity of the crude can be preserved going forward,” he stated.
And it’s not just Exxon that comes first. It’s partners, the Chinese company CNOCC and the American company Hess will be next in line. After that, Guyana will be able to get its first batch for sale.
At his press conference, Dr Bynoe explained that when production reaches the peak of 120,000 barrels of oil per day, a million barrels of oil will be offloaded every 8-10 days.
To ensure that everything is above board, Guyana is looking for an independent third party.
“So in event of questions when the crude is shipped, whether quality or quantity, we will be able to have our own evidence to push back against that,” he stated.
Guyana is currently looking to hire marketing and commercial experts to sell its share of the oil. An estimated 1300 workers are currently working in the oil and gas sector.
