The first one million barrels of Guyana’s light crude has set sail for the United States of America. The oil tanker – Yannis P–departed Guyana on Monday.
The Department of Energy (DE) in a statement said: “this first lift, due to the record set from discovery to production by the operator, sets Guyana firmly on its way to becoming one of the wealthiest countries on the globe per capita.”
“Lifts are expected approximately every 10 – 12 days from henceforth,” according to the Department of Energy. Each load of oil is expected to be one million barrels.
Oil production officially began on December 20 and is stored on the Liza Destiny ship before it is transferred to the tankers taking it to the destination of the buyers.
Under existing arrangements, the operator ExxonMobil is entitled to the so-called first lift of oil.
Guyana will then begin receiving its share and the Energy Department has selected Shell Western Supply and Trading Limited to buy Guyana’s first three loads of oil. The company is a member of the Royal Dutch Shell group of companies.
The Department did not announce the price the company will pay for Guyana’s oil but said it has taken this approached to introduce the Liza crude grade into the market.
The oil tanker, Yannis P, built in 2010 is sailing under the flag of Marshall Is. The tanker has a carrying capacity of 158149 t DWT (deadweight tonnage).
The first offloading commenced on January 18, 2020, having arrived the previous day.
The Guyana National Bureau of Standards (GNBS) is responsible for independently ensuring the accurate measurement of Guyana’s oil from the Stabroek Block.
The DE congratulated the GNBS and the Guyana Revenue Authority (GRA) for their sterling roles in ensuring that Guyana’s interests are protected during the lifting process.
According to the statement, the sector has witnessed foreign direct investment (FDI) in excess of US$500 million, the creation of over 1,700 direct jobs, over 600 service providers, and the establishment of over 70 joint ventures, alliances and partnerships which continue to increase.
Oil revenues from this venture alone are projected to realize approximately US$300 million in this first year and more than tripling over the next five years.
This is expected to directly benefit every Guyanese during this Decade of Development through the provision of revenues to develop other important sectors such as agriculture, energy and manufacturing, as well as vastly improved social and educational services, world-class infrastructure, increased wages, job opportunities and an overall better quality of life over the long term.