Gov’t invites bids to market Liza crude

See the full statement from the Ministry of Natural Resources below:

In keeping with a commitment made to launch bids for the marketing of Liza crude, the Ministry of Natural Resources earlier this week advertised for marketing services for the sale of crude from the Liza Destiny and Liza Unity FPSO vessels.

The Government of Guyana through the Ministry of Natural Resources, in harmony with accountability and transparency, issued an Invitation for Bids (IDBs) earlier this week in search of a company(ies) to competitively market Guyana’s share of oil entitlement. Interested bidders desirous of obtaining Requests for Proposals (RFP), consistent with the country’s procurement guidelines, were directed to the Permanent Secretary, Ministry of Natural Resources.

As per the bidding document, marketers will also be responsible for:

 Providing all functions of marketing;

 Assessing regional and global demand centres;

 Selecting customers and making appropriate transportation arrangements;

 Providing support and guidance to the client – in this case, the Government of Guyana – in all operating and back-office responsibilities of managing these crude sales and each individual lifting whilst facilitating timely and costefficient crude oil operations;

 Supporting the client in the continued introduction of the grade to multiple geographies and refinery systems and providing benchmark performance comparisons of prices paid for the client’s crude;

 Working closely with the client in understanding the behaviour and yields of the Liza blend and how these affect pricing differentials;

 Supporting the client with market information requests related to the demand, supply, pricing and trade in the oil market and crude oil trading capacity

 Buttressing the client in understanding and advocating for any operational considerations that may affect the pricing of crude.

Companies that wish to submit bids must have detailed knowledge, a respected marketing presence and a history in the global crude oil market, and other requirements. Specifically, they must possess:

 At least ten (10) years of experience in crude oil marketing and trading – within the last ten (10) years as a company;

 Experience in crude oil trading and marketing volumes by geography over the last five (5) years with verifiable similar services with national oil companies and governments;

 Crude oil trading and marketing volumes of no less than twenty (20) million barrels within the last year;

 A duly-certified written statement confirming that the company does not have any director who has been convicted in any country for a criminal offence relating to fraud or any financial impropriety or criminal misrepresentation or falsification of facts relating to any matter or any pending litigation the bidder may or may not have, among other key requirements.

The duration of this contract will be for twelve (12) calendar months with the commencement date scheduled for the last quarter of 2022. Bids are to be submitted to the National Procurement and Tender Administration Board no later than 09:00 hrs on Tuesday, October 11, 2022.