Vice President Dr. Bharrat Jagdeo says the government will soon award the contract or contracts for the entity that will be marketing Guyana’s share of the oil produced on the three platforms offshore.
“We received 25 bids, and now they’re having discussions with the top three bidders.
“The key variable here is credibility and price,” the Vice President said.
What the government has been searching for is a service provider who will market its share of the oil from the three floating production storage and offloading (FPSO) vessels offshore Guyana.
Already, the Liza Unity and the Liza Destiny are producing about 380,000 barrels of oil offshore Guyana. Production at the Prosperity FPSO should start soon.
Jagdeo said the government can award the contracts to separate bidders for each vessel or one contractor may get the contract to market oil from all three vessels.
And importantly, he told reporters at a press conference on Thursday that the upcoming award is a good step forward because it shows how the government has been able to secure better benefits for the marketing of the resource.
Previously, Jagdeo said Guyana has to pay a company to market the oil. Eventually, it entered into an arrangement where it did not pay for that service. Now, the government expects to get a premium from the sale of its share of oil.
BP International Limited of the United Kingdom was selected last year to market the oil Guyana is entitled to from the Liza Destiny and Liza Unity FPSOs.
The duration of that contract was for 12 months at a marketing price of US$0.00 per barrel. This procurement process was initiated after the earlier contract with Aramco Trading Limited ended.
