On Tuesday, Guyana’s National Procurement and Tender Administration Board announced that it has received bids from major international energy companies for a 12-month contract to market the government’s share of crude oil production. This significant step comes as the South American nation continues to expand its presence in the global oil market, having launched production just five years ago, according to a report by Reuters.
A total of 27 proposals were submitted from leading firms, including Shell, TotalEnergies, Chevron, ADNOC, Gunvor, Vitol, PetroChina, CNOOC, and Eni. The wide interest from such prominent players highlights Guyana’s burgeoning reputation as a key oil producer, particularly as it possesses light sweet crude grades such as Liza, Unity Gold, and Payara, which have garnered favorable responses from refiners.
Exxon Mobil, the operator of all oil and gas production in Guyana through a consortium, plays a critical role in this growth, working under a production-sharing agreement that allocates a portion of the output to the government. Last year, a significant increase in exports to Europe underscored the region’s demand for Guyana’s crude.
The bidding companies were permitted to propose marketing strategies for crude sourced from either individual projects or a combination of multiple sites. The government aims to commence the contract next month, with plans to deliver crude in 1-million-barrel cargoes. According to the tender details shared with Reuters, Guyana anticipates marketing around 23 cargoes over the year, although the final number will depend on actual production levels.
Currently, the marketing of Guyana’s crude from the Liza 1 project is handled by trading firm JE Energy, while BB Energy manages the government’s share from the Liza 2 and Payara projects. This tender marks another step in Guyana’s strategy to optimize its oil revenues and establish itself firmly within the competitive global oil landscape.
