Guyana fetches higher price for third crude lift

Guyana received $46/bl for the third 1mn bl of its share of Liza crude from the ExxonMobil-operated Stabroek block that was loaded in early August, $11/bl more than it received for its second entitlement lifted in May, natural resources minister Vickram Bharrat said.

The earning from the third lift "is a good price given the hit the global oil market has taken from the effects of the coronavirus pandemic," Bharrat said.

The new oil producer received $55/bl for its first 1mn bl that was lifted in February. It also received royalties from the consortium led by ExxonMobil, bringing to $144.5mn the country's earnings from oil since the December 2019 start of production.

The three cargoes were awarded to Shell Western Supply and Trading in a restricted opening tender. That contract has ended, and the country's oil entitlement will now be lifted by a new marketer that will be contracted in a tender that closes on 22 September.

The winner will market a minimum of five 1mn bl cargoes of 32.1°API Liza crude in 2020-21.

"We are trying to wrap up this process in early October," Bharrat said. "The next lift will be in November, so we need to give the company some time to be ready."

Guyana is producing around 85,000 b/d of crude, and ExxonMobil is hoping to lift this by next month to 120,000 b/d after resolving a compression glitch.

ExxonMobil estimates recoverable resources at the deepwater block of 8bn bl of oil equivalent (boe), with production of 750,000 b/d in 2020.

By Canute James