Guyana is re-launching a search for a company to market the government’s share of crude oil produced off the South American country’s coast to make the tender process “simpler and more competitive,” the natural resources minister said on Monday.
According to the notice published late last week, companies will have until Aug. 3 to submit their bids to “competitively market and maximize the value" of the government’s allotment and to "create a competitive market” for Liza crude produced by a consortium led by Exxon Mobil Corp.
The re-launch comes after President Irfaan Ali’s government discarded a previous tender it issued in August 2020, which received 29 bids. But the government said in February it was forced to disqualify 28 of those companies, blaming criteria set by the prior administration.
“It’s basically to level the playing field,” Natural Resources Minister Vickram Bharrat told Reuters, adding that the previous criteria disqualified experienced companies such as Hess Corp. and Royal Dutch Shell Plc, both of which have marketed some of the government’s crude cargoes.
Bharrat added that with the new tender, the government was seeking to “bring more revenue or benefits to Guyana.”
The Exxon Mobil-led consortium, which also includes Hess and China’s CNOOC Ltd., has discovered more than 8 billion barrels of oil and gas off Guyana’s coast, transforming the poor country into the world’s newest energy hotspot.
The government is contractually entitled to a portion of the crude produced by Exxon Mobil, but with no state oil company nor domestic refining capacity, the government relies on external firms to market its share of the oil.
Recommended Reading
Shell Takes FID on Gato do Mato Project Offshore Brazil
2025-03-21 - Shell Plc will be the operator and 50% owner, with Ecopetrol holding 30% interest and TotalEnergies 20%.
US Oil, Gas Rigs Rise for First Time in Three Weeks
2025-03-21 - Despite this week's rig increase, Baker Hughes said the total count was still down 31 rigs, or 5% below this time last year.
Petrobras to Deploy Baker Hughes Completion Technology Offshore Brazil
2025-03-20 - Baker Hughes will be combining its completions technologies with conventional upper and lower completions solutions at Petrobras’ offshore developments.
Sabine Oil & Gas to Add 4th Haynesville Rig as Gas Prices Rise
2025-03-21 - Sabine, owned by Japanese firm Osaka Oil & Gas, will add a fourth rig on its East Texas leasehold next month, President and CEO Carl Isaac said.
E&P Highlights: March 17, 2025
2025-03-17 - Here’s a roundup of the latest E&P headlines, from Shell’s divestment to refocus its Nigeria strategy to a new sustainability designation for Exxon Mobil’s first FPSO off Guyana.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.