Oil traders from Houston, Geneva and London are expected to begin bidding on Monday on some of Guyana’s first oil cargoes, Bloomberg news has reported.
Its report, ‘Traders Flock to Burgeoning Petrostate for Taste of Oil Riches,’ yesterday said traders, numbering about half a dozen, were expected to touchdown in Guyana this weekend.
The report says the government last week sent a letter to refiners around the globe inviting them to bid for 3 million barrels of Liza Blend crude, the light-sweet oil it will start exporting next year. “The catch is that the buyer must take the unusual role of handling “all operating and back office responsibilities” related to exporting the crude,” the Bloomberg report said, citing a document it has seen.
“On top of that, the bids must be offered “face to face” — in the country’s capital of Georgetown — starting Monday. Such a voyage is rare for traders, who do most of their business on instant-message platforms and by phone,” it added.
According to the report, the three cargoes being offered are “an appetizer for a bigger prize” as after the sale, which is part of an “incubation and launching” phase, Guyana plans to sell its crude via long-term contracts.
“The government will load its first cargo in February, but the first oil will be exported in January by Exxon Mobil, which operates the Liza oil field, according to people with knowledge of the situation,” it added.
Bloomberg noted that Exxon declined to comment on the shipment of the first oil to reach markets. Last month, Director of the Department of Energy (DoE) Dr Mark Bynoe, disclosed that ExxonMobil will take the first three cargoes and Guyana will receive the fourth shipment around March next year.
The Liza-1 field is scheduled to start production this month and will reach 120,000 barrels a day next year. By 2025, it’s expected to ramp up to 750,000 barrels daily.
