On Tuesday, Guyana’s National Procurement and Tenders Board announced it has received offers 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 started production just five years ago, according to a Reuters report.
A total of 27 proposals were submitted from leading companies, including Shell, TotalEnergies, Chevron, ADNOC, Gunvor, Vitol, PetroChina, CNOOC and Eni. The widespread interest from such prominent players highlights Guyana’s growing reputation as a key oil producer, particularly as it has light and sweet crude grades, such as Liza, Unity Gold and Payara, which have received favorable responses from refiners.
Exxon Mobil, the operator of all oil and gas production in Guyana through a consortium, plays a key role in this growth, working under a production sharing agreement that allocates a portion of production to the government. Last year, a significant increase in exports to Europe underlined the region’s demand for Guyana crude.
Bidding companies were allowed to propose marketing strategies for crude oil from individual projects or a combination of multiple sites. The government aims to start the contract next month, with plans to deliver crude in shipments of 1 million barrels. According to tender details shared with Reuters, Guyana anticipates marketing around 23 cargoes during the year, although the final number will depend on actual production levels.
Marketing of Guyana crude oil from the Liza 1 project is currently handled by trading firm JE Energy, while BB Energy manages the government portion of the Liza 2 and Payara projects. This tender marks another step in Guyana’s strategy to optimize its oil revenues and firmly establish itself in the competitive global oil landscape.
