Guyana Plans To Export 5-6 Crude Cargoes In 2021

(Argus, 22.Dec.2020) — Guyana plans to export “five to six” 1mn bl cargoes of its crude entitlement from the deepwater Stabroek block in 2021 to offset lower-than-expected shipments in 2020, natural resources minister Vickram Bharrat told Argus today.

The government had projected five lifts in 2020 but managed only three because production from the ExxonMobil-operated block had missed a production target of 120,000 b/d in first quarter 2020. The US major announced this week that it has now reached the output goal after resolving a gas re-injection glitch and equipment delays.

The first three cargoes of Guyana’s share of the production were awarded to Shell. Bharrat did not indicate when a marketer for the 2021 lifts will be named from 29 companies that have submitted bids.

The government relaunched the tender for a marketer in August 2020 after cancelling a bidding round initiated by the former administration during a period of political uncertainty that followed 2 March elections.

US independent Hess, which is part of the ExxonMobil-led Stabroek consortium, is among the companies vying to succeed Shell in the relaunched tender. Shell is seeking a new marketing contract. Other bidders include Equinor, Total, traders Gunvor and Glencore, and the UK trading arm of Saudi Arabia’s Aramco.

The three lifts of Guyana’s share of crude and lower prices limited the country’s 2020 earnings from oil to $144.5mn since the December 2019 start of production.

In February the government had forecast earnings of $300mn and reduced this projection to $200mn in July. Its oil income includes royalties from the ExxonMobil consortium.

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By Canute James