Guyana lifts second million-barrel of oil
— payment expected early June
GUYANA has officially lifted its second million-barrel of crude from the Liza Destiny Floating Production Storage and Offloading (FPSO) vessel and payment for this shipment is expected within in the first week of June.
The lift concluded on Thursday, May 21, 2020, with the crude cargo being transferred to oil tanker, Sonangol Namibe, a Bahamas flag carrier. The Guyana Chronicle confirmed that the lift was witnessed by Officers of the Guyana Revenue Authority (GRA) and the Guyana National Bureau of Standards (GNBS).
During a media briefing earlier in May, Director of the Department of Energy (DE), Dr. Mark Bynoe, had projected that the country’s second lift would be expected by the third week of May and its third lift, possibly by July 2020.
Guyana sold its first million barrels of oil on February 19, 2020, raking in nearly US$55M. This was the first of three cargoes that were contracted to Shell Western Supply and Trading. Meanwhile, coming from its first quarter gross production, the country received US$4.9M in royalties— now deposited into the Natural Resource Fund (NRF).
Despite the global crisis which has posed delays in oil and gas operations, the projection that Guyana is entitled to five cargoes for this year has not changed. This means that after Shell would have received its three cargoes by July, the country can market its crude to another company/location.
Dr. Bynoe last reported that the ‘light sweet’ Liza Crude has been well received despite it being new to the market and despite the drop in global oil demand. Updates from Shell indicate that the crude oil assay [testing of the properties and composition of crude oils] is performing consistent with samples put out over a year ago. Meanwhile, the DE has been strategic in its initial search for International Oil Companies (IOCs) to buy its crude as it wanted to ensure that many potential refineries would come into contact with its crude for the creation of a “global footprint”.
