Two United Kingdom companies previously contracted to market Guyana’s share of crude from the Stabroek Block have been awarded new contracts by the Government of Guyana (GoG). JE Energy and BB Energy, both of which had been involved in marketing oil from the Liza-1, Liza-2, and Payara platforms, have been selected again to continue these services.
JE Energy had been responsible for marketing oil from the Liza-1 platform, which uses the Liza Destiny Floating Production Storage and Offloading (FPSO) vessel, while BB Energy handled marketing for crude from the Liza-2 and Payara platforms, which use the Liza Unity and Liza Prosperity FPSOs, respectively.
A recent tender for marketing services saw 27 firms, including JE Energy and BB Energy, vying for the contract to market crude from the Liza Destiny, Liza Unity, and Payara Prosperity FPSOs. The Ministry of Natural Resources announced on Monday that both UK firms were successful in securing the new contracts.
The National Procurement and Tender Administration Board (NPTAB) awarded BB Energy the contract to market oil from the Liza Unity and Prosperity FPSOs, while JE Energy will continue to market crude from the Liza Destiny FPSO. The ministry explained that the contracts were awarded based on a lot system, with the most responsive bidder selected according to established evaluation criteria.
The new contracts, which will commence in 2024, will span a duration of 12 months.Government will receive a combined premium of US$1.85 per barrel from the two companies, marking a 93% increase from the US$0.96 premium secured in the previous period (2023-2024).
Minister of Natural Resources Vickram Bharrat had disclosed that the agreements with both companies stipulate that neither will charge the government for marketing services. Instead, BB Energy will pay 26 cents per barrel sold, while JE Energy will pay 70 cents per barrel of crude marketed.
