The government is currently engaged in negotiations with three companies that have submitted bids to market its crude oil from its Floating, Production, Storage, and Offloading vessels (FPSOs).
General Secretary of the People’s Progressive Party, Dr Bharrat Jagdeo, gave the update at a press conference at Freedom House on Thursday.
“We received 25 bids, and now they are having discussions with the top three bidders. The key variable here is credibility and price. So, price now is a very important factor,” he told media operatives.
Earlier this year, the Ministry of Natural Resources invited bids from companies interested in marketing Guyana’s crude oil from its Liza Unity and Liza Destiny FPSOs.
The government is taking steps to optimise the value of its crude oil entitlement from the Stabroek Block while promoting market competition. This move promises notable economic benefits.
“We are very pleased now with this bid, so we have moved now from the early period under APNU where we were paying a marketing commission to zero marketing commission, and now we are going to get a premium in these bids. They will pay us a premium above the daily brent average,” he said.
Last year, Guyana generated over US$1 billion from the sale of crude oil.