Guyana Sells First Oil From New Platform To Exxon At $106 Per Barrel

Guyana has sold a cargo of 1 million barrels of its newest crude to ExxonMobil for $106 per barrel, which was the first share for the government from the newly operational Liza Unity production platform operated by Exxon.

“The first cargo of Guyana’s lifting entitlement was sold to ExxonMobil Sales and Supply LLC following a competitive bidding process,” the government of Guyana said this weekend.

“The ExxonMobil affiliate bid was the best on the pricing differential for the crude and this lift will incur no marketing fee by the lifter. This lift is a one-off arrangement for the company,” Guyana said, adding that the government would be working to ensure that “Guyana receives the best price for each cargo from both the Liza and Unity Gold crudes.”

At $106 per barrel, Guyana’s revenue from selling 1 million barrels of the new Unity Gold crude is $106 million.

It was Exxon that has helped make Guyana the latest oil-producing and oil-exporting nation in late 2019. Since 2015, when it first discovered oil offshore Guyana, Exxon has made more than 20 discoveries in the waters of the South American nation.

In February, Exxon said it started production at Guyana’s second offshore oil development on the Stabroek Block, Liza Phase 2, bringing total production capacity to more than 340,000 barrels per day (bpd). Production at the Liza Unity floating, production, storage and offloading (FPSO) vessel is expected to reach its target of 220,000 bpd this year, and adds to the more than 120,000 bpd of capacity at the Liza Phase 1 project that launched in December 2019.

Earlier this month, Exxon approved its fourth offshore project in Guyana, at Yellowtail, which is expected to produce 250,000 barrels per day (bpd) starting in 2025.

By 2027, Exxon plans to produce more than 850,000 bpd from Guyana’s offshore, the U.S. supermajor said in a presentation on its investor day in March.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

• Norway Raises Gas Output As Europe Scrambles For Non-Russian Supply
• JPMorgan: Immediate EU Ban On Russian Oil Could Send Prices To $185
• Yellen Warns EU About Banning Russian Oil