February 12, 2020 / 7:27 PM / 16 days ago

Guyana to export its first share of oil in coming days: official

FILE PHOTO: Vessels carrying supplies for an offshore oil platform operated by Exxon Mobil are seen at the Guyana Shore Base Inc wharf on the Demerara River, south of Georgetown, Guyana, January 23, 2020. REUTERS/Luc Cohen/File Photo

GEORGETOWN (Reuters) - Guyana is getting ready to export in the coming days the first cargo of Liza crude entitled to the government as share of the oil produced by a consortium led by energy giant ExxonMobil (XOM.N), the head of the country’s Energy Department said on Wednesday.

The tanker Cap Philippe, which is approaching Guyanese waters, is expected to load 1 million barrels of the light sweet crude. The cargo, along with another two to come, was sold by Guyana to Royal Dutch Shell RDSA.L in a December tender.

The government of the South American nation, which late last year became an oil producer, is expected to receive at least five cargoes of crude produced by the Exxon-led consortium this year, or about 13,700 barrels per day (bpd), the Energy Department’s director, Mark Bynoe, said in a statement.

Guyana plans to call oil firms to a competitive process later this month to select the ‘marketing agent’ that will be in charge of trading the government’s share of oil produced. The terms of the process have not yet been published.

Exxon, U.S. Hess Corp (HES.N) and a unit of China’s CNOOC Ltd (0883.HK) on Dec. 20 inaugurated output at their massive 26,800-square kilometer Stabroek block. It has since then produced about 52,000 bpd, according to the government, and it is expected to reach 120,000 bpd by year end.

Guyana’s first-ever crude export, entitled to Exxon, set sail in January bound for the U.S. Gulf Coast on tanker Yannis P. The oil was processed at the energy firm’s refining system. A second cargo also chartered by Exxon is underway to Panama.

Bynoe said earlier this week that talks with the Exxon-led consortium were expected to be completed in the coming days to reach an agreement on pricing before the first cargo entitled to the government set sail.

Reporting by Neil Marks in Georgetown, writing by Marianna Parraga; Editing by Nick Zieminski

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