Energy Department Head, Dr. Mark Bynoe revealed today that ExxonMobil will be taking the first million barrels of oil instead of Guyana. At a press conference held today at the National Communications Network (NCN), Dr. Bynoe said that there is a very good reason for this decision since the first lift of crude often comes with impurities.
The official said that selling this oil without refining it first could affect the price, hence, it makes more sense to allow ExxonMobil to take the initial lift.
Dr. Bynoe said, “ExxonMobil is not just a lifter and operator but they also have refineries…So it makes sense for them to take the first lift and process it so the integrity or quality can be preserved going forward. Our first lift is not anticipated until late February or March going forward.”
He added, “Each entitlement will be one million barrels but we all know it is not an exact science. You can have a million and a bit more with that which is why we have the reconciliation process so if there is an over lift, then the next round, hopefully, that can be reconciled.”
Further to this, the Energy Department Director said that the lifts will be happening within monthly periods as it will take some time for the anticipated peak period of 120,000 barrels of oil per day to be realized. By then, he said that lifts would be taking place every eight to 10 days.
Significantly, Dr. Bynoe said that one can expect that in the initial stages, Exxon and its partners, Hess Corporation and CNOOC/NEXEN would be walking away with a little more than one million barrels of crude. In this regard, he reminded that there are some costs that were invested pre-discovery by the Stabroek Block operator and co-venturers and those would have to be liquidated.
He said, “…Because we had pre-investment costs associated with this you (would) expect Exxon and the others to have a few more lifts than we would have until their costs are liquidated going forward but each lift is expected to be around one million.”