By the time Shell Western Supply and Trading Limited (SWSTL) takes its third lift from the Liza Phase On Operation, Guyana’s sweet, light crude would have touched at least 20 different refineries which therefore allows it to have a global footprint. This was recently disclosed by Energy Department Head, Dr. Mark Bynoe during a virtual press conference he held recently.
The official recalled that Shell was pre-sold three cargoes and each will be paid for on a dated Brent basis.
Dr. Bynoe said, “…When we went for an international operating company, one of the things that we mentioned was that we wanted as many potential refineries to touch our cargoes and what this means is that it allows us to have a global footprint. It allows us to enter many more markets and allows people to know what Liza is all about. After the three cargoes,…a marketing agent will largely be carrying out the continuous sale for the government of Guyana on a fee per barrel basis.”
The official added, “So by the time of the third lift, Guyana’s crude would have entered enough markets. That is our projection based on advice from industry experts and I can say from feedback that the Liza crude has touched at least 20 different refineries and this does not include what the operator and joint venturers are lifting.”
The Energy Department Head said that indeed, Guyana is coming in at a very difficult time, not just from the perspective of introducing a new crude but also at a time where there is oversupply and depressed demand. He said it therefore means that getting better prices would be hard but noted nonetheless that the department will spare no effort in doing its best.