Guyana begins search for company to market its crude

By Guyana Chronicle

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(GUYANA CHRONICLE) – GUYANA has commenced a search for a company to market its crude entitlement and those interested must have at least five years’ experience in the field; show their annual turnover and tax clearance for the last five years; give indication of any pending litigation and more, to meet the strict criteria for shortlisting.

On Wednesday, the Department of Energy (DE) published the ‘Request for Expression of Interest (EOI) – Provision of Marketing Services for the Cooperative Republic of Guyana’s Oil Entitlement from the Lisa Destiny FPSO Vessel’.

The five-page document stated that the duration of services for such an Oil Marketing / Trading Company will last 12 months, between 2020 and 2021 and EOIs are to be submitted by March 12, 2020, to the Chairman of National Procurement and Tender Administration Board (NPTAB).

In providing a background to the project, the DE stated that Guyana’s coastal waters contain one of the largest oil discoveries in recent years, placing Guyana in the top 40 reserve holders in the world. However, it noted that while most oil-producing countries possess a National Oil Company (NOC) with a responsibility to sell the country’s oil, Guyana does not possess the same and, therefore, this responsibility must be managed by the DE to sell the oil to international markets in keeping with the Petroleum Sharing Agreement dated June 27, 2016.

To market Guyana’s crude successfully, the government aims for a minimum production rate of five lifts per annum of Liza Blend Crude Oil at a cargo size each of 1,000,000 bbls at 60F.

The selected company will also be required to provide support to DE in all operating and back- office responsibilities of managing these crude sales and each individual lift and support the DE in the first year of introduction of the grade in multiple geographies and refinery systems.

Added to this, the Oil Marketing / Trading Company must work closely with the DE in understanding the behaviour and yields of the Liza Blend and how these affect pricing differentials and advocating for any operational considerations that may affect the pricing of the crude. It will also be required to conduct training sessions for DE personnel in matters relating to crude oil supply and trading fundamentals, especially those relevant to the Liza grade pricing and to use all reasonable efforts to provide relevant information, documentation and/or training in a timely manner for DE personnel.

However, this is providing that the company meets the criteria set out in the EOI, which they must submit by the aforementioned deadline.

Some of the expected criteria include the company’s Certificate of Incorporation; details of previous experience in introducing a new Grade in the market; certified true copies of Memorandum and Articles of Association of the company and/or similar statutory documents; company profile showing company’s capabilities; statement of Business Integrity Code of Conduct and contact details of the company. Other requirements instruct that the company possess at least 5 years’ experience in crude oil marketing and trading, within the last 5 years and show details of the bidder’s volume of crude oil trading and marketing volumes by geography over the last 5 years.
Apart from showing its Company Tax Clearance Certificate and HSE Policy and records over

the last 5 years, the company must also put forward its annual turnover either through an Audited Balance Sheet with Profit and Loss Accounts or a Certificate issued by a practising Chartered /Cost Accountant certifying the same.

On the legal end, the bidding company must open up to proving a written statement giving details of any pending litigation the bidder may or may not have and must provide another written statement confirming that it does not have any Director who has been convicted in any country for a criminal offence relating to fraud or any financial impropriety or criminal misrepresentation or falsification of facts relating to any matter.

The document states that the bidder shall make provisions to allow DE to verify all claims made in submission and that the bidder’s organisation is not in receivership, nor the subject of any form of insolvency or bankruptcy proceedings or the subject of any form of winding up petition or proceedings. The firms will be selected to form the Shortlist of Companies, who will exclusively and at the same time, receive the Request for Proposal (RFP). Only shortlisted companies will be invited to submit Full Technical and Commercial Proposals.

“Failure to provide any of the listed documents or information with requisite proof(s) may result in the EOI not being considered for the shortlist or pre-qualification. Notwithstanding the submission of these documentation, the Department of Energy is neither committed nor obliged to include any party in the tender list or award any form of contract to any applicant,” the document notified.

This article was posted in its entirety as received by stlucianewsonline.com. This media house does not correct any spelling or grammatical error within press releases and commentaries. The views expressed therein are not necessarily those of stlucianewsonline.com, its sponsors or advertisers.

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