Head of the Energy Department, Dr Mark Bynoe, disclosed today that Guyana’s share of the oil from the Stabroek Block will be sold every eight to 10 days via Free On Board (FOB). With FOB, the buyer would be responsible for purchasing and delivering it on his own from the port.
Speaking at a press conference held at the Ministry of the Presidency, Dr Bynoe said that the crude would be sold in million barrel cargoes and will require a smooth and efficient process; hence the Energy Department has been in several rounds of discussions with its sister agencies.
On this note, the Energy Department Head revealed that the Guyana Revenue Authority (GRA) and the Guyana National Bureau of Standards will be involved in the measurement aspect of Guyana’s oil.
With respect to the Bureau of Standards, he said, “We have been working with them in ensuring that their capacities are being built. It may be necessary going forward that some amount of third party assistance is provided.”
Dr Bynoe said that GRA will be handling issues related to customs and immigration as anyone coming into Guyana’s waters would need to be in compliance with the laws.
Further to this, the Energy Department Head said that before the end of the year, a tender would be issued for a crude marketing service provider to market the government’s share. He said, too, that Guyana’s crude lifting agreement will soon be finalised. The Guyana Standard understands that the Association of International Petroleum Negotiators’ Model Crude Oil Lifting Agreement will be used as a premise for Guyana’s arrangement.
Additionally, Dr. Bynoe asserted that this is a document that is used throughout the industry while noting that it sets up a mechanism for allocating the schedule of crude cargo liftings based on volume entitlements which are calculated, taking into account, the cost recovery rules of the petroleum agreement. It also lays out the strict procedures for crude lifting, Dr Bynoe added.
