Guyana Could Resume Oil Supply Talks with India

October 22, 2021

World Energy Reports LLC.
destiny-image-source-corporation-109112.jpg

Oil producer Guyana could resume talks with India for a deal to sell the government's share of crude as output rises next year, the South American nation's vice president told Reuters.

Earlier this year, Indian refiners bought at least two test cargoes of Guyana's Liza light sweet crude. But government-to-government negotiations on a term supply agreement stalled on price and other contract terms, and Guyana later struck a one-year marketing deal with a unit of Saudi Aramco. 

India's oil secretary Tarun Kapoor this week said the world's third-largest oil consumer is forming a group that will bring together state-run and private refiners to seek better crude import deals.

Guyana produces up to 120,000 barrels per day of crude through a consortium led by Exxon Mobil from a single floating production storage and offloading system (FPSO) [Liza Destiny]. The group has discovered about 10 billion barrels of recoverable oil resources off the coast of Guyana.

A second production facility, the Liza Unity, is expected to arrive by year-end, to begin operations in mid-2022, boosting production by 220,000 bpd. A third, the Liza Prosperity, also will add some 220,000 bpd from 2024.

"We have much more oil coming on the market because, from early next year, we will have the new FPSO, which will be producing double the amount than the current FPSO", Guyana Vice President Bharrat Jagdeo told Reuters late on Wednesday.

Guyana is willing to resume talks with India for future oil sales, but the Indian government will have to be "competitive," Jagdeo said.

Liza crude, which began flowing to the market in early 2020, has been exported by the project's partners mainly to Panama, where the oil is stored and later shipped to Asia and other destinations, according to Refinitiv Eikon tracking data.

Exxon also has tested the crude at its U.S. refining system, while Guyana, which does not have refineries, has picked up marketing agents to allocate its share of production. (Reporting by Neil Marks, additional reporting and writing by Marianna Parraga; Editing by David Gregorio)


Floating Production Week delivers unrivaled overview, insight and analysis to the Offshore Floating Production Systems and Technology market

Floating Production Systems Report And Online Database

  • Annual five year outlook and forecast – At the start of each year we prepare a detailed assessment of future deepwater development and forecast the pace of orders for floating production systems over the next five years. Our 2021 annual report looks at market conditions likely to prevail through 2025 and provides our assessment of which of the 200+ floater projects in the planning queue will reach the final investment decision by end-2025
  • Monthly reports - Our monthly reports provide a detailed snapshot of the business sector as of the middle of each month. More than 100 pages of data and industry analysis each month. Excel spreadsheets with each report enable subscribers to tailor the data presentation to their needs. In our May report we revisit the annual forecast and make revisions as needed.
  • Online database - The online database is updated every day – with information direct from primary sources. In the database are details for 200+planned projects, 390+ installations in service, 40+ floaters on order and 40+ floaters available. The database is fully searchable. Customized charts and spreadsheets can be directly produced from the database. Data are easily exported to excel spreadsheet.
  • Customer support - We are available to assist with technical questions about information in the database and reports -- and assist with any questions about using the database search tools.

Here's what you get!

Request a Demo