Guyana grants Saudi Aramco one-year contract to market crude oil


A view shows branded oil tanks at the Saudi Aramco oil facility in Abqaiq, Saudi Arabia, October 12, 2019. REUTERS / Maxim Shemetov

GEORGETOWN, Sept. 16 (Reuters) – Guyana has awarded a unit of Saudi Arabian Oil Co (2222.SE), known as Aramco, a one-year contract to market the government’s share of the crude produced in the South American country Vice President Bharrat Jagdeo told Reuters.

The country had awarded Aramco in early September a contract for the marketing of a cargo scheduled for September 21 and 22. Natural Resources Minister Vickram Bharrat told Reuters at the time that the company was likely to win the one-year contract as well, but the process was not yet complete. Read more

Guyana became the world’s newest energy hotspot when a consortium led by Exxon Mobil Corp (XOM.N) began producing crude off the country’s coast in late 2019. It now produces around 120 000 barrels per day, and the consortium, which also includes Hess Corp. (HES.N) and Chinese CNOOC Ltd (0883.HK) have discovered more than 9 billion barrels of recoverable resources.

But the country lacks domestic refining capacity or a state-owned oil company, so earlier this year it initiated a process of finding an agent to market its crude. Parallel talks with Indian refiners to export Guyanese light oil to that country have not resulted in a supply contract.

Reporting by Neil Marks Writing by Luc Cohen Editing by Marguerita Choy

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