International reports indicate that the demand for oil globally is on the decline due to the novel coronavirus. Reuters has reported that a record amount of crude oil is being stored on ships around the world, some 160 million barrels of oil thus far.
During a virtual media conference on Monday morning, Dr. Bynoe told journalists that issue of storage from Guyana’s perspective is not one that arises at the moment since the country has already sold it first three cargoes.
“It is not possible for us to now be talking about storing those three cargos, those three have already been pre-sold. We had our first lift in February, as I mentioned we are expecting our second lift sometime in May and the third lift could well occur somewhere in July. Therefore, the issue of storing from the Guyana perspective is not one that really arises,” he explained.
He reiterated that the issue was not major at the moment. “So, in fact, it is not as though we have excess capacity lying around.”
Storage space for crude Dr Bynoe reminded, is very difficult and expensive to find, so he is looking forward to markets beginning to pick up back.
In the meantime. Dr. Bynoe noted that Guyana lifted her first cargo on February 19 under the entitlement regime that netted nearly US$55 million for its approximately first 1 million barrels of oil.
“This was the first of three cargoes that were contracted to Shell Western Supply and Trading. The revenue from the first sale was deposited into the Natural Resource Fund (NRF) on March 11, 2020. Guyana’s second lift of approximately 1,000,000 barrels of crude is projected for the third week of May 2020,” Dr. Bynoe said.
He pointed out that the country received its first royalty payment, which is paid quarterly 30 days after each quarter on gross production with Guyana receiving approximately US$4.9 million that was deposited on April 28, 2020 into the NRF.
“To date the Liza 1 field has produced over 8 million barrels of oil, with average daily production of between 75 – 80 kbd, with an expected ramp up to 120 kbd by early June 2020,” Dr., Bynoe said.
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