– Guyana receives payment for second crude shipment

Guyana has received payment for its second lift of crude at the tune of US$35,063,582.06. This payment from came from Shell Western Supply and Trading Limited which has been contracted Guyana’s first three cargoes.

Receipt of payment was confirmed by the Ministry of Finance on Thursday. Meanwhile, the sum has been deposited into the Natural Resource Fund (NRF) bringing its total, thus far, to US$94, 921,803.00 or over 19 billion Guyanese dollars.

Guyana sold its first million barrels of oil on February 19, 2020, raking in nearly US$55M. Then, from its first quarter gross production, the country received US$4.9M in royalties. It has now received payment for its second shipment which was lifted on May 21, 2020

During a media briefing earlier in May, Director of the Department of Energy (DE), Dr. Mark Bynoe, had rightfully projected that the country’s second lift would be expected by the third week of May. He also projected that the third lift to Shell Western could be possible by July 2020.

Despite the global crisis which has posed delays in oil and gas operations, the projection that Guyana is entitled to five cargoes for this year has not changed. This means that after Shell would have received its three cargoes by July, the country can market its crude to another company/location.

Recent report states that the ‘light sweet’ Liza Crude has been well received despite it being new to the market and despite the drop in global oil demand. Updates from Shell indicate that the crude oil assay [testing of the properties and composition of crude oils] is performing consistent with samples put out over a year ago. Meanwhile, the DE has been strategic in its initial search for International Oil Companies (IOCs) to buy Guyana’s crude as it wanted to ensure that many potential refineries come into contact with the crude for the creation of a “global footprint”.

Meanwhile, Finance Minister, Winston Jordan has stated that he is pleased that there can be no distrust about whether these finances are being managed well as the Ministry of Finance, and government by extension, has remained transparent in its dealings.

He stated in May: “Everything has been to the book, by the book and transparent and accountable. All the monies that we have earned so far, as people can see, is going into the account and they can see the interest being earned.” He reminded that Guyana can begin to use these resources to address critical areas of need as soon as a new Parliament begins.