Page 9 - LatAmOil Week 43 2021

LatAmOil VENEZUEL A LatAmOil

The deal is seen as a precursor to a much broader, economic co-operation commission would
20-year co-operation agreement between be formed in the Iranian capital to finalise the
Tehran and Caracas, which is envisaged being terms of the agreement.
signed by the end of the year. “All of this confirms that relations between
The countries’ foreign ministers, Hossein the two countries are on the rise,” Amirabdolla-
Amirabdollahian and Felix Plasencia, met in hian said, noting that energy would be one of the
Tehran last week, during which they said a joint topics of the collaboration. ™

GUYANA
Guyana could resume crude oil

supply talks with India, VP says

GUYANA is prepared to resume talks with According to Jagdeo, Guyana is now ready
India on future crude oil deliveries, the country’s to return to the negotiating table with India,
Vice-President Bharrat Jagdeo has said. despite the failure of earlier talks. He stressed,
Since the country is on track to see crude though, that Georgetown would expect the
output rise next year, it is willing to negotiate a Indian government to make a “competitive”
new supply agreement with India, Jagdeo told offer.
Reuters last week. “We have much more oil com- India is the world’s third-largest oil con-
ing on the market [in 2022] because [as of] early sumer. The South Asian country’s government
next year, we will have the new FPSO, which will is looking to bring state-run and private refinery
be producing double the amount [of] the cur- operators together into a newly created group to
rent FPSO,” he said. negotiate better crude import deals, Oil Secre-
He was referring to plans for the launch of a tary Tarun Kapoor said recently.
new floating production, storage and off-load- Under the terms of its agreement with Exx-
ing (FPSO) vessel at the offshore Stabroek block. onMobil and its partners, the Guyanese govern-
ExxonMobil, the operator of the project, has ment is entitled to a share of the oil extracted
already installed one FPSO, the Liza Destiny, from the Stabroek block. Georgetown exported
at the Liza-1 section of the block and is sched- its first cargo of Liza-1 crude in early 2020, just a
uled to bring a second unit online for the Liza-2 few months after the Liza-1 field began produc-
development project in early 2022. tion in December 2019.
Guyana has sold several cargoes of oil from As noted above, ExxonMobil is slated to
the Liza-1 field to India since the beginning of begin commercial development at Liza-2 early
this year, and officials from both countries have next year. It will then launch its third develop-
expressed interest in a longer-term deal that ment project at Payara in 2024, followed by Yel-
would allow for regular deliveries. However, lowtail in 2025.
talks between the parties stalled in August as Stabroek is thought to contain around 10bn
a result of differences of opinion over contract barrels of oil equivalent (boe) in recoverable
terms, including pricing. Subsequently, the Guy- reserves. Liza-1 is already yielding about 120,000
anese government signed a year-long marketing barrels per day of crude, and Liza-2 and Payara
contract with a subsidiary of Saudi Aramco, the will produce up to 220,000 bpd each. Yellowtail,
national oil company (NOC) of Saudi Arabia. meanwhile, is set to yield up to 250,000 bpd. ™

India imported its first cargo of Guyanese oil on the Sea Garnet tanker (Image: Stabroek News)

Week 43 28•October•2021 www. NEWSBASE .com P9