London +4420 814 42225
Moscow +7495 543 9194
Kiev +38044 599 2950

Our Clients

Order Informer

Home > News >

Guyanas first-ever oil cargo to be refined by oil major

January 22/2020

MOSCOW (MRC) -- A vessel carrying Guyana’s first-ever shipment of crude set sail bound for the U.S. Gulf Coast, oil major Exxon Mobil Corp said, marking the tiny South American nation’s long-awaited debut as an oil exporter, said Hydrocarbonprocessing.

The Suezmax vessel Yannis P, loaded with about 1 million barrels of Liza light sweet crude was bound for Galveston, Texas, according to tracking service, and departed from the floating platform Liza Destiny off Guyana.

Exxon and partners Hess Corp and China’s CNOOC started production at Guyana’s promising Stabroek block in December, ahead of schedule, after finding more than 6 billion barrels of recoverable oil and gas.

Exxon had said on Friday that the project’s first crude shipment would load during the weekend and head for its refining network. The U.S. company operates refineries in Louisiana and Texas in addition to plants inland in Montana and Illinois.

All commercial oil resources in Guyana, an impoverished nation whose economy is expected to be transformed by its emerging oil industry, have been found at the Stabroek offshore block, where Exxon and its partners have disclosed 15 large discoveries so far.

The Exxon-led venture alone expects to produce at least 750,000 barrels per day of crude by 2025, enough for Guyana to become an oil power alongside neighboring Venezuela and Brazil.

Guyana’s transition to an oil-producing country has sparked a political controversy in the nation’s ongoing presidential campaign over the way the government gave exploration and production rights and designed its royalty framework.

Guyana’s People’s Progressive Party (PPP) has criticized President David Granger’s 2016 deal with Exxon as too generous and pledged to “immediately engage the oil and gas companies in better contract administration/re-negotiation.” Exxon said the negotiated terms of the contracts “are competitive with other agreements signed in countries at a similar resource development phase."

Exxon is expected to export both its first two cargoes of Guyanese oil. Another of the first shipments from the Liza field is scheduled to be taken by U.S.-based Hess in February, with others earmarked for sale by the Guyanese government through an open-market tender won by Royal Dutch Shell.

In December 2019, ExxonMobil halted PE production at its site in Notre Dame de Gravenchon, France due to commercial reasons, without providing further details.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.
Author:Anna Larionova
Tags:PP, PE, petrochemistry, Crude oil, Exxon Mobil, Shell.
Category:General News
| More

Leave a comment

MRC help


 All News   News subscribe