GUYANA-Guyana’s largest FPSO vessel to arrive later this week.

GEORGETOWN, Guyana, CMC -President Irfaan Ali on Tuesday said that a fifth production vessel, regarded as the largest Floating Production, Storage, and Offloading (FPSO) in Guyana’s fleet, is expected to arrive off the coast of Guyana this week.

Ali said that the vessel had set sail from Singapore in early August and was built for US$12.7 billion.

“It is the largest FPSO in Guyana’s fleet, designed to add roughly 250,000 barrels per day and push national output above one million barrels a day for the first time. Currently, our four operating FPSOs, Lisa Destiny, Unity, Prosperity and One Guyana, produce roughly between 900 and 920,000 barrels per day,” Ali told a news conference.

He told reporters that the production-sharing formula has never changed and remains exactly what was written in the 2016 agreement.

“Royalty first, then up to 75 percent of production can go to cost recovery, and whatever is left is split evenly between Guyana and Starbrook Converters. We need to understand the concept of profit oil that agreements speak of.”

Ali said that Guyana’s share of Starbrook block oil has increased from 12.5 percent to 39.8 percent and “this has occurred, as I said, because the cost bank has been recovered two years earlier than originally expected”.

He said that in terms of barrels, 75 of every 100 barrels produced went to cost recovery and that today, only about 20 barrels go to cost.

He said that while the US$55 billion expenditure was paid off, the cost bank is not saturated or entirely depleted.

“The 20 barrels today account for operating and other costs, which still form part of the cost bank. What is left, called the profit oil, is split evenly between Guyana and the companies.

“Guyana’s half is about 39.8 barrels out of every 100. The companies’ matching 39.8 barrels are split three ways between the co-venturers. So that is where we are in relation to that.”

Ali said that his ruling People’s Progressive Party/Civic (PPP/C) had promised in its manifesto ahead of the last general election that the government would continue modernizing the national procurement system.

“I’m pleased to tell you that the finance secretary is leading the effort to have, before the end of this year, the e-procurement system fully completed and integrated. And the e-procurement system will have a digital bidder’s register, an e-tender lifecycle module, a national e-tender portal, and an e-marketplace.”

Ali said this will remove the need for massive paperwork and move from a paper-based system to a complete e-system that is trackable throughout the process.

He said regarding the digital bidder’s register, the authorities have already had a bidder registered; however, “it will be expanded to include the following information for each contractor, supplier, consultant, beneficial ownership, GRE and NIS compliance, classifications, small, medium, and large contractor, class performance, debarments, and suspension.

“The e-tender portal and the MPTAB website will be upgraded into a single window, where all public procurement plans, tender notices, bidding documents, clarifications, bid submissions, and award notices are uploaded.”