(Adds details, Shell unavailable to comment)
By Neil Marks
GEORGETOWN, Dec 24 (Reuters) - Royal Dutch Shell
won the rights to market Guyana's first cargoes of crude oil,
the government said on Tuesday, just days after oil production
began and launched the impoverished South American country into
the ranks of world suppliers.
An Exxon Mobil-led consortium, which includes Hess
Corp and China's CNOOC Ltd, began producing
crude from the Liza well on Friday. The companies have
discovered more than six billion barrels of recoverable oil and
gas in a massive offshore block.
Guyana has no history of oil production, nor any domestic
refining capacity, so it launched an auction last week to sell
three cargoes from the share the government is entitled to under
the contract. It plans to search for a partner for a longer-term
deal to market the government's share of crude early next year.
The Shell deal represents an important first test for Liza
crude, a light, sweet grade that could pose new competition for
U.S. shale. But the grade's price and refining qualities are
unknown, and the sale will provide valuable information for
Guyana and for those interested in long-term supply agreements.
Shell was not immediately available to comment.
The government's first cargo is expected to be lifted in
February. Exxon, which operates the project and holds a 45%
stake in the venture, will directly lift the first cargoes,
while Hess, which holds a 30% stake, will lift a cargo later in
the month.
Guyana's Department of Energy said Shell Western Supply and
Trading had been chosen from a group of nine listed
international oil companies that presented proposals because its
"competitive pricing" would protect the government from
volatility.
It added that Shell demonstrated "willingness to share
critical refinery information" to help it understand
characteristics of Liza's crude, a new grade.
"The sale has been premised on a Dated Brent price basis
which reflects the tradable, spot market value of crude oil,"
the department said in a statement. Pricing details will be
publicly disclosed in the future, it added.
Exxon, Hess and CNOOC also bid for the government's share,
along with oil majors BP, Chevron, Total
and Eni.
(Reporting by Neil Marks; Writing by Luc Cohen; Editing by Jane
Merriman, Mark Potter and Dan Grebler)
