ExxonMobil’s client wins contract to review company’s Field Development Plans

Feb 14, 2019 News

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By Kiana Wilburg

UK-based firm, Bayphase Oil and Gas Consultants, won a contract from Guyana to review the Field Development Plans (FDPs) of its client, ExxonMobil. This was revealed on Monday by Head of the Energy Department, Dr. Mark Bynoe.
The official said that Bayphase will review the FDPs for Exxon’s Liza Phase One and those of other operators.
But prior to this, Kaieteur News had reported that this company is not only a client of Exxon, but of even some of its primary contractors working here. This publication also showed that Bayphase never gave an unflattering report on its clients.
In light of this, Kaieteur News asked Dr. Bynoe to say if he is concerned about the connection between Bayphase and ExxonMobil. Dr. Bynoe said, “Absolutely not!”
He reasoned that it is difficult to find any potential reviewer for development plans which did not have an affiliation with an operator before.
Dr. Bynoe said, “To start casting aspersions on an entity even before it is allowed to do its job, is somewhat sad. What I also indicated in my presentation is that we went through an evaluation process which had to have received the no objection of the World Bank and they went through it and approved this client…”
The Energy Department Head added, “If we do the research, (one would see that) it is almost impossible to find an entity which didn’t work with the operator before.”

Lending his voice to the matter, Government’s Advisor on Petroleum, Matthew Wilks, said that consulting companies pride themselves on being independent. He said, “You wouldn’t last long in this business as a consultant if you were biased or didn’t do your job properly. So a lot of aspersions which appeared in the press are incorrect.”
Wilks emphasized that companies need to be able to do their jobs…”

EXXON’S INFLUENCE
While the Government may be eager to hire international firms to provide much needed advice and expertise on managing the nascent oil sector, Oil and Gas Consultant and former Advisor to the Government, Dr. Jan Mangal, said that extreme caution must be exercised.
The Petroleum Consultant stressed that Guyana should not hire any company over which American oil major, ExxonMobil, has significant influence or the authorities would need to have mitigation measures in place to counter potential biases and sway.
Dr. Mangal said, “From the Kaieteur News research, it seems Exxon has influence over Bayphase. Any firm which has Exxon, its partners and contractors as major clients will likely side with Exxon before Guyana (such as WoodMackenzie, Rystad, Intecsea-Worley Parsons, Bayphase, etc.)…”
Dr. Mangal is of the view that the Government should not hire this little known company which seems to have links to Exxon. Should the administration hire this firm, Dr. Mangal believes it could lead one to the assumption that the Government is working for Exxon’s interests.
Further, the Petroleum Consultant said it will be difficult to find firms in the oil and gas sector without links to Exxon. Be that as it may, Dr. Mangal said, “We must choose the most reputable, and those which have a proven track record of being unbiased.
“We need firms which can prove they have supported the interests of counties versus major oil companies like Exxon. Guyana can afford to pay top dollar now for the best.”

He added, “I recall the Ministry of Public Infrastructure hired a one-man show for their natural gas study, and that was a flop. And the Ministry of Natural Resources hired a firm to review the Field Development Plan for Liza Phase 1, but the choice was inappropriate. The firm could not even review the cost.”
LONE UK BIDDER
Bayphase which was established in 1986 is not only a client of ExxonMobil, it is also contracted by NEXEN, a subsidiary of the Hong Kong-based China National Offshore Oil Corporation (CNOOC). CNOOC holds 25 percent interest in the Stabroek Block.
Bayphase also works for Exxon’s subcontractors which include Schlumberger and Technip FMC. (See link for full list of clients: http://www.bayphase.com/clients-list2.php)
Further to this, none of its reports are unflattering to its clients. (See link to view their published reports: http://www.bayphasedata.com/reports.php)
The company offers several services on a consultancy basis which include: resource auditing and valuation, cost auditing and estimation, reservoir modeling and strategic study.
With respect to Resource Auditing and Valuation, Bayphase said that this aspect covers resource assessments for all types of hydrocarbon properties including exploration development and production licenses. It said that it has extensive experience in carrying out this work for conventional oil, non-associated gas, gas condensate, heavy oil, and shale gas resources.
It said, too, that it has carried out this work in accordance with standards set by these bodies: The Petroleum Resources Management System (PRMS), the Securities and Exchange Commission, the London Stock Exchange, the Alternative Investment Market and the Johannesburg Stock Exchange.
In the area of Cost Auditing and Estimation, Bayphase boasted of having over 30 years experience in developing independent cost estimates, verifying cost estimates and the development of software for cost estimating for oil and gas projects.
It claimed to be a recognized leader in the assessment of all costs associated with oil and gas projects. It said that its experience in developing accurate cost estimates covers all phases of oil and gas extraction including: Exploration, Appraisal, Development, Production and Abandonment.
Bayphase said it has also been called on to audit project expenditures on behalf of stakeholders including: Partners in hydrocarbon development projects, Banks providing loans to Oil and Gas projects and Governments who wish to understand the revenue flow in such projects.

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