Liza I and 2 US$10B bill must be fully scrutinised

Dec 13, 2019 News

– Jagdeo calls for public release of field development plan

Pull Quote: “They gave a bill and are we satisfied that that money was actually spent, that we have to pay back for? We have to go and dig up everything; they have to show us in detail how they come up with the figure and whether it was done competitively.”

By Gary Eleazar

Opposition Leader Bharrat Jagdeo has called on the administration to immediately release all relevant information with regard to the US$960M pre-contract costs, in addition to the US$10B development costs for the Liza 1 and 2 oil fields in the Stabroek Block.

Opposition Leader Bharrat Jagdeo

The FPSO ‘Liza Destiny’

Jagdeo—a former President and Finance Minister—speaking at his Church Street Office yesterday, drew reference to a full page advertisement published in this newspaper which called for scrutiny of the Development Costs for the Liza 1 and 2 fields.
Engaging reporters, Jagdeo was adamant that any proprietary information can be redacted from the documents, and that they can be made public so that they can independently be scrutinised.
According to Jagdeo “the government should give us the information…they should share this information with us.”
In reference to the expenditure said to be had by ExxonMobil Guyana, Jagdeo said, “they gave a bill and are we satisfied that that money was actually spent, that we have to pay back for?”
The opposition leader was adamant “we have to go and dig up everything; they have to show us in detail how they come up with the figure and whether it was done competitively”.
He suggested, for example, if a portfolio is eligible for a US$10,000 payment but instead is being paid US$25,000, “then why should we be paying this.”
Emphasising the importance of verifying the bills handed to Guyana for just about US$11B, Jagdeo said it must be “rigidly monitored expenditure” He said this is to ensure, that only competitive sources are used for goods and services which would serve to maximise the country’s share of the revenue This, he said “is a critical aspect of better contract administration”.
He acknowledged that auditing and verification of the expenditure is not a function of the opposition, but rather, government, and added that “there are certain things you can make public”.
The Opposition Leader suggested for example that the price for the Floating Production, Storage and Offloading (FPSO) vessel “should be made public” adding that individuals have already been publicly questioning the cost for the Liza Destiny—Guyana’s first FPSO.
The Liza Destiny is currently being moored in the Stabroek Block as part of a US$4B Field Development Plan for the Liza I oil field while the Liza Unity for the second oil field is currently under construction.

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