Govt. will soon identify evaluators for oil sale bids – VP

Nov 07, 2020 News

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Kaieteur News – Vice President Bharrat Jagdeo has given his assurance that the government will release the identities of the evaluators under the National Procurement and Tender Administration Board (NPTAB), who will select the trader to sell Guyana’s share of oil.
“We don’t have a problem with releasing the names of the people. We’ll get the names to you shortly,” the VP said during an engagement with the press at the Arthur Chung Conference Centre (ACCC), yesterday.
The VP’s decision to release the names of the evaluators comes after months of resistance from NPTAB.
In fact, in May of this year, Kaieteur News had asked the former Deputy Chairman of NPTAB, Mark Bender, to confirm if guidance would be provided by international consultants who have experience in detecting fraudulent or corrupt traders.
Bender had declined to provide details on whether they are local or international, information on the experience of the individuals, and their qualifications, making it clear that he would not be answering those questions.
Anti-corruption advocates have argued that details on those tasked with selecting the traders should be publicized, as it ensures that those evaluators are competent enough in selecting a winning trader.
Background checks
In its pursuit of a marketer for Guyana’s share of the Stabroek Block oil, the Energy Department had said that it would be doing a thorough background check on all bidders.
When the Expressions of Interest was first released in February by the Energy Department for applications to market Guyana’s crude, the procuring agency was keen to note that the applicant must demonstrate that it has at least five years of experience in crude oil marketing and trading, and provide copies of its Certificate of Incorporation.
Applicants were also required to provide details of their capabilities and the volume of crude oil trading and marketing done by geography, over the last five years.
The Energy Department also said it wanted to see details of previous experience in introducing a new grade into the market as well as the applicant’s Code of Conduct Statement.
Significantly, bidders were asked to make provisions to allow the Department of Energy to verify all claims made in submission, and also, to verify that the bidders’ organization is not in receivership, or the subject of any form of insolvency of bankruptcy proceedings or the subject of any form of winding up petition or proceedings.
A written statement confirming that the bidders do not have any director who has been convicted in any country for a criminal offence relating to fraud or any financial impropriety or criminal misrepresentation or falsification of facts relating to any matter also has to be provided.
Accompanying that statement it said, should be details of any pending litigation the bidder may or may not have.
Kaieteur News understands that the successful candidate will be required to provide support to the Energy Department in all operating and back office responsibilities of managing crude sales and for each individual lift from the Liza Destiny, Guyana’s first Floating Production Storage and Offloading (FPSO) vessel.
The successful crude marketing agent would also have to support the Energy Department in the first year of introduction of the Liza grade in multiple geographies and refinery systems, and work closely with the Department in understanding the behaviour and yields of the Liza Blend and how these affect pricing differentials.
Of note is the fact that it will have to conduct training sessions for personnel attached to the department in matters relating to crude oil supply and trading fundamentals, and more specifically, those relevant to the Liza grade pricing.
Kaieteur News understands that the crude marketing agent would have to use all reasonable efforts to provide relevant information, documentation and/or training in a timely manner for Energy Department personnel. The contract is expected to last for 12 months.
Some rotten tomatoes
Based on extensive research, Kaieteur News has already found that many of the companies bidding to market Guyana’s oil have a troubling history of corruption. Companies including Gunvor, Shell, Petrobras, Sinochem, Vitol SA, Glencore PLC, and Mercuria Energy Group are just a few of the companies with a notoriously corrupt past that submitted bids to the National Procurement and Tender Administration Board.
Public documents show for example that three of the world’s largest commodities trading firms – Vitol SA, Glencore PLC and Mercuria Energy Group have used intermediaries to funnel over US$31 million in bribes to corrupt Petrobras employees in order to win massive contracts, along with acquiring other benefits. Many other companies share similar troubling stories.

 

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