No independent studies, no master plan, no team of experts in place for US$900M Gas Project

Apr 27, 2021 News

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By Kiana Wilburg

Kaieteur News – Even though the People’s Progressive Party/Civic Administration (PPP/C) does not possess an independent study, a master plan, or even a team of experts with experience in protecting State interests, the administration is still forging ahead with its controversial gas-to-shore project now pegged to cost US$900M.This state of affairs became apparent during a press conference that was held yesterday at the Arthur Chung Conference Centre. There, Vice President, Dr. Bharrat Jagdeo; Head of the Gas-to-Shore Taskforce, Winston Brassington, and other officials, sought to address concerns regarding the absence of studies for the project that will be spread across 10,000 acres of land at Wales.
Jagdeo and his team were keen to note that several studies were done before on the project and its feasibility by the APNU+AFC Coalition. The five studies in question are the Gas to Power Feasibility Assessment in Guyana by K&M Advisors; an Oil and Gas Master plan by Japan Cooperation Centre Petroleum Chiyoda Corporation – Updated February 2021; a Study on System Expansion of the Generation System by Brugman SAS; a Desk Study of the Options, Cost, Economics, Impacts, and Key Considerations of Transporting and Utilising Natural Gas from Offshore Guyana for the Generation of Electricity (2017) by Energy Narrative; a Feasibility Study for Guyana’s Offshore Natural Gas Pipeline, NGL Separation and LPG Production plant, and related electricity infrastructure – 2018 by Energy Narrative; and a Feasibility Study for Guyana’s Offshore Natural Gas Pipeline, NGL Separation and LPG Production plant, and related electricity infrastructure – Revised Final Report: Appendix C by Energy Narrative.
Following an assessment of the foregoing, Jagdeo said the government was able to draw one common conclusion—bringing gas-to-shore makes economic sense. Going forward, the government said that a geotechnical, geophysical and an environmental study would be completed so as to outline what the new project parametres will be, given the government’s selection of Wales as the home for the project. It should be noted that these three studies slated for completion in 18 months (2022) will be done by ExxonMobil. Following this revelation, Kaieteur News asked the Vice President to identify the experts providing guidance on protecting the interests of the State. While he did not provide the list requested, he did note however that the government will publish a few advertisements in the coming days which would look to fill certain key positions. The first position to be advertised will be for a Value Engineer. This person would be responsible for ensuring Guyana is getting value for money on all expenditure by ExxonMobil.
The Vice President said too that a Legal and Commercial Consultant is being sought to monetise and conclude all of the contracts associated with the gas project, including one for the price to be paid to ExxonMobil for transporting the gas via the pipeline. This consultant would also be responsible for commercialising other aspects of the byproducts derived from the gas project.
A Procurement Process Reviewer is also on the list of positions to be advertised. This person, Kaieteur News understands, would be responsible for ensuring contracts being awarded in the oil sector are not tailored to keep locals from having a fair shot.
Another key person being sought is for Petroleum Data Management for Transparency. The holder of this post would be responsible for ensuring the government has its own repository of credible data needed to hold ExxonMobil accountable. That Consultant would also be required to improve the relationship between the Ministry of Natural Resources and the public.
While the aforementioned was deemed a commendable effort on the part of the government, Jagdeo was still pressed by other members of the media to identify the experts used to provide guidance on the selection of Wales as the most suitable landing site as opposed to other areas. The Vice President was quick to note that Guyana does not need foreign experts for that type of work as there are several knowledgeable locals who are able to competently make those judgments.
He noted however that the government is currently being advised by Petroleum Consultant, Simon Shaw, who has over 20 years experience of design and construction management in the Oil and Gas industry primarily relating to offshore projects, particularly pipelines and subsea systems.
As regards this publication’s question on whether a Gas Master plan has been completed or in draft mode, the Vice President acknowledged that this was not completed, but assured that it would be done soon.

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