ExxonMobil clients among 12 companies bidding to review Yellowtail Field Development Plan

Jan 21, 2022 News

By Kiana Wilburg

Kaieteur News – Twelve companies, inclusive of two well established clients of Stabroek Block Operator, ExxonMobil, have submitted bids to the National Procurement and Tender Administration Board (NPTAB) for the review and evaluation of the Field Development Plan for Exxon’s fourth project –Yellowtail.
The companies and their bids are as follows: Infinity Services in collaboration with XWells Mexico – US$617,500; Orwell Offshore-US$617,650; MSI International-US$817,761; Endeavour Management –US$598,934; Future Energy Partners Limited US$901,482; IHS Global Inc.-US$1,493,502; Bayphase-US$423,360; RPS Energy Consultants Ltd. –US$494,000; Sunstone Energy Advisory Service –US$785,040; Sproule –US$661,440; and StratOil Energy Services –US$324,080.
Kaieteur News’ preliminary research has found that Infinity Services located at Lot 30 Fort St. Kingston, Georgetown, consists of skilled engineers and management consultants with varied skills in environmental and engineering projects across North America. It has teamed up with XWELLS which was founded in 2014 simultaneously in the United-Kingdom and Mexico by experienced drilling and wells engineers.
Kaieteur News understands that XWells Energy Limited (XWELLS) is a business advisory firm whose primary expertise is in oil and gas exploration and production. With a unique method aimed at understanding each project’s issues and characteristics to propose tailor-made solutions, XWELLS’ website says it has developed an integrated niche service-offering targeting upstream operators and key stakeholders.
With respect to its competitor, Orwell Offshore, it is listed as a leading UK firm with experience in providing solutions for the Marine and Offshore industries.
Stratoil Energy Services which is headquartered in Cairo, Egypt, claims to offer unique solutions to support organizations while noting that its experts cover the full spectrum of current industry issues, trends and best practice.
With regard to Sproule, it is a global energy consulting and advisory firm that helps companies, investors and governments minimise risk and optimise business decisions. It has a 70-year legacy of driving value for clients through independent, expert technical, operational and commercial analysis. It is headquartered in Canada but has offices in Mexico, the USA and the Netherlands.
Canadian firm, Sunstone Energy Advisory Services (SEAS) says it comprises some of the world’s top experts while providing geoscience services for oil and gas investment and international growth. It also boasts on its website of having key 25-year-old relationships with ExxonMobil, Hess, and CNOOC, the Stabroek Block operators. It also lists as one of its key achievements, work it has done on the Guyana Project (Discovery & Development) 2013-17 which led to the discovery of 10 Billion barrels of recoverable oil resources.
Founded in 1970, RPS is another leading global professional services firm in the UK which defines, designs and manages projects. It works across six sectors: property, energy, transport, water, resources, defence and government services..
Also from the UK, IHS Global Ltd. provides industry data, technical documents, tailor-made software applications, and consulting services worldwide. The company offers services to automotive, aerospace/defense, health care, construction, chemical, agriculture, maritime, government, and oil and gas industries.
With respect to Future Energy Partners (FEP), this company was established nearly 10 years ago by senior industry executives and academics as an energy consultancy dedicated to ensuring the successful transition from the oil age to carbon neutrality. It is headquartered in the United Kingdom too.
Based in Huston, Texas, Endeavor Management boasts of being committed help properly frame the strategic decision(s) and evaluate the critical elements required to reduce decision risk for its clients.
Finally, Bayphase is an international oil and gas consultancy which has decades of auditing experience but is a well known client of Exxon. It has previously been awarded contracts here and is based in the UK.

TENDER DETAILS
It was on January 8, last, that Kaieteur News published the government’s request for financial and technical proposals from qualified firms to review the Yellowtail FDP. Yesterday was the closing date for submissions. The project documents note that the duration of the assignment is expected to be 50 days, with the possibility of work starting by February 7, 2021, should all go as planned.
The bid documents state that the firms are required to consider Guyana’s legislative and contractual framework, international best practices and industry standards, and the specific conditions present in Guyana, then proceed to conduct an in-depth review of the Yellowtail Field Development Plan (FDP).
Government said the review must include all supporting and reference documentation, along with the related Environmental Social Impact Assessments (ESIA) submitted by the Stabroek Block Licensees.
It was further noted, that the review must include at minimum, an assessment of the strategy and the development model, as well as the criteria for the choices that have been made by the Licensees, including cost effectiveness, and potential alternatives; engineering, geological and geophysical interpretations, simulations, and estimations, including recovery factor efficiency using natural gas injection and available natural gas for export; and the well and reservoir management strategy, taking into consideration the government’s objectives of maximising the recovery of hydrocarbon resources and having no gas flared.
Interested firms would also be expected to review documents pertaining to the proposed oil and gas surface facilities, the associated financial models, economic analyses and cost estimates and reports, towards ensuring financial optimisation of oil and gas recovery profiles; the Health, Safety, Environment and Social (HSES) impacts and proposed mitigation; the Decommissioning Plan and Budget; the natural gas utilisation plan for the field; and the overall risk management strategy.
Furthermore, Kaieteur News understands that, the successful applicant would be required to prepare a report, setting out the opinions formed in the evaluation of the FDP and ESIA, addressing at minimum, compliance or non-compliance with the requirements of the existing legislative and industry standards including any deficiencies, unresolved issues and areas of additional assessments or technical analysis that the government should request before making a determination on the FDP.
According to the government, it expects support for the Natural Resources Ministry through engagements and information exchanges, with the Licensees as well as the provision of on-the-job training to Guyanese during the FDP evaluation process.

TRILLION DOLLAR PROJECT
Kaieteur News previously reported that development costs for the Yellowtail project are poised to exceed US$9B or GY$1.8 trillion.
According to project documents, Yellowtail will consist of drilling approximately 41 to 67 development wells; installation and operation of Subsea, Umbilicals, Risers, and Flowlines equipment; installation and the operation of a Floating Production Storage and Offloading (FPSO) vessel in the eastern half of the Stabroek Block; and— ultimately—project decommissioning.
The FPSO will be designed to produce up to 250,000 barrels of oil per day. The initial production is expected to begin by the end of 2025–early 2026, with operations continuing for at least 20 years. The project is expected to employ up to 540 persons during development well drilling, approximately 600 persons at the peak of the installation stage, and 100 to 140 persons during production operations.