Govt. selects Exxon’s client over independent firms to review US$9B Yellowtail plans

Feb 08, 2022 News

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Kaieteur News – The Government of Guyana has once again selected ExxonMobil’s client, Bayphase Limited, to review the field developments plans for the Yellowtail project.
Bayphase, which is headquartered in the United Kingdom, won with a bid totalling US$423,360. The contract for the consultancy was awarded to Bayphase since January 21, 2022. The National Procurement and Tender Administration Board (NPTAB) had disclosed the list of interested bidders on January 20, 2022.
The other companies that submitted 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; 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 previously reported that Bayphase is a well known client of ExxonMobil. In fact, 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 ever unflattering on its clients. (See link to view their published reports: http://www.bayphasedata.com/reports.php)
Be that as it may, the company has said it offers several services on a consultancy basis which include: resource auditing and valuation, cost auditing and estimation, reservoir modelling and strategic study.
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 recognised 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.
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 Field Development Plan (FDP).
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 FDP.
Government said that 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.
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.

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