Guyana uses part of US$20M World Bank loan to pay Exxon’s offshore driller to develop reservoir software

Dec 16, 2022 News

Kaieteur News – The Government of Guyana has used US$ 998,489 from its US$20M World Bank loan to pay an ExxonMobil contractor to develop Analytical Geoscience and Reservoir Engineering Software.

According to the Bank, the contract was signed on October 11, 2022 with Schlumberger Guyana Inc., one of Exxon’s top clients for oil services here. The contract did not go to open tender. Schlumberger, the world’s largest offshore drilling company, was directly selected for the task.

It is expected that the software will help Guyana to ensure that the geological, geophysical and reservoir engineering data provided by Exxon can be validated, utilized, or monetized.

Kaieteur News had previously reported that the US$20M loan was approved on March 29, 2019 for the Guyana Petroleum Resources Governance and Management Project (GPRGMP). The programme’s objective is to ensure the enhancement of legal and institutional frameworks and the strengthening of the capacity of key institutions to manage the oil and gas sector.

A Financing Agreement in the amount of US$20 million was signed and declared effective on April 11, 2019 under the David Granger administration.

Kaieteur News understands that the project has four components Component- A. Enhancement of Legal Framework and Stakeholder Engagement: (US$3.20 M); Component – B Capacity Building of Key Institutions 🙁 US $10.70 M); Component – C. Enhancement of Fiscal Management Systems 🙁 US$3.50 M); and Component – D. Project Management & Project Preparation Facilities 🙁 Cost $2.60 M).

For explanatory purposes, the first component being for the enhancement of legal framework and stakeholder engagement, aims to support the update of Guyana’s legal and regulatory frameworks for the governance and oversight of the sector as well as support stakeholder engagement and transparency. This component includes two subcomponents: update the legal and regulatory frameworks for the sector, and support stakeholder engagement and transparency.

The second component on the capacity building of key institutions includes four subcomponents: support immediate technical needs at key institutions with responsibility for oil and gas, support critical training needs at key institutions with responsibility for the sector, build up petroleum data management, and strengthen environmental and social management.

The third component is the enhancement of fiscal management.

Finally, the fourth component gives proper management and coordination of all project activities financed under the project. More specifically, it provides support and builds the Government’s systems for procurement and financial management, while allowing for the implementation of safeguards for proper management, monitoring.

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