No evidence Govt. advertised contracts for review of amendments to Liza field development plan 

Apr 03, 2023 News

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– Yet, ExxonMobil’s client was selected for the job 

Kaieteur News – As with many aspects of the problematic Gas-to-Energy project, the review of legal and regulatory documents appears to be shrouded in secrecy. A foreign firm, Bayphase, indicated recently that it conducted in-depth reviews for the government related to the Liza field and the Gas-to-Energy project. However, there is no information on the regular government channels to indicate that it sought bids, through advertisements, for the contract(s) it awarded to Bayphase.

In January 2023, Minister of Finance Ashni Singh stated during his reading of the 2023 budget that the Liza Field Development Plan (FDP) is being reviewed to ensure that the Gas-to-Energy project is supported by all necessary legal and regulatory documents. The construction of the project is expected to begin this year, with a cost estimated at around US$2 billion.

The development of the Gas-to-Energy is a project of unrivaled importance. Therefore, its permits have to be conducted in accordance with no legal and regulatory hiccups. However, recent information suggests that the government may not have followed proper procedures in awarding contracts for the amendment of the Liza field development plan. The Gas-to-Energy project is supposed to utilise gas from the Liza field.

The Ministry of Natural Resources usually advertises requests for bids to review field development plans. However, there is no evidence that such requests were advertised on the websites of the Ministry of Natural Resources and the Petroleum Management Programme. While contract awards for the review of other projects have been reported, such as the Yellowtail and Uaru projects, there is no public record of contracts being awarded for the review of the Liza FDP and Environmental and Social Impact Assessment (ESIA) amendments. The proposed amendments were submitted to the government by ExxonMobil subsidiary, Esso Exploration and Production Guyana Limited (EEPGL).

Furthermore, there is no public information available to indicate how much was paid to Bayphase for its services. The National Procurement and Tender Administration Board (NPTAB) is supposed to have this information about contracts awarded on its website.

The lack of transparency in the awarding of contracts for this review raises concerns about the fairness and impartiality of the review process. That the review process should be conducted in a transparent and unbiased manner, is a no-brainer. This also goes for the procurement of the consultant that assisted with the review. The government has said it will be transparent about the Gas-to-Energy project.

The Government of Guyana hired CH4-Lindsayca to handle the natural gas-fired power plant and natural gas liquids plant. EEPGL is responsible for the pipeline, which will cost more than US$1 billion. The company is waiting on the reviews to be completed before moving full speed ahead.

While the government did not make information about the contracts public, Bayphase has confirmed on its website that it recently assisted the government of Guyana with the ‘Liza Field Integration of Gas-to-Energy (GTE) Project field development plan (FDP) Amendment Review, Guyana’.

According to Bayphase, it conducted an in-depth review of the FDP Amendment and supporting documents submitted by the operator to gain government approval for this development. Bayphase prepared a report summarizing the opinions formed in the evaluation of the FDP, highlighting any deficiencies, unresolved issues, or areas of additional technical analysis that government should request from the Contractor before making a determination on the FDP. It also vetted all costs presented in the plan.

Bayphase also assisted the government with the ‘Liza Field Integration of GTE – Environmental and Social Impact Assessment (EISA) Review, Guyana’. According to Bayphase, it conducted an in-depth review of the ESIA and supporting documents submitted by the Contractor to gain government approval for this development. They prepared a report summarizing the opinions formed in the evaluation of the ESIA, highlighting any deficiencies, unresolved issues, or areas of additional technical analysis that government should request from the Contractor before making a determination on the ESIA.

In conclusion, the lack of transparency in the awarding of contracts for the review of the Liza amendment is a cause for concern, as it relates to a project that is expected to help end blackouts and make Guyana’s energy secure. The government not making information about contracts awarded public, as well as the amount paid to contractors, is also not consistent with its promise to keep the Gas-to-Energy project accountable to the public.

 

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• EEPGL, ESIA, gas-to-energy, Government, Liza Field Development Plan, secrecy, the Liza FDP, The National Procurement and Tender Administration Board

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