PNCR calls for probe into gas monetisation deal

Aug 28, 2024 News

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…says conflict of interest question cannot be ignored given Jagdeo’s sordid past 

Kaieteur News – Chairman of the People’s National Congress Reform (PNC/R), Shurwayne Holder has called for a probe into the questionable gas monetization deal between the government of Guyana and a one-year-old company, founded by the former Vice President of ExxonMobil Guyana, Jesus Bronchalo.

The Shadow Minister of Natural Resources told this newspaper on Tuesday that the award of the contract to Fulcrum LNG has set off alarm bells.

He explained, “While I understand fully the experience of the company’s (Chief Executive Officer) CEO in the oil and gas sector, we must consider that the company which he leads has been established just a year ago and has no track record of undertaking such projects. I assume it’s a company operation and not a one man show.”

Moreover, Holder insisted that the conflict of interest involving the company’s CEO and Exxon cannot be ignored.

The Opposition Member of Parliament said, “I don’t care what (Vice President Bharrat) Jagdeo says about Exxon not being in favour of gas monetisation. You can’t believe anything he says, he often speaks with a forked tongue, so we cannot just take Jagdeo’s defense of this company.”

The Shadow Minister of Natural Resources further highlighted that the PPP’s track record is stacked with companies that lacked competence to undertake the work and failed to satisfy the terms of their contract, yet these were defended by the administration.

Holder was also keen to point out, “The public is also privy to allegations of corruption in the oil and gas industry as per the Vice News video release of discussions between VP Jagdeo and Su Zhi Rong.”

In commending this newspaper for its investigative journalism and informing the nation on the background details of Fulcrum LNG, he urged that enough has been exposed to warrant a full-fledged investigation of the contract award. Holder insisted, “If this government has nothing to hide then it must do the right thing and launch an investigation immediately.”

Although the government has dismissed the possibility of a conflict of interest between Fulcrum LNG and Exxon, Holder is adamant that the VP’s words should be taken with a pinch of salt.

“On one hand, he gives the impression that he has full knowledge of the procurement process; to some extent that he has conducted his own review and found what was proposed by Fulcrum LNG to be the best; yet in the same breath, he sort of distances himself from the process. The public is no closer in understanding the various proposals by the different companies and why the obvious conflict of interest and lack of experience of Fulcrum LNG was overlooked,” the MP stated.

He therefore called for an independent, transparent probe of the controversial gas deal.

Conflict of interest?

Fulcrum LNG was founded by the former Vice President of ExxonMobil Guyana Limited (EMGL), Jesus Bronchalo, in July 2023, only five months after he left Exxon. He was employed with the oil giant for 19 years and one month prior to his questionable resignation.

Bronchalo’s company was later selected by the Government of Guyana (GoG) to design, finance, construct, and operate the required gas infrastructure to provide gas monetization solutions and accelerate upstream gas developments in the country. The deal was announced by President Irfaan Ali in June 2024.

There were no mentions of completed projects by Fulcrum on its website. Be that as it may, Kaieteur News understands that the main feature of Fulcrum LNG will involve the development of state-of-the-art gas processing and modular, scalable facilities to produce Liquified Natural Gas (LNG) and NGLS/LPGs for Guyana as well as regional and global markets.

The limited experience of the company has raised serious questions about its capacity to fulfill its contracted obligations. Bronchalo’s company was selected as “the most responsive compliant bidder” among 16 others who tendered to develop the non-associated gas in the Stabroek Block, operated by Exxon.

Additionally, the CEO’s link to American oil super major ExxonMobil has sparked concerns among Guyanese, but the government has dismissed the possibility of a conflict of interest. In fact, VP Jagdeo during his Thursday press conference told reporters that Fulcrum LNG’s proposal was the best received by the government.

Jagdeo said, “He had left Exxon but if anything, maybe the evaluators thought that he had the data on the gas. I don’t know if they did that…on the face of it, I thought it was the best proposal that the evaluators came up with and that’s what we’re looking for, so there is nothing I found wrong with the evaluation of the bids and I don’t see anything that has come out in any major way that’s wrong, except for that oh, he worked at one time with Exxon.”

When asked to comment on the fact that Fulcrum LNG has no known experience and has only been registered for one year now, the VP continued to defend the contract award, insisting that the Founder has years of experience in the field through his former employment with Exxon. “But he was there with Exxon a long time, but he has been a project developer for a long time,” Jagdeo pointed out.

Fulcrum LNG has not responded to this newspaper’s invitation to comment on the matter since Saturday.

Sketchy details

Meanwhile, investigations by this newspaper found that the former Exxon VP appears to be one of only two registered employees of Fulcrum LNG.

Bronchalo, who left Exxon in February 2023 is not only CEO of Fulcrum LNG, but he also, wears several other professional caps at the business he registered in July 2023. Bronchalo is also Secretary, Treasurer, Director and President of the company. From all indications, he has only hired one employee. Kaieteur News discovered that Ivor Ellul has been hired as Technical Director at Fulcrum LNG. He was appointed in July 2023 and previously worked at Schlumberger GeoQuest and CiSK Ventures, Ltd, among others. Ellul held senior positions, including Managing Director, Chairman, CEO and President among others in his career.

A deeper dive into the company’s records also led Kaieteur News to the business address of Fulcrum LNG. The energy company operates from what appears to be a two-storey guest house located at 937 TAHOE Boulevard, Incline Village, Nevada, USA. Fulcrum LNG, according to company records, operates from Suite 130B.

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• Fulcrum LNG, gas, investigation, Jagdeo, monetisation, PNC/R

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