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New concerns raised over former Exxon VP securing contract to monetise Guyana’s gas Aug 20, 2024 News Kaieteur News – A company established by the former Vice President of ExxonMobil Guyana Limited (EMGL) with less than a year experience was awarded a contract to monetise Guyana’s gas resources. Founder and CEO of Fulcrum LNG, Jesus Bronchalo worked with Exxon for almost two decades. Government advertised earlier this year, locally and internationally, through a Request for Bids (RFB) for the Design, Finance, Construction, and Operation of essential gas infrastructure to support upstream developments in Guyana. Proposals were invited from qualified developers for comprehensive solutions to develop the required gas infrastructure, which includes the necessary pipelines to connect and monetize upstream gas. Of the 17 bids opened, Fulcrum LNG, founded by Jesus Bronchalo was selected by the Government of Guyana. Bronchalo worked 19 years and one month for ExxonMobil. The last position he held for the company was Vice President and Chief Commercial Officer for the Guyana operations; his tenure ended in February 2023. According to reports, Bronchalo months later- in July 2023- launched the energy company, Fulcrum LNG, boasting “experience and expertise across all aspects of the oil and gas value chain, including low-carbon solutions.” The company on its website stated, “Our gas infrastructure development approach enables faster development and execution of projects which allows for faster revenue generation, delivering reliable energy to the world, and providing decarbonization alternatives by switching to significantly less-polluting energy sources.” Importantly, the company said its partners with some of the industry’s leading global engineering, technology, and finance firms, as well as global LNG buyers, to deploy the most advanced technologies and sustainable solutions that will generate maximum value for its clients. There were no mentions of completed projects by Fulcrum on its website. The deal between the GoG and the former ExxonMobil Executive continues to raise eyebrows as company details remain sketchy. It should be noted that Fulcrum LNG would be entrusted with developing the country’s gas resources for monetisation purposes, however given its association with ExxonMobil, stakeholders remain concerned about the interests of Guyana being protected in the transaction. Opposition Parliamentarian David Patterson in an invited comment told Kaieteur News, “Less than a year later (after) leaving Exxon, this company was awarded this contract. The company has no track record, being formed a little while ago.”  He pointed out that the Production Sharing Agreement (PSA) with Exxon highlights the need for the oil company to conduct a feasibility study for the utilisation of the gas resources. Additionally, Patterson urged, “The GoG paid a former Trinidadian Minister US$20,000 to produce a policy, which resulted in a substandard document. Based on this, any new contract should have it terms of reference placed in the public domain for comment, or we will end up with a similar end product.” The former minister also reminded that the Government of Japan prepared a draft Gas Road Map around the year 2018 and offered to produce a more comprehensive document, free of charge. He therefore asked why that option was not explored by government. Conflict of Interest? The Ministry of Natural Resources in June defended the award of the contract to Fulcrum LNG.  It said an “independent and technically competent” evaluation team was established by the ministry to conduct a detailed and robust evaluation of all 17 bids. Fulcrum LNG was deemed the most responsive compliant bidder and ranked No. 1, followed by CNOOC Power and Gas Group, ranked No. 2, and a consortium of local and international companies which were ranked No. 3. “As such, Fulcrum LNG will be supporting the government and the Stabroek Block operator, ExxonMobil Guyana, to utilise the non-associated gas – serving as an independent development,” the Ministry said. Meanwhile, with regard to the company’s CEO, the ministry acknowledged that while Bronchalo was a former senior employee of Exxon, at the time of the evaluation, his involvement in Fulcrum LNG was known, and his previous relationship with ExxonMobil was not seen as presenting a conflict of interest, since he had severed all ties with the company. The contract award to Fulcrum LNG was first announced by President Irfaan Ali during a press conference at State House in June. He explained, “We recently concluded the expression of interest for a major gas project outside of the Wales development (Gas-to-Energy project). We had a company identified, that company with the Government of Guyana and Exxon and its partners will now have to have discussions and we will have to together arrive at a model and a plan as to how we will advance this major gas development in our country.” The Head of State was keen to note that the government has since assembled a technical team to participate in the discussions and draft a model for the utilization of the gas resources. President Ali anticipates a Heads of Agreement in this regard will be signed by next year. He said, “What we want is the monetisation of the gas as fast as possible to add an additional revenue stream and it’s not only gas, it’s the condensate that comes with it. For a matter of fact that has tremendous opportunity and potential for us but we can’t know that, we can’t know the degree of opportunity until the full analysis, technical (and) financial, is completed for us to know what we have.” To this end, Ali revealed that a number of possibilities are being examined, including the export of energy through the development of an energy corridor to Brazil and Suriname. In addition to that, he cited the marketing of by-products from the natural gas. Ali also hinted at the possibility of a second power plant to position the country as an exporter of electricity. Related Similar Articles

Hughes pushes for experts to help manage Guyana’s oil resources Aug 20, 2024 News – says Guyanese are spectators as foreigners devour country’s wealth   Kaieteur News – Amid the rapid development of the country’s oil sector with little or no oversight and expert’s technical management, Leader of the Alliance For Change Nigel Hughes said if this is not changed quickly Guyanese will be reduced to spectators as foreigners devour their wealth. Leader of the Alliance For Change [AFC] Nigel HughesThe AFC leader was at the time speaking at his party’s public meeting held in Linden Saturday night. Hughes calls for expert’s advice is in keeping with public advocacy for the establishment of the Petroleum Commission, which the Guyana Government said would slow down the development in the sector and also would not add anything new to what they are currently doing. While highlighting that the government continues to boast about the construction of new hospitals, hotels and roads, Hughes pointed out that at about 50 percent of students are dropping out of school, which will result in them not having a decent job. As such he said, “…Are they  going to eat the roads, are they going to be able to afford the health services that exist , so you know what is going to happen we [Guyanese] are going to become spectators as the roads that are being built with our money is being used by foreigners.” He continued: “We are less than a million people brothers and sisters, less than one million people; we don’t have the skills to manage that kind of wealth in a responsible way and when I say that it is not that we don’t have the capacity or we cannot generate the capacity but with that significant amount of money, you need professional help.”  The AFC leader then recalled the Government’s recent visit to several hinterland communities, where millions was invested. “Since we [AFC] have started these visits, the listening and the grounding tours, all of  a sudden four years after the PPP  [People Progressive Party/ Civic] is in office, they running to go by Monkey  Mountain and telling the people that they will be getting $40 million for this and $100 million for that,” Hughes said, while adding, “ I just want you to think about it, $40 million is less than an hour of income from oil, so when you run to tell me that you spending $40 million of my money, it is less than an hour of my money you taking and turning around to say that somehow we must be grateful to you [Government] .” Additionally, Hughes described Guyana’s wealth to be so much that, “we got money till we stupid. We will end up being stupid if we don’t manage that money.” The AFC leader told the gathering that for years, since the country gained independence successive governments have failed to deliver to its citizens a better life. He said, “For the years this country has been independent, we have failed every single cycle to deliver to the people of this country a better life, every single cycle. We might have done better in some, in the last 32 years the People Progressive Party has been in office for 27 [years], therefore 84 percent of the years between 1992 to now they have been in office, elected. And so we have to seriously ask ourselves if the best we can do with all this wealth is to leave us in this struggling condition that we are in.” Oil wealth Noting that every citizen must benefit from the country’s oil wealth, Hughes pointed out that the situation on the ground at the moment is that only people connected to the oil and gas sector do. He further recalled, when the Government stated that Guyanese will benefit from the oil, through the ‘trickle down’ concept. Hughes described this to be, “such an offensive concept.” He explained, “Trickle down means that only the people who connected to oil and gas can get enough money and hopefully they are going to employ enough people and buy enough services, so that when the man that’s getting the contracts for the roads, or the man that’s getting the local content contract money, hopefully the maid, the taxi driver and wherever he buying his food from the restaurant will get some money.” In light of this, Hughes proposed and urged people to campaign for the oil money to be managed by experts, so each citizen can benefit from their profound wealth. Back in March this year when Guyana appeared before the United Nations Human Rights Committee questions were raised about on whether the oil wealth was being used to ensure every citizen benefits.  The question was posed to Minister of Parliamentary Affairs and Governance, Gail Teixeira.  Committee member Rodrigo A. Carazo had noted that the Committee has seen in many parts of the world the extent natural resources have been pillaged and how natural wealth has been stripped to the bones and any wealth generated by the use of the natural resources has not been evenly distributed.  To this end he said, “The desire of this committee, the desire of the human rights architecture is to support member states including the Cooperative Republic of Guyana in processes intended to ensure the best and fairest of distribution of wealth derived from natural resources.”  Carazo explained that the even distribution of wealth promotes the well-being and human rights of all people. In her response, Minister Teixeira said, “The issue of natural wealth being shared, we have reported here, the increase in allocations for health and education, the fact that in every Amerindian village in our society or Indigenous village in society, every rural village in our society, every municipality they are schools for children at the nursery, primary and in the regions which are large, we have secondary schools where children come (from) in the interiors where dormitory is provided.” She explained that for a country of fewer than 800,000 people, coming from a poor background, significant changes have been made in terms of free education, free health care, subsidize housing, increases in the water availability in the interior and rural areas, and electricity. Guyana’s first trillion-dollar budget was passed in the National Assembly last month. The largest chunk of the $1.146 trillion budget was allocated to improving the country’s infrastructure: roads, bridges, sea defence and airstrips among others, with $221.4 billion allotted to this sector. For healthcare and education system, $129.8 billion and $135.2 billion were approved respectively. Related Similar Articles

Govt. hands out land titles, grants Aug 20, 2024 News Opening ceremony of the 2024 National Toshaos Council (NTC) Conference being held at the Arthur Chung Conference Centre. …as NTC Conference 2024 opens Kaieteur News – Karasabai Village in Region Nine and Arau Village in Region Seven, two Amerindian communities, have been the latest recipient of their land titling certificate at this year’s National Toshaos Council (NTC) Conference. This year, the conference is being held under the theme ‘Astute Leadership for Amerindian Development.’ It is being held at the Arthur Chung Conference Centre (ACCC) from August 19 to 23, 2024.  Handing over the land titles to the Toshaos of the villages at the opening ceremony on Monday was President Irfaan Ali who also handed out six Absolute Grants from the Amerindian Land Titling project of the Amerindian Affairs Ministry to several Toshaos. In his feature address at the opening ceremony, President Ali boasted of the investments his government made to the Amerindian communities upon returning to office in 2020 and the years before the country started producing oil. “Without oil in the period of the People’s Progressive Party Civic (PPP/C) government the capital expenditure to Amerindian communities increased 25 fold, isn’t this commitment, isn’t this love, isn’t this a government that cares. As a result, we saw tremendous improvement in health, education, housing, water and sanitation, roads, bridges, agriculture,” he highlighted. During his speech he mentioned to the leaders that he has asked the Minister of Finance, Dr. Ashni Singh to examine ways in which small contracts can be distributed to residents of the villages for small works. He noted that roads, fence, and furniture contracts among others worth $10 million will soon be given to the locals to execute in their communities. “In the new programme of works, all those work would come directly and will maximize the labour in your community,” he added. The Head of State further said that both the Ministry of Health and Ministry of Education have a task that within the next 14 months they should ensure that every health centre and education facilities is upgraded with  improved accommodation and provide good customer service. “The mapping exercise is completed and within 14 months they have to finish every single facility across the country,” he elaborated. President Irfaan Ali at the opening ceremony of the NTC Conference. Also speaking at the opening ceremony Minister of Amerindian Affairs Pauline Sukhai told the village leaders and representatives who are new and re-elected in taking up the leadership role, that it’s the confidence of the people that bestowed upon them that their new assignment requires serious commitment for the new three-year term. “The NTC member which is all of you, must foster an approach linked to the involvement of your people in village development plans, decision-making and feedback for the advancement and expansion of livelihood opportunities. I am pretty confident that this batch of leaders will uphold the principle of good governance, achieving a progressive and upgraded legacy of success which will bring benefits to all the people of your villages,” the Minister said yesterday. She noted that in keeping with this year’s theme, accountability and transparent leadership must be upheld to avoid expending far too much time and resources in resolving grievances. “The requirement of the law on financial reporting must be upheld. I urge the NTC to insist on its membership to address the issue of financial reporting to its people,” the minister expressed. During her address also, the minister told the leaders that she has been receiving complaints that Toshaos are not engaging residents on the developmental plans of their communities. The NTC Conference which is an event held annually gives village leaders from all across the country a forum to engage the President and government ministers and expand development. The conference also gives Indigenous leaders a platform to raise concerns and challenges affecting them. It is with this objective, Chairman of the NTC and Toshao of Moraikobai, Derrick John reminded the leaders gathered that they should use the time to report and inform of the challenges affecting their people and bring forth the new ideas they have to further develop their communities. Speaking of the carbon credit funds the villages have been receiving, the NTC Chair said “I want to appeal to you, especially our young leaders who are here with us this morning, these resources are very critical, they are very important and we need to ultilise these resources in a way that will bring benefits and transforms the lives of our people.” He noted too that accountability and transparency are very critical and so the NTC recognises the fact that some leaders are young and that they would continue to work with them in having their strategic plans implemented in a successful way. On Monday also, a new executive committee of the NTC was elected which will serve the years 2024 to 2027. The body comprises of 20 members from various villages across all the regions. These members are: Andrew Cox, Michael Williams, Alister Daniels, Sonia Latchman, Monty Simon, Christopher Gouviea, Alvoro Simon, Derrick John, LaurenceVandenburg, Shane Cornelius, Ridley Joseph, Romario Hastings, Fel Fel Bennett, Tarcellia John, Earl Gildharie, David Albert, Apollos Isaacs, James George, Rohan Fredricks, and Sydney Allicock. Of the list of names, Toshao Derrick John was reelected Chairman of NTC, Toshao Sonia Latchman was elected Vice-Chairmwoman, Toshao Alvoro Simon was elected as Treasurer, and Toshoa Shane Cornelius was elected as Secretary. Related Similar Articles

Teen biker dies after hit by car Aug 20, 2024 News Dead: 16-year-old Jahiem Gangoo Kaieteur News – Two teenagers were on Sunday involved in an accident on the Onverwagt Public Road, West Coast Berbice leaving one dead and another injured. The teens were hit by a motorcar. Police identified the deceased as 16-year-old Jahiem Gangoo. Injured is Elijah Rigby. Both men hail from Hopetown Village WCB.  The accident occurred at about 19:50hrs. During that time Gangoo was driving Motor cycle # CL 7060 with Rigby as the pillion rider. Police initial reports revealed that the motorcycle made a sudden turn across the road, into the path of the motor car driven by Sherwin Goring. The right side of the motorcycle swerved into the left front of car causing a collision. As a result, the teenagers fell off the bike and crashed on the road surface where they received several injuries. The young men were picked up by public-spirited citizens and taken to the Fort Wellington Public Hospital where Gangoo was pronounced dead on arrival and Rigby was treated and discharged. The driver is presently in custody assisting with investigations. Kaieteur News contacted the sister of the diseased, Ciara Gangoo who told this publication that her brother was heading home at that time when the family heard the tragic news. She further disclosed that the car was allegedly speeding when it hit the motorcycle. “When he turning, the car was coming with speed and it knocked him,” the sister said. Gangoo suffered a broken neck, head injuries and several bruises about his body. Ciara expressed her disbelief, saying that she was close to her brother and is asking for justice for him. Meanwhile, relatives, and residents of Hopetown Village were left in a state of shock after receiving the tragic news. Kim Hamilton Mentore, a resident of the community in a Facebook post commented: “A young boy who I could have talked to, never give back answer, always listen but gone too soon, Jaheim RIP” Another resident Oneil Mcalmont said, “Rip famo, just Wednesday I was gaffing with u n waiting for ur lunch break to finish to get a wash. So sad!” Related Similar Articles

Dengue cases climbing in Guyana Aug 20, 2024 News Minister of Health, Dr. Frank Anthony Kaieteur News – Guyana has recorded in excess of 8000 dengue cases thus far, according to information obtained from Ministry of Health. The cases of the infection have grown significantly within the past two weeks when the Ministry had about 6000 cases of the vector-borne disease on file. During a recent interview, Minister of Health, Dr Frank Anthony revealed that twenty-six thousand tests were done last year compared to 29,000 so far for 2024. The public health sector is testing more persons for the disease. Dr Anthony revealed that as of recent, the ministry conducted 30,273 tests for dengue, with 8,021 returning positive results. He noted that out of the positive cases, 894 were admitted to the hospital, with five deaths.  “We are doing more testing and we’re trying to find people as early as possible,” the health minister said. Dr Anthony noted too that the Ministry of Health is ramping up its efforts to combat the disease by empowering Neighbourhood Democratic Councils (NDCs) and municipalities to carry out their own fogging operations.  With dengue cases on the rise, he emphasised the need to interrupt the mosquito’s life cycle to prevent the spread of dengue. He called on citizens to eliminate containers and even old tires that might accumulate water, which mosquitoes can use as breeding sites. To help tackle the issue, Dr. Anthony explained that right now, NDCs and municipalities would have to depend on the Health Ministry to conduct fogging exercises in their communities. “The idea here is that in every NDC and every municipality, we want to make sure that they have the equipment to do their own fogging…We’re going to give them the fogging machine and train them how to use the chemicals and the personal protection equipment”, the health minister explained.  He added, “It is going to be a totally different way of how we are approaching fogging and trying to interrupt the life cycle of the mosquito.” Earlier this month, Dr Anthony disclosed that the Health Ministry has intensified mosquito eradication by fogging communities every two to three weeks. He then that “That has taken a big toll on our budget but we have to do it and so you’ll see that as part of our supplementary that’s going to Parliament soon,” Dr Anthony said.  To this end, Dr Anthony revealed the Ministry has benefitted from a portion of the recently approved supplementary funding. He said that a portion from that sum would be going towards further enhancing the local fogging capabilities. Related Similar Articles

Mason dies after running into path of car Aug 20, 2024 News Kaieteur News – Aaron Dookaran, a 20-year-old mason, tragically lost his life after being struck by a vehicle on the Number 2 Village Public Road in West Coast Berbice Sunday night. The deceased, Aaron Dookaran The incident occurred around 11:00h. The accident involved a motorcar, PAG 8265, driven by Gansham Munshi, and a parked vehicle owned by Everest Japal. Dookaran, who was a pedestrian at the time, reportedly ran across the road directly into the path of Munshi’s vehicle, resulting in a collision. The impact caused Dookaran to be thrown onto the rear of Japal’s parked car, which was situated on the opposite side of the road. Concerned citizens rushed to Dookaran’s aid and transported him to the Fort Wellington Public Hospital, where he was pronounced dead upon arrival. Investigations into the circumstances surrounding this fatal accident are still ongoing. Related Similar Articles

Contract for third audit of Exxon expenses to be signed next month – Oil Minister Aug 20, 2024 News Minister of Natural Resources, Vickram Bharrat Kaieteur News – Minister of Natural Resources Vickram Bharrat has announced that the government will be signing the award of the contract to audit the expenses of ExxonMobil for the period 2021-2023. He made the disclosure while addressing the media at his mid-year press conference last week.  Bharrat said, “With regards to the third audit I think we are well on course to ensure we sign that… in September. Again we are looking at the same model where we can have the local consortium, a local consortium to partner with an international company or companies, so that we can build capacity.” Three proposals from local and international consultants had expressed interest in conducting the third audit. The Ministry of Natural Resources, the executing agency for the project, had previously sought consulting services for ‘Cost Recovery Audit and Validation of the Government of Guyana’s Profit Oil Share for the period 2021 to 2023.’ At the opening of tenders at the National Procurement and Tender Administration Board (NPTAB) office, it was revealed that the three bidders are: VHE Consulting (which is a registered partnership between Ramdihal & Haynes Inc; Eclisar Financial; and Vitality Accounting & Consultancy Inc.); Grant Thorton UK LLP and PKF Barcellos Narine & Company; and M. Sukhai & Company (local) in joint venture with Info Works Solutions Ltd. According to the tender, the Terms of Reference (ToRs) said the successful consultant is required to conduct a pre-audit analysis; devise an effective audit plan inclusive of an appropriate methodology; execute the audit in adherence to the provisions of the Stabroek Block Petroleum Agreement and applicable local laws, regulations, and procedures; as well as international good practices and standards. The scope of works also includes conducting verifications of the crude oil valuation pursuant to the provisions of the petroleum agreement for the audit period as well as verifying royalties remitted to the government for the said period. Additionally, the selected company will also be required to validate the accuracy of the total government share of petroleum for the period under review, and assessing the impact of the audit on future profit oil revenues. Related Similar Articles