John Fernandes Limited (JFL) and Muneshwers Limited are in the running to provide onshore services to ExxonMobil as the US oil giant prepares to ratchet up operations here in preparation for drilling around 2020.
Stabroek News was told that ExxonMobil privately invited bids from four companies and the list was then winnowed down to two. Both JFL and Muneshwers boast port access and related services which are pivotal to the onshore base.
The deadline for bids was originally tomorrow but this date was extended to March 21st. A decision would likely be made a few weeks after.
ExxonMobil has not spoken publicly about its plans for tapping onshore services here. However, former President Bharrat Jagdeo revealed last month that ExxonMobil officials had told him that they would not be investing in the government’s planned onshore facility at Crab Island, Berbice. This ExxonMobil decision has raised concerns about the feasibility of the Crab Island venture which the government says will see an investment of US$500m and create 600 jobs.
Sources say that Demerara is seen by ExxonMobil as the best choice logistically for its onshore base. Both JFL and Muneshwers already have infrastructure in place on the Demerara River as opposed to having to wait on construction at Crab Island.
Among other things, sources say the winning bidder would have to act as a maritime agent in Georgetown for vessels associated with the oil operations and be a fully licensed marine agent.
Last year, both Muneshwers and JFL had signalled their interest in providing onshore services.
In May of 2016, Guyana Energy Support Services, a subsidiary of JFL had notified that it was seeking to provide support services for the drilling of oil wells. The Environmental Protection Agency (EPA) in a May 5, 2016 notice in Stabroek News said that an application for an environmental authorisation had been submitted by the company which is situated at 24, Water Street. The EPA said that an Environmental Impact Assessment was not required. It said that the application had been screened to evaluate the potential environmental impacts and it had been determined that an Environmental Management Plan (EMP) be prepared for the project. The EMP would detail specific measures to ensure that the proposed project is implemented in an environmentally-sound manner.
In April 2016, Muneshwers unveiled its plans during a tour by several government ministers. Muneshwers Limited is developing a modern port facility at Houston, East Bank Demerara.
“Essentially, what we want to be is a one-stop shop for the supply vessel. When the vessel comes from the rig and it comes here, it must be able to satisfy all its needs, get its pipes, its fuel, its oil, its water, the powder plant, the mud plant, you know they come here, they get everything done and they go back,” Robin Muneshwer, the company’s Country Manager told Stabroek News during a tour of the facility.
Muneshwers purchased the 28-acre property from timber company, Caribbean Resources Limited in 2014 for US$20 million. Since then, it has spent approximately US$10 million to develop the property. Phase Two will see further investment as only a small portion has been developed in Phase One. “We’re only developing I would say maybe 15% of it so far, this is the first phase of development,” Muneshwer said. He said that there are a few more acres to reclaim which would make the property on the eastern bank of the Demerara River about 32 acres.
