Having done the review for the Liza and Payara Stabroek Block projects, the United Kingdom-headquartered oil and gas consultancy, Bayphase Ltd, will also be conducting the review of the Yellowtail Project, Minister of Natural Resources Vickram Bharrat yesterday disclosed, saying their offer was the best one for this country.
“We went through the evaluation process, and based on their technical capabilities and the price too – because price is important too – they [were chosen].Also, they did Payara too so they are familiar with the Guyana basin,” Bharrat told Stabroek News yesterday.
They will be paid US$423,360 for the execution of the contract.
The Minister of Natural Resources informed that the firm was selected last week following evaluation.
He did not say which day last week Bayphase was chosen but during his presentation on the budget last Thursday he noted that two sets of international consultants were being engaged.
“I want to say we are not taking things lightly we have already engaged two different sets of international consultants to ensure they review the plan for Yellowtail and to ensure when a licence, once approved, is granted that it brings additional benefits to the people of Guyana and safeguards to ensure our environment is protected and actually benefit from the oil and gas sector,” Bharrat told the House during his contribution to the budget debate.
He did not disclose the names of the consultants engaged in the review process.
However, during a press conference, Vice President Bharrat Jagdeo, while providing an update on the sector, had said there were some setbacks in the review process for Yellowtail. He explained that the government is anticipating a completion of the process by the end of March.
“We have some consultancies in place at the Ministry [of Natural Resources] that have been reviewing… there is a draft licence [in place] and a parallel process at the EPA [Environmental Protection Agency]. By that period, the review will be completed and the licences issued,” Jagdeo had disclosed.
Twelve international companies last month submitted bids in response to a call from the Natural Resources Ministry for Consultancy Services for the Review and Evaluation of the Yellowtail Field Development Plans. The companies, according to minutes from the National Procurement and Tender Administration Board, were: Infinity Services in collaboration with Xwells Mexico, Orwell Off-shore, Endeavor Management, Future Energy Partners, MSI International, HIS Global, Sunstone Energy Advisory Service, Bayphase, RPS Energy Consultants, Sproule, StratOil Energy Services, and Neon-Blu Consulting.
In the call for the service, the Ministry stated that it anticipates that negotiations with the selected firm would commence on February 1 with the project starting around February 7. It explained that negotiations will only be held if the technical proposal attains the required minimum score, adding that firms must be prepared to furnish a detailed cost break-down and other clarifications to the proposals submitted.
Exxon’s local affiliate and partners applied to the EPA for an environmental permit and have since submitted the Environmental Impact Assessment (EIA) and other ancillary documents as part of the process as well as holding public consultations. The statutory period for the public to submit objections expired in December 2021 and since then the EPA and the Environmental Assessment Board have been silent as to what the next move will be.
A number of environmentalists and groups have submitted objections to the EIA, while pointing out that the company failed to address a number of impacts on the environment.
The Yellowtail project is ExxonMobil’s and its partners’ fourth development in the Stabroek Block and is considered the largest undertaking since Guyana became an oil-producing nation. As part of the Yellowtail Project, ExxonMobil plans to drill between 40 and 67 wells for the 20-year duration of the investment. It is intended to be the largest of the four developments with over 250,000 barrels of oil per day targeted once production commences. Based on the schedule, once approval is granted, engineering commences this year and production in the latter part of 2025.
