As questions continue to swirl about who should he held responsible for an oil spill off Tobago and the whereabouts of the tug that was pulling the barge that capsized, Prime Minister Mark Phillips yesterday continued to denied that the fuel was destined for Guyana and he said that in any event the power company only takes responsibility for cargo after discharge at its contracted location.
The Prime Minister who holds responsibility for the Guyana Power and Light (GPL) said that it was a coincidence that GPL received word of a delay of a shipment of procured Heavy Fuel Oil from its supplier on the same day the barge was found spilling fuel into Trinidad and Tobago waters and it does not mean that the fuel destined for GPL.
Phillips is assuring the nation that GPL won’t have a fuel shortage and that the utility company is monitoring the situation, thus there should be no reason for fear or concern of a fuel shortage.
“We won’t have a fuel shortage…there is no fear that there will be one. Until the CEO [of GPL] tells me that the fuel supply is low…,” Phillips told Stabroek News yesterday.
“GPL is obligated to keep in contact with the supplier on what are the reasons [for the delay]… GPL keeps monitoring the situation and we haven’t reached a situation where there is a shortage,” he added.
GPL received formal notification on the day of the discovery of the Tobago fuel spill, informing that there would be a delay in the delivery of 75,000 barrels of Heavy Fuel Oil (HFO) ordered and to date the company has not delivered the fuel.
On Sunday, when asked about the delivery, GPL’s CEO Kesh Nandlall told this newspaper that “No, it still has not been delivered…”.
News of the extended delay came even as the Trinidad Guardian on Sunday reported that a Panamanian firm is at the centre of the Tobago spill, the cargo was worth US$2 million and there were Guyanese connections.
A letter from HFO supplier Rapid Results and Osher International Holdings to the GPL on February 7th stated that there was a delay in the delivery.
“Greetings,
“On behalf of Osher International Holdings LLC, it is my regrettable obligation to inform you that the shipment has an unforeseen delay,” a letter from Rapid Results titled ‘Unforeseen Delay’ and addressed to the GPL stated.
“The barge carried a cargo of 75,000 barrels of Heavy Fuel Oil. As I write this, we are employing every effort at our disposal to determine the soonest delivery time. As I receive additional information, I will forward to you in real time,” the letter added.
GPL maintains that to date, none of its suppliers has informed it of problems resulting in the loss of cargo but has not said what reasons were given for the delay or when the ordered fuel would be delivered.
The public utility has not also addressed a way forward as regards sourcing, should the fuel not be delivered within a specific timeframe, given that it said that an increase in consumption had been the reason it entered into a deal with the company.
Phillips yesterday said that GPL should answer the questions but as far as he was aware, “GPL is in communication with its suppliers” and if there is a problem with meeting the delivery stipulations, terms of the contracted agreement would be triggered.
It is unclear what are the terms of the arranged delivery but Osher International Holdings and Rapid Results are not the primary suppliers of fuel to the company, as they act as backup to offset possible increased consumption.
On the Guardian article, the Prime Minister said that he could only look at facts and not coincidence or conjecture because to date there is no proof or documents to back up that the fuel was GPL’s, even as he pointed out that fuel only becomes the responsibility of the utility company on delivery here.
“The statement explains when the fuel becomes GPL’s,” he said. “I can’t go with coincidence…we have to get facts of the matter,” he stressed adding that his main concern is to the people of Guyana that their power supply is consistent and of quality, duty he takes seriously.
He reminded that fuel, “Becomes GPL’s fuel when it is delivered.”
GPL’s statement last month said that it was aware of the oil spill off the coast of Tobago and joined with the rest of Guyana in expressing its concern regarding the environmental implications and impact on the people of Trinidad and Tobago.
It said that it tendered for the supply and delivery of HFO in June 2023, via national competitive bidding. Six bids were received. The tender was awarded on October 24, 2023, to Staatsolie MaatSchappij Suriname NV (the first ranked bidder). An additional award for the supply and delivery of HFO was awarded to the joint venture Rapid Results Inc and Osher International Holdings LLC (the second ranked bidder) to bolster GPL’s increasing consumption of HFO and supply requirements.
The terms of both contracts required the suppliers to deliver the fuel to GPL’s ports along the Demerara River.
“Title, ownership, and risk of loss for the fuel passes from the suppliers to GPL at the discharge port. GPL has not received any notification from any of its contracted fuel suppliers that they have encountered difficulties with their vessel(s) resulting in the loss of cargo. GPL therefore wishes to unequivocally state that the company is not related to this unfortunate incident,” the utility company said.
And where the Guardian report said that the local partner in GPL’s additional award, Rapid Results Inc appeared to have little known history in the transport of fuel oil, and it pointed to a 2021 Georgetown Chamber of Commerce & Industry magazine which listed the company under “Healthcare”, the Prime Minister pointed out that the fuel was procured under a legal procurement process.
“The supply of fuel went through the required legal tender process,” Phillips said pointing again to the GPL on how the JV between Rapid Results and Osher International Holdings LLC were awarded.
