Govt. reveals controversial Canadian politician was part of review process – Industry experts
Apr 17, 2022 --- Source --- Kaieteur News Online --- https://www.kaieteurnewsonline...ss-industry-experts/
After approving Exxon’s Yellowtail licence…
By Kiana Wilburg
Kaieteur News – In January 2022, the Government of Guyana had issued a call for interested firms to submit their bids to review ExxonMobil’s US$10B Yellowtail Field Development Plan (FDP).
Former Canadian Premier, Alison Redford
By mid-month, 10 companies submitted their bids. The firms and their bids were as follows: Infinity Services in collaboration with XWells Mexico – US$617,500, Orwell Offshore-US$617,650, MSI International-US$817,761, Endeavour Management –US$598,934; Future Energy Partners Limited US$901,482; IHS Global Inc. –US$1,493,502, Bayphase-US$423,360, RPS Energy Consultants Ltd. –US$494,000, Sunstone Energy Advisory Service –US$785,040, Sproule –US$661,440, and StratOil Energy Services –US$324,080.
By the first week in February, the government announced that Bayphase, one of ExxonMobil’s longstanding clients, had won the tender.
Given the sequence of events, it has left many industry experts confused at a revelation on April 1, 2022, that another company, the Redford Group headed by former Canadian Premier, Alison Redford was also part of the review process. What worries industry experts, even more, is that April 1, 2022, was the same day the administration announced that the Environmental Authorisation Permit and Production Licence for the Yellowtail Project was approved with input from the controversial Canadian politician.
Natural Resources Minister, Vickram Bharrat
Kaieteur News had previously reported that Redford, is a former politician, for one, with a career plagued by scandal. As Premier of the Canadian province of Alberta, she drew widespread public controversy in Canada when it was discovered that during her attendance of the funeral of Nelson Mandela the State footed the CAD$45,000 cost of her trip, including about CAD$10,000 for a privately chartered return flight from South Africa. Redford reportedly refused several calls to repay the money spent for the South Africa trip, but eventually bowed to pressure in 2014 and delivered the funds back to the public purse, with an apology.
Kaieteur News had also reported that Redford announced her resignation in March 2014 as Alberta Premier, and as a Member of the Legislative Assembly (MLA) in August of that year, a day before an Attorney General (AG) report on her spending practices was scheduled for release. The AG report found that she and her office had “used public resources inappropriately”; “used public assets (aircraft) for personal and partisan purposes” and that Redford “was involved in a plan to convert public space in a public building into personal living space.”
All of this, Kaieteur News ventilated shortly after the Government had announced that it hired Redford in August 2020 to review the Payara FDP which is Exxon’s third oil project in the Stabroek Block.
Given the foregoing, industry experts who have spoken with this newspaper said the PPP/C Government should reveal how the Redford consultancy was allowed to participate in the FDP review for Yellowtail Project without being subjected to the Procurement Law requirements.
In the interest of transparency, several experts said Government should disclose a summary of the work performed by Bayphase and the Redford group during the Yellowtail review, and also a summary of the type of data used and the methods by which it was assessed.
They say too that government must reveal how much the Redford Group was paid for this job. They also said the administration should elaborate on how the local content engagement and training requirements of the Yellowtail Terms of Reference were fulfilled, and which persons benefitted from it.
Another expert who was particularly disturbed at the secretive inclusion of the Redford Group said, “The only oversight of Bayphase that has been made public has been through the acceptance of Alison Redford’s consultancy as offered (and paid for) by the Canadian government in review of the Payara and Yellowtail FDPs.
“It was not revealed that the Redford group was involved in reviewing Yellowtail until after the work was completed and the production licence awarded. Why? Redford’s group was not listed by the National Tender and Procurement Board as one of the companies submitting a proposal for the Yellowtail or Payara reviews.”
The American expert said, “Canada has a vested interest in Guyana’s offshore development, in that Canadian companies are actively exploring for oil and gas in blocks adjacent to the Stabroek Block. Is Redford’s consultancy therefore a conflict of interest, in that she as a Canadian has been given access to proprietary information not otherwise available?
These are critical questions the media should demand answers for.”
It should be noted that Bayphase has performed the review of both the Liza Phase 2 Environmental Impact Assessment and the Field Development Plan; review of both the Payara Environmental Impact Assessment and the Field Development Plan; the Field Development Plan review for Payara; and the Field Development Plan review for Yellowtail. These are projects worth approximately US$30B.
“Since the consultancy performing all reviews to date is also the same entity that educated the government as to how the reviews should be performed, industry experts say citizens must ask how they can rest assured that the reviews have been performed with their best interest in mind.
“Has the Government directed Bayphase to perform their analysis with the best interest of Guyana in mind? International oil and gas experts will agree that it is possible to develop a field utilising international best practices that is of more benefit to the licensee than the resource owner. It is Esso’s job to advance their best interest: It is the government’s job to safeguard the best interest of its people. It is not clear that this is taking place,” said another expert with over 50 years in the sector.
The experienced contract negotiator who is based in Ghana said Guyana ought to demand that all reports, data and analysis regarding the review of the FDPs approved thus far be made public. She opined that if the government refuses to comply; it may very well be afraid of exposing how much value they left at the table.