No conflict of interest in relations between GOG, ExxonMobil and Mangal brothers
Aug 07, 2017 , http://www.kaieteurnewsonline....and-mangal-brothers/
– Harmon
Minister of State Joseph Harmon is adamant that no conflict of interest exists in the relationship between itself, the Mangal brothers and ExxonMobil.
Dr. Jan Mangal is as an advisor on oil and gas while his brother, Lars Mangal, has partnered with ExxonMobil. Persons, who spoke on the grounds of anonymity, expressed concern over the relationship that seemingly has the potential to put Guyana in a bad spot. But those concerns are not shared by Minister of State Joseph Harmon.
Harmon told the media, “Dr. Mangal has written a letter to this effect and it is in the public domain where he states there is no conflict of interest with the work that he is doing as an advisor to the government on oil and gas and at this point in time we do not share that view that there is, in fact, a conflict of interest.”
In the letter to which Harmon referred, Dr. Mangal noted that his term as Petroleum Adviser to President Granger began in March 2017 whereas the re-negotiation of the contract for the Stabroek Block was performed about a year earlier.
That statement contradicts what Harmon, Minister of Natural Resources, Raphael Trotman and Prime Minister Moses Nagamootoo said before which is that negotiations were continuing up to about three months ago. It was only on June, 1 this year that government announced a two percent royalty has been negotiated.
In his letter, Dr. Mangal said that he has not negotiated contracts between any oil company and Guyana.
He said, “President Granger has been clear that his priority is for the oil and gas resource to benefit the Guyanese people without corruption. The Petroleum Adviser supports this objective wholeheartedly.”
As he referred to the article, Mangal said, “It is encouraging to see Guyanese journalists paying attention to potential conflicts of interest.”
“Many in Guyana, including some of our most prominent officials and attorneys, seem not to recognize these conflicts. Hence journalists need to become more adept at investigating possible conflicts of interest by directly querying allegedly involved parties, and highlighting likely abuses. In the recent article in Kaieteur News about the Mangal brothers, it seems the relevant journalists failed to ask about or acknowledge the mitigation measures which are in place.
“They also do not appear to have asked any of the oil companies operating in Guyana if they have perceived or experienced any resulting conflict.”
Mangal said that the risk of corruption is likely to increase with the advent of the oil and gas sector due to the vast sums of money involved, and with the complex transnational business structures. “Objective, specialized and investigative journalism will therefore play a critical role in attaining the President’s vision.”
Dr. Mangal occupies an Office at the Ministry of the Presidency.
His brother, Lars Mangal, is working with ExxonMobil. He recently won a bid to construct an onshore facility for ExxonMobil.
Lars Mangal, has established a company, Totaltec Oilfield Services. The company was established in 2016.
Guyana Shore Base Incorporated (GYSBI) is currently constructing an onshore base facility to service ExxonMobil’s offshore operations. The site is located at the Muneshwers wharf in Houston, East Bank, Demerara. The wharf is being converted from a container port into the onshore base facility.
GYSBI is a partnership between Muneshwers Limited, Pacific Rim Constructors, Totaltec Oilfield Services and LED Offshore.
The 28-acre warehousing and logistics base will see services that were previously accessed in Trinidad and Tobago by Exxon, being brought to Guyana. Those services include port facilities, accommodations on site, fuel bunkering, bulk cementing and mud plants.
The offshore facility will employ an estimated 100 persons directly, and 200-300 persons indirectly when it is fully operational.