No agreement signed – VP on exploring gas monetisation with Fulcrum

Fulcrum LNG, which in June 2024 emerged from among 17 other bids as the company that would develop a proposal to monetise Guyana’s gas, is currently exploring ways of doing just that in collaboration with ExxonMobil Guyana and the government.
Vice President Bharrat Jagdeo emphasised at his recent press conference that the government has not yet signed any agreement with Fulcrum for a gas monetisation project. Instead, he clarified that the feasibility of monetising the gas is currently being explored among Fulcrum, ExxonMobil, and the government.
“We have selected a company to work with ExxonMobil and the government of Guyana, to examine the development of a project. So, we believe they will be better equipped, they may have more data and knowledge than the government, to push Exxon in that direction,” Jagdeo said.

“And to give us feedback whether the concerns are real or not, from Exxon. And that’s where the discussions are taking place now. There is no contract awarded for any project at this point in time. There is no project at this point in time.”
Jagdeo explained that they are exploring how to get to the stage of a project to monetise the gas, taking into account factors that include financing. For instance, Jagdeo noted that the government prefers some of the project to be privately financed, rather than coming out of the cost bank.
“There is the exploration of how we move to a project to monetise the gas, by looking at several options on the demand side, the cost side. And then we believe that if you do get to a project stage, that not all of this should come to cost oil. That some of it can be privately financed, so that you have greater benefits flowing to Guyana. So that’s where we are at this stage.”
Jagdeo meanwhile also addressed the matter of Fulcrum being awarded the contract, over more experienced companies. According to the Vice President, Fulcrum was successful based on a number of other factors, including the technical composition of its bid.

“Do they have the requisite experience to develop a project of this nature and the answer in this case is yes. Two, can they raise the financing for a project of this nature and thirdly, what is the nature of their compliance with the bid document?” Jagdeo said, in explaining the criteria used.

Unaware
Jagdeo also explained that both he and Natural Resources Minister, Vickram Bharrat, were unaware that former ExxonMobil Guyana Vice President Jesus Bronchalo was involved in the company, until afterwards. He admitted that the bid evaluators were aware, but that their evaluation was based on the technical quality of the bid. Further, Jagdeo declared his full confidence in the evaluators and the work they did.
“I asked him (Bharrat) did you know that Jesus was part of the bid and he said no and personally I did not know too until after the award was made and I saw him at one of the meetings,” Jagdeo said.
“They (evaluators) were aware of this but they evaluated not just experience, it’s the proposal…you evaluate a proposal, you ask for a proposal, what are the elements of this proposal? You don’t know, you just latch on to one thing- experience.”
Back in June, the Natural Resources Ministry had reported that Fulcrum LNG’s proposal was considered by the evaluators as the most comprehensive and technically sound proposal from the 17 bids that were received.
The ministry further added that Fulcrum LNG’s submission was very detailed and comprehensive, and outlined a structured approach to gas development; hence the evaluators were satisfied based on the submission of its competency which resulted in the company being ranked No. 1.
“The evaluation report was then submitted to the Cabinet with no objection. The Cabinet deliberated and examined the report and granted it no objection for Fulcrum LNG to be engaged. Following the Cabinet’s consideration of the matter, the Ministry of Natural Resources has engaged the company along with ExxonMobil to begin the process. These discussions are at a preliminary stage and are ongoing,” the ministry had stated.
The ministry had further dispelled recent questions surrounding the Chief Executive Officer of Fulcrum LNG’s Jesus Bronchalo, who was indeed a former senior employee of ExxonMobil prior to forming Fulcrum LNG.
Some 17 trillion cubic feet of gas has already been found in the Stabroek Block, with the Pluma and Haimara wells being proven gas fields. Currently, Government is pursuing its model Gas-to-Energy (GtE) Project which is being constructed in Wales, West Bank Demerara (WBD), and will include a 300 megawatts power plant that will utilise gas from the Liza field offshore.
The excess gas is what will be used for the gas monetisation project. The award of the contract to Fulcrum is therefore part of the Government’s plans to safely and timely develop its gas resources and create an open-access infrastructure system, providing additional monetisation alternatives to upstream developers. (G3)