The Guyana government has reaffirmed its commitment to full transparency as plans advance on a landmark gas development project.
“The Government of Guyana has every intention of advancing, in the most transparent manner possible, the development of the infrastructure needed to harness our country’s vast gas resources, in the interest of national development and to the benefit of the Guyanese people,” a June 25 statement from the government through the Ministry of Natural Resources said.
The government reminded that it has prioritized the development of the country’s gas resources. This is evidenced by the development of the Wales Gas-to-Energy project.
The government said its focus is on monetizing Guyana’s total gas reserves through discussions with Stabroek Block operator ExxonMobil and its partners. Recognizing that Exxon’s priority was not on gas, it sought an independent third-party operator to design, finance, construct, and operate essential gas infrastructure.
“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. In summary, the Fulcrum LNG proposal was considered by the evaluators as the most comprehensive and technically sound proposal,” the government explained.
According to the statement, the evaluation report, which received no objection from the Cabinet, led to the Ministry of Natural Resources engaging Fulcrum LNG and Exxon to begin the process. These discussions are currently at a preliminary stage and ongoing.
Addressing recent questions about Fulcrum LNG’s Chief Executive Officer, Jesus Bronchalo, a former senior employee of ExxonMobil, the Ministry clarified, “Mr. Bronchalo’s involvement in Fulcrum LNG was known at the time of the evaluation, and his previous relationship with ExxonMobil was not seen as presenting a conflict of interest, since he had severed all ties with said company.”
With six oil developments approved, Guyana sees gas as the new frontier for its evolving economic story. “What we want is monetization of the gas as fast as possible, to add an additional revenue stream,” President Irfaan Ali said at a June 22 press conference in Georgetown.
Ali said that Exxon, Fulcrum, and a Guyana government technical team are expected to deliberate on the potential project, with hopes for an agreement to be signed in 2025.
Exxon is drilling Lau Lau-2, one of three gas appraisal wells lined up for 2024 at the Stabroek Block. Exxon operates the block in partnership with Hess and CNOOC.