Tuesday, September 27, 2022

Contract for Yellowtail FDP review attracts companies from across the world

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OilNOW
OilNOW is an online-based Information and Resource Centre

Guyana’s National Procurement and Tender Administration Board (NPTAB) on Thursday received technical and financial proposals from around 12 companies from across the world, including one local firm, for the review and evaluation of the Field Development Plan (FDP) for ExxonMobil’s US$9 billion Yellowtail project.

Infinity Solutions is the lone local company which teamed up with XWELLS Mexico to submit a joint proposal. They propose to do the review for US$617,500. Coming in slightly above that bid is the UK’s Orwell Offshore with US$617,650.

MSI International from the USA submitted a proposal for US$817,761 while its counterpart based in Houston, Texas, Endeavour Management, says it can do the job for US$598,934.

StratOil Energy Services based in Egypt submitted a bid for US$324,080 while Sproule’s bid, a Canadian advisory giant with over 70 years’ experience, totals US$661,440.

Sunstone Energy Advisory Services (SEAS) which hails from Alberta, Canada submitted a bid totalling US$785,040. Interestingly, Sunstone was instrumental in the identification and drilling of several key Guyana discoveries. The company also has extensive mapping experience in West Africa, South America, Asia Pacific and North America

Bids from other companies are as follows: Future Energy Partners Limited (UK) US$901,482; Bayphase (UK)-US$423,360; RPS Energy Consultants Ltd. (UK) –US$494,000, Neon-Blu-US$394,592 (Australia) and IHS Global Inc. (UK) which had the highest bid, coming in at US$1,493,502.

According to the tender documents seen by OilNOW, interested companies would be required to conduct an in-depth review of the Yellowtail FDP which includes all supporting and reference documentation, along with the related environmental and social impact assessments (ESIA) submitted by the Licensees.

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The government had said this in-depth review must include, at a minimum, an assessment of the strategy and the development model, as well as the criteria for the choices that have been made by the Licensees including cost-effectiveness, and potential alternatives; as well as the engineering, geological and geophysical interpretations, simulations, and estimations including recovery factor efficiency using natural gas injection and available natural gas for export.

The consultancy firm chosen would also be expected to examine the proposed project schedule, including tail end production and the well and reservoir management strategy, taking into consideration the government’s no flaring policy.

Further to this, government wants the selected company to examine the associated financial models, economic analyses and cost estimates and reports towards ensuring financial optimization of oil and gas recovery profiles; the Health, Safety, Environment and Social (HSES) impacts and proposed mitigation; the Decommissioning Plan and Budget; the natural gas utilization plan for the field and the overall risk management strategy as produced by the Licensees.

Authorities say they will expect the selected company to support the Natural Resources Ministry’s engagements and information exchanges with the Licensees and provide on-the-job training to the ministry and Sector Regulator during the FDP evaluation process.

Support for the drafting of the Yellowtail Petroleum Production License is also listed as part of the Scope of Work.

It is anticipated that contract negotiations with the selected firm would commence around February 1, 2022, and the assignment would commence around February 7, 2022.

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