Government is seeking advisory services and technical support to enhance the country’s core capacity to review, approve and authorise oil and gas companies Field Development Plan(s) (FDP) and, in the process, protect the interests of Guyana in technical discussions with private sector investors.
Numerous questions have been raised about how the FDP for ExxonMobil’s Liza-1 well was approved and whether the requisite expertise was available.
In an ad in the last Sunday Stabroek, the Ministry of Natural Resources invited eligible firms to submit expressions of interest to provide the services. The successful firm will be expected to conduct an in-depth review of the FDP, environmental impact assessment (EIA) and supporting documents (including related FDP) submitted by the contractor(s). The ad says that 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 contractor (with a particular focus on recovery, cost and safety optimisation) and potential alternatives.
It must also review the engineering, geological and geophysical interpretations, simulations, and estimations (with a particular focus on maximising recovery factor efficiency using natural gas injection and available natural gas for export); the proposed project schedule (with a particular focus on tail end production); the proposed subsea system; as well as the well and reservoir management strategy (considering the Government of Guyana’s objective of maximising the recovery of hydrocarbon resources and of no-gas flaring); and the proposed oil and gas surface facilities.
The in-depth review also has to cover the Health, Safety, Environment and Social (HSES) impacts, monitoring and management plan (including emergency response); the Abandonment Plan and the overall risk management strategy.
The successful firm will have to prepare a report summarising the opinions formed in the evaluation of the FDP and EIA, highlighting any deficiencies, unresolved issues, or areas of additional technical analysis that government should request from the contractor before making a determination on the FDP.
Its responsibilities will also include to support the further establishment of a productive working relationship with the contractor involving frequent meetings and technical exchanges, including by assisting the Department of Energy (DoE) and identified agency representatives in formulating responses and communications to the contractor aimed at lodging objections, resolving differences in technical judgement, requesting modifications, etc. it will also have to accompany representatives of the DoE and identified agencies, to meetings with the contractor as well as analyse responses received from the contractor and making recommendations on the adequacy of such responses. If revisions to the FDP are ultimately made, the consultant will review the revisions to assure that the issues and deficiencies or requested modifications identified in the original FDP have been adequately addressed.
The successful consultant will also be expected to provide on-the-job training to the DoE and identified agency representatives during the FDP evaluation itself as well as document the field development review process, capturing international best practices, for future reference.
The duration of the assignment is expected to be four months with an option to renew on expiration, commencing 5th December 2018. Work is to be conducted in the offices of the contractor in Guyana and in Houston.
The team leader and other key consultants will be present in Guyana as needed to discuss and present the report and to assist in interaction with the contractor, the Terms of Reference for the project says.
