Dear Editor,
Not in any manner meaning to offend the visually impaired but the ongoing Guyoil fiasco is really a classic case of the blind leading the blind.
Guyoil’s present imbroglio involving alleged improprieties in the purchase of fuel, demonstrates the lack of foresight in the selection of members to its Board of Directors (B.O.D) as well as the appointment of senior managers.
The present B.O.D comprises newcomers who are without any specialized knowledge of the downstream oil industry as it relates to Guyoil’s operations. I would hazard a safe guess that their collective knowledge most likely would be limited to the extent of perhaps fueling up once or twice at a Guyoil service station. Now to compound matters further, most of the senior Management team are fresh faces, again without prior experience of the specifics of the downstream oil industry.
So what we have on our hands between the B.O.D and senior management in Guyoil, is truly the blind leading the blind which is a recipe for unmitigated disaster.
This is precisely the reason why the Board and management apparently went about the purchase of fuel as if they were purchasing mangoes at Bourda market or groceries from a “salt goods” shop.
The purchase of fuel is always accomplished by observing international best practices in the industry which are laid down policies in Guyoil.
This involves the following details on the request for quotation, namely:
• Full specifications of the fuel with the required volume.
• Identify of loadport, which could be a refinery or an oil major terminal.
• Selection of an independent fuel surveyor that will represent the buyer at the loadport and will monitor the fuel for quality and quantity. The surveyor will carry out their own laboratory testing to ensure the fuel is within specifications.
• Loadport certificates of quality, quantity and laytime report.
• In the case of a CIF purchase agreement, the supplier is to give full details of vessels in the Q88 form. This is information as it relates to the particulars of the vessel, compliance with IMO standards of being double hull for protection against spillage, whether it will operate on the naabsa clause (not always afloat but safely aground) or the aa clause (always afloat) which makes a huge difference in volume because of our draft restrictions.
• Payment terms as per bill of lading.etc.
These and a host of other finer details as contained in the standard ASBATANKVOY spot charter contract have to be agreed on by both client and supplier before a contract is entered upon. You strictly do not entertain any purchase of dubious origin, quality and quantity. Guyoil as an oil major in Guyana must be on par with the same standards of Rubis and SOL. You definitely do not see these oil majors being involved in this type of cake shop purchase.
As is patently obvious, because of the specialized and technical nature of Guyoil’s operations, it would always be prudent to retain a couple of members that would have previously served on its Board for institutional knowledge and continuity.
The subject Minister for Guyoil needs to find a competent mix of persons with the necessary competencies of the downstream oil industry to blend with the nascent B.O.D and Management Team or he may very well have situations such as this repeating itself ad nauseam.
Yours sincerely,
Reggie Bhagwandin
