Guyana Taps U.S. Firm Led by Ex-Exxon Executive for Natural Gas Project

The government of Guyana has picked Fulcrum LNG, a U.S. firm founded and led by a former senior executive at ExxonMobil, to develop the country’s natural gas resources.  

After scoring huge success in oil discoveries and production, Guyana is now looking to establish a natural gas industry with the associated gas pumped from the prolific oilfields offshore the South American country, where an Exxon-led consortium is pumping more than 600,000 barrels per day (bpd) of crude oil from the Stabroek block.

Guyana has discussed gas development projects on several occasions with ExxonMobil and its partners, the government said in a statement.

“After many discussions with the Stabroek block operator and realizing that the development of the gas resource is not an immediate priority for the company, our government decided to seek a capable independent third-party operator to either work with ExxonMobil or carry out this activity on its own,” it said.  

Following a Request for Bids (RFB) for the design, finance, construction, and operation of essential gas infrastructure to support upstream developments in Guyana, the government’s evaluation of all 17 proposals found that Fulcrum LNG “was deemed the most responsive compliant bidder and ranked No. 1.”

“As such, Fulcrum LNG will be supporting the government and the Stabroek Block operator, ExxonMobil Guyana, to utilize the non-associated gas – serving as an independent development,” the government of Guyana said.

It also noted that it was aware at the time of the evaluation that Fulcrum LNG chief executive Jesus Bronchalo is a former senior Exxon employee. 

Bronchalo spent 19 years at ExxonMobil in various roles, including Vice President and Chief Commercial Officer at Esso Exploration and Production Guyana Ltd.

“At the time of the evaluation, Mr. Bronchalo’s involvement in Fulcrum LNG was known, and his previous relationship with ExxonMobil was not seen as presenting a conflict of interest, since he had severed all ties with said company,” Guyana said.

By Tsvetana Paraskova for Oilprice.com

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