As a result of the “nonsensical” bid requirements that were in place last year for the contract to market Guyana’s share of profit oil from the Stabroek Block, 28 out of 29 companies were disqualified. This was disclosed by Vice President, Dr. Bharrat Jagdeo during a press conference held today at the Arthur Chung Convention Centre. As a result of this, Jagdeo said that the new government approached the Stabroek Block partners, ExxonMobil, Hess and CNOOC/NEXEN to submit three bids. Hess turned out to be the winner given that it had the best terms.
Going forward, Jagdeo said that the government is looking to have the pre-qualification criteria simplified while adding that there has been great interest to purchase the oil directly thereby removing the cost to be incurred for a crude marketer.
The criteria produced by the Energy Department last year with assistance from the World Bank, had said that all interested applicants must demonstrate that at least five years of experience in Crude Oil marketing and trading and provide copies of its Certificate of Incorporation. The interested company was also required to provide details of its capabilities and the volume of crude oil trading and marketing it did by geography, over the last five years. The Energy Department also wanted to see details of previous experience in introducing a new grade into the market as well as the applicant’s Code of Conduct Statement.
Significantly, bidders were asked to make provisions to allow the Department of Energy to verify all claims made in submission, and also, to verify that the bidder’s organization is not in receivership, or the subject of any form of insolvency of bankruptcy proceedings or the subject of any form of winding up petition or proceedings. A written statement confirming that the bidder does not have any Director who has been convicted in any country for a criminal offence relating to fraud or any financial impropriety or criminal misrepresentation or falsification of facts relating to any matter also had to be provided.
Details of any pending litigation the bidder may or may not have were expected to be provided too.
