ExxonMobil Guyana Limited (EMGL) has dismissed claims of a conflict of interest with Fulcrum LNG being selected to work with the Government of Guyana (GoG) to spearhead the country’s gas development projects.
Concerns were raised about Fulcrum’s selection given that the company’s Chief Executive Officer (CEO), Jesus Bronchalo, is a former senior employee of EMGL.
On Thursday, during the company’s press conference held in Georgetown, EMGL’s President Alistair Routledge addressed concerns about Bronchalo’s prior association with the oil company stating, “We don’t see a conflict of interest in any way.
“He resigned from ExxonMobil almost two years ago. He has no ties to the company, we have no ties to him, so we don’t see a conflict of interest.”
Fulcrum LNG is a US-based company involved in the liquefied natural gas (LNG) industry. The company specializes in the development, construction, and operation of LNG infrastructure, including facilities for the production, transportation, and storage of natural gas. It provides comprehensive solutions for gas monetization and energy projects, focusing on efficiency, safety, and environmental sustainability.
During the press conference, Routledge emphasized that ExxonMobil’s primary focus is on maximizing the benefits of Guyana’s gas resources for the country. He explained that while the government selected Fulcrum through its own process, ExxonMobil is committed to working collaboratively.
“Our focus is really on what we can do to ensure that we are bringing forth the development of gas to the country to maximise value for the people of Guyana and contribute to the work that the government is doing,” he said.
In August 2020, the current administration set a clear agenda to develop Guyana’s gas resources, starting with the gas-to-shore project. This initiative aims to reduce electricity costs by 50% and spur economic growth in the industrial and manufacturing sectors. However, recognizing the need for a broader utilization of the gas reserves in the Stabroek Block, the government said it initiated discussions with ExxonMobil and its partners to explore opportunities for monetizing these resources.
By early 2024, the government sought an independent third-party operator and Fulcrum was ultimately selected. Following the announcement of Fulcrum’s selection, concerns were raised.
Addressing those concerns, the Ministry of Natural Resources in a statement had affirmed the integrity of the company selection process, emphasizing that the decision followed a rigorous and transparent evaluation.
The ministry had outlined that there is no conflict of interest that could undermine the project.
