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Is Fulcrum a conflict of interest?
Dear Editor,
Gov’t reports that it has selected Fulcrum to develop gas resources (Jun 26). Doesn’t Fulcrum have a nepotistic relationship with Exxon? Is it a wise, rational selection? Is it experienced and equipped to do the job?
As reported, the company was founded by Jesus Bronchalo, a former Vice President of Exxon who worked for the company in Guyana. He resigned and founded Fulcrum a year ago. And now he (or the company) has landed a contract potentially worth trillions of American dollars.
Bronchalo was the Finance Comptroller for Exxon in Guyana. There were questionable expenses in the hundreds of millions of American dollars in the first year (2019). There would have been more in the subsequent five years that probably exceeded a couple billion American dollars. Was he au fait on the over expenditure (billing)? Were questions raised about his involvement in over billing?
Before SN report on the government’s announcement defending its selection of Fulcrum, the magazine World Oil reported in an article “ExxonMobil enlists Fulcrum LNG to develop natural gas resources offshore Guyana” on June 25. Why did the government keep the selection a secret and not report it before being asked? Why did Exxon bat for (favoured) this company? Isn’t it a conflict of interest?
Bronchalo formed his company just a year ago. Isn’t he a one-man operation? Is he or it equipped to do the work? What are his resources and experience in that field? He was in charge of accounting and not gas or petroleum engineering. Is it not a conflict of interest for a former employee of Exxon to be awarded a contract with Exxon? Who will seek or protect the interests of Guyana? Questions are asked why was he sent off a year ago and quickly registered a business for contracts in Guyana? Didn’t the government already decide which company will land the contract long before the request for proposals?
The government asked for proposals for several previous projects and made a fool of companies when the government knew who was the preferred bidder. Does this government realize it is making a fool of international companies that responded to its request for proposals? Corporations are looking at the behaviour of the government and right now are not judging or rating Guyana as the right place for business.
It is not known how the latest proposals on monetizing the gas were evaluated. Was instruction handed down on who should get the contract? Is there anyone in Guyana in the employ of the government who has knowledge to evaluate proposals on gas and oil? Did any government official ever was a student of oil and gas engineering in Moscow? Is the person in charge of oil and gas knowledgeable of O&G? Is he being led through a dark tunnel? Why did this project take precedence over the oil refinery in Berbice? The oil refinery has been stalled for two years. Are Berbicians made a fool of the announced project?
This Fulcrum award, potentially worth trillions of dollars over a twenty-five-year period for a lone individual will seal the fate of doing business in Guyana. Many Guyanese technical companies and engineers in private employ questioned the selection of Fulcrum, arguing that it has not met the requirements of the Request For Proposals (RFPs) for the designing, financing, construction and operation of the required gas infrastructure.
Yours respectfully,
Nigel Pilgrim
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