One-Year-Old company awarded contract to monetise Guyana’s gas, wants Guyanese investors to help fund project…

Aug 26, 2024 News

Kaieteur News – Fulcrum LNG, the company that was awarded a contract to monetize the gas in the Stabroek Block is considering Guyanese investors to aid in funding various components of the venture.

CEO, Fulcrum LNG, Jesus Bronchalo

The one-year-old company in a statement on June 28 said, “In keeping with our project proposal, Fulcrum LNG is considering Guyanese investors in various components of the project.”  Fulcrum LNG was founded by the former Vice President of ExxonMobil Guyana Limited (EMGL), Jesus Bronchalo, five months after he left the company. He was employed with Exxon for 19 years and one month before his questionable resignation.

Bronchalo’s company was later selected by the Government of Guyana (GoG) to design, finance, construct, and operate the required gas infrastructure to provide gas monetization solutions and accelerate upstream gas developments in the country.

The Chief Executive Officer (CEO) said, “We are honored to be selected to undertake this strategic energy infrastructure project. This opportunity aligns perfectly with our mission to deliver innovative, reliable, and sustainable energy solutions to develop gas resources. We look forward to working closely with the Government of Guyana and other key stakeholders to ensure the success of this endeavor.”

Kaieteur News understands that the main feature of Fulcrum LNG will involve the development of state-of-the-art gas processing and modular, scalable facilities to produce Liquified Natural Gas (LNG) and NGLS/LPGs for Guyana as well as regional and global markets. The company said it has partnered with some of the industry’s leading global firms leveraging advanced technology and industry expertise to deploy the most robust, efficient, and sustainable infrastructure solutions.

Furthermore, it noted that this undertaking will provide all upstream developers, in Guyana and regionally, with the necessary facilities to monetize their gas resources and thus incentivize the development of those resources. “Substantial economic benefits, including job creation, significant foreign investment, and enhanced energy trade relationships are expected from this venture,” Fulcrum LNG stated.

As Kaieteur News continues to unravel more details about the company and the suspicious contract award by the government, Fulcrum LNG’s capacity to develop the country’s gas resources becomes even more questionable. Only yesterday this newspaper reported that Bronchalo appears to be one of the company’s two registered employees.

Research conducted by this publication revealed that Bronchalo, who left Exxon in February 2023, is not only CEO of Fulcrum LNG, but he also wears several other professional caps at the business he registered in July 2023.

According to company records, seen by this publication, Bronchalo is also Secretary, Treasurer, Director, and President of the company.

From all indications, he has only hired one employee. Kaieteur News discovered that Ivor Ellul has been hired as Technical Director at Fulcrum LNG. He was appointed in July 2023 and previously worked at Schlumberger GeoQuest and CiSK Ventures, Ltd, among others. Ellul held senior positions, including Managing Director, Chairman, CEO, and President among others in his career.

The limited experience of the company has raised serious questions about its capacity to fulfill its contracted obligations. Bronchalo’s company was selected as “the most responsive compliant bidder” among 16 others who tendered to develop the non-associated gas in the Stabroek Block, operated by Exxon.

A deeper dive into the company’s records also led Kaieteur News to the business address of Fulcrum LNG. The energy company operates from what appears to be a two-story guest house located at 937 TAHOE Boulevard, Incline Village, Nevada, USA. Fulcrum LNG, according to company records, operates from Suite 130B.

The CEO’s link to American oil super major ExxonMobil has sparked concerns among Guyanese, but the government has dismissed the possibility of a conflict of interest. In fact, Vice President, Bharrat Jagdeo during his Thursday press conference told reporters that Fulcrum LNG’s proposal was the best received by the government.

Jagdeo said, “He had left Exxon but if anything, maybe the evaluators thought that he had the data on the gas. I don’t know if they did that…on the face of it, I thought it was the best proposal that the evaluators came up with and that’s what we’re looking for, so there is nothing I found wrong with the evaluation of the bids and I don’t see anything that has come out in any major way that’s wrong, except for that oh, he worked at one time with Exxon.”

When asked to comment on the fact that Fulcrum LNG has no known experience and has only been registered for one year now, the VP continued to defend the contract award, insisting that the Founder has years of experience in the field through his former employment with Exxon. “But he was there with Exxon a long time, but he has been a project developer for a long time,” Jagdeo pointed out.

Efforts by this newspaper to contact the company for a comment since Saturday has so far been unsuccessful.

• Fulcrum LNG, gas, Guyanese, investors, Jesus Bronchalo, monetize