Consulting Services for Cost Recovery Audit and Validation of the Government of Guyana’s Profit Oil Share

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Consulting Services for Cost Recovery Audit and Validation of the Government of Guyana’s Profit Oil Share

Published: April 01, 2021

EOI - Expression of interest

The  Government othe Cooperative Republic of  Guyana (GCRG)  is  in  receipt of financing in  the amount of US$20 Million  equivalent from  the World  Bank  (WB) toward the cost of the Guyana Petroleum Resources Governance and  Management Project (GPRGMP) and  it intends to apply  part of the proceeds to pay for consulting services for  Cost Recovery   Audit and   Validation  of  the Government of  Guyanas profit Oil Share.

This request for expressions of interest relates specifically to the consultancy for Cost Audit under Sub-Component B.1 of the project. This subcomponent will be financed to  providConsulting Services   for  Cost  Recovery   Audit  and   Validation  of  the Government of Guyanas Profit Share.

The  objective of the assignment is to conduct an  audit of the recoverable contract costs as  determined bthe Petroleum Agreement (PA),  taking into consideration Accounting good  practices, International  Accounting Standards, as well as Auditing Procedures and  Standards. The assignment will include the validation of the Governments share of profit oil for the period under review;  while providing on-the- job  training to the staff of the Guyana Revenue Authority (GRA),  the Office  of the Auditor General (OAG)  and  the Ministry of Natural Resources (MNR)  [and other agencies as directed by the Government of Guyana] on the audit process.

The consultancy will encompass the following  Scope of Works:

1)  Auditing, examining and  verifying   all  available documentation  and  records necessary for charges and  credits relating to the Contractors activities under the applicable PA  for  the period January, 2018   to December, 2020This requires:

a.   Conducting a pre-audit analysis

b.   Devising   an    effective   Audit   Plan    inclusive   of   an    appropriate methodology

c.   Executing  the  Audit  in   adherence  to  the  provisions  of   the  PA, applicable laws,  regulations, and  procedures, as  well  as  International Good practices and Standards.

2)  Conducting verifications of the Crude  Oil Valuation pursuant to the provisions

of Article 13 of the PA for the Audit period as well as verify royalties remitted to the Government for the said period in accordance with Article 15 of the PA.

 

3)  Validation of the accuracy of the total Government Share of Petroleum for the period under review.

4)  Assisting the relevant authorities in communicating the findings of the audit to the Contractor and,   if  requested, represent, or  accompany the relevant authorities in meetings with the Contractor.

5)  Assessing the impact of the audit on future Profit Oil revenues.

6)  Providing on  the job  training to selected staff of the MNR,  GRA, OAG [and other agencies as directed by the Government of Guyana], as they work jointly with the Consultant and  other agencies aimed at building the capacity of these agencies.

7)  Formulation and  conducting seminar/workshop-based training prior to and after the execution of the audit.

8)  Providing support to the MNR in related areas of the assignment.

 

The estimated duration for the assignment is for four  (4) months, commencing June 2021  during which   time the  Consultant is  expected to  be  physically present  in

Guyana for at least thirty (30)  days of this period.

 

The GPRGMP  now  invites eligible  consulting firms  (Consultants”) to indicate their interest in  providing the aforementioned  services. Interested  Consultants should provide information demonstrating that they have  the required qualifications and relevant  experience  to  perform  the  services,  such    as,   description  of   similar assignments, experience in similar conditions, and  availability of appropriate skills among staff. The consulting firm should meet the following  requirements:

 

1.   An  Internationally  recognized  accounting  and   audit  firm   with  extensive experience  in   contract  compliance review,   joint  venture  audits,  auditing petroleum  costs under  production  sharing  contracts  and   other petroleum agreements and  its fiscal  implications. The  Consultant must have  completed at least three (3) similar assignments during the past five years.

2.   The Consultant may propose the best team combination to achieve the overall goal. To be  considered for  the assignment, proposed team members should have  in-depth international expertise, local and  regional knowledge, access  to benchmarking for  comparable deep-water environments  and  the following minimum qualifications. The  Audit Team  must consist of professionals who are:

i.   Transfer pricing specialists ii.   Tax lawyers

iii.   Cost accountants

iv.   Crude  Oil valuation experts v.   Chartered accountants

vi.   Certified Public  Accountants vii.   Certified Fraud Examiners

viii.   Procurement and  contracts experts

ix.   A    partner   who     specializes    in     Natural    Resources/Risk Management

x.   A partner with expertise in cost recovery audits in oil and  gas

 

1.     Team and Assignment Coordination Leader:

 

(a) At  least   a   Post-Graduate  Degree    in   Finance,  Economics,  Business, Accounting, and  other relevant degrees with a minimum of fifteen (15) yearsexperience,

 

(b) Evidence of experience in the following  areas: auditing oil and  gas  costs for cost recovery eligibility; oil and  gas field design; engineering and  cost estimation; experience with cost estimating tools/software; experience in developing, reviewing development  plans  and   cost estimates  (facilities and   infrastructure);  development of  cost  models  in  upstream infrastructure development and

 

(c) Evidence of  track record of  team  leadership with a  demonstration of experience working with versatile teams and  excellent planning, organizational and  communication skills  with the ability to guide  multi- disciplinary teams.

 

2.    Petroleum Engineer:

At least   a post-graduate degree iPetroleum Engineering, Engineering, or other relevant disciplines with a minimum of ten (10)  years  of experience in the  following:  cost  Optimization  through   improved  CAPEX   and   OPEX discipline; upstreacost study in  Cost Modeling and  Benchmarking Field design, engineering and  cost optimization CAPEX/OPEX analysis and  bench- marking; understanding of upstream value  chain; exploration activities and costs component, and  experience in regional (Latin America) Exploration and Production.

 

3.    Financial Expert

At least a post-graduate degree in Finance, Management or Business related discipline with a minimum of   ten(10) yearsexperience in upstream oil and gas  companies with the  following   relevant  experience: production  sharing contracts and  their fiscal  terms; joint venture operations; cost classifications and  categorization; international procurement and  procurement benchmarks; budgets  and   analysis  of   Financial  Statements  and   cost  schedules;  cost allocations, taxation, transfer  pricing; financial and  economic modelling in

 

upstream petroleum operations; different types of models and  softwares, and understanding of IFRS and other accounting standards.

 

4.    Legal Expert

(a) At least a degree in Law from  an internationally recognized institution with a minimum of ten (10) years  of experience as a practicing attorney-at-law working in  upstream oil  and  gas  sector with a focus  on  cost audits and related  matters.  Should  be   conversant  with  all   relevant  legislation, including tax laws  and  the petroleum law, governing the upstream sector in Guyana since they will determine the cost allowability.

(b) Evidence  of  experience  in  interpretation  of  relevant  Petroleum  Laws;

Experience in  Production  Sharing Contracts; Joint  Venture Operations; Upstream Agreements and  Negotiations; and local content policies.

 

The  attention of interested Consultants is  drawn to paragraph 3.16  of  the World Banks Procurement Regulations for IPF Borrowers (published by the Association in September 2016),  setting forth the World  Banks policy on conflict of interest.

 

Consultants may  associate to enhance their qualifications. The  associations should clearly   indicate the  form   of  the  association (Joint-venture  or   sub-consultancy; member in charge; other member/s and  or sub-consultants). Joint ventures should submit letters of intent indicating their intent to form  a joint venture if awarded the contract and  shall  provide the above-mentioned information for each  member of the joint venture.

 

A  Consultant  will  be  selected  in  accordance  with  the  “Quality-And-Cost Based Selection (QCBS) method set out in the procurement Regulations.

 

Further  information can   be  obtained at  the  address below   during office  hours 0900hrs  to 1600hrs.The  Terms of  Referenccan  be  viewed   on  the  Ministry of Natural Resources’  website :   https://nre.gov.gy/  Expressions of  interest must be delivered to the address below  (in  person, or  by  mail,  or  by  fax,  or  by  e-mail by Tuesday April 20, 2021

 

Ministry of Natural Resources

Guyana Petroleum Resources Governance and Management Project

Attn: Mr. J. McKenzie, Permanent Secretary

96 Duke Street, Kingston

Georgetown, Guyana

Tel: (592)-231-2510

E-mail: jmckenzie@nre.gov.gy

Type of Notice: EOI - Expression of interest

Published Date: April 01, 2021

Closing Date: April 20, 2021

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