Eval­u­at­ing Open Oil’s Fi­nan­cial Model­ing of Guyana’s 2016 PSA – 4

Stabroek News Sunday - - BUSINESS PAGE -

To­day’s col­umn ad­dresses the third part of my three-part eval­u­a­tion of Open Oil’s fi­nan­cial model­ing of Guyana’s 2016 PSA. It pro­vides re­sponses to the al­leged in­ac­cu­ra­cies con­tained in the first col­umn, and iden­ti­fied in a let­ter by the Au­thor of the model­ing ex­er­cise. I do not usu­ally re­spond to such al­le­ga­tions espe­cially where a care­ful read­ing of the col­umn is enough for read­ers to as­sess. I make an ex­cep­tion here, be­cause the let­ter may be seek­ing to re­strain dis­cus­sion, which would be un­be­fit­ting for an ad­vo­cate of open­ness.

The in­ac­cu­ra­cies cited in­clude: 1) “Open Oil did not de­velop the FAST stan­dard” 2) Open Oil is an in­cor­po­rated Ger­man Com­pany, and not an NGO 3) the claim that it of­fers “unique spe­cial­ized train­ing” is in­ac­cu­rate 4) the claims it “of­fers its ser­vices for sale as an equal op­por­tu­nity con­sult­ing group is a phrase it has not used”; and 5) “the model is fo­cused on Liza I as the first field” is in­ac­cu­rate. And, fi­nally, 6) the claim the model uses the “Fe­bru­ary long-term fore­cast price by the EIA” is in­ac­cu­rate. Fur­ther, it states un­der the same header:

“Johnny is founder and di­rec­tor of OpenOil. He is a mem­ber of the As­so­ci­a­tion of In­ter­na­tional Petroleum ne­go­tia­tors and mem­ber of the ad­vi­sory board of the FAST Stan­dard Or­gan­i­sa­tion, the or­gan­i­sa­tion that pro­tects, pro­motes and fur­thers the de­vel­op­ment of the FAST Mod­el­ling Stan­dard. Since 2013, he and OpenOil have pi­o­neered the de­vel­op­ment of pub­lic fi­nan­cial mod­els, lead­ing de­bate in such tech­niques for or­gan­i­sa­tion such as the World Bank and the IMF.

Johnny has ex­ten­sive ex­pe­ri­ence in pro­vid­ing fi­nan­cial anal­y­sis train­ing to gov­ern­ments and civil so­ci­ety or­gan­i­sa­tions, as well as gen­er­ally around the man­age­ment of ex­trac­tive in­dus­tries, in­clud­ing in and around the is­sue of ben­e­fi­cial own­er­ship. He has con­sulted for the UNDP, the World Bank, the Cen­tre for Global De­vel­op­ment, GIZ, DfID, CABRI, the gov­ern­ments of Sierra Leone, Cote d’Ivoire, So­ma­lia, In­done­sia, Tu­nisia, and the Kur­dish re­gion of Iraq.” Specif­i­cally on its re­la­tion to the FAST Model­ing Stan­dard, (Model Li­brary) it states:

“This page con­tains a list of all mod­els and nar­ra­tive re­ports that have been built by OpenOil and part­ners, fol­low­ing OpenOil’s stan­dard­ized open-source ap­proach to fi­nan­cial model­ing.

OpenOil has adopted the FAST stan­dard of fi­nan­cial model­ing to build a world­wide net­work of prac­ti­tion­ers from civil so­ci­ety and gov­ern­ment who can share tools, skills and ex­pe­ri­ence, and col­lab­o­rate to make fi­nan­cial model­ing avail­able to a wider set of stake­hold­ers.” I leave read­ers to eval­u­ate both Open Oil’s de­scrip­tion of its train­ing and its work­ing re­la­tion in re­gard the FAST Model­ing Stan­dard.

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