Jack J. Grynberg
Encyclopedia
Jack J. Grynberg is a Denver-based oil and gas developer who has amassed a fortune in the oil and natural gas sector.
In addition to speaking six languages, he has a Masters in Petroleum Engineering and Refining from the Colorado School of Mines
and is an active philanthropist.
, Jack Grynberg was in the second grade when the Nazis invaded Poland. He joined the resistance and by the age of 12 he was fighting in the forests of Belarus. He fought until 1945. He then moved to the U.S. state of Colorado where he attended the Colorado School of Mines, married, and began raising his three children. He would later work as a spy for the US Army in 1957 and 1958.
in Kazakhstan
in the 1990s, one of the largest oil field discoveries in the last 30 years.
The Kashagan Field
is estimated to hold 9 Goilbbl of recoverable oil and 25 Tcuft of natural gas. Grynberg was one of the first western oilmen to develop relations with Kazakh President Nursultan Nazarbayev
before the collapse of the Soviet Union. This relationship and others provided him with access to complex and confidential data.
According to court records, it was Grynberg who provided the introductions and data for BG
, BP
, Statoil
, Arco
, Transworld Oil and others to enter the region in the late 1980s and early 1990s. When the consortium of major American oil companies fell apart, BG cut its own deal for the Karachagnak gas/condensate field and attempted to exclude Grynberg from the deal. Grynberg sued in Texas, and though much of the Texas court case is sealed, industry insiders estimate that Grynberg was awarded a 15% interest in the BG deal.
BP and BG both sold their remaining interests in Kashagan in 2003. BG sold to the Sinopec
and BP to CNOOC. The combined sales price is estimated to have been $1.23 billion, of which Grynberg may have received as much as 15% of ($185 million). This is in addition to the $90 million that Grynberg is estimated to have received with BP and Statoil previously sold part of their interests to Total for $600 million in 2001.
Grynberg is known for shrewdly defending his rights in court. According to one source, during negotiations involving the Kashagan interests, he ripped up a settlement check for $90 million and demanded appraisal and arbitration.
Grynberg owns more than 800 oil and natural gas well wells throughout the world. He is involved in ventures in the former Soviet Union, Middle East, Africa, Far East and Latin America and holds some of the largest concessions in the world.
Most recently Grynberg has been focused on a Qui Tam lawsuit against the major oil companies accusing them of stealing billions of dollars in royalties from the U.S. government.
In 2006 through 2007, it is reputed that Mr. Grynberg entered into discussions with Ivanhoe Energy, (IVAN: NASDAQ) to provide services from their heavy oil unit for his leases in the Pungarayacu Tar Sands Heavy Oil Deposit in Ecuador.
According to public court records, Grynberg has argued that after meeting to discuss services and joint venture opportunities, and sharing proprietary geotechnical data, that Ivanhoe then circumvented Grynberg and bribed the previous Ecuadorian President, who canceled the Grynberg lease and awarded it to Ivanhoe. The current president of Ecuador has acknowledge the issues at stake. The case is currently open against Ivanhoe and Robert Friedland
, Chairman, President and CEO of Ivanhoe.
In addition to speaking six languages, he has a Masters in Petroleum Engineering and Refining from the Colorado School of Mines
Colorado School of Mines
The Colorado School of Mines is a small public teaching and research university devoted to engineering and applied science, with special expertise in the development and stewardship of the Earth's natural resources. Located in Golden, Colorado, CSM was ranked 29th, in America among national...
and is an active philanthropist.
Early life
Born in PolandPoland
Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...
, Jack Grynberg was in the second grade when the Nazis invaded Poland. He joined the resistance and by the age of 12 he was fighting in the forests of Belarus. He fought until 1945. He then moved to the U.S. state of Colorado where he attended the Colorado School of Mines, married, and began raising his three children. He would later work as a spy for the US Army in 1957 and 1958.
His first million
Grynberg made his first million by the age of 30 when he formed a company, Oceanic Exploration Co., that reworked a previously drilled gas well that had been abandoned by Amerada Hess Corporation as “noncommercial” . After reviewing and interpreting data from the area, he concluded that Amerada Hess was wrong. This reworked well led to the discovery of the prodigious Nitchie Gulch gas field in Wyoming and made Grynberg a millionaire in 1962. From there he set out on many highly successful domestic and international oil and gas exploration programs and took the Oceanic Exploration public in 1972.Building the empire
Grynberg was also instrumental in helping discover the Kashagan FieldKashagan Field
Kashagan Field is an offshore oil field located in Kazakhstan. The field is situated in the northern part of the Caspian Sea close to the Kazakhstan city of Atyrau. The field was discovered in 2000 and was one of the larger discoveries in that decade, it is estimated that the Kashagan Field has...
in Kazakhstan
Kazakhstan
Kazakhstan , officially the Republic of Kazakhstan, is a transcontinental country in Central Asia and Eastern Europe. Ranked as the ninth largest country in the world, it is also the world's largest landlocked country; its territory of is greater than Western Europe...
in the 1990s, one of the largest oil field discoveries in the last 30 years.
The Kashagan Field
Kashagan Field
Kashagan Field is an offshore oil field located in Kazakhstan. The field is situated in the northern part of the Caspian Sea close to the Kazakhstan city of Atyrau. The field was discovered in 2000 and was one of the larger discoveries in that decade, it is estimated that the Kashagan Field has...
is estimated to hold 9 Goilbbl of recoverable oil and 25 Tcuft of natural gas. Grynberg was one of the first western oilmen to develop relations with Kazakh President Nursultan Nazarbayev
Nursultan Nazarbayev
Nursultan Abishuly Nazarbayev has served as the President of Kazakhstan since the nation received its independence in 1991, after the fall of the Soviet Union...
before the collapse of the Soviet Union. This relationship and others provided him with access to complex and confidential data.
According to court records, it was Grynberg who provided the introductions and data for BG
British Gas plc
British Gas plc was formerly the monopoly gas supplier and is a private sector in the United Kingdom.- History :In the early 1900s the gas market in the United Kingdom was mainly run by county councils and small private firms...
, BP
BP
BP p.l.c. is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured by revenues and one of the six oil and gas "supermajors"...
, Statoil
Statoil
Statoil ASA is a Norwegian petroleum company established in 1972. It merged with Norsk Hydro in 2007 and was known as StatoilHydro until 2009, when the name was changed back to Statoil ASA. The brand Statoil was retained as a chain of fuel stations owned by StatoilHydro...
, Arco
Arco
-Places:*Arco, a town in Trentino, Italy*Arco, Idaho, in the United States*Arco, Minnesota, a city in the United States*ARCO Arena in Sacramento, California, home of the Sacramento Kings-Companies:...
, Transworld Oil and others to enter the region in the late 1980s and early 1990s. When the consortium of major American oil companies fell apart, BG cut its own deal for the Karachagnak gas/condensate field and attempted to exclude Grynberg from the deal. Grynberg sued in Texas, and though much of the Texas court case is sealed, industry insiders estimate that Grynberg was awarded a 15% interest in the BG deal.
Challenges
When BP attempted to exclude Grynberg from its 9.5% stake in its Kashagan stake, Grynberg sued them as well in New York including leveling a racketeering charge against then BP CEO, John Browne. The case was settled. The case was settled in arbitration with all parties sworn to secrecy, but again, industry insiders estimate that Grynberg was awarded a 15% interest.BP and BG both sold their remaining interests in Kashagan in 2003. BG sold to the Sinopec
Sinopec
China Petroleum & Chemical Corporation Limited , or Sinopec Limited , is a majority owned subsidiary of state owned company Sinopec Group. Sinopec Limited is listed in Hong Kong and also trades in Shanghai and New York ....
and BP to CNOOC. The combined sales price is estimated to have been $1.23 billion, of which Grynberg may have received as much as 15% of ($185 million). This is in addition to the $90 million that Grynberg is estimated to have received with BP and Statoil previously sold part of their interests to Total for $600 million in 2001.
Grynberg is known for shrewdly defending his rights in court. According to one source, during negotiations involving the Kashagan interests, he ripped up a settlement check for $90 million and demanded appraisal and arbitration.
Grynberg owns more than 800 oil and natural gas well wells throughout the world. He is involved in ventures in the former Soviet Union, Middle East, Africa, Far East and Latin America and holds some of the largest concessions in the world.
Most recently Grynberg has been focused on a Qui Tam lawsuit against the major oil companies accusing them of stealing billions of dollars in royalties from the U.S. government.
Current Ventures
Since 2006 Grynberg has been working on developing ethanol plants in Latin America and has received leases and agreements throughout Latin America.In 2006 through 2007, it is reputed that Mr. Grynberg entered into discussions with Ivanhoe Energy, (IVAN: NASDAQ) to provide services from their heavy oil unit for his leases in the Pungarayacu Tar Sands Heavy Oil Deposit in Ecuador.
According to public court records, Grynberg has argued that after meeting to discuss services and joint venture opportunities, and sharing proprietary geotechnical data, that Ivanhoe then circumvented Grynberg and bribed the previous Ecuadorian President, who canceled the Grynberg lease and awarded it to Ivanhoe. The current president of Ecuador has acknowledge the issues at stake. The case is currently open against Ivanhoe and Robert Friedland
Robert Friedland
Robert Martin Friedland is an international financier and businessman. Since the early 1980s, he has specialized in securing funding for the exploration and development of mineral and energy resources and advanced technology ventures...
, Chairman, President and CEO of Ivanhoe.
External links
- ICSIDICSIDICSID may refer to:* International Centre for Settlement of Investment Disputes* International Council of Societies of Industrial Design...
Jack J. Grynberg v. GrenadaGrenadaGrenada is an island country and Commonwealth Realm consisting of the island of Grenada and six smaller islands at the southern end of the Grenadines in the southeastern Caribbean Sea...
Award of 27 March 2009 - http://www.npr.org/templates/story/story.php?storyId=5441272
- http://www.washingtonpost.com/wp-dyn/content/article/2006/05/06/AR2006050600905.html
- http://www.rockymountainnews.com/drmn/news_columnists/article/0,1299,DRMN_86_5188899,00.html
- http://www.viddler.com/explore/evworldeditor/videos/15/