SBM Offshore Guyana, a key ExxonMobil contractor, yesterday celebrated its fifth anniversary of operations here and officially opened its new head office.
At the event which was hosted at the company’s office at Sheriff Street, Georgetown, officials who were present placed their focus on Guyana’s developing Local Content in the oil and gas sector. SBM Offshore, a Holland-based group, which came to Guyana five years ago, is responsible for operating and maintaining Floating, Production and Storage Facilities (FPSO) and as such is responsible for the Liza Destiny FPSO which operates offshore Guyana.
According to the General Manager, Francesco Prazzo, the opening of the new building marks the next level of commitment of the company in Guyana. This, he said, represents the ideal platform to efficiently manage operations which include over 530 full-time staff of which he noted over 46 per cent are Guyanese.
Prazzo stated that as the organisation is set to continue its growth offshore and onshore, it will continue to build capacity here. “As an organization we are laying solid foundations, we are offering real jobs, meaningful work together with opportunities for local and international growth, our company promotes a culture of learning.”
To this end he noted that in its operations here, the company remains committed to making a difference by its actions and as such posited that local content does not represent just a mere contractual obligation. “Going local makes perfect business sense when this is combined with our global strength, leveraging local support is instrumental in achieving excellent operation performances and is a prerequisite to meeting our targets.”
Giving the feature address at the anniversary celebration and opening, Minister of Natural Resources, Vickram Bharrat stated that the government remains committed to working with investors and partners to grow the sector in a manner in which companies and every Guyanese can benefit.
While he congratulated the company on its fifth anniversary, he stated that as Guyana has advanced over the last few years with the discovery and then production of oil, this will be increased as the Liza Unity FPSO will soon begin extracting. This, he said, will up Guyana’s output to about 300,000 barrels per day. He also reminded that Guyana is also expecting the Prosperity FPSO which will be welcomed in 2024.
“Our government is committed to working with our investment partners to grow the sector and to grow the sector in a manner that every single individual, every single company, every single Guyanese can benefit from this sector, that is our intention in the way we will manage the sector to ensure that benefits from the sector trickle down to every single Guyanese,” the minister declared.
He remarked that as the government is expected to present the local content legislation and the amended Natural Resources Fund Act to the National Assembly today, it will be a day that will be recorded in history for Guyana. He noted that the two pieces of legislation will speak to the direct benefits coming to Guyanese companies and investors as well as the government’s commitment to ensuring accountability in managing the oil and gas sector. If tabled, the bills would be the first on the oil and gas sector in more than 16 months of PPP/C governance.
“So these two bills which will be presented tomorrow [Thursday] will ensure that as a government we lay that platform to ensure that our people in Guyana benefit from the oil and gas sector and that the sector is managed in a transparent and accountable manner.”
Meanwhile, President Irfaan Ali who made an impromptu address at the event also focussed on the new local content legislation that is expected to be tabled today. He expressed gratitude to the team that worked on the Bill and stated that he was pleased that a balance was created.
The president added that the issue of local content is one that requires a balance that is both thorough and sophisticated so as to achieve the maximum benefit. He went on to say that the bill brings the country closer to building an inclusive local content platform, but noted that there are still areas that can be improved upon which include the creation of an enabling environment to take advantage of the opportunities that local content creates.
“It has to be graduated and incremental. If you are studying to become a doctor, you don’t become a doctor on the first day at university, it is a process. Like every sector there is a process to which we arrive at the position of perfection or the position of great influence,” Ali explained.
He pointed out that the bill reflects the reality that there is enough scope through a legislative framework which incentivises investment from the local private sector and as such enables the private sector to be an important part of the development of the oil and gas sector.
“It offers a clear directional pathway that we can do it. That with the right type of integration, consortium and business model, eventually we can have Guyanese companies offering service boat capabilities through graduated investment, through partnership in the same graduated way we can have Guyanese who are certified and trained, recruited to work on the fabrication of the FPSO,” Ali asserted.
The president went on to add that the local content bill will be a living document that addresses both transactional and transitional issues. As such he indicated that it took great dynamism, effort and a conscious approach by the government, the private sector and other stakeholders which includes ExxonMobil, to arrive at such a position.
Ali said that the bill is one that was not drafted in a vacuum but is one that has been in the making for over five years.
