ExxonMobil has selected a planned US$600 million Vreed-en-Hoop shore base established by NRG Holdings Incorporated – a consortium of local business persons – to support its offshore oil operations, sources say.
“… we will soon award a contract for a project shore base which will support Yellowtail and future projects, enabling increased fabrication and low deck activities in Guyana,” ExxonMobil Country President Alistair Routledge said in a video recording on Monday without naming NRG Holdings.
The ExxonMobil country president underscored that the new shore base “is expected to generate more jobs and business opportunities for Guyanese as well as providing a foundation for a port facility on the Demerara River.”
NRG Holdings Inc is a consortium of three local entrepreneurs, comprising gold miner Andron Alphonso, of ZRN Investment Inc; Nazar ‘Shell’ Mohammed, of HADI’S World Incorporated; and Nicholas Deygoo-Boyer of National Hardware Guyana Ltd.
Last September, the Environmental Protection Agency (EPA) announced that it had granted an environmental permit to the company and stated that they would not require an Environmental Impact Assessment. Instead, the company had to submit an Environmental and Social Management Plan (ESMP) to the EPA within four months.
This newspaper yesterday learned that the ESMP had been submitted and the company is expected to make an announcement this month on the project’s progress.
The project summary states that the project “is estimated to cost approximately US$200 to 600 million,” which shall include geotechnical and environmental studies, engineering works, dredging operations, reclamation, and the construction of a wharf, storage, warehouse, and safety facilities.
“The project will see an investment of up to US$600 million by the 100-percent Guyanese-owned consortium,” the group had said in a statement.
It described the proposed initiative as “an industry leading shore base facility for the oil & gas sector including the possible environmental and social impacts” and with an overall goal “to develop this landmark facility as a means of equipping and bringing tremendous value to locals in the management and operation of the emerging oil & gas sector while directly meeting the high standards of overall industry needs.” It continued, “This space will be developed into sustainable and industry leading facilities showcasing what can be done through local content, investment, and international partnership.”
“The port facility is expected to generate massive employment and revenue opportunities for Guyanese. Located at Vreed-en-Hoop, Region Three, it will occupy some 400 hectares of coastal land. Approximately 150-200 persons are expected to be hired during construction and 50-100 persons for the basic operation and maintenance of the base port facilities indicated in phase one,” it added.
According to the investors, the facility will also see services previously provided out of Trinidad now being carried out in Guyana, with the local economy benefitting from employment, duties and taxes, ancillary goods and services, and capacity-building.
Deygoo-Boyer was quoted as underscoring that the project will not only service the oil & gas industry but will also cater to all sectors that require a port facility. “We aim for this project to be transformative, not only for the oil and gas sector, but also for the ordinary person on the street as we seek to reduce shipping costs with this new container terminal.”
Nazar Mohammed’s son, Azruddin Mohammed, according to the statement, expressed appreciation for the government’s role in creating an enabling business environment, which will see the project create employment for thousands of Guyanese.
For his part, secretary of the consortium, Alphonso, said, “NRG Holdings Inc is committed to pursuing this development in a manner that is beneficial to all stakeholders. We want to ensure that as we contribute to local content development and provide opportunities for Guyanese in the oil and gas sector, we also do so in a way that is also responsible and sustainable. At the end of it, it must be wholly beneficial not just to us as the investors but to the citizens in the surrounding communities and other stakeholders as well.”
NRG noted that the Port of Vreed-en-Hoop project is a direct result of opportunities arising from the development of the oil & gas sector and its demands. “It takes into account the untapped opportunities in terms of services that are required by the sector, but are being provided outside of Guyana’s territory, leading to revenue leaks for the country.”
ExxonMobil commented that overall, its successes to date and plans for the future, “represent a strong foundation for a mutually beneficial long term relationship” between the company and Guyana.
The Houston, East Bank Demerara-based Guyana Shore Base Inc currently provides services to ExxonMobil for its offshore oil operations.
