The Ministry of Natural Resources on Wednesday approved the five-year local content plan for Esso Exploration and Production Guyana Limited (EEPGL) which is the operator of the oil rich Stabroek Block offshore.
EEPGL is a subsidiary of ExxonMobil. Speaking at the event on behalf of ExxonMobil Guyana, its President Alistair Routledge said: “The resource we are producing belongs to the people of Guyana and we are committed to ensuring that they benefit from it. Today’s event was another step in that direction since we believe that growing local content across the oil and gas sector can increase social and economic benefits for Guyanese in the short and long term.”
A release yesterday from the Ministry of Natural Resources said that five-year Master Plans were also approved for Saipem Guyana Inc. and Gulf Engineering Services Guyana Limited (GESGI).
The release said that the five-year master plan is intended to provide the minister and the Local Content Secretariat with an insight into the contractor, sub-contractor or licensee’s projected activities with regard to employment, procurement and capacity development of Guyanese suppliers.
The ministry noted that the plans respond to an amendment which ensures that Guyanese suppliers to the petroleum sector are paid within thirty to forty-five days upon receipt of the correct invoice.
At the October 26 signing, the release said that Bharrat reminded the executives of the companies that many of the suppliers of Guyana’s oil and gas sector operate on a cash flow basis and that the amendment to include a reduced payment period will bode well for suppliers’ growth and competitiveness.
The Natural Resources Minister added that the Government of Guyana is currently in discussion with the commercial banks to have contracts lodged as collateral as this would support access to capital for Guyanese businesses.
Director of GESGI Jodel Gopeesingh stated that his company remains eager to grow the capacity of Guyanese nationals for the oil and gas sector.
“We believe that optimizing local content in our activities is one of the key elements to the success of the business and the operational goals of Gulf Engineering Services
(Guyana) Inc. Our interest, at all times, has been to satisfy the needs and values of the Guyanese market, where we are able to add and create in the Guyanese economy by utilising the local human, natural resources and suppliers in the services we render to industry. It is our intention to… collaborate with other service companies in delivering projects successfully whilst maintaining our globally-recognised certifications,” Gopeesingh said.
The statement said that EEPGL, Saipem Guyana and Gulf Engineering join the list of 20+ oil and gas support companies that have had their Master Plans approved by the government.
The Ministry’s refusal of certification for Ramps Logistics has triggered a lawsuit by the Trinidad-headquartered company against the Local Content Secretariat.
