Ramps Logistics Guyana has received a one-year extension of its contract to support the work of ExxonMobil Guyana, Chief Executive Officer (CEO) Shaun Rampersaud has confirmed.
The contract to provide freight forwarding and supply chain management services for ExxonMobil Guyana was expected to expire this month. How-ever with difficulties in being local content certified, Ramps had initiated discussions with ExxonMobil about a possible extension.
The contract now runs until September 30, 2023.
Ramps on Monday received its certification as ordered by acting Chief Justice Roxane George last week Friday.
A new Request for Information is expected to be issued by ExxonMobil next year, giving the company the opportunity to gauge the capacity of other contractors.
According to the CEO, this move is being viewed as a win-win for all involved. “We get our extension and Exxon gets to broaden their net of contractors. This is good for the whole industry.”
Ramps Logistics Guyana had waited for months on the certification from the Local Content Secretariat. Its initial application was denied on the grounds that the company did not provide adequate documentation and proof of Guyanese management as required by the Local Content Act.
Reacting to the issuance of the certificate, Ramps had said in a press release that it was elated to be “certified to provide goods and services to the local Oil and Gas Sector.”
“We remain committed to working with the Local Content Secretariat to develop local content in Guyana and ensure more opportunities within the Oil and Gas sector remain among its people, businesses, and communities,” the company said. It expressed gratitude to those “who have stood by us during the past few months, especially our team members who have remained strong throughout this process.”
In a statement on Monday following the issuance of the certificate, the Ministry of Natural Resources said that the government respects the rule of law and the independence of the judiciary and had therefore complied with the ruling.
In the same breath, however, the Ministry express-ed strong reservations about the eligibility of this particular application for local content certification and stated that the government is exploring all available options including an appeal of the judge’s ruling.
Ramps, whose parent company is Trinidadian, moved to the courts for judicial review seeking a number of declarations, including that the decision of the Minister of Natural Resources and/or the Secretariat refusing to grant the certification was unlawful.
Following the non-award of the certification, the company resubmitted documents to the Secretariat as requested. For months the company had waited for an update on the certification from the Secretariat.
Ramps Guyana, which has been in existence since 2013, argued that it was entitled to be issued a certificate of registration and to be entered into the Local Content Register in accordance with Section 6 of the Local Content Act.
The Chief Justice in her ruling stated that both the Minister and the Secretariat had breached the Act. In fact, she made it clear that “the Minister had, and has no authority under the Local Content Act, to grant or refuse certification.”
Further, she explained that the Secretariat misconstrued the Act and had taken irrelevant factors into consideration, such as pending criminal charges against the company that have “absolutely” no bearing on the determination of whether certification should be granted or not.
