One oil & gas contractor is forging ahead with its programme of assisting local suppliers to navigate the sometimes complex requirements necessary when seeking to do business with the company and plans to spend US$37m here this year.
SBM Offshore Guyana in a release on Friday, announced that it had engaged some 70 representatives of the local business sector at its Vendor Day. The company’s main activity is to design, supply, install, operate and maintain Floating Production, Storage and Offloading vessels that are being used by ExxonMobil to extract oil offshore. Three of these vessels are already in Guyana’s waters.
The Vendor Day event is one of SBM Offshore’s annual activities geared towards updating local suppliers about procurement opportunities, requirements, and its compliance processes.
Here, participating businesses were given the opportunity to learn more about the company’s expectations for local suppliers when conducting business. These included its vendor qualification/renewal process and timeline, performance measurement criteria, key purchase order and invoicing requirements, Local Content initiatives and commitments, logistics, and delivery requirements.
Further, the company’s focus on sustainable packaging, vendor compliance measures, and key Health, Safety, Security and Environment (HSSE) procedures, were also an important part of the discussions with vendors.
The release informed that Supply Chain Support Manager, Flavia Werneck, and Procurement Lead, Recardo Bovell, who were among the presenters, provided an overview of the checks and balances the company has in place when procuring services. These include vendor monitoring processes which assess the vendor’s qualifications and performance.
Local Content Officer, Garri Fraser spoke about SBM’s Local Content Annual Plan for 2023 in which provisions were made for over 700 hours of training to be conducted with major vendors. He explained that 200 hours of training and certification, including Human Rights training, will be done with contractors. Also, 24 hours of forums and webinars will also be held with vendors, as well as clarification sessions on the Requests for Information process. Vendors will also be advised on the creation of bid packages.
He also spoke of the company’s local procurement spending. “From the procurement side, we have committed about US$37 million dollars of spend to local vendors. Now, that is huge when you look at the total commitment to local content in Guyana, which is US$51 million dollars.”
Another presenter, Sustainability and Social Impact Programme Development Officer, Gwenetta Fordyce, stressed the need for vendors to review and understand the company’s Human Rights Standards and HSSE policy, while Compliance Ambassador, Nevellean Dundas, underscored the company’s expectation for vendors to embed transparency, courtesy and impartiality into their business conduct, stressing the need for compliance with the laws and regulations of the country. And Accounting Lead, Shaneeza Alli, provided insight into the company’s payment and invoicing processes and explained the invoicing best practices for the vendors in attendance. Warehouse Supervisor, Richard Govinda, enlightened the attendees about the company’s logistics, packaging and preservation requirements when conducting business at the warehouse, including the necessary documentation.
SBM Offshore Guyana’s General Manager, Martin Cheong, who also spoke at the event, noted that by actively engaging local suppliers, contractors and vendors, the company was not only creating opportunities for employment and economic advancement but also supporting sustainable development. “Vendor Day 2023 serves as testimony to our organisation’s unwavering commitment to support local businesses and nurture local capacity.”
In 2022, SBM Offshore Guyana received approval for its Local Content Master Plan, the first of the Prime Contractors to achieve this milestone in Guyana. In May, the company received approval for its 2023 Local Content Annual Plan and Certificate of Compliance. The company assured that it holds this responsibility in “high regard” and committed to remaining “steadfast” in the pursuit of local content development in Guyana by involving Guyanese companies in its operations, the release added.
