ExxonMobil to submit plan on how local businesses will benefit by December

Jul 11, 2017 News

Under pressure to ensure that Guyanese play a more integral role in oil production, ExxonMobil, and its partners Hess and CNOOC Nexen, have announced that a detailed local content plan will be submitted by December.

ExxonMobil’s officials meeting with Minister Raphael Trotman and his team last Friday.

This came following a meeting Friday between officials from ExxonMobil and Minister of Natural Resources, Raphael Trotman and a team from the Ministry including staff of the Petroleum Directorate, Nicholas Chuck-a-Sang; Joanna Homer; Zola Williams and others, to share their plans for local content development in Guyana.
The ExxonMobil contingent included Country Manager, Rod Henson; Senior Director, Public and Government Affairs, Kimberly Brasington; Director, Government Affairs, Carlton James, and Socio-economic Advisor, Treacy Roberts.
During the meeting, the ministry team was updated on the company’s workforce development and capacity building activities that are currently underway. These include internship and training opportunities and facilitating the participation of Guyanese in workshops locally and internationally.
According to the Ministry, Guyanese have also begun to benefit from training and employment opportunities available on the Stena Caron vessel as well as with ExxonMobil suppliers including Geolog, Hornbeck, TechnipFMC and El Dorado Offshore, which is a local company. Engagements with the University of Guyana have been initiated.
Officials also indicated that as development of Liza 1 progresses, opportunities are becoming available for Guyanese companies to supply goods and services through tenders that are currently open or will become available. Businesses will also be able to access training from ExxonMobil’s Center for Local Business Development which will be launched this month, in collaboration with Institute of Private Enterprise Development (IPED).
According to the ministry, the company is expanding its internal capacity with the addition of Socio-economic Advisor, Treacy Roberts who will join ExxonMobil in August and have specific responsibility for coordinating the company’s local content efforts and monitoring the activities of all ExxonMobil Suppliers to ensure that they comply with local content requirements.
“Minister Trotman expressed his appreciation for the efforts that have begun and noted that it infuses a sense of confidence that the company is committed to honouring its obligations to Guyana. The Government of Guyana through the Ministry of Natural Resources, continues to advance efforts to ensure that Guyanese will derive maximum benefit through local content development efforts,” the ministry assured.
The issue of local content is taking front burner in the country’s oil development.
ExxonMobil, following a major find offshore, in its Guyana concession, back in 2015, has announced a 2020 start of production.
However, a number of concerned businesses and others have expressed alarm with current arrangement where Guyana is set to receive a two percent royalty on every barrel and a 50/50 share in profits. However, there are concerns with the latter with ExxonMobil to take out its investments first before that 50/50 split is factored.
There have been concerns also over a number of overseas companies that have already received or are set to receive contracts.
Local companies insist that they have capacity and access to experts to help them get ready to offer several services that will be required. These include port, helicopter, hotel, Customs and other critical services.

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

Latest News