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Forthcoming US$120M shore base facility a prime example of making local content work – Oil and Gas Export
Oil and Gas Advisor, Anthony Paul believes that the forthcoming US$120M shore base facility by entrepreneur Terry Singh is a prime example of how to make local content work.
Chatham House Advisor, Anthony Paul
Mr. Terry Singh, CEO of Source One Supply
He recalled that Mr. Terry Singh, Chief Executive Officer (CEO) of Source One Supply, a subsidiary of the household name JAPARTS, is desirous of joining with local forces to develop a shore base initiative. This project would be able to service the needs of ExxonMobil during the first stage of the Liza One project and beyond as well as any other Oil Company.
“This is the kind of thing that’s needed for local content to work; local entrepreneurs and professionals partnering with experienced practitioners to offer facilities, goods and services to the Sector. What I like about the approach that I saw from the display and video at the booth that was at the Guyana International Petroleum Business Summit, is that the company is thinking big…they can go very far.”
“That will require access to good demand data, support by the local content regulator and the operating companies and their major suppliers. At the same time, there appears to be competing ventures to supply shore base facilities.”
Additionally, the oil and gas expert said that while there’s likely to be a need for more than the one currently operated to support ExxonMobil, care must be taken to ensure there isn’t over-investment.
OFFSHORE PROJECT
During a detailed interview Mr. Singh noted that the shore base plan, which is also representative of a Guyanese led initiative, will be called G-Port. The proposed location is Plantation Vreed-en-Hoop. The scale and magnitude of G-Port will be on an entirely new level; a superior provider of services and state of the art onshore oil and gas Facility that will put direct employment and capital injection into the economy. With such a massive investment and the involvement of international parts, Singh commented that it will not only create employment but also enhance the technical knowledge of our local workforce.
Singh shared that G-Port would be able to cater to the needs for the different phases of Exxon’s oil drilling. The project envisions providing a wide range of services which include: fresh water supply, fuel storage capacity, waste management services, a factory, a beverage warehouse, pipe yard and recertification services etc. Ultimately, Singh said that it is his intention to provide as much local content as possible.
The entrepreneur noted that it would cost approximately US$90M to US$120M to establish the structure with the exception of four specialized commodities. He said that the US$120M budget caters for the setting up of the pier, warehousing amenities, the welding and fabrication department, the administrative building, housing and accommodation for workers, and a grand training centre.
An artist’s impression of the proposed onshore oil and gas facility at Vreed-en-Hoop.
He noted that the four specialized facilities he foresees having at the port include the fuel storage farm, the fresh water treatment plant, the mud plant and the purification oil distribution centre. The businessman noted that he is also seeking the intervention of the Government so that they can be able to operate another shore base facility in the Essequibo region.
With the government’s blessings, Source One Supply hopes to have the presence of various bodies at G-Port. He said these include but are not limited to the Guyana Police Force, the Central Immigration and Passport Office, Guyana Maritime Administration and the Customs Anti-Narcotics Unit (CANU).
The CEO said, “For Source One Supply, once we get the blessings of the government to start this project, we can commence in about two to three months and finish in about 26 to 30 months. I want the citizenry to understand that G-Port is not just one local Guyanese being involved. I want to incorporate or form a consortium of ‘Guyanese’ businesses; I want Guyanese to play a part in setting it up…”
The sharp businessman stated, “The world will not wait on us. Hence, as Guyanese we must take our place in ensuring greater local investment and market share. This initiative is to ensure that from the outset we gain competitive advantage, local participation and content.”
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