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Companies must disclose nationalities of all workers annually – while Guyana’s policy substantially vague
Suriname oil contract dictates…
UK Consultant, Dr. Michael Warner
Kaieteur News – No stone is left unturned when it comes to Suriname securing maximum benefits for its people.
According to the Production Sharing Agreements (PSAs) the Dutch-speaking country has with oil companies; there are strict Local Content rules which have to be followed. These rules ensure companies have no room to escape their responsibility of using to the greatest extent, local goods, products and services as part of its operations.
According to the country’s PSAs, companies are required to provide a report demonstrating the number of employees engaged in petroleum operations in Suriname, identified by nationality, to the extent that such information does not cause the contractor to violate any laws. This report must be submitted no later than 90 days following the end of each calendar year.
Also, a list of the number of contractors’ and sub-contractors’ local hires and associated titles must be submitted in quarterly reports.
In addition, companies are required to use their best efforts to train locals with respect to its Petroleum Operations, including technical, administrative, executive and management positions.
These rigid rules are not only absent from Guyana’s Production Sharing Agreement with ExxonMobil, but also the draft Local Content policy that was finalized by UK Consultant, Dr. Michael Warner. In fact, with regards to the nationalities of employees, Guyana’s Local Content Policy stipulates that the Oil Company/ operator must give a total level of local content utilization; the estimated Guyanese in the workforce; estimated training hours; expenditure with Guyanese suppliers, among other factors.
What ExxonMobil failed to show with their local content, however, was a breakdown of the job description, salaries, and even the plans in place to increase this workforce by more than 55%.
In fact, no data was provided for the public to analyze if there was any progression in the employment of Guyanese to senior positions from 2015 to now.
With regards to capacity building, ExxonMobil said that this is an ongoing process for its own operations as well as for its direct contractors, with more than 100,000 hours of training provided to Guyanese staff as of the first half of 2020.
As for the local businesses it has used for the first half of the year, ExxonMobil said more than 600 Guyanese suppliers were used for services. These “services” included the procurement of “food stuff” and “engineering” works.
Again, the company provided no breakdown of the names of companies it used for the first half of 2020. The only time ExxonMobil ever released the list of companies it claimed to have used for its local content efforts was back in June 2018.
Notably, the previous, A Partnership for National Unity + Alliance For Change (APNU+AFC) regime, for the last five years had promised the nation that the Local Content Policy would be in place for first oil which officially started on December 20, 2019. However, close to a year has passed and the implementation of this document is yet to happen.
However, since President Ali has assumed office, steps were put in place to set up a local content advisory panel. The list is constituted by Trinidadian energy strategist, Anthony Paul; former T&T Energy Minister, Kevin Ramnarine; former Foreign Affairs Minister, Carl Greenidge; former President of the Guyana Manufacturing and Services Association (GMSA), Shyam Nokta; US-based Chartered Accountant, Floyd Haynes; and trade unionist, Carvil Duncan. This team is tasked with executing consultations and review, and making recommendations to inform the country’s local content policy.
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