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Exxon contractor denies sidelining Guyanese suppliers
…says the majority of pre-approved companies are locals
Kaieteur News – SBM Offshore, the Dutch floater specialist and ExxonMobil Tier One contractor for a number of Floating Production Storage and Offloading (FPSO) vessels destined for the Stabroek Block, is refuting claims of discrimination being leveled against it, to say that the majority of companies that it has pre-approved for its next round of contracts are Guyanese-owned.
The company had come under fire after a local businessman complained of being sidelined for want of experience in the supply of Personal Protective Equipment (PPE) such as safety vests, gloves and helmets.
According to SBM in a release on Thursday, close to 30 companies recently submitted Expressions of Interest (EOIs) for the provision of PPEs for the company’s operations in Guyana and that “of the companies selected for the next round by SBM Offshore, the majority are Guyanese owned, in whole or in part.”
The company noted that the “the bid process includes the application of criteria that, among other factors, take into account the information and supporting documentation provided” and that “this is essential to assess the overall capabilities of the bidders and to ensure they meet the quality and standards required for provision of the services.”
As such, the company noted that it “routinely ensures that the bid process is fair and fully transparent, in keeping with international best practices.”
According to SMB Offshore, it supports local business suppliers in all of the locations where it operates in around the world and that “in Guyana, we have been doing so across our operations, including the utilisation of local suppliers for vessel fabrication services, construction of buildings and a range of supplies for our offshore activities, including partnerships with farmers and food suppliers.”
Kaieteur News was informed recently that a local manufacturing company had submitted an Expression of Interest to supply SBM Offshore, with PPE and despite joining forces with W.W Grainger, an internationally recognised supplier of PPE, the local company was still told that it was not eligible to submit a bid.
The Guyanese company, which was hopeful of getting a foot into the oil industry, was rejected on the basis of having zero experience in supplying the industry with PPE.
In an email seen by Kaieteur News, SBM Offshore wrote to the businessman, “Dear (withheld on request for anonymity) Thank you for your email. We had to run our technical pre-selection amongst a significant number of suppliers and based on the feedback that your company provided, your company has not been approved for applying to this tender. Immediate justification that I received from the team was the lack of previous experience(s) in supplying PPE within the Oil and Gas industry and in Guyana.”
Speaking with Kaieteur News, the medium sized manufacturer said it is quite astonishing that after partnering with W. W. Grainger, Inc., an American Fortune 500 industrial supplier founded in 1927, it had thought that it would have been able to prequalify. The local firm said it was flabbergasted to learn that it could not tender for the contract because it had no experience. “How do you expect the small man to benefit from the sector when he can be shut out for not having experience in a sector that is new to the country? How do you expect the small man to have experience in the first place? We are being told to ready ourselves and form partnerships and invest our money but when we do, we are shut out because of lack of experience. This needs to be addressed,” the local company expressed.
One of the world’s leading energy attorneys, JJ Park had a year ago said that it was the Production Sharing Agreement with the oil block operator that makes it virtually impossible for Guyanese businessmen to compete with the rest of the world for contracts in their own backyard. Taking everything into consideration, Park said the Stabroek Block deal gets an F, as it provides no environment to create a local preference at all.
This publication has since requested to the local public relations firm, which represents SBM to provide the exact number of companies that supplied expressions of interest to SBM Offshore and a breakdown of those that have been pre-approved. This includes a disaggregation illustrating which of those approved is majority Guyanese owned or part owned. The firm has since committed to providing a response in due course.
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