Opportunities in oil sector slipping away; industry needs to take action soon - former GCCI Head

Opportunities in oil sector slipping away; industry needs to take action soon – former GCCI Head

Oct 06, 2021 News

Kaieteur News – Former Head of the Georgetown Chamber of Commerce and Industry (GCCI) as well as the Private Sector Commission (PSC), Nicholas Deygoo-Boyer is of the firm conviction that opportunities in the oil sector will continue to slip by local businesses unless urgent action is taken to protect their interest.

Former Head of PSC and GCCI, Nick Deygoo-Boyer

In a recent posting on his LinkedIn Page, the businessman said he has noticed and received a number of complaints regarding local content in Guyana’s budding oil industry, particularly in the area of transportation. In light of this, he posited that action must be taken while the government continues efforts to complete its Local Content Policy and accompanying legislation.
The former GCCI and PSC Head said, “The Government of Guyana did indeed carry out an assessment of the Local Content Policy in existence, and we are awaiting the promised revamping of the policy. Further, we are also awaiting the promised Local Content Law. In discussions, I understand its being drafted, but the industry needs action soon as (ExxonMobil’s Stabroek Block) projects and procurement for those projects are ongoing.”

The businessman continued, ‘There is a misconception by the person on the street on when procurement is done for an oil and gas project. For instance, most procurement for Payara (ExxonMobil’s third project) has been completed even though the (oil vessel for the project, which is named Prosperity) has not sailed to our waters as yet.”
Further, Deygoo-Boyer noted that much of the procurement plan for Yellowtail, ExxonMobil’s fourth project in the Stabroek Block, has been completed despite it not receiving government’s approval as yet. Once this occurs however, Deygoo-Boyer asserted that the procurement plan would be put into action.
He further noted that if one were to assume that ExxonMobil does not bring on more than the 10 oil ships it plans to have this decade, then Guyanese only have for the taking, the cream of opportunities associated with six more ships.
“Unless action is taken swiftly, we can look at that number whittling down to five Floating, Production, Storage and Offloading (FPSOs) if another, after Yellowtail is approved without the promised upgrades of the policy and the promised law,” the businessman warned.

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

Latest News