Capable oil and gas workers bemoan being bypassed for construction of Uaru jumpers

Jan 16, 2023 News

Kaieteur News – Local oil and gas workers are disappointed and discouraged after a US multimillion dollar contract to provide subsea equipment for Guyana’s fifth oil project, Uaru, was awarded to a foreign-based company, despite having the capacity to build in country.

NMWUG President, Sherwyn Downer

The workers who spoke with this publication complained that while ever so often they are sent home because of inadequate work coming in from the sector, here it is, that almost two years of steady work was delivered to an outside entity. On several occasions last year, local workers posted at the Guyanese and Trinidadian joint venture (JV) Trinidad Offshore Fabricators Unlimited (TOFCO) and Guyana Oil and Gas Support Services (GOGSSI), complained bitterly about being out of work and in some cases, for long periods. Yesterday, they told the Kaieteur News that in the in Saipem’s Fabrication Yard, Guyanese have been building jumpers and are capable of producing the equipment from scratch. Despite this, the workers say they were shocked to see a Dutch company being awarded the contract.

“Right now, Guyanese are home because Saipem is saying that they do not have enough work. So, some Guyanese are home and some Guyanese are working one week on one week off. They say they don’t have sufficient work right now to support all of us but yet these jumpers are going outside to be built,” one worker imparted. He insisted that “right now, there are guys who work on jumpers but are at home now due to the limited amount of work there is.” The worker said that he is unclear on how the authorities are handling matters regarding local oil and gas workers, but opined that once Guyanese have the capacity, they should be provided with work.

The worker explained that previously prefab jumpers came into Guyana from overseas and the local workers would assemble them for the offshore project. This might be work for six to eight months the man said. He noted however, that with 24 jumpers, if everything had to be completed in Guyana it could be as much as two years work for Guyanese. To assemble the 24 jumpers when they arrive in Guyana is just a few months of work, the man contended. He added that Guyanese are currently doing a lot of jobs for the sector after being trained. He said the workers are not just able to assemble the jumpers, but they can build them from scratch. They say that not only are Guyanese losing out on work, but argued that much more money has to be spent to have foreigners build the subsea equipment outside.

President of the National Mines Workers Union of Guyana (NMWUG), Sherwyn Downer, described the situation as being “sad and unfortunate”. Like the oil workers, he said he is oblivious to how the oil contracts are issues, but saw it as “unfortunate that the contract would have landed in the hands of a foreign company when the jumpers could be built right here in Guyana.” Downer’s union is one that oil and gas workers have approached to air their complaints. He had brought matters involving the Joint Venture workers to the fore, relating their concerns mainly about salary and availability of work. The workers had complained that they were being kept on contract which makes it easy for them to be sent home for long periods when there is no work. They said that while they were sent home, foreign workers were being kept on the job, and paid more.

Nicholas Boyer, head of the Guyanese fraction of the JV had confirmed inadequate amounts of work in Saipem Yard, and confirmed that local workers have to stay at home because of the situation.

Downer said the workers again reached out to him, this time highlighting the jumper matter.

He explained that the jumpers in question are built in pairs and may require 25 to 30 persons to work on one piece of the equipment. Multiply that number of workers by the 24 jumpers and Downer suggested that more than a year’s work would be available for locals.

Downer questioned why the task was not sent to Saipem where it is known that workers have the ability to conduct the work. He even questioned whether work was not coming to the yard because workers there are speaking up for themselves. He said however that if Guyana is looking at local content and jobs in the oil and gas sector such matters cannot be overlooked and should be a priority for those monitoring the industry.

The union leader cautioned those responsible for workers’ welfare. He said, “Workers are paying attention to what is happening. They are the ones who brought this matter to my attention, they are hungry for (workers’) representation and they have a desire to work. I don’t think people have a problem with doing the work. I think what they need in fact, is respect for the rights of Guyanese working with a foreign company and adequate compensation for their labour.” “But the fact that they have brought this to my attention it’s a sign that Guyanese are waking up and keeping abreast with what is happening in the country and this hurts them.”

Downer said the workers are unsure who is responsible for such occurrences, but have urged the authorities to look into these matters.

Dutch Manufacturer, Strohm B.V, said earlier this week that it won a contract to supply ExxonMobil Guyana with 24 jumpers for its Uaru Project located in the Stabroek Block. The Dutch company said the contract was the second it received from Guyana, having received one for the Yellowtail Project. The company had said that the project “marks the largest commercial agreement in its 15-year history.”