Purchase of SUVs by ExxonMobil will not impact Local Content – President Ali

Apr 03, 2023 News

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Kaieteur News – As the news of ExxonMobil purchasing their own vehicles to transport employees continue to drive fear amidst local service providers, President Irfaan Ali has assured that provisions in the Local Content Act will ensure these workers are not affected.

During a press conference at the Leonora Track and Field Centre, West Coast Demerara on Friday, the Head of State was asked if he believes the company can exploit the opportunity to own their own fleet of vehicles and thereby drown out the Guyanese transportation service providers.

To this end the President said, “I don’t think so at all. We have protection in (the) Local Content (Legislation) for certain businesses. We have a lot of local persons who have invested in transportation services that are fully utilized (currently).”

The Local Content Law was passed in December 2021 by the PPP administration. The First Schedule of the Act ring-fences 40 categories of work for Guyanese participation via the supply of goods and the provision of services which include: food supply, rental of office space, accommodation, insurance, accounting and legal services among others.

The foregoing categories carry minimum local content levels for which local participation had to be achieved by Contractors, Sub-Contractors, and Licensees in the sector by the end of the calendar year 2022.

According to the Guyanese leader, the country found itself in an “embarrassing” state in the past, as it was unable to provide the required types of vehicles to foreign delegations including leaders and visitors. “We now in the government, we had to relook at because we have a lot of foreign delegations that are coming, leaders, visitors, and we were placed in an embarrassing situation where we did not get the type of vehicles to rent because we used to rent vehicles because most of them were occupied in the oil and gas sector but as I said, we are going to push to ensure that every service we can provide as a people will be provided,” the President explained.

He went on to point out that the government is now developing a new strategy to ensure the needs of the sector are fully satisfied by locals.

“I am now working on a plan to go much larger, much further than SUVs. One in which all the private sector, every single cent we can mobilized as a country to invest in a business opportunity in the oil and gas sector to create an infrastructure that all those investors can invest and one in which even ordinary Guyanese will be able to invest so that they too can be part of the growth and development not of this sector but of all the opportunities around the sector. I will launch that very soon,” Ali noted.

Last Monday, Kaieteur News reported that ExxonMobil through its subsidiary Esso Exploration and Production Guyana Limited (EEPGL) is looking to acquire its own fleet of vehicles to be used to transport its staff compliment.

Kaieteur News understands that the company is interested in purchasing brand new Sport Utility Vehicles (SUVs) that were manufactured between 2022 and 2023. The expense to purchase these vehicles will be borne by Guyana, as the 2016 Production Sharing Agreement (PSA) allows for such costs to support the local petroleum production activities to be recovered.

In a Request For Information (RFI) issued by EEPGL on March 14, 2023 ExxonMobil explained that it is seeking detailed technical information from suppliers for meeting EEPGL’s bid selection requirements for “provision of Light Motor Vehicles in Georgetown, Guyana.”

The RFI will be used to shortlist candidates that will be invited to submit proposals to the company. It was explained, “Esso Exploration and Production Guyana Limited (EEPGL) plans to put in place a material / equipment acquisition agreement for provision of light motor vehicles within the Georgetown area.” It said it therefore wishes to identify manufacturer authorized suppliers.

The suitable client “should be a manufacturer authorized dealer and provide manufacturers regular guarantees (to deliver) brand new vehicles model 2022 / 2023 that meet international code and equipped with advanced safety features.”

It also noted that the vehicles should have an engine capacity range between 1500 to 3000cc. In addition to medium to large SUVs that can seat between five and seven individuals, Exxon is also looking to acquire small or large busses that can seat 14 to 32 people.

 

 

 

 

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• EEPGL, embarrassing, ExxonMobil, individuals, SUVs car, West Coast Demerara

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