65 Guyanese fired from gas-to-energy project

Nov 08, 2024 News

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…GAWU raises concerns over labour violations in oil sector

Kaieteur News- Some 65 Guyanese who were working on the much-touted gas-to energy project were recently fired by several different companies that had employed them to work on the ExxonMobil-led project.

The Guyana Agricultural and General Workers Union (GAWU), in a statement said that the laying off of the workers raises concerns about labour violations within the oil sector. Kaieteur News understands that the workers were recruited by companies contracted by ExxonMobil. “Exxon employs no one, these workers were hired by agencies…,” a source told this newspaper.

In a statement on Thursday, GAWU said it stands in solidarity with the 65 young, qualified, and experienced Guyanese workers who, without any indication, were recently rendered jobless and are now clueless about what their tomorrow holds.

According to GAWU, “the workers who were engaged in works related to the gas-to-energy project were employed by a well-known operator in the sector on one-year contracts. “However, they are now placed on the breadline after a mere five months on the job.”  The GAWU said the now jobless workers shared with them that there was no information really forthcoming, with vague references to certain clauses in their contract and the “slowing down of work”. “The obviously now distressed Guyanese were excited to contribute to this national project and, in some instances, eagerly uprooted themselves in order to be close to their new jobs. This most recent layoff is yet another indicator of the troubling labour situation and the apparent disregard for workers’ rights and concerns in the burgeoning sector,” GAWU said.

According to the union, it is on the record in defence of the rights of all workers. “We have, on several occasions, emphasised the need for job security, transparency, and respect for Guyanese workers’ rights and laws. We had previously warned of this unfolding situation, which appears to have become more pronounced. The situation has raised alarm in the sector, and there are concerns over whether the short-term employment of locals is used as a means to meet thresholds set out by the Local Content Act. We sincerely hope this is not the case but cannot condone our Guyanese workers being treated as mere “props” to satisfy quotas.”

However, GAWU said this incident underscores the efforts of its Oil and Gas Branch to advance union protection and recognition in the sector. “Local workers undoubtedly need a strong voice to safeguard their jobs and hold their employers accountable for fair treatment. We urge Guyanese to recognise the importance of their rights and to join us in advocating for stronger protections and decent employment. Certainly, it is not our hope that other workers are victims of similar tactics by their employers.”

The GAWU said it is steadfast in its commitment to providing leadership, guidance, and representing workers in the sector. “We also urge those who hold responsibility to ensure that compliance is not superficial but translates into genuine, sustained employment for local workers. Together, we can ensure the respect of Guyanese workers and the positive contribution of the oil and gas sector to our country’s development and prosperity,” the statement added.

Government expects the GTE project to be completed by April 2025. The contractor, CH4/ Lindsayca has however indicated that the power plant and Natural Gas Liquids (NGL) facility will be handed over at a later date. The extension is likely to cost the contractor some US$11.3M per month according to Jagdeo.

The highly touted US$2B Gas-to-Energy (GTE) project is intended to reduce monthly electricity bills by 50% but Vice President Bharrat Jagdeo recently was unable to say how soon consumers can expect this reduction. In the absence of a feasibility study for the project, stakeholders have been constantly questioning the project’s capacity to deliver cheaper electricity.

In the absence of a feasibility study for the project, stakeholders have been constantly questioning the project’s capacity to deliver cheaper electricity.  The GTE project is expected to deliver some 300 megawatts (MW) of cleaner and cheaper electricity. Government expects the GTE project to be completed by April, 2025. The contractor, CH4/ Lindsayca has however indicated that the power plant and Natural Gas Liquids (NGL) facility will be handed over at a later date. The extension is likely to cost the contractor some US$11.3M per month according to Jagdeo.

Earlier this year, award winning international Lawyer, Melinda Janki in a letter to the United States Export Import (US-EXIM) Bank flagged government’s failure to publish coherent and convincing financial analysis to support the business case for the project. In her April 25, 2024, letter to the President of the US-EXIM Bank, Reta Jo Lewis, Janki indicated that the financial institution might wish to obtain this information before further considering the government’s loan application. It was reported in April 2023 that the GoG applied to the US-EXIM Bank for a US$646M loan to fund a natural gas-fired power plant and natural gas liquids plant to be constructed by contractor CH4-Lindsayca. The plants, to be constructed at Wales, West Bank Demerara are part of the GTE project, which also includes a pipeline being built by ExxonMobil Guyana Limited to transport the gas from offshore to the site. The US-EXIM Bank has not yet approved Guyana’s application for the loan and is said to be in the concluding phase of its independent analysis of the project.

(65 Guyanese fired from gas-to-energy project)

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• ExxonMobi, ExxonMobil-led project., Gas-to-Energy project, GAWU, oil sector

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