Latest update April 25th, 2024 12:59 AM
Dec 05, 2018 News, What Guyana needs to know about ExxonMobil
By Kiana Wilburg
In the absence of a Local Content Policy, USA oil giant ExxonMobil, will continue to use its own definitions and terms to guide its reporting to the Coalition government on its use of local content.
Confirming this during an exclusive interview yesterday was head of Exxon’s Public Relations and Government Affairs Department, Deedra Moe. She noted that the company has been up to date with its reports to the government, which have to be submitted at midyear and the end of year.
Further to this, Moe was asked to say if the company has sought to reassess the way in which it reports on local content given the outrage that was sparked by the contents of its first report.
Moe, however, answered in the negative, while noting that Exxon sees local content as the hiring of a company with at least 51 percent ownership by locals. She said that the company does not look at the size of the contract it awards to company A as opposed to company B.
Even if company A benefits from a substantial sum while company B does not, “it is all considered local content for us, because the transaction would not have occurred if we were not there,” Moe said.
In addition to this, the Exxon official said that the company remains committed to working with the government on its efforts to create a policy. She said that Exxon will support and respect the provisions and requirements of the final document.
PADDED LIST
It was in June of this year that ExxonMobil provided the Government of Guyana with a list of companies that it used as part of its local content obligations in the first quarter of 2018.
But the list of “registered companies” is padded with the names of 41 individuals; these include Dennis Charran, Mokesh Daby, Colin Daniels, Colvin Lockhart, Kembleton Clyne, Kurt Branker, Ramesh Seebarran, Ganesh Ajodha, Gary De Jesus, and Stan Gouveia.
It also duplicates the name of Ram and McRae, an accounting firm. It is listed as Ram & Mcrae and three spaces later in the document as Rams and McRae.
Speaking with Kaieteur News on the matter, two international local content experts said, “The number of companies used by ExxonMobil is immaterial. The crux of the matter is ‘the value of the investment’ made by ExxonMobil.
In this regard, they said that Guyana’s Parliamentarians should call on the company to give a detailed breakdown of how many companies benefitted from US$1M, US$500,000, $100,000 and under US$50,000. “With that breakdown, you will be able to see if the country is getting chicken feed or real investment…
With meaningful investment, the sectors that support the operations of the company would be able to see real expansion and development,” one of the Local Content experts explained.
DOESN’T QUALIFY
International Local Content Expert, Rene Tissot had told Kaieteur News that, “ads in newspapers and catering and hotel services are low-hanging fruit…”
Tissot said it is important for Governments to understand the difference between local content and spending that benefits the local economy.
“If an oil company wants to do advertising for jobs or advertise something about its local branch in Guyana, then it has to utilize the media in that country. You don’t expect them to put the advertisements in the New York Times.”
Also, there are some services such as those provided by hotels and restaurants that they just don’t have a choice but to use.
“This is money that they would have spent anyway and it benefits the local economy. But please, this is not local content.”
Tissot added, “Local Content on the other hand, goes much deeper than this. The heart of Local Content speaks to the development of local skills, the transfer and use of technology, the expansion of local manpower and the growth of local manufacturing.
“Local Content looks at the ‘value’ of the investment into these areas to such a degree that it is lasting. Local Content promotes industrialization…”
The Local Content Expert said, “The depth of the investment and/or the value of the investment are crucial when referring to something as local content.”
The International Advisor also said that a list with restaurants, hotels and media houses would be best described as “shallow in terms of value creation.”
He said, “I would be disappointed to look back 15 years from now and see that local content in Guyana refers to ads in newspapers, catering services etc.”
Jagdeo giving Exxon 102 cent to collect 2 cent.
Apr 25, 2024
By Rawle Toney Kaieteur Sports – The French Diplomatic Office in Guyana, in collaboration with the Guyana Olympic Association and UNICEF, hosted an exhibition on Tuesday evening at the...Kaieteur News – Dr. Bharrat Jagdeo, the General Secretary of the People’s Progressive Party, persists in offering... more
By Sir Ronald Sanders Waterfalls Magazine – On April 10, the Permanent Council of the Organization of American States... more
Freedom of speech is our core value at Kaieteur News. If the letter/e-mail you sent was not published, and you believe that its contents were not libellous, let us know, please contact us by phone or email.
Feel free to send us your comments and/or criticisms.
Contact: 624-6456; 225-8452; 225-8458; 225-8463; 225-8465; 225-8473 or 225-8491.
Or by Email: [email protected] / [email protected]