Govt. signs off on five-year Local Content Master Plans for Exxon, others

Oct 29, 2022 News

Kaieteur News – The Ministry of Natural Resources (MNR) on Wednesday approved five-year Local Content Master Plans for Esso Exploration and Production Guyana Limited (EEPGL), Saipem Guyana Inc. and Gulf Engineering Services Guyana Limited (GESGI).

President of EEPGL/ ExxonMobil Guyana, Alistair Routledge (right) shows off his approved local content Master Plan

The five-year master plan is intended to provide the subject minister, Vickram Bharrat and the Local Content Secretariat with an understanding of the contractor, sub-contractor or licensee’s projected activities with regard to employment, procurement and capacity development of Guyanese suppliers.

Importantly, these plans include an amendment which ensures that Guyanese suppliers of the petroleum sector are paid within thirty (30) to forty-five (45) days upon receipt of the correct invoice. This plan is enforceable as per the Local Content Act.

During the signing ceremony on October 26 last, Minister Bharrat reminded the companies’ executives that many of the suppliers of Guyana’s oil and gas sector are dependent on the revenue earned to keep their businesses alive, as such, he pointed out that the amendment to include a reduced payment period will bode well for suppliers’ growth and competitiveness.

Moreover, Bharrat added that the Government of Guyana is currently in discussion with the commercial banks to have contracts lodged as collateral. This would support access to capital for Guyanese businesses, the minister said.

Meanwhile, President of EEPGL/ ExxonMobil Guyana, Alistair Routledge was quoted as saying, “The resource we are producing belongs to the people of Guyana and we are committed to ensuring that they benefit from it. Today’s event was another step in that direction since we believe that growing local content across the oil and gas sector can increase social and economic benefits for Guyanese in the short and long term.”

Director of GESGI, Jodel Gopeesingh while offering brief remarks said his company is honoured to have its Master Plan approved. The company, he said, remains eager to foster and grow the presence of Guyanese nationals in the oil and gas sector. “We believe that optimizing local content in our activities is one of the key elements to the success of the business and the operational goals of Gulf Engineering Services (Guyana) Inc. Our interest, at all times, has been to satisfy the needs and values of the Guyanese market, where we are able to add and create in the Guyanese economy by utilising the local human, natural resources and suppliers in the services we render to industry. It is our intention to… collaborate with other service companies in delivering projects successfully whilst maintaining our globally-recognised certifications,” Gopeesingh explained.

EEPGL, Saipem Guyana and Gulf Engineering have now joined the list of over 20 oil and gas support companies that have had their Master Plans approved by the government. The Ministry of Natural Resources and the Local Content Secretariat said it will continue to work with and engage all stakeholders to ensure that the objectives of the Local Content Act are achieved.

The Local Content law, passed December last year, is intended to regulate the way companies operate in Guyana’s oil and gas sector; employ persons, buy services and the way that they procure goods.

Under the Act, the Local Content Secretariat has been established and functions as the focal point for the monitoring, evaluation, coordination, and reporting of Local Content in the petroleum operations of Guyana.

Therefore, the Secretariat key role is to monitor and evaluate companies’ performance with respect to the Guyanese utilization targets outlined in the Act.

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