The Ministry of Natural Resources continues to judiciously manage Guyana’s oil and gas sector so that benefits may be derived for Guyanese. In light of the foregoing, Minister of Natural Resources Hon. Vickram Bharrat M.P., approved the five-year Master Plans of Esso Exploration and Production Guyana Limited (EEPGL), Saipem Guyana Inc. and Gulf Engineering Services Guyana Limited (GESGI).
The five-year master plan is intended to provide the minister 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.
At the October 26 signing, Minister Bharrat reminded the signing companies’ executives that many of the suppliers of Guyana’s oil and gas sector operate on a cash flow basis and that the amendment to include a reduced payment period will bode well for suppliers’ growth and competitiveness. The Natural Resources Minister further 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.
Speaking on behalf of ExxonMobil Guyana, President Mr Alistair Routledge commented, “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.”
Notably just mere hours before signing its Master Plan, the Ministry of Natural Resources welcomed the news of Exxon striking two new oil discoveries in the prolific Stabroek Block. These two additional discoveries increased Guyana’s petroleum resources to more than 30 discoveries since 2015, totalling more than eleven (11) billion oil-equivalent barrels.
Meanwhile, the Director of GESGI Mr Jodel Gopeesingh stated that his company is honoured to have its Master Plan approved. The company, he said, remains eager to foster and grow the capacity of Guyanese nationals for 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 join the list of 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 will continue to work with and engage all stakeholders to ensure that the objectives of the Local Content Act are achieved.