Gov’t greenlights 11 more local content master plans

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See the full statement from the Ministry of Natural Resources below: 

 

The Ministry of  Natural Resources continues its critical work of ensuring that the oil and gas sector is prudently managed and that it benefits all stakeholders. In keeping with this,  Minister of Natural Resources Vickram Bharrat, signed the Local Content  Master Plans of eleven (11) companies providing services to Guyana’s rapidly  expanding petroleum sector.  

The October 19 signing took place at the office of the minister on Duke Street,  Georgetown. Minister Bharrat with the Director of the Local Content Secretariat Mr  Martin Pertab and the Legal Officer to the Ministry, Mr Michael Monroe, were joined  by the executive heads of oil and gas support service companies for the signing. The  companies were Cataleya Energy Limited; Guyana Shore Base Incorporated (GYSBI);  International SOS Incorporated; Leader Engineering Guyana Incorporated; Stena  Drilling; Sustainable Environmental Solutions; Tenaris Guyana; G-Boats;  Weatherford; TechnipFMC; and Seacor Marine LLC.  

The five-year master plan is intended to provide the minister and the secretariat with  an understanding of the contractor’s, sub-contractor’s or licensee’s projected  activities with regards to employment, procurement and capacity development of  suppliers. The master plan is enforceable as per the Local Content Act.  

The eleven (11) companies join several others – including SBM Offshore and  Halliburton – that have had their master plans approved by the government.  Importantly, these plans include an amendment which sees that Guyanese suppliers  of the nation’s petroleum sector are paid within thirty (30) to forty-five (45) days  upon receipt of the correct invoice.  

Minister Bharrat, during the signing, reaffirmed the significance of contractors, sub contractors and licensees implementing their master plan as well as the amendment  for a reduced payment period. He was keen to recall that the amendment buttresses  the growth and competitive financing of Guyanese businesses through suitable  contract and payment terms. This, he reminded, is wholly in keeping with the  provisions of Guyana’s Local Content Act.  

On the heels of the signing, Area Director at TechnipFMC, Mr Nicolas Sicard,  commented, “TechnipFMC is honoured to receive the formal approval of our Local  Content Master Plan from the Ministry of Natural Resources. This important  milestone is a recognition of our commitment to local content. We remain focused on  building the expertise in-country that will be required in the future to deliver world class projects. We are very excited to be a witness of Guyana’s successes, and are  privileged to have a part in it.”  

GYSBI’s Deputy General Manager, Mr Rabin Chandarpal said that since its inception  in 2017, GYSBI has remained focused on the development of local content and creating  beneficial opportunities for Guyanese workers and vendors within the oil and gas sector. GYSBI – the nation’s largest shore base – has more than 600 Guyanese  currently employed in its operations, a large number of which are women.  

He went on to explain, “Eighty-five per cent of our supply chain, with the exception of  specialised goods and services such as the purchase of cranes, go to Guyanese vendors.  We want to see value generated from Guyana’s offshore resources remaining in the  domestic economy and being used to develop the lives of Guyanese. GYSBI has been  and will always remain committed to identifying, promoting and maximising the  capacity of Guyanese nationals and companies throughout all facets of our  operations.” 

Meanwhile, the Director of Tenaris Guyana, Mr Federico Gimenez reasserted his  company’s commitment to maintain and promote the spirit of the local content  legislation.  

“We are honoured to contribute to Guyana government’s local content initiative, a  major opportunity to share our knowledge through different programs and training  and, to enhance the capacity of Guyana’s talent in the oil and gas sector. Our  commitment is to grow with the communities where we operate, and today this  commitment is strengthened in Guyana,” the director commented.  

The Ministry of Natural Resources and the the Local Content Secretariat will  continue to work with stakeholders to ensure that the objectives of the Local Content  Act are achieved. 

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