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.
