Gov’t endorses Stabroek Block operator’s local content Master Plan


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.

(L-R) Minister of Natural Resources Hon. Vickram Bharrat M.P., hands over an approved Master Plan to the Director of Gulf Engineering Services Guyana Inc., Mr Jodel Gopeesingh

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.

(L-R) Minister of Natural Resources Hon. Vickram Bharrat M.P., hands over an approved Master Plan to the Country Manager of Saipem Guyana Inc., Mr Gianluigi Della Rosa

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.   (Ministry of Natural Resources press release)

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