ExxonMobil courts Guyanese companies for support contracts

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Doug Mc Gehee, ExxonMobil Guyana Upstream Operations Manager

US oil major ExxonMobil has begun to up the ante in its push to sensitize the Guyanese business community of opportunities during its exploration and development phases in the coming decades and is in fact encouraging private companies from the South American country to become more proactive in their approach to bidding for contracts and sub-contracts.

“Already I think Guyana has a bright future in the oil and gas business,” stated Doug Mc Gehee, ExxonMobil Guyana Upstream Operations Manager, during his address at the Guyana Shipping Association’s annual dinner on Friday Evening held at the Pegasus Hotel in Georgetown.

His projections came amid a repeated ‘tempering of expectations’ that direct jobs will only number in the hundreds and not in the thousands with the oil production activities.

According to the Upstream Operations Manager, ExxonMobil has already begun issuing contracts to companies that will in fact be issuing sub-contracts.

He drew reference to SBM Offshore and Noble Corp, two international companies that have been issued major contracts by ExxonMobil.

Noble Corp has been handed a three year contract for the use of its Drillship – Noble Bob Douglas, while SBM Offshore has been contracted by ExxonMobil to construct, install and operate the Floating Production, Storage and Offloading vessel (FPSO) – Liza Destiny.

These companies have in turn already begun calling on local companies to provide various goods and services.

“That’s what we call the ripple effect,” Mc Gehee, said, as he explained that many of the companies contracted by ExxonMobil will in fact require support for logistical and other services since these could not be supplied by the oil company.

“Some of these other big companies are going to need other logistics, other shore base supply vessel-type logistics,” he stressed.

SBM seeking manpower services for Liza Destiny as conversion of VLCC begins

Mc Gehee told those in attendance at the Pegasus Savannah Suite for the annual gala affair, “You can imagine…we have Liza phase 1, we are working on a phase II.”

The Operations Manager noted too that as long as oil continues to be discovered, “there will be other phases” referencing the development of additional oil fields.

Noble to begin drilling Liza phase 1 wells in 2018

The ExxonMobil manager used the opportunity to also provide the shippers with an update on its invitation to bidders for support vessels.

The invitation for bids were advertised in May of this year and closed at the end of August and according to Mc Gehee, “we are going through the technical evaluations right now.”

He said contracts should be issued early in the coming year.

The ExxonMobil Upstream Operations Manager was making reference to the company’s solicitation of Platform Support, Multi-Purpose and Tanker Assist Tugs among other types of vessels, for its operations.

Several Guyanese shipping companies have submitted tenders to the US oil major.

Providing an overview of the opportunities to be available to local companies, the ExxonMobil Manager explained that while the oil company has in its capacity the resources to address its logistics, shore base, helicopter, waste management and other requirements, “these other companies are going to need things in addition to what we have.”

He also reminded the shippers that ExxonMobil has set up a Centre for Local Business Development, in order to “make sure we do a good job at local content…not just being able to identify local vendors, but also (provide) help for training…So if they were not ready for this first round of contracts and tenders, they will be ready for the next one.”