Oil production agreement outlines requirement for training, hiring Guyanese

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A detailed plan will have to be developed by ExxonMobil, its development partners, contractors and sub-contractors, to address the training and employment of Guyanese, as the country gears up for first oil in mid-2020.

A source familiar with the terms and conditions of the production agreement told OilNOW this requirement is clearly outlined in the document. It goes as far as stipulating a timeline for submission of a plan addressing the local content requirement.

Stopping short of outlining a clear percentage, the agreement says; “sufficient numbers” of all the persons employed in the Liza field development and production, should be Guyanese citizens. However, the local content plan to be submitted is expected to specify more clearly, what the employment spread between local and foreign workers is expected to be.

ExxonMobil, its development partners, contractors and sub-contractors are also expected to provide the natural resources ministry with an outline of the goods and services to be procured in Guyana.

While the local content requirement bodes well for Guyanese and local companies, the need for continuous training and capacity building is vital in order for the country to be able to supply the necessary services and skills required in the industry.

Using the case of Brazil, Offshore reports that their entire local content policy has always been trusted and supported by the industry players based on the premise that the Brazilian federal, state, and municipal governments would meet their obligations to consistently invest in the fundamental education of Brazilian citizens.

Authorities in Guyana have not yet rolled out a comprehensive plan addressing the issue of training and capacity building, although there have been comments made by various groups and officials, in this regard. For instance, natural resources minister, Raphael Trotman, said in April that a petroleum scientific institute will be established by 2020. However, further details on these plans have not yet been placed in the public domain.