Guyanese Danco joins forces with UK’s CSM to provide state-of-the-art logistics services

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It is full throttle ahead for Guyana’s oil and gas program as US oil major ExxonMobil prepares to begin extracting crude in 2020. Experts and pundits alike are touting Guyana as the leading oil discovery nation for 2018, ahead of Russia and the United States. All signs lead to banner years ahead for the country’s oil and gas sector.

While most sector watchers and participants are focusing on the direct financial benefits to the Government of Guyana, there is an area that is wide open to be tapped.

Danco Logistical Contractors, Inc. (Danco Logistics), a 100% Guyanese owned and operated logistical supply and delivery contracting firm has signed a Letter of Intent with Consolidated Supply Management, Ltd. (CSM), a UK based independent logistical supply company and one of the largest providers in the Caribbean-South American region.

Company officials told OilNOW this move will create a 51% Guyanese-owned joint venture – CSM Danco – which will utilize Danco Logistics’ knowledge and experience in the domestic business sector, together with CSM’s logistical base expertise and vast support network. The aim is to build a logistics base and support center to serve the needs of operators and contractors engaged in oil and gas related activities, promote local content and development and create added value to the development of oil and gas related local resources.

In addition to its domestic know-how, Danco Logistics will bring to the joint venture its experience as a long-standing international supplier in the electricity industry, the local content human index, and will provide eight acres of land it owns in Guyana for the joint venture to build a state-of-the-art logistics base and support center to serve the needs of operators and contractors engaged in oil and gas related activities.

CSM is ISO 9001:2000, ISO 9001:2008, ISO 14001: 2004 and OHSAS 18001: 2007 certified for all of its services. CSM said it is an independent management company committed to bringing innovation and creativity to the CSM Danco joint venture, ensuring cost-effective solutions and excellence in service delivery quality.

The company also brings its progressive team approach to management, and the application of continuous improvement techniques, to deliver services in accordance with internationally recognized quality, safety, environmental and financial standards for customers.

As an independent provider, CSM said it is unencumbered by conflicts of interest and is able to gain cost efficiencies through its ability to freely employ the necessary assets and services to maximize output in the supply chain. It will bring to the joint venture its expertise in operating logistics bases to support exploration and production projects, specialized management skills directly related to the oil and gas sector, knowledge and experience operating under international standards and practices in four continents, and direct relational experience with the major international oil and gas operators.

The JV logistics operations will cover maritime and river services for dispatch and reception of vessels, air services for loads and passenger carriage, storage, transfers of fuel and bulk material operations such as mud, cement, water and diesel. The JV will generate operational and efficiency performance indicators for line and batch data, monitor key performance indicators (KPI’s) on behalf of clients and will link clients to its integrated management system. The JV will also provide critical tools for operational planning and improvement.

The CSM base, covering eight acres of land located in Craig on the outskirts of Georgetown, will be a state-of-the-art facility unlike any current logistical operation of any kind in Guyana, the company said.

It is designed to be a full-service twenty-four-hour provider. The facility will be equipped with full complement rigging and lifting ability for tubular and general cargo, along with rigging crews and supervisors, 50-ton cranes, laydown areas, wash bay facilities and cargo carrying units (CCU), containers, provision and servicing. The base is being designed to allow other service providers to use the facilities in fulfilling their operational needs as well.

This multi-million-dollar investment is a bold move by the joint venture partners and an expression of confidence in the Guyana local business environment.

The base is expected to be completed in June 2019 and it is anticipated that it will be a game-changer for Guyanese businesses.

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