Thursday, August 11, 2022

Guyanese being upskilled in support of over US$27 billion in Exxon’s offshore projects

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As it awaits the requisite regulatory approvals, ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) has assured that it has and will continue to invest in upskilling locals to support its Stabroek Block projects worth over US$27B.

As part of the Yellowtail Development Project, EEPGL said in its Environmental Impact Assessment that it intends to continue procuring selected project goods and services from Guyanese businesses to the extent reasonably practicable.

As part of its efforts to optimize local content during prior development projects, including the Liza Phase 1 and Liza Phase 2 Development Projects, EEPGL and its contractors have implemented a range of training programmes for workforce and local business-capacity building. In 2020 for example, EEPGL said it provided more than 168,000 hours of training Guyanese staff, more than 70 percent of which was in the areas of professional, technical, and trade/craft training.

As of the end of June 2021, an additional 82,000 hours of training had been delivered, more than 80 percent of which covered professional, technical, and health and safety training. In addition, the Stabroek Block operator said more than 2,600 local businesses benefited from tender notifications and support provided through the Centre for Local Business Development (CLBD), which aims to help local businesses become globally competitive.

As of June 2021, the CLBD has mentored 10 Guyanese companies to be certified in ISO 9001, while an additional 10 are currently being mentored through the compliance process.

Similarly, a range of government capacity-building programmes on topics such as waste management, oil spill response, protective species observer training, marine turtle telemetry and tracking, gas and power, energy literacy, local content, etc., have been conducted as part of the Liza Phase 1, Liza Phase 2, and Payara Development Projects. EEPGL said these should contribute to enhanced administrative efficiency that will further facilitate business activity in Guyana.

As part of the Yellowtail Development Project, EEPGL said it intends to continue on the same course with its workforce development, supplier, and government capacity-building efforts. In addition to direct expenditures and employment, the company said the Project will also likely generate induced economic benefits, as other non-Project-related businesses benefit from direct Project purchases.

In terms of local procurement, the majority of EEPGL’s (and subcontractors’) suppliers supporting in-country work scopes are Guyanese-owned. In fact, 752 unique Guyanese-owned companies were used in the first half of 2021, compared to 617 in the same period of 2020.

Over the course of 2020, EEPGL had engaged 806 unique Guyanese businesses. Spend with Guyanese-owned suppliers amounted to $31.9 billion ($159.5 million USD) over 2020, representing an increase from $24.3 billion ($121.6 million USD) in 2019.

In the first half of 2021, it was noted that the spend with Guyanese-owned businesses amounted to $14.8 billion ($74.1 million USD).

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