Wednesday, November 30, 2022

SBM Offshore is first major Exxon contractor to receive approval for local content master plan

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SBM Offshore is the first prime contractor of ExxonMobil Guyana to receive its Letter of Approval for its Local Content Master Plan, 2022. Halliburton was the second company to receive this letter followed by CGX Energy Inc.

The Ministry of Natural Resources held a simple ceremony on Wednesday at which subject minister, Vickram Bharrat, handed over the letters to representatives of the three companies.

In a press update on Thursday, SBM Offshore said approval of the master plan is a significant milestone and paves the way for the company to continue engaging more local suppliers of goods and services, hire more Guyanese in support of the company’s growing activities in the country, and further expand its already successful sustainability, training, and capacity building programmes.

Additionally, SBM Offshore has been partnering with local stakeholders in agriculture and community, infrastructure development and initiatives that promote responsible use of the environment. This has seen projects being implemented with Plympton and Hubu farms, the National Coordinating Coalition Inc. (NCC), among others.

General Manager of SBM Offshore, Martin Cheong, said “Through these and other programmes, SBM Offshore confirms its commitment to the United Nations Sustainable Development Goals (SDGs) framework to set targets, define actions and disclose its sustainability performance.”

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Halliburton’s Country Lead, Vahman Jurai, expressed similar sentiments, adding that the company keeps “Global Citizenship” at the forefront.

“Halliburton is eager to work closely with our local vendors, sharing our knowledge when needed. We hope to significantly contribute to the development of Guyana’s talent in the oil and gas sector, whether through the university programmes we support or through hands-on experience working with us,” he commented.

According to the Local Content Secretariat (LCS), through their approved Master Plans, the contractors have demonstrated their commitment to fostering local content in their operations by: prioritising Guyanese nationals for employment; having policies aimed at non-discrimination and equal treatment of Guyanese nationals; implementing training and other programmes to build the capacity of both their employees and the larger Guyanese workforce; coordinating with industrial and technical education training institutions in Guyana to provide sponsorships and/or internship opportunities; incorporating the requirements of the Act and the Procurement and Bid Evaluation Guideline issued by the Secretariat into their procurement strategy; outlining the criteria for the supply of goods and provision of services relating to their operations;  planning capacity-building activities for Guyanese nationals and Guyanese companies that supply goods and services to the industry, such as feedback sessions, supplier forums, etc. and projecting anticipated expenditure on local content values.

Just recently, a new requirement was implemented by the LCS that mandates contractors and sub-contractors to issue payments to Guyanese suppliers within 45 days after the receipt of a correct invoice.

According to the Minister of Natural Resources, Vickram Bharrat, the amendment was deemed a critical part in helping to promote local suppliers’ competitive financing and growth through appropriate contract and payment terms and is in keeping with Guyana’s Local Content Act.

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