HOUSTON, TEXAS — ExxonMobil Guyana President Alistair Routledge said Guyana avoided some of the local content problems experienced in other oil-producing countries because operators, government and the private sector worked together.
Routledge made the remarks during a panel discussion at the Offshore Technology Conference (OTC) in Houston, examining Guyana’s offshore development over the last decade.
Guyana passed its Local Content Act in December 2021 to increase participation by Guyanese workers and businesses in the oil and gas sector. The legislation established requirements for hiring and procurement tied to offshore operations. Routledge said he initially questioned whether that approach would work based on experiences in other jurisdictions.
“I debated with the government quite extensively that that didn’t seem like the best practice,” he stated. According to Routledge, some local content systems elsewhere became restrictive and created opportunities for corruption.
He explained that Guyana’s implementation evolved differently because of continuous engagement between the government, operators and local companies.
“What we’ve seen in Guyana is…this partnership process,” Routledge noted.
He said companies and policymakers aligned around a common objective as offshore developments accelerated. Routledge said Guyanese businesses adapted quickly despite the country starting with limited industrial capacity tied to the oil and gas sector.
“While the starting point, from an industrial point of view, was low, the Guyanese [people] have proven to be very industrial, entrepreneurial, risk-taking,” he said.
He added that local companies showed a willingness to invest and build capacity as opportunities increased offshore. “These are people that want to learn about our industry and to be involved,” Routledge stated.
Routledge said the expansion of the industry has also increased Guyanese participation in the workforce. “We estimate some 9,000 people are working in the industry in Guyana, of which now 70% are Guyanese,” he noted.
ExxonMobil and its Stabroek Block co-venturers Hess and CNOOC currently have four producing oil developments offshore Guyana, with additional projects approved for development.
