In addition to the billions of dollars currently being pumped into local content, ExxonMobil Guyana has said it is exploring ways of bringing further business opportunities to Guyana’s shores, including the work it is presently going overseas for foreign companies to do.
This was according to Esso Exploration Production Guyana Limited (EEPGL) President Alistair Routledge during a press briefing on Wednesday at the company’s headquarters.
“The Local content Secretariat, that’s a key part of the Ministry of Natural Resources, with who, we work on a regular basis, almost daily. As we ensure there’s clarity on what opportunities we have coming up, contracts, and transparency. It’s very important that it’s clear to the government, where we’re spending money, how we’re spending money, how we contract all of those opportunities.
“And have discussions about (for instance) what of the work we do, that we contract to other companies. Maybe outside of the country, could ultimately be brought into Guyana. That is where we’ve identified certain strategic investments, like the Vreed-en-Hoop shore base,” he further said.
The oil executive described local content as close to his heart, claiming that even without the Local Content Act of 2021, the company would still have championed the cause.
According to Routledge, the company is also committed to making sure the public is aware of the local content business opportunities. He also acknowledged the fact that the Local Content Act served to create a structured framework for the company to engage with Guyanese businesses on these opportunities.
“Local content is a subject that is dear to my heart. And I think it’s essential that we do that as part of the development of the nation’s resources, we recognize that this is Guyana’s resource. We want people to not only benefit in what we pay in royalties and profit share or taxes but also in the development phase.”
“That we are making opportunities available as quickly as we can, for people to be employed and for businesses to benefit. We’ve seen that partnership with the government be very successful. I think with or without the Act, we were already committed to doing that. We created the Centre for Local Business Development.”
In 2023, it was reported that ExxonMobil spent over US$280 million on local suppliers in the first half of last year. ExxonMobil’s data in its 2023 Annual Report states that US$641 million was spent on local suppliers for the entirety of the year.
In December 2021, the National Assembly passed the Local Content Act which outlines 40 different service areas that oil and gas companies and their subcontractors must procure from Guyanese and Guyanese-owned companies.
These include 90 per cent of office space rental and accommodation services; 90 per cent of janitorial services, laundry and catering services; 95 per cent of pest control services; 100 per cent of local insurance services; 75 per cent of local supply of food; and 90 per cent of local accounting services.
The Local Content Act mandates penalties such as fines ranging from $5 million to $50 million for oil and gas companies and their sub-contractors who fail to meet the minimum targets of the legislation, as well as those who are in breach of the Act.
The government has meanwhile made its determination clear to push beyond the 40 carved-out areas in the Local Content Act, to provide more opportunities for locals, something the Private Sector Commission (PSC) will be working closely on with the administration.
