WHILE government revenue will significantly increase, due to ExxonMobil’s oil discoveries in the Stabroek block, a key secondary impact will be the jobs and opportunities that come from introducing and growing a new industry in our country.

Oil production itself is a capital-intensive, rather than a labour-intensive industry. This means substantial investment is critical to get projects off the ground, but relatively few people are employed in the actual production.

However, even though the oil companies won’t directly employ vast numbers of individuals, more and more Guyanese companies are creating their own lasting opportunities as contractors, engineering consultants and more, in this emerging sector of the economy.

Young companies like Guysons Oil and Gas Logistics & Services, a member of the Guysons Group that was founded just this year, are taking advantage of opportunities that the industry represents for entrepreneurs and the business-minded service industry.
Critically, Guysons is developing advanced technical capacity here in Guyana by using local talent.

Guysons announced last week that, after training at Exxon’s Centre for Local Business Development (CLBD), it has received the stringent and coveted ISO9001:2015 Certification, an international recognition for quality management awarded by the International Organisation for Standardisation in sectors, including the petroleum industry.

Guysons Oil and Gas Services and its sister company, Guysons Engineering, are the first firms in Guyana to achieve this certification after training at CLBD, and are now eligible to work on a wide variety of demanding and specific tasks within the energy industry.
This means that locally-owned and staffed firms have an opportunity to gain solid footing, and compete with international oil field service firms for contracts, now that an international body has certified that they meet the most stringent industry standards for safety and quality.

The company expects to sign a joint-venture deal with “a major international oilfield company to support Tier 1 operators” soon, according to recent news reports.
Meanwhile, Hughes, Fields and Stoby has become the first Guyanese law firm to set up an office in Houston, Texas, to take advantage of international companies’ new interest in Guyana. As reported by Stabroek News, the Guyanese-owned and operated law firm wants to be a resource for American companies looking to do business in Guyana as a result of our oil discoveries.

This is a case of a local firm not only growing locally, but actually expanding internationally, a major achievement for the Guyana business community.

Developing associated and adjacent industries is a critical step in ensuring that the investment in the oil-and-gas industry translates to lasting economic stability. These developments illustrate a positive trend, and it’s worth noting that these business opportunities are appearing without a government policy on local content. Market forces and the necessities of the industry are developing local content on their own. Companies are taking the initiative and growing their own capacity to meet the needs of Guyana’s new energy industry.

Guysons, for instance, invested nearly $10M and several months to get the ISO9001 certification, and now four other local companies have signed up for certification, according to the CLBD. That kind of organic local growth is a positive sign that international investments in Guyana are creating a virtuous cycle of job growth and wealth creation.

The government’s efforts to expand their own capacity are also creating jobs and new opportunities, as demonstrated by the 139 customs house brokers in training at the Guyana Revenue Authority. Though customs workers are hardly new to Guyana, the influx of materials, companies, and tools to facilitate oil production brings more need for government inspectors to manage the process.

Overall, the growth seen in the past few weeks demonstrates the reach and impact of oil development throughout the Guyanese economy. Even before production has begun or government revenues have been collected, direct and indirect impacts are already obvious in the form of new jobs and new opportunities for Guyanese.