MANY local businesses in Guyana are determined to up their standards to meet the requirements of becoming key suppliers in the petroleum sector.
Safety and health; environmental and regulatory compliance; quality; cost competitiveness; ethical business practices and the ability to meet schedules are some of the areas these businesses must improve in the coming years.

At the inaugural Liza Phase 1 Supplier Development Forum held on Monday at the Guyana Marriott Hotel, ExxonMobil-Guyana’s Country Manager Rod Henson identified the areas, even as he noted the efforts of Guyana’s “rapidly evolving business sector”.
Some 300 local businesses attended the forum at the Marriott Hotel where Henson emphasised: “These are the things that are important to us, we are going to be a first class industry here in Guyana and that’s what we’re building.” The forum was aimed at building relationships between Guyanese suppliers and prime petroleum contractors while positioning those in the sector to meet certain standards.

Henson had revealed that there have already been many local success stories — several from the companies represented — but that there is still room for improvement which will understandably take time.
“This wouldn’t happen overnight and it doesn’t well need to happen overnight. 2020 is not the end, 2020 is the beginning. Entrepreneurs will take some risk…but it will happen little by little just like it always has in other areas. We’ll get there and ExxonMobil is committed to doing its part on this journey,” he pledged.

Several local suppliers spoke to this newspaper on the sidelines of the programme, telling of the training they have received and their determination to meet higher standards.
“The experience is remarkable because you’re getting to meet people and network, and you’re able to come up with initiatives to meet what will emerge with the oil and gas sector. I find that a lot of opportunities are popping up and my company is tackling them by pooling resource persons together…so that we can benefit,” said Managing Director of Professional Training Employment and Consultancy Services, Marlon Joseph.

His company aims to raise the quality of services offered by employees and employers, and considering this, he noted the importance of safety and quality service as stressed by Exxon’s prime contractors.
“Safety is very important and quality, for sure, is important. One of my concerns though is that I don’t think many Guyanese grasp the concept and the magnitude of development that will come to Guyana and I don’t think everybody is prepared thus far to meet the need of the quest.

“Many times you go into organisations and the service leaves much to be desired, so we’re tackling that as we’re now poised for greatness on the international level due to the emerging oil and gas sector,” Joseph said.
Meanwhile, owner of Professional Auto Body-Work Establishment and Investment Agency, Shawn Benn said that while improvements are being made, businesses in Guyana still have a way to go to meeting desired standards.

“We as local businesses are a far shot away from really coming up to the level as demanded by the oil and gas industry, but with steady work and commitment I think that it’s not impossible.
“What I would say, however, is because of the fact that we have been operating in what I call a ‘price-based’ economy for so long, where everything is about the lowest price –even our tendering process is about the lowest bidder — we have not been able to build capacity in our businesses because we’re chasing down prices.

Now that we’re transitioning into a value-based economy…it will require tremendous support from Government to create the enabling environment and the kind of concessions and resources to bring local businesses up the level that the oil and gas industry now demands of us,” he stated.

Benn’s company is registered with the Centre For Local Business Development (CLBD), and has been exposed to the training in safety and procurement.
He highlighted his commitment to seeing the process through to the end, remarking: “We will try our best to be a part of what’s going on and to avail ourselves to become contractors at the various levels that are available. It’s not an easy task but we’re continuing to work on it.”

At the function, Henson reminded that the opportunities for local suppliers are many, as their work is often preferred by prime contractors as the cheaper and faster option compared to imported labour.
As such he advised: “In many cases, assuming that the capabilities exist, the costs are lower using local suppliers. We want that. I’d like to visualise that Guyana is at the beginning of a journey .Oil revenues will ramp up over the next decade, and as oil revenues ramp up so will expectations and standards of living.

“This is a good thing but this transformational decade must be accompanied by transformation in Guyana’s industries: high quality, very strict adherence to safety standards; working to international standards.”

READY TO TAP IN
Private Sector Commission (PSC) Chairman Desmond Sears said that given the right opportunity, Guyanese businesses can position themselves to tap into the oil and gas sector and secure their right to the local content.

“If you look at the oil and gas industry, there is and will continue to be great demand for relevant hardware and materials for servicing. With assistance, we will be able to set up stream supply arrangements for local vendors to procure hardware and materials which can be stocked for operators’ convenience.
“Similarly, we can encourage local suppliers to become agents in Guyana’s registry specifying in engineering equipment such as pumps, hoses, gauges and other specialised tools. All that is required is a detailed list to be provided to the local entities to deliver upon,” he said.

The majority of the prime contractors represented at the forum, also took the opportunity to present their 2019 procurement forecast list of materials and services needed and which were largely noted by the attendees.
Sears also acknowledged: “Judging from the size of our economy, many tend to underestimate the reach of our local companies. However, with the right information provided…our local manufacturers [will be able to], maybe in the near future with international accreditation, service the whole oil and gas industry.”

Owner/Manager of TCE Solutions Colwin Hunte was thankful for the forum, as he believes that its benefits will be two fold for both companies gearing up to be suppliers and the other sectors in Guyana watching on.

“It forces the local suppliers to bring up their game somewhat because there are key things they [prime contractors] are looking for. If you have staff they want to know what sort of safety systems you have in place; if you have personnel, how do you treat them and do you have training? So it makes you think on a broader scale. No longer is the entrepreneur allowed to think that this is a one-man-show you have to think about how you present yourself to first tier clients and make sure that you’re competitive at the same time.”

Consultant at Assured Supplies and Contracting Services,Natheeah Mendonca posited: “One of the things I think came out earlier is the need for local businesses to prepare themselves or to put themselves in order, in terms of having the right kind of policies for their businesses as well as standards. When we speak specifically about quality and health and safety, these are some of the things that small businesses really don’t have because we want to make a dollar and we want to make a living.

“But now, for us to be able to be involved in business with the international companies we have to ‘put our houses in order’ in terms of formulating policies.”
She commended the programme, even as she stated that her presence at the event was to determine where she can fit in as a small business on the market.

“It has been a challenge for local businesses but I think it’s something for us to learn from going forward, and for us to do things the right way because we have a culture of doing business at a particular standard in Guyana, so it’s an opportunity for us to change that,” Mendonca said.

CEO of Seaj Services Simone Forde, spoke to the newspaper too stating: “Regulations and policies is the key for me that I’ll be learning. As a small business owner it allows me to up my standards, and to put these systems in place for my business so that come next year I am well prepared for the sector to offer services.”