Exxon says spent over $45B on local business to date

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ExxonMobil has reported that from 2015 to present, it has spent GY $45.7 billion on hundreds of local vendors with more GY$24 billion being spent directly on over 700 Guyanese vendors in 2019 alone.

In a release on Wednesday, the oil company noted that the 700 vendors benefitting in 2019 provided goods and services ranging from food to engineering and the figure spent represents a 74 per cent increase in expenditure compared to GY$14 billion in 2018.

The company also disclosed that the number of Guyanese supporting ExxonMobil Guyana’s exploration, development and production activities has grown by 77 per cent in 2019, representing more than half of the total workforce.

“There are now nearly 1,900 Guyanese supporting the company’s activities,” the release stated.

Much of this was made possible through the Centre for Local Business Development (Centre) established by Esso Exploration and Production Guyana Ltd, an affiliate of Exxon Mobil Corporation in collaboration with DAI Global, LLC.

Recently, the Center released a list of planned 2020 tenders to provide goods or services related to ExxonMobil Guyana and its prime contractors.

The list was uploaded to the Centre’s Supplier Registration Portal and supplements ongoing efforts to provide Guyanese businesses information regarding upcoming opportunities available in the oil and gas industry.

The act is comparable to the request in Guyana’s recently completed Local Content Policy that Operators provide an annual procurement plan ahead of schedule so that Guyanese contractors can position themselves, in advance, to benefit.

Planning is underway for another Supplier Forum later this year which will allow for direct engagement with ExxonMobil Guyana and its prime Contractors.

“Local suppliers are important to the success of our operations, and through the Centre, we continue to strengthen the capabilities of Guyanese businesses; improving their competitiveness and the country’s overall industrial base,” President of ExxonMobil Guyana, Rod Henson said in the release.

ExxonMobil stated that the Centre continues to be a reliable resource for information on safety, technical standards, procurement opportunities, tendering processes and project-specific information. It also provides mentoring, access to financial support services and business-to-business networking opportunities. It was established in 2017, to assist small and medium-sized Guyanese businesses build capacity and improve their competitiveness and more than 2,100 Guyanese business are registered through the Center to date.

In keeping with its mandate, the it has provided coaching and mentorship to more than 450 businesses. Currently, 15 Guyanese companies are receiving mentorship for ISO 9001 compliance, while four companies were certified and one company has reached compliancy. “Using a multi-tiered approach, ExxonMobil focuses on building workforce and supplier capabilities as well as strategic community investment. Continued growth of local content is exactly what we want to see as we continue to partner with Guyana,” Henson indicated. He expects that a steady phased approach to future development projects such as Liza Phase 2 and potentially Payara will help further progress local content in Guyana.