… company says, underscores need for multifaceted studies
AS the government forges ahead with the finalisation of a national Local Content Policy, ExxonMobil Guyana, one of the co-venturers in offshore oil developments, has affirmed that its local content strategy aligns with Guyana’s draft local content policy.
In a press release, ExxonMobil Guyana noted that it has made its submission to the government on the draft local content policy, reaffirming its commitment to implementing effective initiatives to help build a globally competitive workforce and supply base.
Earlier this week, the Ministry of Natural Resources concluded its stakeholder engagement on the draft Local Content Policy. According to a press release from the ministry, the series of consultations occurred from March 3, 2021 to March 25, 2021.
During this time, over 180 public and private sector agencies and firms that are involved either directly or indirectly in the growth and development of Guyana’s hydrocarbons sector were engaged.
ExxonMobil Guyana was one of those organisations engaged and following the engagement, a written submission was made.
“We are committed to growing local content that will generate broad and sustainable economic development while supporting safe development of the nation’s oil and gas resources,” ExxonMobil Guyana President Alistair Routledge was quoted as saying.
He added: “We are pleased that the government continues to seek broad input and collaboration to develop an approach suited to Guyana’s unique situation and national development objectives.”
Recently, at a stakeholders’ consultation at the Arthur Chung Conference Centre (ACCC), President, Dr. Irfaan Ali, said his vision is to make Guyana globally competitive and believes the policy, once formulated properly, can help in this regard.
In the press release, Routledge said: “Local content policy or legislation should be informed and supported by appropriate economic, labour and industrial baseline studies.”
He reasoned that when driving local content in one area (such as the oil and gas sector), both the actual and projected national capacity is considered, so as to avoid an adverse impact on any other sector of the economy.
“Prior experience around the globe demonstrates that overly aggressive local content regulations and mandates can have unintended, negative consequences on the development of projects, industry, and the broader economy,” Routledge said.
Meanwhile, ExxonMobil Guyana Local Content Adviser, Devon Seeram, highlighted that the company works closely with its prime contractors to ensure that they are equally committed to developing local content. The company also monitors its local content plans to ensure that they are implemented effectively.
“Since our first discovery in 2015, we have made significant progress creating jobs, growing the number of local suppliers we work with and increasing our local spending,” Seeram said, noting that Guyanese businesses and ExxonMobil have been able to build local content together as part of mutual interests to develop the sector.
According to the company, at the end of 2020, the total Guyanese workforce supporting ExxonMobil Guyana’s overall activities was more than 2,300. Since 2015, more than GY$77.6 billion has been spent directly with more than 800 Guyanese companies for goods and services ranging from food to engineering.
