STEADY growth in the oil and gas sector is helping a rising number of local companies participate in the rapid industrialisation of Guyana. With major new projects like shore bases and a deep-water port on the horizon, there is a growing need for innovative and ambitious local firms across many sectors of the economy.
To maximise Guyana’s ability to capture the most value from our resources, effective training and worker development programs must play a central role.
One notable example is the Puran Brothers, a solid waste collection and disposal company that has grown to provide a wide range of services to the oil and gas sector. The company took advantage of training opportunities and certification programs through the industry-funded Centre for Local Business Development (CLBD).
The CLBD has been instrumental within the business community by prioritising capacity and providing guidance for companies that want to get involved. Since 2017, the centre has registered over 5,100 businesses on their supplier portal, conducted seminars for over 4,500 participants, cultivated over 750 oil and gas sector vendors, and delivered Health, Safety, Security and Environment (HSSE) programmes to over 310 businesses.
The direct engagement the CLBD has with local businesses like Puran Brothers has helped a 100 per cent Guyanese-owned business build their capacity to operate in this growing sector.
One of the most valuable benefits of the training is enabling companies to achieve ISO 9001 certification, the international gold standard for quality operations in the oil and gas sector. Employees continue to benefit from continuous training and benefit from mentorship programs.
There is still significant growth on the horizon with the development of Guyana’s first deep water port, announced by operator CGX Energy in February. The port will serve the oil and gas sector along with others such as agriculture.
Set to be operational by end of 2022, the deep-water port is key component to growth in the oil sector as it will boost the capacity to receive equipment, fuel, cement, water, and power. Guyana can expect to welcome larger vessels that require additional room to berth. This also means more workers with the requisite skills and training will be needed, further increasing the opportunities for Guyanese.
Another growth area with the potential to transform Guyana’s offshore oil operations is the shore base project expected to support the recently announced Yellowtail project and a wide range of industrial developments. It’s yet another opportunity for the country to benefit from large infrastructure investments that create long term value and ultimately generate activity that can be used to increase Guyana’s capacity to compete locally, regionally, and ultimately globally.
But projects and businesses like these depend on one thing: steady demand.
Guyana is fortunate to have a strong pipeline of projects stretching over the next five years in various stages of development. Large delays between discoveries or projects can make it impossible for local companies to invest, hire and grow. Companies are hesitant to invest for the long term when they don’t have this assurance.
In contrast, confirmed projects like Payara and Yellowtail and the steady stream of new discoveries give a signal to local companies that their services will be in demand for many years, allowing them to plan and invest in people, machinery, and training to meet this need. The same goes for international investors looking at potential partnerships with local companies.
Despite calls from some sectors to delay new projects as a political tool, the government has so far remained committed to reducing the politicisation of regulatory bodies and ensuring that decisions are made based on clear criteria, global best practices and expert input.
This can help ensure that that pipeline of projects does not disappear just as Guyanese companies are getting in on the opportunities. The government is also taking steps to ensure that procurement and contracting is transparent and fair, as it continues to progress implementation of the landmark local content legislation passed late last year.
As local companies and workers continue to seize the opportunities in the oil and gas sector, it’s ever more important the Guyana continues to foster development and explore additional ways to encourage local innovation.