— to provide shorebased services to the oil company over the next 20 years

VREED-EN-HOOP Shorebase Inc, an 85 per cent Guyanese-owned company on Friday inked a US$300 million agreement with Exxon Mobil Guyana to provide shorebased services to the oil company, over the next 20 years, on the development of its Yellowtail well and future projects.

The signing took place at the Roraima Duke Lodge and in attendance were Minister of Natural Resources, Vickram Bharrat; Minister within the Ministry of Public Works, Deodat Indar; President of the Region Three Chamber of Commerce, Halim Khan and Regional Chairman, Inshan Ayube, among others.

Signing the agreement on behalf of Exxon Mobil Guyana was its President Alistair Routledge, while signing on behalf of Vreed En Hoop Shorebase was the Company Secretary Andron Alphonso. Company Directors, Nicholas Deygoo-Boyer and Azruddin Mohammed were also present for the signing.

Deygoo-Boyer delivered the opening remarks at Friday’s ceremony, where he noted that the project is meant to be a kickstart for bigger development for the country.
“What drove us through this process was a responsibility. We considered it a privilege that we had to do this for the country. Because the country needs a development that will help to increase local content, reduce commercial shipping cost, provide land for service companies, and provide land that is not impacting on existing operations,” Deygoo-Boyer said.

The Vreed-en-Hoop Shorebase is a sub-project of a larger port facility that includes the oil-and-gas shore base section as well as a commercial port, for shipping containers, fuel tank firm and an industrial facility, for companies which want to lease space to do business close to the port. When completed, the facility will not only service the oil-and-gas industry, but will also cater to all sectors that require a port facility.

Vreed-En-Hoop Shorebase Inc, which is 15 per cent owned by Belgium company Jan De Nul, is part of NRG Holdings Inc, which is a 100 per cent Guyanese-owned company. NRG was birthed out of a consortium between Boyer from National Hardware Guyana Limited, Alphonso from ZRN and Mohamed of Hadi’s World.

EMPLOYMENT
Located at Vreed-en-Hoop, Region Three, the project is slated to occupy some 400 hectares of coastal land. It is expected to provide employment for some 200 persons during its construction phases and 50-100 persons for the basic operation and maintenance of the base-port facilities.

The facility will also see services previously provided out of Trinidad now being carried out in Guyana, with the local economy benefitting from employment, duties and taxes, ancillary goods and services and capacity-building.

Making remarks, Routledge called the project transformational, and noted that the pace and dynamics of the project is in keeping with the direction in which Guyana is headed.
“The pace with which we are developing in a country with very limited industrial and major infrastructure is truly impressive. This project very much fits into that,” he noted.

He commended the investors in the project for taking the great risk that they did and noted that with this project, the oil company will now be able to bring the supply chain for drilling operations and production operations to Guyana.
Routledge said the project is a springboard to increase local content in the sector and more so, is also playing a part in decentralising the industries in the sector from all being located in Region Four.

EXCITING
“What is exciting to me, when you think about the local content and the benefits to Guyana and the people, is that we are really starting to expand beyond Region Four. This is going to bring huge opportunities for Region Three,” he said.

The project will include, among other things, an offshore terminal, a dry dock facility, a fabrication yard, offshore components, umbilical preparation and spooling yard, administrative buildings to house offices and modernised logistics centres, warehousing, area for a helipad, a wharf, berths, and a dry dock.

Also making remarks, Minister Bharrat commended the investors for taking up the mantle to do such a capital-intensive project, and noted his joy that the contract is being given to a largely Guyanese-owned company in keeping with the government’s push for local content.

“When I saw the vision of this project and the individuals involved I felt good. I felt a sense of patriotism. I felt good that we have three young Guyanese businessmen who want to establish a name for themselves, a legacy for themselves. We need to commend them for taking this big initiative and this big step,” Minister Bharrat noted.

He added: “I am particularly pleased because they are young and ambitious. When you are young the sky is the limit and that is the kind of thinking we need to develop the country. They are being motivated by the President. You can see the drive by President [Irfaan] Ali to push our country and not only in the oil-and-gas sector, but every single sector, because oil doesn’t last forever.”