–PM Phillips urges Guyanese at inaugural Guyana Supplier Forum

SAYING that the Guyana Supplier Forum could be a “stepping stone” for partnerships, Prime Minister Brigadier (Ret’d) Mark Phillips, said that local businesses and citizens must rise to the challenge and play an active role in the future government is trying to build.

Minister Phillips, who has responsibility for energy and information and communications technology (ICT), officially opened the two-day event at the National Track and Field Facility at Leonora on the West Coast of Demerara, on Tuesday.

The Prime Minister said that the event is another development that the government is happy to celebrate, as it is a show of confidence in the capabilities of potential suppliers in Region Three.

“It is also a commitment to ensuring that Guyanese from various parts of the country can benefit from potential business and networking opportunities within the growing sector. During the next two days, you will be exposed to significant engagement opportunities through booth displays and informative presentations,” the PM told the gathering.

He further explained that recruitment agencies will be at the event to provide access to employment opportunities.

“Guyana Supplier Forum is a hub of potential for persons genuinely interested in becoming involved in the oil and gas industry,” he said, as he urged attendees to take full advantage of the event.

In his address, he said that Guyana is currently at the forefront of many lists for business and investment opportunities due to its emerging oil and gas sector and the country’s subsequent potential for exponential economic growth.

As the industry continues to grow, the Prime Minister said, there will be greater demand for goods, services, investments, and skilled labour.

“As a country, we must ensure that our local businesses are ready to meet these demands. Therefore, our responsibility as a government is to create a clean, competitive and conducive business environment for all stakeholders,” he added.

The Prime Minister said that since the People’s Progressive Party/Civic (PPP/C) government came into power in 2020, they have been working assiduously to guarantee a fair share of accomplishments for Guyana.

One of these accomplishments is the gas-to-energy project, at Wales, West Bank Demerara (WBD). The gas will be transported to facilities at Wales through a pipeline from the Liza Phase One and Liza Phase Two Floating, Production, Storage, and Offloading (FPSO) vessels.

“We have started working with ExxonMobil to bring gas to shore for cheaper power. We have made requirements to oil companies to adopt the latest, cutting-edge technologies to reduce the impact of operations on the environment. We have been working on new-model oil contracts to increase benefits to Guyanese. We have committed to using oil revenues to strengthen non-oil sectors. We have contracted cost-recovery audits to maximise Guyana’s profits, and we have legislated a new and improved Natural Resource Fund for the transparent management of oil funds, among many other initiatives,” the Prime Minister said.

He disclosed that other efforts have also included major considerations to manage our environment and operations responsibly as part of Guyana’s low-carbon development strategy.

On the business front, the Prime Minister said that the government has made every effort possible to ensure that the oil and gas sector is one that is operated with much efficiency, where investors can benefit and where there are optimum safety and environmental considerations in place.

LOCAL CONTENT
He pointed out that the government’s “major asset” is its local content development.

“Our speedy establishment of the Local Content Act and Local Content Secretariat was one of the first and most significant steps that guarantee the consideration and prioritisation of our people. We must work to secure the sustainable economic development of Guyana, and within the oil and gas industry. That means we must provide an opportunity for our local businesses and our people, as a whole, to develop and thrive. For our local content to truly benefit from the promising future ahead, we must put in place adequate development, employment and training of the local workforce,” he said.

The Prime Minister pointed out that tangible investments must be made in suppliers’ development so that they can meet the demand for procuring supplies and services locally.

He pointed out that the Supplier Forum is a true testament to such an investment.

According to the Prime Minister, one of the main advantages of the emerging oil and gas sector is that its operations are at an international standard, with stringent and high-level operating requirements.

As such, working within the industry, whether as a partner or an employee, calls for requirements that will ensure our local businesses rise to that level as well.

As such, events such as the Supplier Forum creates a platform for people to find out what they need and how they can achieve those requirements.

He pointed out that such initiatives also help to realise the importance of another aspect of what is unfolding in Guyana’s oil and gas industry, that is, the power of partnerships.

“We have continually seen the successes of joint ventures between foreign companies and locals in developing local capabilities to honour the demands of various parts of the supply chain. This forum could also be a steppingstone for forming such partnerships,” he added.

CREATING A PROSPEROUS COUNTRY
According to PM Phillips, the government has made a commitment to the nation to create a prosperous country where every Guyanese must have a full and successful life through quality education, access to good-paying jobs, opportunities for entrepreneurship, home ownership and economic stability.

“Our oil and gas sector will encourage us to achieve this goal through a strengthened economy, allowing us to recommit to and invest in our other sectors to build a holistic economy, where all sectors contribute to the country’s development. But for these realities to come to fruition, we must ensure that our people can actively participate in the future that we are building,” he concluded.

Meanwhile, the head of the Local Content Secretariat, Dr Martin Pertab, disclosed that the body has managed to achieve its annual target within the first few months of its establishment

The historic Local Content Act, which was enacted in December 2021, paved the way for establishment of the secretariat, which falls under the purview of the Ministry of Natural Resources.

The secretariat is responsible for developing and maintaining measures for the effective implementation of local content by contractors, sub-contractors and licensees.

The secretariat is required to ensure the development and implementation of strategies that give preferences to, or ensure equal treatment of Guyanese nationals and companies, conduct market analysis, make recommendations to the minister, develop formats for local content plans and reporting, develop guidelines – including those for local content reporting, procurement, big evaluation, training, research and development, partnership and joint ventures, and financial and insurance services.

Pertab in his remarks said that more than 350 local content certificates have been issued to locals. He anticipates that by year-end, this number will exceed 500.

He added that of the 1,125 new jobs created this year, 858 went to locals.

Recently, the secretariat announced that local content earnings have topped GY$129 billion for this year. This represents 23 per cent of Guyana’s GY$552.9 billion budget for 2022 – the largest recorded budget in the nation’s history.

Also speaking was ExxonMobil Guyana President, Alistair Routledge.

He said that the company is dedicated to working toward helping develop a “sustainable, prosperous future” for Guyana.

“This is Guyana’s resource, and we are here as guests. We take it very seriously, our responsibility, with not just what we do, but also how we do it,” Routledge said.

He explained that some of the progress includes the gas-to-shore project, and the two floating production facilities in the Stabroek Block, which collectively produce approximately 360,000 barrels of oil per day.

Routledge told the forum that the project, “will half [sic] the cost of generating electricity. It will reduce emissions in the process because burning gas produces lower emissions than burning fuel.”

The forum concludes today, and is open to the public.