THE emergence of the oil and gas industry in Guyana brought with it several norms and practices from the global industry, and among those was ‘local content’. The topic has become one of not just private sector interest, but public attention as well.

The utilisation of Guyanese manpower and services is of crucial concern, as it is tied to the returns that the country receives from the sector, apart from the profit oil share and royalties. Over the last eight years or so, there has been continuous significant growth in local content development and utilisation in Guyana—a pattern which developed even before the establishment of local content legislation.

ExxonMobil Guyana recently released its local content performance update for the first half of 2023 and a perusal of the figures indicated that Guyanese are meaningfully engaged at all levels of the industry. By June, approximately 5,900 Guyanese workers were supporting the company’s activities which represent 69 percent of the overall workforce in the oil operations, with 1,700 Guyanese currently offshore.

Some 1,300 Guyanese women are also supporting the Stabroek Block Operator’s onshore and offshore activities. Notably, according to the Inter-American Development Bank (IDB), Guyana’s unemployment rate has significantly decreased as the economy continues on its upward trajectory, with the oil and gas sector credited for this feat.

The oil giant also revealed that, along with its contractors, it has engaged over 1,500 unique Guyanese suppliers, with more than US$280 million spent with them during the first half of this year alone. This represents a 45 per cent increase in the same period when compared to 2022.

In fact, another notable accomplishment was the issuance of another round of contracts for local fabricators to provide fabrication services related to a Floating, Production, Storage and Offloading (FPSO) vessel. Three companies—Industrial Fabrications Incorporated (INFAB), Zeco Group of Services Incorporated and Guyana Oil and Gas Support Services Incorporated (GOGSSI)—were contracted to fabricate fittings for the One Guyana FPSO earlier this year. INFAB and GOGSSI were previously contracted to provide similar services for the Prosperity FPSO.
The benefits of the industry are far-reaching. They go beyond employment and contract opportunities. In fact, several developmental projects and programmes that are in sectors outside of mainstream petroleum activities have been led by oil and gas players. The Greater Guyana Initiative, a US$100 million fund by Stabroek Block co-venturers ExxonMobil Guyana, Hess Exploration Guyana Limited and CNOOC Petroleum Guyana Limited, on Friday, October 20, launched a US$4 million sustainable farming project that will benefit Regions Two, Five and Ten.
This will see the development of hydroponic farms which will benefit the agriculture sector and positively impact employment while furthering food security goals. It is the largest hydroponic project in the Caribbean. A similar project was launched by ExxonMobil Guyana’s Prime Contractor, SBM Offshore, with the company supporting the establishment of the country’s largest hydroponic farm at Dora, along the Soesdyke/Linden Highway. This was done through a partnership with Plympton Farms and resulted in employment creation in the area and a reduction in food imports for the industry.

Companies like CNOOC, and prime contractors of ExxonMobil, like SBM Offshore Guyana, Schlumberger and Guyana Shore Base Incorporated, have introduced a number of scholarship and training opportunities for Guyanese to receive both local and overseas training to upskill them for employment in the industry.

The Centre for Local Business Development has also recorded impressive statistics as it relates to its objectives of preparing Guyanese businesses for the industry. Over 750 persons, from over 500 businesses, have benefitted from their business courses, while over 5,000 persons have participated in the oil and gas introductory course. Over 513 businesses have also participated in the Centre’s Health, Safety, Security and Environment (HSSE) training.

The industry continues to develop at an unprecedented rate, with Guyana’s economic growth mirroring this trajectory. With this continued growth, it is anticipated that Guyanese will continue to benefit tremendously—both business and skills-wise. A crucial part of this expectation is the importance of Guyanese keeping abreast with the industry’s development and the opportunities that are made available.