– Gov’t advances next phase of local content with focus on senior industry appointments
THE Government is moving to increase the number of Guyanese occupying senior positions in the country’s offshore oil and gas industry, with major operators expressing support for the initiative, according to Minister of Natural Resources, Vickram Bharrat.
Speaking on the Starting Point podcast, Bharrat explained that the time is now right to advance greater localisation of the sector’s workforce because Guyana has developed a pool of skilled professionals capable of taking on more technical and leadership roles.
“Four years ago, we wouldn’t have made this call because we were new in the oil and gas sector then,” the minister stated.
He explained that, at the time, Guyana had only a limited number of experienced professionals with the specialised expertise needed to fill high-level positions in the industry.
Bharrat said, “But 10 years after, from discovery to production, we have Guyanese who have upskilled themselves, who went abroad to study on scholarships and on their own.”
He added that many others have received technical training locally and are already working offshore.
“We have Guyanese who have qualified themselves at a technical training college in Berbice and they’re on floating production, storage and offloading (FPSO) vessels working alongside expats. So now is the right time,” he asserted.
Bharrat revealed that he has already engaged senior executives of the country’s major offshore operators on the issue, including ExxonMobil Guyana’s President, Alistair Routledge.
“I’ve had the conversation with Alistair from Exxon and they are in support of it, which is fair,” he disclosed.
The minister stressed that the Government is not seeking to impose unreasonable or unlawful requirements on operators.
“We are not asking for anything that is contrary to the way in which they operate. We are not asking for anything unlawful. We are asking for something that is fair.”
Bharrat also disclosed that he recently raised the matter with the Chief Executive Officer of SBM Offshore during a visit to Guyana.
“I recently met with SBM’s CEO, who was in the country and paid a visit to me, and I raised that with him too. And they’re on board,” he said.
The minister explained that SBM Offshore is one of the principal contractors supporting ExxonMobil’s offshore operations and is responsible for operating the FPSO vessels currently producing oil in Guyana’s waters.
“SBM is the company that actually operates the FPSOs offshore. So, there are four FPSOs offshore right now. They’re being operated by SBM. They’re contracted by Exxon to operate the FPSOs,” he explained.
He noted that another major FPSO operator, MODEC, will manage the next production vessel expected to come on stream.
According to the minister, these companies are among the largest employers within Guyana’s offshore petroleum sector, making their support critical to expanding opportunities for local professionals.
“These are the major companies and they employ a lot of people. So, SBM is fully on board… MODEC as well,” he said.
Bharrat’s remarks come as the Government continues to advance its local content agenda aimed at ensuring Guyanese benefit more directly from the country’s rapidly expanding oil and gas industry through increased employment, skills development and participation in the sector.
Guyana’s Local Content Act 2021 mandates that oil and gas companies prioritise Guyanese nationals and local businesses in procurement. It reserves minimum percentage quotas across 40 service categories, including catering, accommodation, insurance and transport, with penalties ranging from $5 million to $50 million for non-compliance.
Administered by the Local Content Secretariat, the legislation is intended to ensure that economic benefits remain within the Guyanese economy.
The Government is also pursuing amendments to expand the list of services reserved under the Local Content Act beyond the current 40 categories, with the aim of creating additional opportunities for Guyanese businesses and workers.
The Stabroek Block, located about 190 kilometres offshore Guyana, spans approximately 26,800 square kilometres and is operated by United States-based ExxonMobil Guyana, which holds a 45 per cent interest, alongside partners United States-based Hess Guyana (30 per cent) and China’s CNOOC Petroleum Guyana (25 per cent).
Since the first discovery in 2015, the block has yielded more than 11 billion barrels of oil equivalent. It is currently producing about 900,000 barrels of oil per day through four FPSO vessels—Liza Destiny, Liza Unity, Prosperity and ONE GUYANA. Production is expected to exceed one million barrels of oil per day as additional FPSOs come on stream.
