Exxon committed to further advancing local content in Guyana – ExxonMobil CEO

…optimistic of expanded opportunities for Guyanese workforce

ExxonMobil’s Chief Executive Officer (CEO) Darren Woods, in Guyana for the International Energy Conference and Exposition, has assured that his company, which is currently exploring and producing oil in Guyana’s waters, would remain committed to further advancing local content.
During his keynote presentation at the expo, Woods made it clear that Exxon’s fortunes and Guyana’s local content development are inextricably linked. He said that achieving the goals of local content would see continued progress for Guyanese and local companies.
He also gave an update on ExxonMobil’s local content fulfillment. Esso Exploration and Production Guyana Limited (EEPGL)- the local ExxonMobil affiliate – has to date provided employment for 3,500 Guyanese and 800 local suppliers, who have supported ExxonMobil’s activities.
“It’s important that this progress continues. And I know, from my discussions with President Ali and Vice President Jagdeo, that this (local content) is a very high priority for them.
Increasing local participation through capacity-building is a component of value our industry brings to Guyana… Through our partnership, we remain committed to making further advancements,” Woods said in his presentation.
The CEO also recalled the Greater Guyana Initiative, a 10-year, $100 million commitment by Exxon and its partners in the Stabroek Block to support local capacity-building programmes. The first phase of this project is funding the expansion of the Centre for Local Business Development (CLBD) through technical, education and training programmes.
More recently, the Greater Guyana Initiative has provided support to the University of Guyana. This support allowed the University of Guyana (UG) to launch its ZOOM Room project, which the University says prepares for the impending future and begins to fulfil their first aspirational goal of producing at least one graduate per Guyanese household.
The Zoom Room project involves 18 rooms being established to service 18 different locations across the University’s nine campuses in Georgetown, Linden, Berbice, Bartica and Anna Regina, all enabling live classrooms to be broadcast to anywhere with a strong internet connection.
“We’re hopeful that these efforts will continue to expand the growing opportunities for Guyanese workers. This is an impressive result, and there are many to thank, including the Government of Guyana, our partner companies and key contractors, and many Guyanese businesses and organisations. That’s the focus of the gas-to-energy project, the Greater Guyana Initiative, and other efforts to develop capacity and maximise local content,” the CEO stated.
The gas-to-energy project, set to come on stream by 2024, will transport up to 50 million cubic feet of natural gas per day by pipeline from Liza Phase 1 and 2 to processing facilities onshore. It is expected that this new domestic natural gas supply would contribute to the reduction of the cost of electricity in Guyana by 50 per cent. The CEO said the company is working with the Government on this project, and expects to see significant progress.
The Local Content Act which was passed last year contains requirements for foreign companies to engage Guyanese and Guyanese-owned businesses at specified and varying levels in at least 40 areas by the end of 2022. These include 100 per cent exclusive use of Guyanese companies in the provision of immigration support services, work permits, visa applications, visa on arrival, in-water activity permit, custom brokerage services, and ground transportation.
According to the document, this is to ensure “maximum participation of Guyanese nationals and Guyanese companies supplying goods or providing services in the Guyanese petroleum sector; and local capacity development.”
Meanwhile, the bill provides for the establishment of a Local Content Secretariat that will, among other functions, keep a Local Content Register of “qualified” Guyanese nationals for employment, as well as of Guyanese and Guyanese businesses from which goods and services can be procured.
Qualified citizens and locally-owned businesses would have to apply for, and obtain, a certificate of registration to be included in the Local Content Registry. That certificate would have to be updated every year on its date of issuance.
As it relates to penalties, false declarations to get on the registry, or changes to citizenships, or changes in the company’s ownership status that are not indicated to the Secretariat, would carry a fine of $1 million for individuals, and for companies $5 million. Removal from the Local Content Register would also apply. (G3)