Exxon surveying local market to determine capacity for supplying fabrication services

…prequalification of bidders to be done

ExxonMobil Guyana is scouring the local market in an effort to determine what capacity exists in Guyana to supply fabrication and other related services, as the oil giant continues to expand its fleet of Floating Production Storage and Offloading (FPSO) vessels in the Stabroek block.
In a notice, ExxonMobil Guyana Limited (EMGL) has revealed that it is seeking detailed, technical information from local companies via a market condition survey. The survey will be gauging the existing in-country capacity for fabrication, machining and repair works to support oil and gas operations locally.
“EMGL is testing the local market to determine capacity, current capabilities and qualifications of the local supplier market to competitively perform work related to fabrication, machining and repair work of varying complexities. This work may be conducted through services agreement(s) with EMGL, or through Other Users as defined above (for example, prime contractors) within the Georgetown area,” Exxon said.
“This Local Market Condition Survey aims to gather detailed technical information from suppliers to fulfil EMGL and their prime contractor’s near and long-term fabrication, machining and repair services, supporting the oil and gas operations in and around Georgetown, Guyana. The survey process allows us to seek your input and develop a list of qualified bidders before structured bid rules take effect.”
Some of the services covered in the market condition survey include tertiary steel fabrication such as handrail and structural steel, secondary steel fabrication such as pipe supports and control valve repairs and primary steel fabrication such as compressor refurbishment and carbon steel pipes.
According to Exxon, it will be using the responses to the survey, which are due by December 20, to prequalify bidders for upcoming projects. In addition to the usual high standards of work expected from bidders, Exxon noted that they will also be expected to include a preliminary local content strategy.
This means that those who are prequalified will be required to show how they will deliver local content expectations and may even be required to submit those plans to the Government, in which case copies will also be required to be submitted to the oil major.
It was only recently that a steel strike ceremony was held for ExxonMobil’s Jaguar FPSO vessel, which will service the 6th oil development offshore Guyana in the Stabroek block, known as the Whiptail development.
The three local companies who were contracted to provide fabrication services for the vessel are Guyana Oil and Gas Support Services (GOGSSI), Industrial Fabrications Inc (InFab), and ZECO Group of Services.
GOGSSI is a key player in a joint venture with Trinidad Offshore Fabricators Unlimited (TOFCO). The company was established in 2019 and specialises in providing fabrication services for the oil and gas sector, including onshore and offshore oil and gas fabrication, structural and piping modules development and decks, platforms, and jackets.
Meanwhile, InFab is a steel fabrication company that has been in operation since 2002. InFab was engaged by SBM Offshore Guyana to provide support services, including lighting fixtures, handrails, and cage ladders. It has delivered steel fabrication services to the Prosperity and One Guyana FPSO vessel.
Zeco Group of Services was founded a year before InFab, starting as a small welding and fabrication shop and since evolving into a large-scale fabricator in Guyana. The company is based at Section ‘A’ Plantation, Triumph, Better Hope, East Coast Demerara (ECD). Zeco provides services that include general construction, fabrication, machine shop operations and oilfield supplies and services.
To date, 290 tonnes of green steel have been fabricated by local companies for two FPSOs- 50 tonnes for Prosperity FPSO and 240 tonnes for the ONE GUYANA FPSO. This number is expected to increase for Jaguar FPSO, which will see an additional 316 tonnes of steel being fabricated by the local companies. (G3)