Guyana Supplier Forum a “stepping stone” in networking locals with budding oil industry – PM Phillips

…over $140B spent by Exxon, contractors since 2015 – Routledge

By Rupa Seenaraine

Making its return to provide networking opportunities to local suppliers in the oil sector and beyond, the Guyana Supplier Forum opened on Tuesday at the Leonora Synthetic Track, West Coast Demerara (WCD).
This event is the product of ExxonMobil Guyana and the Centre for Local Business Development and is geared toward forging new partnerships and collaborations, bringing a strong focus on local content.
In his address, Prime Minister, Brigadier (ret’d) Mark Phillips highlighted that local businesses will be able to prepare and catapult their operations through active efforts by Government to put them first. This forum, he said, is a “stepping stone” for new partnerships.
“Our responsibility as a Government is to create a competitive and conducive business environment for all stakeholders…Our major asset in all of this remains our local content. Our speedy establishment of the Local Content Act and the Local Content Secretariat was one of the first and most significant steps that guarantee the consideration and prioritisation of our people,” the Guyanese PM voiced.
Phillips underscored that new and promising developments in the past two years have skyrocketed. The event, he noted, is the hub of potential for persons interested in becoming involved in the oil and gas industry.
“Few can deny that Guyana is currently at the forefront of many lists for business and investment opportunities due to its emerging oil and gas sector…As the industry continues to grow, there will be greater demands for goods, services, investment, and skilled labor. As a country and as a Government, we will work to ensure that our local businesses are ready to meet these demands,” he told attendees.

He said they have been working on new model oil contracts to increase benefits while requesting companies to adopt cutting-edge technology so that the environment is sustained.
“Our efforts have also included major considerations to manage our environment and our operations responsibly as part of the Low Carbon Development Strategy 2030 where we aim among other things, to reduce carbon emission by 70 per cent by 2030.”
However, President of ExxonMobil Guyana, Alistair Routledge spoke about the country’s vast resources and lobbied for the building of a sustainable future. But to do this, stakeholders need to understand the opportunities.
“It’s about knowing what is coming and that’s why we’re here with our prime contractors, with a number of other suppliers, with the Government with the local chambers, to ensure that is understood what opportunities are coming, especially to Region Three.”

The forum is organised in Region Three, where the gas-to-shore project is to be laid. It will deliver 50 million cubic feet of gas per day from the Liza field through a high-pressure pipeline. The construction of a Natural Gas Liquid Extraction and a 300-megawatt power generation facility will make the country more self-sufficient in cooking gas and slash electricity generation costs by 50 per cent.
The Vreed-en-Hoop port development is also in the pipeline for the region, where seabed preparation is being undertaken to start construction of the first 20 acres. The Exxon President expressed satisfaction that local businesspersons have undertaken this project.
Routledge noted, “Today, we have more than 1000 Guyanese vendors as companies, businesses that have been participating in the oil and gas sector since 2015. We and our contractors have spent more than US$700 million. That’s more than $140 billion with those suppliers here in Guyana since 2015.”

Direct link
Meanwhile, the Director of the Centre for Local Business Development, Dr Natasha Gaskin-Peters said this forum informs local businesses about what is happening beyond the oil sector. Now, they are directly exposed to gas-to-energy contractors; and recruiting companies.
“Local Guyanese businesses are given priority. You have the opportunity to network with ExxonMobil as well as all of their prime contractors to learn more about those anticipated tenders. The Supplier Forum ensures that the Guyanese firms have that direct contact that is needed when ExxonMobil and the prime contractor are as this information is very vital in you making those strategic investment decisions,” she relayed.
The Centre works with some 3000 Guyanese businesses, preparing them in areas such as procurement, the offshore oil and gas industry, building core business systems, financial management, human resource management, and supply chain management.
She added that “2023 will see greater levels of activities in Region Three as we work together with businesses and people to prepare them for the oil and gas sector as well as Guyana’s growing economy, and the opportunities to come.”

Preparation
Chairman of the Private Sector Commission, Paul Cheong related that the importance of having updated information on key contracts and procurement services for local contractors is necessary. He said work has been continuing to prepare these stakeholders.
“I wish to point out that the Private Sector Commission has been leading the charge in expanding its reach across the length and breadth of Guyana to get more businesses involved in the developments that are taking place here, not only in oil and gas but also in the traditional sector, such as agriculture, tourism, forestry, mining, etc.”
By the end of the year, each administrative region will have a chamber, where the umbrella PSC body can promote its interests. In this light, Cheong endorsed the aims of the forum, adding that stakeholders should see themselves as partners and not competitors.
“We believe that there is no substitute for working together. We need to stop seeing each other as competitors but rather as partners and use facilities for the bond to achieve even greater success. Our economy being the fastest growing in the world. Many opportunities are there for us as time is to benefit from what it requires, careful and well thought-out plans; plans of how to grow our businesses to take advantage of these opportunities and plans of how to improve our skill set to also take those advantages and opportunities together,” the PSC Chairman announced.
Among the other projects in store for the region are the much-anticipated new Demerara Harbour Bridge, GAICO Marine facility, new hospitals and the two four-lane highways.

Good governance
Region Three Chairman, Inshan Ayube lauded the work of the Government, saying that good governance plays a part in shaping investors’ confidence.
“It creates a stir not only in the imagination of the Guyanese people but also creates a stir in investors to come to this country to invest and grab the opportunities that this country has presented for investors. Today, that confidence that the world at large has in Guyana, the Government, and the economy of this country is a testimony to your presence here.”
The first Supplier Forum was held in 2018. Due to the COVID-19 pandemic, a virtual forum was held last year.