– engages suppliers on procurement processes
Following its latest engagement with its suppliers, Netherlands-based shipbuilder SBM Offshore, which is responsible for building the floating production, storage and offloading (FPSO) vessels operational in local waters, reaffirmed its commitment to local content.
In a statement, SBM revealed that it engaged with businesses during a Vendor Forum, held at the just concluded International Energy Conference at the Guyana Marriott Hotel. During the engagement, participating businesses and local vendors learned about the company’s vendor qualification process and timeline, as well as ethical requirements to ensure good business practices.
“Participants were apprised of the company’s invoicing process and requirements for payments. The forum was in keeping with SBM Offshore’s objective of building the capacity of businesses to provide services to the oil and gas sector, and follows a number of similar routine activities including the Centre for Local Business Development’s Community Business Talks, Supplier Forum 2022, the company’s Vendor and Compliance Days,” SBM said.
Additionally, attendees were acquainted with the company’s requirements when responding to calls for Requests for Information (RFIs), and were provided with an overview of efforts made thus far to integrate local vendors and suppliers into the company’s operations. During the meeting, Procurement Lead Recardo Bovell reemphasised the company’s commitment to and compliance with the Local Content Act of 2021.
“SBM Offshore remains committed to increasing the utilisation of local companies and developing their capacities to effectively service the oil and gas industry. He noted that even if a company is unsuccessful in a bid, SBM Offshore engages them on areas in which they did not meet the necessary requirements and steps that can be taken to rectify this,” SBM said.
Meanwhile, SBM Offshore Guyana’s General Manager, Martin Cheong in his opening remarks, revealed that over 60 per cent of the company’s onshore staff are Guyanese. With offshore staff factored in, he noted that the local content penetration is about 40 to 45 per cent.
“We believe that this engagement provides a unique platform for productive conversations and opportunities for the businesses present. We are keen on building the capacity of Guyanese businesses to meet the growing needs of the oil and gas industry, and more so, our operations as we expand our footprint in Guyana,” he said.
In 2022, SBM Offshore received approval for its Local Content Master Plan, the first of the prime contractors to achieve this milestone in Guyana. According to the company, it holds this responsibility in high regard and remains steadfast in pursuing local content development in Guyana through the utilisation of Guyanese in its operations.
The Netherlands-based company was contracted by oil giant ExxonMobil to construct the Prosperity FPSO vessel that will be used in the Payara development and has already secured financing to complete the project.
In fact, the Prosperity FPSO was officially dedicated by First Lady Arya Ali and company officials on February 1, 2023, during a simple naming ceremony at the Keppel Shipyard in Singapore.
The naming and dedication ceremony marked the final stage for the Prosperity as it readies to set sail for Guyana, where it will arrive some two months after departure. This FPSO will be the third vessel that will operate in the Stabroek Block offshore Guyana.
