US$37M in contracts to be awarded to local businesses in 2023 – SBM Offshore

In fulfilling its obligations to local content regulations, SBM Offshore Guyana will be awarding some US$37 million to local businesses for the year 2023.
Local Content Officer of SBM, Garri Fraser said the company’s Local Content Annual Plan for 2023 made provisions for over 700 hours of training to be conducted with major vendors.
Additionally, some 200 hours of training and certification will be done with contractors, inclusive of human rights training. Twenty-four hours of forums and webinars will also be held with vendors, as well as clarification sessions on the Requests for Information process. Vendors will also be advised on the creation of bid packages.
“From the procurement side, we have committed about US$37 million of spend to local vendors. Now, that is huge when you look at the total commitment to local content in Guyana, which is US$51 million dollars,” Fraser highlighted.
Last Friday, the company engaged 70 representatives of local businesses at its Vendor Day. This event is one of the company’s annual activities geared towards updating local suppliers about procurement opportunities, requirements, and its compliance processes.
The activity provided an opportunity for participating businesses to learn more about the company’s expectations for suppliers when conducting business, its vendor qualification/renewal process and timeline, performance measurement criteria, key purchase order and invoicing requirements, local content initiatives and commitments, logistics and delivery requirements.
The company’s drive for sustainable packaging, vendor compliance measures and key Health, Safety, Security and Environment (HSSE) procedures were also among the discussions held with vendors.
Sustainability and Social Impact Programme Development Officer, Gwenetta Fordyce stressed the need for vendors to review and understand the company’s Human Rights Standards and HSSE policy.
Meanwhile, Compliance Ambassador Nevellean Dundas highlighted the company’s expectation for vendors to embed transparency, courtesy and impartiality into their business conduct, stressing the need for compliance with the laws and regulations of the country.
SBM Offshore Guyana’s General Manager, Martin Cheong, said by actively engaging local suppliers, contractors and vendors, the company is not only creating opportunities for employment and economic advancement but also supporting sustainable development.
“Vendor Day 2023 serves as testimony to our organisation’s unwavering commitment to support local businesses and nurture local capacity,” he said.
In 2022, SBM Offshore Guyana received approval for its Local Content Master Plan, the first of the Prime Contractors to achieve this milestone in Guyana. In May, the company received approval for its 2023 Local Content Annual Plan and Certificate of Compliance. The company said it holds this responsibility in high regard and remains steadfast in pursuing local content development in Guyana through the utilisation of Guyanese companies in its operations.
The Local Content Act lays out 40 different services that oil and gas companies and their subcontractors must procure from Guyanese companies. For instance, these companies must procure from Guyanese companies 90 per cent of office space rental and accommodation services; 90 per cent janitorial services, laundry and catering services; 95 per cent pest control services; 100 per cent local insurance services; 75 per cent local supply of food; and 90 per cent local accounting services.