ExxonMobil says has spent $45.7b with local vendors since 2015

-nearly 1900 Guyanese employed

ExxonMobil today said that since 2015 it has spent $45.7b with local vendors and it currently has around 1900 Guyanese in its employ.

In a statement,  Exxon said that in 2019 alone more than $24 billion was spent directly with more than 700 Guyanese vendors providing goods and services ranging from food to engineering. This, it said,  represents a 74% increase in expenditure compared to the $14 billion spent with Guyanese vendors in 2018.

 

At the same time, the number of Guyanese supporting ExxonMobil Guyana’s exploration, development and production activities has jumped by 77% in 2019, now representing more than half  of the total workforce. There are now nearly 1,900 Guyanese supporting the company’s activities, the statement said.

 

Meanwhile, Exxon said that its Centre for Local Business Development (CLBD) has released a list of planned 2020 tenders to provide goods or services related to ExxonMobil Guyana and its prime contractors. 

 

Exxon said that uploaded to the Centre’s Supplier Registration Portal, the list adds to ongoing efforts to provide Guyanese businesses information on upcoming opportunities available in the oil and gas industry.

 

“Local suppliers are important to the success of our operations, and through the Centre, we continue to strengthen the capabilities of Guyanese businesses; improving their competitiveness and the country’s overall industrial base,” President of ExxonMobil Guyana Rod Henson was reported as saying in the statement. 

 

Meanwhile, Exxon says that planning is underway for a Supplier Forum later this year which will allow for direct engagement with ExxonMobil Guyana and its key Contractors. The Centre held a similar forum in December 2018.

 

The Centre was set up in 2017, to aid small and medium-sized Guyanese businesses build capacity and improve their competitiveness.  To date, more than 2,100 Guyanese businesses have registered and in keeping with its mandate, the CLBD provided coaching and mentorship to more than 450 businesses. Fifteen Guyanese companies are receiving mentorship for ISO 9001 compliance, while four companies were certified and one company has attained compliance. 

 

 

 

 

“Using a multi-tiered approach, ExxonMobil focuses on building workforce and supplier capabilities as well as strategic community investment. Continued growth of local content is exactly what we want to see as we continue to partner with Guyana,” Henson said. Looking ahead, he noted that a steady phased approach to future development projects such as Liza Phase 2 and potentially Payara will help to further develop local content. 

 

The statement noted that the Liza Phase 1 project began oil production in December 2019, while the Liza Phase 2 startup is anticipated by early 2022. A third project, Payara, is currently undergoing government approval processes, and could start up as early as 2023.

 

Some critics have said that approval for Payara should be withheld pending a renegotiation of some of the terms of the controversial 2016 Production Sharing Agreement and the finalisation of a depletion policy.