Contract binds Exxon to give preference to Guyanese

GUYANESE are expected to benefit from “preferential treatment” in the provision of goods, materials and sub-contractual arrangements with ExxonMobil’s petroleum operations here.
This information is contained in the contract which the American oil giant signed with the Government of Guyana for its petroleum operations. According to the contract which was released on Thursday morning, Article 18 of the agreement notes that the operator of the contract, Exxon’s subsidiary Esso Exploration and Production Guyana Limited (EEPGL) shall give preference to the purchase of Guyanese goods and materials.

This is providing that such goods and materials are available in a timely manner and of the quality and quantity required by the company and at a competitive price. In addition, preference shall be given to the employment of Guyanese sub-contractors “insofar they are commercially competitive and satisfy the Operator’s financial and technical requirements “and meet conditions of time, quality, quantity and competitive pricing.

According to a section of the agreement, within a sixty-day period prior to the commencement of a calendar year, Esso and its partners CNOOOC Nexen Petroleum Guyana and Hess Exploration Guyana Limited which hold interests in the Stabroek Block , and the subject minister shall provide a yearly plan for the ultilisation of qualified Guyanese personnel for the upcoming year. Both parties shall then meet to discuss the plan’s effectiveness.

In addition, the oil company is required under the agreement to provide the subject minister, within a month after the end of each half-year, reports outlining the company’s achievements in utilizing the services of qualified Guyanese personnel.
Appropriate adjustments are also required to be made to better accomplish the goal of increasing the number of qualified Guyanese available for use by the oil firm in its petroleum operations and entities performing petroleum operations in Guyana.

Exxon’s Country Director, Rod Henson told the media on Thursday afternoon that the company’s centre for Local Business Development on South Road in Georgetown has been built with “100% Guyanese content.” He said the Centre has conducted multiple lasses on the industry as well as on the procurement process. Henson added that there are local companies which have qualified to bid for contracts with Exxon. He told the media that some companies will work with Exxon directly as sub-contractors. Henson noted too that there are Guyanese who have been employed in senior positions with Exxon’s partners here, noting that locals make up over 70% of the workforce at one of the entities.