Exxon contract for transport services seen as lucrative opportunity for local provider
ExxonMobil is seeking to secure ground transportation services, which is seen as a major opportunity for local providers in this area to step up their game and secure the contract.
While there continues to be a lot of chatter about insufficient provisions for local content in the 2016 Production Sharing Agreement ( PSA) with ExxonMobil’s subsidiary and laws are still to be promulgated to cover this, observers point out that these invitations provide substantial opportunities for businesses here.
“We have locals who are in that sector and I expect locals to win that contract. To be fair to Exxon, they have said that they really are pushing local content and this is evident here. I don’t think you will have an issue that it [this contract] didn’t go to locals,” Private Sector Commission ( PSC) Chairman Nicholas Deygoo- Boyer told this newspaper.
ExxonMobil’s subsidiary Esso Exploration and Production Limited ( EEPGL) has advertised for the provision and support services for at least 70 vehicles.
In the advertisement, the company said it is seeking to identify suppliers who can provide ground transportation and management services for a growing fleet in excess of 70 vehicles.
“These services will include the supply of vehicles for long and short term hire, as well as various personnel such as drivers and dispatch operators, among others. Suppliers must be able to provide systems and tools to manage trips”, the ad said.
Boyer said that transportation services is an area already being capitalised on and pointed to the Georgetown- based Cyril’s Taxi service as an example of a local company providing a large number of vehicles for use.
“Cyril’s Taxi is one of the positives coming out of this area. They have moved from Cyril’s Taxi to Cyril’s Transport and you have others who are also strong in the transportation area,” he said. “More and more transportation is being done by Guyanese and we hope that grows and grows. We have strong guys. Being commercially competitive and competent and working to bridge any gaps in competency, I know we can do it,” he added.
This newspaper understands that apart from ExxonMobil, the company’s prime contractors have also expressed needs for local transport services. Some companies rent vehicles from locals at daily rates for the long-term use of their employees.
“The foreign employees coming here do not want to purchase vehicles and have the headache of maintenance and all of that. They find it easier to rent”, one business person, who rents his fleet of five vehicles, told this newspaper.
Boyer said that as the umbrella body for the business sector, the PSC advocates to help members and budding entrepreneurs understand the oil and gas industry. He said that support is provided as members are advised what they need to do to get involved, such as where to get registered and the documentation they will need. One of the criteria for all bidders is that they must be registered with the Centre for Local Business Development ( CLBD). The CLBD was set up by ExxonMobil as an intermediary for local companies interested in providing goods and services for the oil major.
The CLBD Director Patrick Henry said of the transport advertisement: “This is one of those opportunities in allowing local companies… outside of the technical areas to access opportunities and bid and work and grow with the sector, for larger work throughout. It is an opportunity to take advantage of.”
He said that the agency has seen increased registration and more persons are taking advantage of the training programmes provided online.
The information is advertised through the CLBD portal. “If they need we can help them walk through. Then it is up to the
companies to express and follow the procurement process. The centre has
procurement seminars we run it every month and we continue to get large amount of participants,” Henry added.
Since the COVID pandemic, the agency has been doing all of its training and support online via its CLBDGuyana.com portal.
Covid has not deterred locals from registering or participating in the online classes offered by the centre. Henry said that the centre was pleased with the response. “We have everything online and we have been doing everything virtually. Our courses are full more now during Covid. Everybody is on time, they are there for three four hours and people stay through and participate. Guyanese businesses have really adapted,” he said.
One of the plans for the
centre this year was to have a programme for its members that facilitates access to financing from financial institutions as that has been a complaint of many small businesses.
ExxonMobil says that since it began operations here, it and its key contractors have spent over $65 billion. “As of the first half of this year, more than 2,000 Guyanese were supporting project activities on and offshore including the 24 operations and maintenance technicians who returned from training abroad this year and have begun their work on the Liza Destiny,” the company said, adding that “ExxonMobil and our key contractors have spent over GYD $ 65 billion with more than 700 local companies since 2015.”