DESCRIBED as a “significant milestone,” a symbolic “Steel Strike” ceremony was held on Tuesday to mark the start of work by three local companies to provide fabrication services for Guyana’s sixth Floating Production and Storage and Offloading (FPSO) vessel, the Jaguar.
Speaking at the event held at the Guyana Shore Base Inc. (GYSBI) facility at Houston, East Bank Demerara, Minister of Natural Resources Vickram Bharrat said that the event symbolised a growing role for Guyanese companies in the booming oil and gas sector.
He applauded local contractors Guyana Oil and Gas Support Services Incorporated (GOGSSI), Industrial Fabrications Incorporated (InFab), and Zeco Group of Services— for stepping up to provide critical fabrication services.
According to him, in keeping with the government’s commitment to local content, this event showcases the active role of Guyanese companies in the rapidly expanding oil and gas industry.
Minister of Natural Resources Vickram Bharrat (Delano Williams photos)
As such, Minister Bharrat explained the value of Guyanese companies in developing fabrication services to international standards, positioning them for recognition by major players such as SBM Offshore and ExxonMobil.
“I congratulate and thank our local partners for taking the bold initiative, for taking the risk involved in investing in a new sector, in expanding your operations to accommodate jobs from this new sector and execute in a manner that is acceptable at an international level,” Minister Bharrat said, while highlighting the sector’s fast-paced but regulated growth as both beneficial to Guyana and internationally competitive.
The Jaguar FPSO under construction for ExxonMobil’s Whiptail project, will be Guyana’s sixth FPSO and aims to elevate the country’s oil-production capacity to over 1.3 million barrels per day.
The three local companies are providing services to ExxonMobil’s prime contractor, SBM Offshore.
Scheduled to produce 250,000 barrels per day upon completion, the FPSO marks another milestone in Exxon’s commitment to Guyanese development.
Reflecting on the broader impact, Bharrat noted how local jobs in the oil sector translate into economic benefits across communities.
He observed that nearly 6,500 Guyanese are currently employed directly in the sector, a significant achievement for the small nation.
“Every time a new person is employed in the oil and gas sector…it translates into benefits to the household, to the community, and to the country as a whole,” he said.
Minister Bharrat urged continued growth and collaboration, highlighted future potential in FPSO construction and encouraged investors to explore additional opportunities with local companies.
“Our door is open to investors…but it must be a relationship built on trust and mutual prosperity,” he added, reaffirming the government’s goal to balance foreign investment with benefits for Guyanese businesses.
GOGSSI’s director Nicholas Deygoo-Boyer
FOSTERING GUYANESE CAPABILITIES
Meanwhile, President of ExxonMobil Guyana, Alistair Routledge, said that the event reaffirms that while it may be easier and cheaper to fabricate FPSO components abroad, ExxonMobil remains committed to fostering Guyanese capabilities.
“It doesn’t come easily. We could quite easily fabricate these components in China or Singapore…but that would not be in the spirit of the partnership with the country and the intent of building the capacity and ensuring that people in the country can truly benefit from the development of their natural resources,” Routledge explained.
Routledge announced that ExxonMobil, in collaboration with partners such as SBM Offshore and MODEC and other key contacts will launch a market test to assess current local capacities and future demand for fabrication, machining, and repair work.
Reflecting on the entrepreneurial drive of local contractors, Routledge praised the risks they’ve taken.
“It has required you to make a leap of faith…to grow your own facilities, to employ more people, and to train them,” he said, commending the commitment of these firms to meet international safety and quality standards.
“That entrepreneurial spirit in Guyana is healthy and so important,” Routledge said, noting that the oil sector’s high standards differentiate it from other industries and require an advanced skill set.
Routledge acknowledged the efforts of local contractors on past projects, including the Yellowtail project, which is set to start up next year. He shared that a christening ceremony for the One Guyana FPSO, fabricated with the involvement of these local companies, is anticipated to take place in Singapore in January.
“We celebrate today that we’re here thinking about the sixth project,” Routledge said, affirming Exxon’s ongoing commitment to partnership with Guyana in building a sustainable and prosperous future for its people.
GOGSSI’s director, Nicholas Deygoo-Boyer echoed the sentiment, highlighting the transformational impact on the local workforce.
“The work that we have done has allowed us to train many local workers. It has allowed us to upskill them,” Deygoo-Boyer stated, adding that welders from sectors such as agriculture and mining have now been equipped with skills for the oil and gas industry.
“This is the importance of local content,” he continued, expressing appreciation for the role SBM Offshore and ExxonMobil played in supporting Guyanese talent.
Deygoo-Boyer acknowledged the logistical and economic challenges of transporting materials from Europe or Asia to South America for local fabrication.
President of ExxonMobil Guyana Alistair Routledge
Yet, he highlighted that SBM’s commitment went beyond financial considerations.
“This is not just dollars and cents for them,” he said. “The dollars and cents would not tell them to take steel…manufactured in Europe or Asia, bring it to South America…for it to be worked on, to then be exported back to Asia. But they do it, and they have done it.
The Steel Strike ceremony marks a critical step forward for the Whiptail development, a US$12.7 billion project featuring extensive drilling operations.
As part of the Stabroek Block, the Whiptail project represents ExxonMobil’s latest efforts to drive substantial revenue and economic growth in Guyana, with other FPSOs such as Liza Destiny, Liza Unity, and Prosperity already producing over 600,000 barrels of oil per day.
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Publish date : 2024-11-12 21:21:00
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