More than just extracting resources – Guyana Chronicle

– Minister Bharat says oil and gas industry offers a bright future for Guyanese people
– Locals help build some of the world’s largest and most sustainable FPSOs
Local content legislation paves the way for Guyanese companies to receive priority in the provision of key services such as catering and ground transportation, while also opening up opportunities for the more sophisticated or technological aspects of the industry.

Under the law, Guyana must also consider participating in some structural fabrication, which could include work required for Guyana’s floating production, storage and offloading (FPSO) vessel. In fact, Guyana is already considering participating in work on Uaru and Whiptail – two of the largest oil projects in the ExxonMobil-led Stabroek Block.

The Environmental Impact Assessments (EIA) for both projects acknowledge that there will be opportunities for Guyana to provide support during the drilling and installation phases. The documents also state that ExxonMobil is working closely with its contractors and subcontractors to identify additional opportunities suitable for workforce development in Guyana.

The efforts of its FPSO contractors MODEC and SBM Offshore are a testament to this. For the fifth development project in the Stabroek Block, the Uaru project, ExxonMobil has contracted MODEC to build a companion FPSO named Errea Wittu. The FPSO is designed to produce approximately 250,000 barrels of oil per day in 2026.

According to MODEC, “It will be one of the most sustainable FPSOs in the world, using an energy production system with combined cycle turbines…” According to the Japanese company, three Guyanese businesses, Guyana Oil and Gas Support Services Inc. (GOGSSI), Asequith Guyana and ZECO Group of Services, have been engaged by MODEC to provide fabrication services for the vessel, with the potential for additional local collaborations, partnerships and numerous spin-off benefits.

As for the Whiptail project, the FPSO will be called Jaguar. It is being built by SBM Offshore using its industry-leading Fast4Ward® program. It also uses the company’s seventh newbuilding, a multipurpose floating hull, incorporating several standardized topside modules.

The FPSO is designed to produce 250,000 barrels of oil per day by 2027. Building on the experience gained to date with FPSOs Liza Destiny, Liza Unity, Prosperity and ONE GUYANA, SBM Offshore will continue to focus on local content development in Guyana by sourcing fabrication scope locally and integrating Guyanese engineers into the execution and operations teams.

In May, SBM also issued an RFI seeking Guyanese companies that could participate in the construction of the Jaguar FPSO, which must have the ability to design, manufacture and provide structural steel fabrication services. There are also more opportunities in Guyana, where ExxonMobil Guyana recently issued a request for information (RFI) to identify engineering and construction suppliers that can provide pipeline fabrication and assembly, engineering, drafting and installation program development services.

ExxonMobil said it plans to develop a multi-year licensing agreement in the Georgetown area for the fabrication and assembly of carbon steel and thermoplastic composite tubular (TCP) well jumpers, so it issued an RFI to test the market’s capabilities.
Natural Resources Minister Vickram Bharrat, in an invited comment, said Government is keen to ensure that Guyanese not only have access to the low-hanging fruit in the oil and gas sector but also the technical aspects of the industry.
“Guyana is on track to maintain the world’s highest GDP for the fifth consecutive year.”

We are implementing various mechanisms like the local content law to ensure that every citizen feels this growth,” Minister Bharat said.
He said other interventions include the commissioning of a state-of-the-art FPSO facility simulator at the Guyana Technical Training Institute Research Institute in Port Bebismurrant.

The first phase of the state-of-the-art facility was commissioned on February 9, 2024. The initiative, led primarily by SBM Offshore Guyana, Stabroek Block partners ExxonMobil, Hess and CNOOC, and the Guyana government, has invested $13 million in a facility simulator called FacTor. Overall, more than $100 million will be invested.

In May this year, the Guyana government also announced a landmark plan to train at least 3,000 welders through internationally recognized institutions such as Guyana Oil and Gas Services and City and Guilds. Upon completion of these studies, these locals will be utilized in various parts of the oil and gas value chain.

“It is clear that Guyana’s petroleum industry is about more than extracting resources, it is about building a sustainable future led by our people. Our local content legislation already lays the foundation for Guyanese to thrive in 40 job categories, but we are taking it further,” Minister Bharat said, adding, “Guyana is on an unprecedented growth path and we are ensuring that every citizen benefits from this prosperity.