ExxonMobil benefiting from local supply chain, says Routledge

GEORGETOWN, Guyana:

THE PRESIDENT of ExxonMobil Guyana, Alistair Routledge, says the establishment of a local supply chain to support Guyana’s rapidly advancing oil and gas sector was not only important to improve the efficiency of the company’s operations here, but to also bolster economic activities within the country.

In his address at the Guyana Energy Conference and Supply Chain Expo, currently under way, Routledge said that during the early stages of the company’s operations in Guyana, it was forced to depend heavily on the supply chain that existed in Trinidad and Tobago.

“We benefited from the industry and the supply chain that existed in Trinidad when we started our operations here in Guyana. It was vital. Guyana didn’t have the sort of facilities needed to support drilling activities, to support the movement of production operations, and all the equipment that is needed, the chemicals and everything else. So, we were highly dependent on Trinidad, but we made the decision early on with the government that we needed also to establish that supply chain here in Guyana, largely in the long term because it is more efficient,” Routledge said.

He added that while the move augurs well for the operators in the Stabroek Block, it also supported the country’s transformational agenda.

Routledge said while the establishment of key infrastructure will benefit the oil and gas industry in the short term, the improved infrastructure will also benefit the wider economy, and such is the case of Guyana Shore Base.

“So, we did that first of all with the Guyana Shore Base, which now supports the operations of six deep-water drill ships, but also three FPSOs and, indeed, could support six, seven, eight floating production storage and offloading facilities in the future. It has become a very effective, strategic hub for our offshore operations and a vital conduit for what we need to run those operations,” the ExxonMobil Guyana president said.

Alluding to the Vreed-en-Hoop Shore Base, Routledge said the oil company will continue to invest in more projects in Guyana, and support activities that benefit both the industry and the people of the country.

He said the company is simultaneously working closely with the government to build the country’s local content.

The Exxon official noted that since 2017, the Centre for Local Business Development has been helping local businesses and entrepreneurs to develop and reach industry standards, so as to capitalise on opportunities that exist within the oil and gas industry.

The Local Content Act, which was passed in 2021, has also established the framework for local businesses to expand and extend their reach.

He said to date, more than 1,500 businesses are supporting the oil and gas industry in Guyana.

“Now, I understand that more than 6,200 Guyanese are working in support of the oil and gas industry. More than 1,500 local businesses are benefiting from this opportunity, and we have spent more than US$1.5 billion with those companies. And this is just the beginning,” Routledge said.

Additionally, the ExxonMobil Guyana president said more than US$3.6 billion has been injected into the Natural Resources Fund from revenues generated from the production and sale of oil.

He told those present at the conference that the partnership between Guyana and Exxon and its co-venturers remains strong, and will continue to prove beneficial to the people of Guyana.

CMC