MODEC, the Japanese contractor responsible for constructing the remarkable ‘Errea Wittu’ vessel for ExxonMobil’s Uaru project, is currently seeking proficient local companies to provide a range of support services. Among these services, the development of a comprehensive Local Content Master Plan and a well crafted Local Content Annual Plan take precedence.
In its recently issued Request for Information (RFI), MODEC explicitly specified its requirements for deliverables, encompassing the Local Content Master Plan, Employment Sub-Plan, Procurement Sub-Plan, Capacity Development Sub-Plan, and the pivotal 2024 Local Content Annual Plan.
Unquestionably, the Local Content Master Plan and the 2024 Local Content Annual Plan hold significance among the array of services MODEC is seeking, as they signify MODEC’s intent to conform to Guyana’s local content requirements.
The comprehensive five-year Local Content Master Plan serves as a blueprint, providing both the minister and the secretariat with invaluable insight into the projected activities of the contractor, sub-contractor, or licensee in terms of employment, procurement, and capacity development of local suppliers. Enforced by the Local Content Act, this master plan also ensures that Guyanese suppliers in the nation’s petroleum sector receive timely payment within thirty (30) to forty-five (45) days upon receipt of accurate invoices.
Equally, Local Content Annual Plans assume a vital role in the oil and gas sector, compelling companies engaged in exploration and production activities to prioritize local involvement. Mandated by Guyana’s 2021 Local Content Act, contractors, sub-contractors, and licensees operating within the country’s petroleum sector are obliged to meticulously outline their strategies for procurement, employment, and capacity development in these annual plans.
Notably, the government recently granted approval for Annual Plans submitted by esteemed companies such as SBM Offshore’s local subsidiary, Guyana Deepwater Operations, as well as notable entities like CNOOC Petroleum Guyana Limited, Bourbon Guyana Incorporated, Guyana Shore Base Incorporated, Noble Drilling Guyana Incorporated, SLB Guyana, Stena Carron Drilling Limited, Tenaris Guyana Incorporated, Tullow Guyana B.V., Weatherford Trinidad Limited (Guyana), Tiger Rental, Sustainable Energy Solutions, and OEG Energy Inc.
MODEC’s search for expert companies to fulfill these crucial roles for the ‘Errea Wittu’ vessel underscores its commitment to maximizing local involvement, employment, and capacity development. With the government’s recent approval of Annual Plans for various esteemed entities, the stage is set for fostering a thriving ecosystem where Guyanese suppliers and stakeholders in the petroleum industry can thrive.