ExxonMobil’s spending on local content almost doubling annually since 2015
—Over 300 Guyanese companies on board
DPI, Guyana, Monday, July 30, 2019
ExxonMobil’s Senior Director of Public and Government Affairs, Deedra Moe has revealed that close to 500 companies are partnering with the company. In an interview with the Department of Public Information, Moe stated that in 2018 alone, 499 companies did business with ExxonMobil.
“We are continuing to look for ways to utilise local companies; that’s through partnerships, for example fabricating, rigging, a variety of different ways. We expect that to continue increasing over time,” she said.
According to the company official, more than $12 Billion (US$58M) has been spent using the services of local companies for 2018 thus far. Moe said, “So far, the first quarter for this year, it’s US$24M (over $5B) so almost half for this year. We are about a fourth of the way through the year. So, our spending from 2015 to 2016 has doubled, almost every year, so we are probably on track to do the same this year”
According to the Exxon Mobil official, the company’s spending on the services of local companies is made more significant by its “multiplier effect.” She noted, “That will increase over time as well. We are really in the early stages of moving forward as an industry. That is one project and one company but as the industry continues to grow, we expect that spending to increase and revenues will start to come in and over time that will grow.”
ExxonMobil is also assisting with training and offering support to the Centre for Local Business Development. This facility assists local companies and individuals to not only learn about the oil and gas industry but also to examine what kinds of activities will be needed and standards required.
Safety continues to be a priority according to Moe, “The centre also offers a lot of safety classes. Often, the companies that utilise many of our prime contractors, work very closely with local companies that they’re using. They help to mentor, steward, and ensure there is oversight in that area. I think everyone understands how important it is to be safe.”
The oil giant is also collaborating with the Environmental Protection Agency, Civil Defence Commission and other stakeholders as work on a National Oil Spill Plan nears completion. Demonstration exercises are continuously conducted within various coastal communities and along with the training fisherfolk, as first responders, Moe explained, “It’s just so people are aware of how that is done. They’ll have an opportunity to understand and become aware of how that works…they must feel secure knowing the plans is there; even though we feel it’s very unlikely that it will need to be implemented given all the protective measures and equipment we have in place.”
Dozens of companies are working with ExxonMobil in various fields. These include supplying rations and a variety of shore-based operations, essential to the oil and gas industry’s operations. The Coalition Government is also finalising a local content policy that will define how companies within the sector are expected to utilise local contents and resources in a variety of ways.