Trinidad and Tobago Companies Flooding Guyana’s Oil Sector
More T&T companies continue to flood Guyana’s oil sector
Oct 06, 2021 News
– As country remains without local content policy, legislation
By Kiana Wilburg
Kaieteur News – With ExxonMobil’s intent on the rapid development of the Stabroek Block oil resources, more Trinidadian companies with years of experience in the industry and access to capital continue to flood these shores to compete with Guyanese firms for the explosion of opportunities to come.
Natural Resources Minister, Vickram Bharrat
In fact, several Trinidadian companies recently applied to the Environmental Protection Agency (EPA) for permission to set up a local base. These companies include Weatherford, United Independent Petroleum Marketing Company Limited, Vista Trading and Logistics, and Non Destructive Testers Limited (NDTL).
In the case of Weatherford, it is regarded in Trinidad as one of the leading wellbore and production solutions companies and hopes to provide Guyana with a range of servicing and maintenance work for the oil sector. Weatherford, in its project summary to the Environmental Protection Agency, noted that it intends to establish a state-of-the-art facility at Tract G4-G5, Land of Canaan, East Bank Demerara. The facility would be used to conduct servicing and maintenance work, equipment testing, pressure testing, and the general maintenance (washing, painting) of the tools and equipment until they are transported offshore. In addition, the facility will store tools and equipment.
In a recently published notice, the EPA said it has screened Weatherford’s application and determined that it will not be harmful to the environment, as such, an Environmental Impact Assessment (EIA) is not necessary. The review process for approval is still ongoing.
With the rapid development of the oil sector, there is sure to be an increase in vehicular traffic and an even greater need for petroleum-related products. Acutely aware of this is United Independent Petroleum Marketing Company Limited (Unipet), hence the Trinidadian company is poised to bring a gas station and bulk fuel storage facility here. Unipet said the investment totals US$4.9 million and would create approximately 60 jobs for locals. In its project summary submitted to the EPA, Unipet notes that the multi-purpose fuel facility would be constructed at Pant “P,, Land of Canaan, East Bank Demerara. The property will house a bulk fuel storage facility with gantry loading, office buildings, and other ancillary infrastructure. It will also have a gas station and convenience store. The overall life of the project is 30 years, with the first two years devoted to construction and commissioning.
One of NDTL’s workers tending to a piece of equipment at its Trinidad base.
This news agency understands that the United Independent Petroleum Marketing Company Limited is a duly registered external company in Guyana with a head office in Trinidad and Tobago. Its core business is in the downstream liquid petroleum industry, and it has been providing complementary energy services and convenience services since 1997.
The EPA has since disclosed that this project is also exempt from the requirement of an Environmental Impact Assessment (EIA) as it has determined that it will not significantly affect the environment. The regulator was keen to note that this exemption does not mean that the project has been approved.
With respect to Vista Trading and Logistics (Guyana) Inc., this Trinidadian firm has applied to the EPA for approval to construct a warehouse to bag and distribute oil-well cement and other gas-related equipment at a proposed site at Le Ressouvenir on the East Coast of Demerara.
In the case of Non Destructive Testers Limited (NDTL), this Trinidadian company, which was established in 1990 to provide a range of inspection, testing, and heat treatment services to T&T’s oil industry, is making moves to establish a strong presence here. The company, which registered its operations in Guyana in June 2018, has applied to the Environmental Protection Agency for approval to construct a massive storage facility that spans 112,774 sq. ft. at Lots 1-2 Coverden, East Bank Demerara.
According to the project documents seen by Kaieteur News, the property which will house its offices and be its base of operation here is located at least 100ft away from the roadway and has no immediate neighbours or residencies. NDTL also intends to apply for approval for this property to operate and store Industrial x-ray and Gamma Ray equipment, chemicals, consumables, additional radiographic equipment, magnetic particle and liquid dye penetrant equipment.
Kaieteur News understands that NDTL intends to raise 100 percent of its own capital for the project. In the first year, it anticipates sales to be about US$200 million, with an approximately 5- to 10-percent growth rate in the second and third years of business.
As Trinidadian companies continue to position themselves for procurement opportunities in Guyana’s oil sector as well as for the benefits of spill-off effects, local companies have lamented the need for a local content policy and accompanying legislation. Just recently, the Georgetown Chamber of Commerce and Industry (GCCI) urged the government to have this state of affairs addressed as significant opportunities continue to escape the grasp of local companies. The Chamber is of the view that the policy and law are crucial to ensuring locals are given first preference in the provision of goods and services.
Natural Resources Minister Vickram Bharrat has since informed the media that local content remains a matter of priority for the government, adding that he is hopeful the draft legislation would be tabled by year’s end.
