A symbolic ‘steel strike’ ceremony was held today to commemorate the commencement of fabrication fixtures for Guyana’s 6th Floating Production, Storage and Offloading (FPSO) vessel – Jaguar.
The Jaguar FPSO is being constructed by SBM Offshore Guyana in Singapore.
However, three local companies – Zeco Group of Services, Industrial Fabrications (InFab), and Guyana Oil and Gas Support Services – will be producing fabrication fixtures for the FPSO.
SBM Offshore Guyana Country Manager, Martin Cheung said today’s ‘steel strike’ is a “significant milestone” for the country, as US oil giant ExxonMobil advances its sixth development project – Whiptail – in the Stabroek Block, offshore Guyana.
He said the steel strike is a direct reflection of SBM Offshore’s commitment to its local content objectives.
“Today’s gathering is yet another indication of our commitment to building local content and ensuring t hat Guyanese are positioned to play critical supporting roles for the growing oil and gas sector. This ceremony also signifies the capability of our local fabricators to continue providing essential steel structures for the FPSOs, demonstrating their ability to reach and maintain international standards of fabrication,” Cheung said.
He said SBM Offshore is pleased to be constructing the fifth FPSO, having already constructed four, and will continue to work with Guyanese companies to ensure their inclusion and benefit from the industry.
President of ExxonMobil Guyana, Alistair Routledge said the sixth Stabroek Block Project – Whiptail – brings total investments in the country’s Oil and Gas Sector to over US$55B.
He said projects continue to bring immense opportunities for Guyana and its people. But he said it doesn’t come cheap or easily.
“We can quite easily fabricate these components, these elements of these FPSOs in China, in Singapore, somewhere that would be lower cost and easier to do, but that would not be in the spirit of the partnership with the country, and the intent of building the capacity and ensuring that people in the country can truly benefit from the development of their natural resource,” the ExxonMobil Guyana President said.
He said the company will continue to create opportunities for Guyana as it advances development in the lucrative Stabroek Block.
Minister of Natural Resources, Vickram Bharrat applauded SBM Offshore and the other local companies for taking the bold but risky step, and expanding their operations to cater for developments in the budding Oil and Gas Sector.
While underscoring the importance of having foreign companies abide by Guyana’s Local Content Laws, Minister Bharrat said he was pleased that the local Private Sector has stepped up to the task, and is doing what is necessary to capitalize on the industry.
“I want to commend and to congratulate our local private sector, they have done a lot over a very short period of time. They have done a lot taking into consideration that this is a new sector to our country; they have done a lot taking into consideration it is a sector that requires a larger amount of capital and expertise to invest in. Nevertheless, they have answered the call, and today, we see three gentlemen, representing three local companies, who decided that they are going to invest, they are going to take the chance, and they want to be a part of the oil and gas sector,” Minister Bharrat said
The Jaguar FPSO, when completed and placed into operation, is expected to produce approximately 250,000 barrels of oil per day. First oil is expected in 2027.
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