Exxon contractor denies Guyanese suppliers on the other side
… He says that most of the pre-approved companies are local people
Kaieteur News – SBM Offshore, the Dutch flooring specialist and ExxonMobil Tier One contractor for several Stabroek Block Floating Production Storage and Unloading vessels, refutes claims of discrimination leveled against it, to say that a majority the companies that it leveled. has pre-approved for its next round of Guyanese-owned contracts.
The company had caught fire after a local businessman complained of being marginalized for inexperience in the supply of PPE such as safety vests, gloves and helmets.
According to SBM in a statement on Thursday, nearly 30 companies recently submitted Expressions of Interest (EOIs) for providing PPEs for the company’s operations in Guyana and that “of the companies selected for the next round by SBM Offshore, the majority were Guyanese owned, in whole or in part. ”
The company noted that “the bidding process involves the application of criteria which, among other factors, takes into account the information and supporting documentation provided” and that “this is essential to assess the bidders’ overall capabilities and to ensure that they meet the quality and standards required for the provision of services. “
As such, the company noted that it “routinely ensures that the bidding process is fair and fully transparent, in line with international best practice.”
According to SMB Offshore, it supports local business suppliers in all the locations where it operates worldwide and “in Guyana, we have been doing that across our operations, including using local suppliers for ship fabrication services, building construction and a range of supplies for our offshore activities, including partnerships with farmers and food suppliers. ”
Kaieteur News was recently informed that a local manufacturing company had submitted an Expression of Interest to supply PPM Offshore, with PPE and despite joining WW Grainger, an internationally recognized PPE supplier, the local company was still told it was not eligible to bid .
The Guyanese company, which was hopeful of gaining a foothold in the oil industry, was dismissed on the grounds that it had no experience of supplying PPE to the industry.
In an email viewed by Kaieteur News, SBM Offshore wrote to the businessman, “Dear (withheld on request for anonymity) Thank you for your email. We had to run our technical pre-selection among a significant number of suppliers and based on the feedback provided by your company, your company has not been approved for bidding for this tender. The immediate justification I received from the team was the lack of previous experience (s) in supplying PPE in the Oil and Gas industry and in Guyana. ”
Speaking to Kaieteur News, the medium-size manufacturer said it was quite shocking that after partnering with WW Grainger, Inc., an American industrial Fortune 500 supplier founded in 1927, he thought he would have been able to pre-qualify. The local company said it was flabbergasted to learn it could not tender for the contract because it had no experience. “How do you expect the little guy to benefit from the sector when he can be excluded for not having experience in a sector that is new to the country? How do you expect the little guy to get experience in the first place? We are told to prepare ourselves and form partnerships and invest our money but when we do, we close out because of inexperience. This needs to be addressed, ”the local company expressed.
One of the world’s leading energy attorneys, JJ Park said a year ago that the Production Sharing Agreement with the oil-block operator makes it almost impossible for Guyanese businessmen to compete with the rest of the world for contracts in their own backyard. Taking everything into account, Park said the Stabroek Block deal gets an F, as it provides no environment to create local choice at all.
Since then, this announcement has asked the local public relations firm, representing SBM to provide the exact number of companies that supplied expressions of interest to SBM Offshore and an analysis of those approved in advance. This includes a disaggregation showing which of the approved is wholly or partly owned by a Guyanese majority. The company has since committed itself to providing a response in due course.