Articles

$100m fisheries vessel not in use as skills unavailable

Guyana

A nearly $100m vessel for the fisheries department of the Ministry of Agriculture has not been in use since 2020 as the personnel needed are not available.

This was the explanation given by the Ministry of Agriculture in the 2022 Report of the Office of the Auditor General which was tabled in parliament two Mondays ago.

The audit office report said that a contract was awarded by the National Procurement and Tender Administration Board in December 2018 in the sum of $99.3m. Amounts totalling $98.5m were paid on the contract as at December 31, 2020 and the vessel was received in April 2020.

“…however, at the time of reporting it was not put into use”, the audit office said. When asked for an explanation, the Head of the Budget Agency said that the Fisheries Department has indicated that the marine vessel “has not been operationalized as yet due to the lack of skilled personnel”.

The audit office recommended that the ministry take steps to recruit the relevant personnel.

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Poor quality works done on schools under Region Four

Guyana

Several schools built with funds from Region Four have shown severe defects according to the Auditor General’s report for 2022 which was laid in the National Assembly on  Monday.

The report said that a contract for construction of the Vryheid’s Lust South Nursery School was awarded on May 10, 2022 by the National Procurement and Tender Administration Board (NPTAB) in the sum of $31m.

The contract was signed on June 2nd 2022 with a start date of June 10, 2022 and a completion date of December 23, 2022. The full amount was paid to the contractor.

 

Physical verification on July 27, 2023 showed that the works were substantially completed but defective and poor quality works were in evidence.

Areas on the ceiling showed visible signs of moisture in the ceiling, there was “shoddy” painting and poor work around window sills prior to painting.

The head of the budget agency said that corrective works would be done.

The audit office recommended that the regional administration should carefully inspect all completed works and should not accept poor quality and sub-standard work.

Similarly, a contract for the construction of the Haslington Nursery School was awarded on May 10th 2022 by NPTAB in the sum of $26m. The contract was signed on June 2, 2022 with a commencement date of June 10, 2022 and a completion date of 23rd December, 2022. As at December 31st, 2022 the full amount had been paid to the contractor.

Physical verification on July 27, 2023 showed that works were substantially completed but there was poor-quality work.

Again, the ceiling showed signs of moisture, there was shoddy painting and poor work on the window sills.

A contract for the construction of a new wing at Diamond Secondary School was awarded by the NPTAB in the sum of $69.8m. The contract was sealed on June 2nd, 2022 with a start date of June 10, 2022 and completion date of November 20222. At December 31st, amounts totalling $62.8m had been paid to the contractor.

The report said that physical verification on July 28th, 2023 revealed that the works were incomplete and the contractor was not on site. It was observed that electrical, furnishing, plumbing and painting works were all incomplete. The contractual completion date was November 30, 2022.  At July 28th, 2023, eight months beyond the date, the works remain incomplete and there has been no approved extension of time.  The head of the budget agency said that works are currently ongoing. The Office of the Auditor General’s response was that the regional administration should ensure that all works are carefully inspected.

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Saipem scores $1.9 billion contract wins offshore Guyana and Brazil

Guyana

Italy’s engineering, drilling, and construction services provider Saipem has tucked under its belt two new offshore contracts worth approximately $1.9 billion for work with ExxonMobil’s subsidiary ExxonMobil Guyana Limited and Equinor. As a result, the Italian player will carry out operations for the U.S. oil major in Guyana while the assignment with the Norwegian state-owned energy giant is in Brazil.

According to Saipem, the first contract has been awarded for the proposed Whiptail oilfield development, which is the sixth project located in the Stabroek block offshore Guyana, at a water depth of approximately 2,000 meters. ExxonMobil is working with the government of Guyana to secure regulatory approvals for this project. Based on the new contract award, the Italian giant’s scope of work for the Whiptail project covers the design, fabrication, and installation of subsea structures, risers, flowlines, and umbilicals for a large subsea production facility.

Furthermore, Saipem will perform operations using its vessels FDS2Constellation, and Castorone. The company’s Guyana Offshore Construction Facility located at the Port of Georgetown, will be deployed as a key fabrication site for the firm’s execution model, enhancing a sustainable steady growth in the country. This contract win will allow the Italian player to begin some limited activities, such as detailed engineering, and procurement, subject to the necessary government approvals, the project sanction by ExxonMobil Guyana Limited and its Stabroek block coventurers, and an authorization to proceed with the final phase.

The Whiptail project will enable the development of the WhiptailPinktail, and Tilapia fields, along with potential additional resources, if determined to be feasible and economically viable. The current development plans for the project entail drilling via drillships to produce oil from approximately 40 – 65 production and injection wells. The project is expected to come online between 4Q 2027 and 2Q 2028 with an expected field life of at least twenty years.

Recently, SBM Offshore got its hands on a contract to perform front end engineering and design (FEED) for an FPSO vessel, which is destined to work on ExxonMobil’s sixth deepwater oil development project on the Stabroek block. This will be the fifth FPSO built by the Dutch player for operations in Guyana.

Based on ExxonMobil’s plans, six FPSOs with a gross production capacity of more than 1.2 million barrels of oil per day are expected to be online on the Stabroek block by the end of 2027, with the potential for up to ten FPSOs to develop the estimated gross discovered recoverable resources of more than 11 billion barrels of oil equivalent.

The Stabroek block covers 6.6 million acres (26,800 square kilometers) and is operated by ExxonMobil’s affiliate Esso Exploration and Production Guyana with a 45% interest. The company’s partners in the block are Hess Guyana Exploration (30%) and CNOOC Petroleum Guyana (25%).

On the other hand, Saipem’s second contract award, secured with Equinor, is for the Raia project, which entails the development of a pre-salt gas and condensate field in the Campos Basin, located about 200 km offshore the state of Rio de Janeiro in Brazil.

The Italian firm’s scope of work encompasses the offshore transport and installation of a subsea gas export line and associated equipment in water depths of around 2,900 meters, as well as the horizontal drilling activities for the shore approach. Saipem will deploy its pipelaying vessel Castorone for the installation works.

The company believes that this project will enable it to contribute to the realization of one of the most important gas development projects in Brazil, which could represent 15% of the total domestic demand of the country. The extracted gas will be transported through pipelines installed by the Italian player for approximately 200 km from the field to a gas receiving facility to be built in Cabiúnas, in the city of Macaé in the State of Rio de Janeiro.

Equinor submitted the declarations of commerciality and plans of development for two natural gas fields – Raia Manta and Raia Pintada – in the BM-C-33 concession located in Brazil’s Campos Basin to Agência Nacional de Petróleo, Gás Natural e Biocombustíveis (ANP) in September 2023. The Norwegian giant as the operator holds a 35% stake in this block while Repsol Sinopec Brasil and Petrobras hold 35 and 30% interest, respectively.

The selected development concept comprises an FPSO capable of processing gas and oil/condensate to meet sales specifications without further onshore processing. The FPSO will have a production capacity of 16 million cubic meters of gas per day with expected average exports of 14 million cubic meters of gas per day. The start-up of the project is anticipated in 2028. This is expected to be Brazil’s first project to treat the gas offshore and be connected to the national grid without further onshore processing.

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UTech, BSJ signs MOU for research services in trade industry

Jamaica

The University of Technology, Jamaica inked an agreement with Bureau of Standards Jamaica (BSJ) for the procurement of research services geared towards a Regulatory Impact Assessment of the country’s trade sector.

The agreement came into effect on Friday, December 15, 2023, following the signing of a memorandum of understanding (MOU) by executive director, Bureau of Standards Jamaica, Dr Velton Gooden and president, University of Technology, Jamaica, Dr Kevin Brown at the university’s Papine campus.

Under the MOU, UTech, Jamaica has been contracted by the BSJ on behalf of the Ministry of Industry, Investment and Commerce (MIIC) for a one-year period, to support the work of four multi-disciplinary committees (MDCs) of the Bureau’s Technical Regulations Unit, tasked with coordinating a technical regulations regime for the country’s trade industry within departments and agencies of Government.

The MDCs consist of individuals from various fields within the trade industry including: the medical, electrical, food processing, manufacturing and labelling sectors. UTech, Jamaica, through its Faculty of Science and Sport, will work with the MDCs to conduct empirical studies that will aid the Government in its thrust to implement technical trade regulations. This is a move deemed necessary by the MIIC, as Jamaica, being a signatory to the World Trade Organization’s Technical Barriers to Trade Agreement, seeks to transition from the current compulsory regulations to ones which meet international best practices.

The scope of engagement for the university will see both academic staff and students from the Faculty of Science and Sport working to create the pre-planning and literature review for the Regulatory Impact Assessment, developing data collection instrument and testing tools, collecting data, providing data analysis, preparing reports and submitting recommendations to the BSJ that will inform the process of this industry shift for the Government as well for as local and international trade partners.

In welcoming the collaboration, UTech, Jamaica President Dr Brown noted that the initiative presents the opportunity for the institution to act on its mission of providing solutions for government and industries. “What today’s signing symbolises is what we are here to do which is to support Jamaica, to develop and grow and achieve vision 2023. I am really pleased to see this initiative start and I hope you will see UTech as your natural home because I know that the bureau does some interesting technical work in trying to keep Jamaica safe and to ensure that the industry is regulated. We have the talent here to compliment what you are doing.”

Bureau Standards Jamaica Executive Director Dr Gooden noted, “This contract, this project is a very important one as we transition from the old regime where we used to basically facilitate trade through standards which are now voluntary, to technical regulations.” Dr Gooden added, “We are building out what we call the national quality infrastructure to allow Jamaica to be able to trade more competitively on the global trade.”

He further noted that putting such an infrastructure in place will make room for a framework inclusive of “updated standards and being able to have technical regulations that govern trading and does not prove to be a barrier for our trading partners.”

With regards to possibilities for future collaborations with UTech, Jamaica, Dr Gooden noted, “one of our resolves is to try to get academia more involved in building out the national quality infrastructure.” This he stated noting that “some of the students coming from academia are not as prepared as they could be for the industrial world and therefore, there is another layer of training that has to happen in house before they are ready.” Given this observation, Dr Gooden stated, “If we could partner in a way that there is an understanding of what is required and they come to us more ready for the industrial work world, that would go a far way.”

Julia Bonner Douett, director, Standards Division at the BSJ, acknowledged the significance of having the resourcefulness and expertise of UTech, Ja’s Faculty of Science and Sport in the process of what will create a paradigm shift within Jamaica’s trade industry. “Where standards are to be used as mandatory tools, we want to know whether the standards will have impact on government policy…whether these standards will result in the change that the government wants. This is done by these research studies that we are going to embark on with UTech,” Douett noted.

Dean, Faculty of Science and Sport, Professor Kamilah Hylton expressed gratitude to the BSJ for considering UTech, Jamaica to undertake the Regulatory Impact Assessment on behalf of the MIIC to redefine and enhance the nation’s trade sector. “We are really happy that we are moving in this direction. Data-based decision-making is the future…we are certainly heading in the right direction, and we are confident that we have the expertise here at UTech, Jamaica and we have a mission to impact Jamaica and so, engaging in collaboration of this nature really puts us in the right direction,” noted Professor Hylton.

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Department of Labor Secures Approval for Government Building Ownership

United States Virgin Islands

The Virgin Islands Department of Labor (VIDOL) is excited to announce a significant milestone with the 35th Legislature approving the measure that paves the way to move forward with acquiring ownership of its current building on St. Thomas. This move, transitioning the location into a government-owned building, stands as a crucial development among the prevailing financial challenges faced by the Government of the Virgin Islands.

The Department of Labor extends appreciation to the senators of the 35th Legislature for their steadfast dedication and pivotal role in facilitating this strategic purchase. Special acknowledgment goes to Sen. Angel L. Bolques Jr., the sponsor of the bill, who demonstrated a clear understanding of its importance and substantial benefits.

“We commend all of the senators of the 35th Legislature for their thorough due diligence. Their careful consideration reflects their commitment to the well-being of our community,” said Labor Commissioner Gary Molloy.

Also, Commissioner Molloy, on behalf of VIDOL, expresses sincere gratitude for the cooperation, patience and support received from the landlords and their families throughout the entire process.

This successful acquisition of ownership, transforming the location into a government building, underscores the department’s commitment to a stable future. The achievement is a result of collaborative efforts from the senators, Office of the Governor, Office of Management and Budget, Department of Property and Procurement, Department of Finance, and the entire Virgin Islands Department of Labor team.

 

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