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 FDS2, Constellation, 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 Whiptail, Pinktail, 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%).
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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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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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Trinidad and Tobago
TT Contractors Association president Glenn Mahabirsingh has a wishlist of three items for the construction industry: contractor registration and licensing; a joint public-private construction planning committee; and a foreign-currency mechanism for publicly funded construction projects.
Speaking at the TT Contractors’ Association 55th Anniversary and Contractor of the Year Awards on Saturday, Mahabirsingh said these recommendations would directly affect the efficient execution of state-financed projects.
“Now that we have new procurement legislation, the association will be renewing its efforts to have contractor licensing and registration become a reality. Contractor registration and licensing would protect individuals and businesses from losing their money to unscrupulous and unqualified contractor and ensure projects are completed safely and effectively.
“It would maintain fair competition; discourage unqualified or unlicensed people from entering the market; and provide the public with the added comfort of knowing that registered contractors would have the necessary bonds and insurances to protect against any liabilities.”
Mahabirsingh urged government to create a committee that brings all construction industry stakeholders together to share information, plan projects, resolve bottlenecks and brainstorm solutions to problems before they become a crisis or cause public outcry.
“We would also like to have a mechanism to facilitate the supply of foreign currency to execute state projects.
“The construction industry certainly welcomes the large number of projects announced in the 2023/204 budget, but to execute these projects in the timeliest and cost-effective way requires timely access to foreign exchange to take advantage of the best prices and better manage the new global supply-chain challenges.”
Mahabirsingh said while the association had been advocating for procurement reform for the last 55 years, it had been cautioned it may live to rue the proclamation of the legislation.
“That caution should remind all stakeholders that the work does not end with the act being proclaimed. We share a responsibility to ensure the goals and spirit of the act are achieved and that its provisions and regulations continue to be improved to the benefit of TT.”
He said contractors must meet the standards and requirements mandated in the act, and their actions, performance and decisions must stand up to scrutiny.
“Once we are providing goods, works or services involving the use of public money, this is fair and welcome scrutiny as we all seek to secure a sustainable future for our country and our children.”
He said the association was thrilled with Clause 27:1 of the act, which says that no later than six weeks after the approval of the national budget, the procuring entity must publish on its website or other electronic format, information on its planned procurement activity for the next 12 months.
He said this will allow contractors to decide what projects they should focus on, what technology or equipment they might need to acquire, and whether they had the right manpower. He said this information would be a win-win for the industry and the state in terms of competitive and efficient tendering.
Mahabirsingh applauded the procurement entities that have begun reporting, at the end of each quarter, all contracts awarded in the previous quarter. He said the association was also pleased to see more notices of public invitation to tender being advertised.
TT Contractors Association founder Emile Elias asked the board to advocate for a local content committee for the construction sector.
“I was asked to join a local content committee in 2003, but when I went I was shocked to learn they were only interested in the energy sector. To this day, you read in the newspaper, local content committee, energy sector, but what the heck happened to us? Why aren’t we part of the local content initiative?
“I want to ask the president to agitate for the creation of a similar committee by the government which would be a public-private initiative to identify ways in which we can improve local content for the local content industry.
“We need to see how we can create a local content atmosphere for the building contractors and professionals in our industry and give them preference, because every project that is built is an opportunity for national development.”
Feature speaker Mariano Browne asked if contractors could depend on government to be the main driver for growth in the industry moving forward.
“How do we balance growth in the economy, and how do we raise the tide only on the basis on what happens in the energy sector?
“We’re also dealing with a declining population, which will affect us in terms of the demand for housing.
“How do we deal with institutional deficiencies? How do we build managerial capacity, track record and skill sets into the local sector that allow us to export?”
Minister in the Ministry of Housing and Urban Development Adrian Leonce said his wish was for larger contractors to assist smaller contractors in navigating the structure of the industry.
He said larger contractors could be responsible for the country’s infrastructure under the Works and Transport Ministry, while the smaller contractors could assist his ministry in building houses under the Housing Development Corporation and the Land Settlement Agency.
Works and Transport Minister Rohan Sinanan said the construction industry will be very busy over the next few years.
“This year the government PSIP is close to $6.5 billion, added to which, we have off-budget financing that did not come into the PSIP, and then public-private budgets.
“If you add that to the PSIP, I estimate $15 billion in construction over the next year.
“The challenge to you, the contractors, will be how competitive you are to get into that role, because the government has done its part, even though we have some challenges in implementation.”
Sinanan said he was proud to hear of local contractors going abroad, to St Lucia and Guyana, to work, and encouraged more contractors to look at opportunities abroad.
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Jamaica
Jamaica Public Service Company Limited (JPS) is inviting applications for engineering, procurement and construction services of a 115 MW utility-scale solar plant, 171.5 MWh battery energy storage system and 12 MW wind plant at unspecified locations at unspecified locations in the Caribbean country.
Last week the country’s state-owned utility company JPS announced it is looking for applications for a range of auctioned solar, battery and wind projects.
Projects consist of a 115 MW utility-scale solar plant expected to produce 237.5 GWh per annum, more than three battery energy storage systems producing 1 to 50 MW – consisting of 171.5 MWh in total – at a minimum of three locations, and a 12 MW onshore wind facility to produce 35.7 GWh per annum, according to the tender documents.
The PV facility can have fixed or tracking structures.
The PV facility and two of the three battery energy storage systems are expected to start operating in the fourth quarter of 2026, while the third battery energy storage system is slated for commercialization for the third quarter of 2027 and the onshore wind project is tipped for the fourth quarter of 2027. Locations are yet to be finalized.
Energy produced by the projects will be sold and delivered to JPS on an energy tariff basis, JPS said. Procurements will be assessed on a levelized cost of electricity (LCOE) basis and should be “optimized” accordingly, the company said.
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