Promoting Smart Partnerships
The oil and gas industry is helping to expand Guyana’s business ecosystem. As local and international businesses establish new commercial ties to meet the industry’s demand, the Centre plays a pivotal role in promoting profitable relationships through “smart partnerships.” The Centre’s “smart partnership” approach counsels Guyanese companies as they pursue equitable, transparent and mutually beneficial partnerships.
Smart partnerships take many forms including joint ventures (JVs) or subcontracting. JVs occur when Guyanese and/or international companies take an equity stake in a newly created company established to service the oil and gas industry and related businesses. Subcontractors play a significant role in the supply chain and are also primary examples of smart partnerships. Guyanese companies subcontracting grow their expertise, learn international standards and build a track record of service excellence. Many Guyanese companies that started as subcontractors only two years ago have gone on to receive prime contracts.
Another form of smart partnership is becoming an “authorized supplier” of parts, machinery or equipment. In this case a Guyanese company works with and invests in meeting the rigorous standards of an international supplier. The international supplier provides training and support to its Guyanese partners to meet these standards. Building authorized suppliers means that long-term operations and maintenance for vital components of offshore oil production are serviced directly in Guyana.
Over the last two years, more than 70 JVs and authorized suppliers have been established in Guyana. The Centre’s smart partnership approach ensures that Guyanese businesses benefit hand-in-hand from offshore oil and gas opportunities while maximizing skills and technology development.