Building local capacity

THE EDITOR: News of the completion of the offshore platform by United Engineering Services Ltd (UESL) at its fabrication yard in Point Lisas was most welcomed. The client, DeNovo Energy Ltd, in announcing this remarked, "The Zandolie construction is a clear statement of DeNovo's to continuously build and utilise capability in-country."

Noble intent indeed as local capacity building has not been duly promoted by similar awards and confidence in our local companies’ competence. The energy sector, mainly oil, has been with us as the mainstay of the economy for well over a century, leaving us way behind even after such long history.

The fabrication industry here has the needed competence to service the sector almost completely but has been sidelined over foreign preferences. It is well known that many international oil companies have poor records of promoting local content and have been seen as utilising all types of excuses and tricks to award contracts to outsiders.

By contrast, our national energy companies do have excellent ratings for duly developing the country, as seen here by DeNovo. We recall the National Gas Company opting for local contractors in its onshore project in Guayaguayare in 2010 that required fabrication of ten kilometres of 48-inch pipeline through rough and rugged terrain in the forest, completed without incident.

The permanent local content committee of the Ministry of Energy must seek out the delinquent companies and make them known to the national community. Local content is a right. The benefits of sustainability, and moreso sustainable development, cannot be over-emphasised. It should extend to all aspects of national enterprise.

The news advised also that local Well Services Rig 110 will operate the drilling on the platform. We are aware that Tofco has been a pioneer in such construction over ten years ago, showing our known competence. The value of local content is more than meets the eye as profits stay here and further enhance the economy.

Minister of Energy Stuart Young quite rightly noted, "This is a proud moment for DeNovo and the country," as he commented on our fabrication competence.

It is to be expected that attention will be paid to future similar projects, especially with the procurement legislation, called the mother of local content, and clearly defining what is local content in it's preamble, as well as outlining projected interest of the country in procurement and disposal of public property.

Recently we read of Guyana’s collaboration with Ghana as partners in local content. Many wondered why not with TT. It may well be that we are seen as lagging in this respect.

Until we get seriously concerned about the role of local content, no one will see us as offering real or reliable support. Nigeria has ensured it's local content legislation is followed with a proper reporting agency.

The irony is that we have the personnel who are world-class on advising many countries, including Ghana, on the topic.

Oman uses the term "country value-ad" in place of local content, underlining the tremendous benefits.

Time to wake up and ensure due and capable local content – our right.

LENNOX SIRJUESINGH

former president

TT Local Content Chamber