SBM Offshore, guided by CEO Øivind Tangen, is redefining sustainable oil and gas operations in Guyana. As Guyana emerges as a global energy powerhouse, SBM Offshore has strategically tailored its operations to support efficient oil production plus positive local impact.
“Sustainability is not just a part of our approach…it’s at the core of how we do business here and globally,” Tangen asserted.
Local Farms and Reduced Imports SBM Offshore Guyana’s sustainable initiatives extend beyond oil and gas operations. Among the ventures are flourishing collaborations with the local community at the Plympton Farm Project. SBM Offshore also supported the Hubu Aqua Farm agri project.
In 2020, the company partnered with a local farmer and the catering company Newrest, to launch the Plympton Farm project. This project provides reliable supplies of fresh vegetables for the Liza Destiny Floating Production Storage and Offloading vessel (FPSO) and reduces food-import reliance for current and future vessels.
Then, in December 2021, SBM Offshore Guyana and Hubu Aqua Farms Inc. signed an agreement for financial support to farm premium shrimp and prawns in Guyana. This first-of-a-kind facility in the country features a hatchery with processing and manufacturing capabilities. Crucially, these projects reduce imports.
“Why import goods when they can be grown here?” Tangen asked. “We want to help Guyana stand on its own feet, using its natural resources and workforce.”
Plympton Farm is making a significant difference by cutting shipping emissions associated with imports, creating jobs, and fostering agricultural skills among locals. “It’s about creating a circular economy that keeps the benefits of oil within the community,” he explained. The CEO declared that the company is making a “true community investment” as part of a win-win approach in Guyana by fostering local agriculture, reducing import dependency, and strengthening local food security.
“It’s a long-term commitment. As Guyana’s oil and gas production grows, we want the community to grow with it,” he said.
Impactful Training
Training and local content are equally critical to SBM Offshore Guyana’s sustainable vision, the CEO affirmed. The company has collaborated with industry partners to set up the FacTor training center, which is dedicated to developing the local workforce’s oil and gas skills. FacTor prepares Guyanese workers for roles at SBM Offshore and lays the groundwork for a workforce with in-demand skills for the oil and gas industry worldwide.
By imparting technical skills that reach the highest global industry standards, SBM Offshore Guyana empowers locals to assume roles previously held by expatriates. “We are not just filling roles for the short term; we are building skills that last… giving them the expertise to drive this industry forward… Guyana’s workforce will be self-sufficient… able to participate in projects across the region, even beyond,” Tangen noted.
This approach has already paid off. Guyanese professionals now hold senior executive positions in the company’s local operations. The first local General Manager (GM), business and finance specialist Martin Cheong, took the reins in 2022. Cheong, a former Human Resources Manager at the GTM Group of Insurance Companies, has vast experience in finance and business support, including senior positions at the Guyana Telephone and Telegraph Company and the Bank of Nova Scotia.
Guyanese Onecia Johnson was the first local employee of SBM Offshore Guyana in the early days of the oil sector. As the Human Resources Manager, she plays a pivotal role in fostering programs that attract, train, and develop more local talent for the company.
Currently, the company employs 136 Guyanese onshore and 146 offshore. Additionally, SBM Offshore offers science, technology, engineering, and mathematics (STEM) scholarships for indigenous women at the University of Guyana, supporting the United Nations Sustainable Development Goals of Quality Education and Reduced Inequality.
Fast4Ward
The Fast4Ward program plays a crucial role in raising local oil and gas skills, which is a key component of SBM Offshore Guyana’s sustainable business strategy. It is a standardized method for constructing FPSOs that accelerates project timelines and enhances operational efficiency.
“Our Fast4Ward approach is about working smarter,” Tangen explained. “By using a standardized FPSO design, we can speed up production while reducing costs.”
This modular approach facilitates faster deployments and reduces environmental impact by cutting construction time and resources. Fast4Ward has proven highly effective in Guyana, where the company is responsible for several production vessels—the Liza Destiny, Liza Unity, Prosperity, One Guyana, and Jaguar FPSOs.
Tangen noted that these vessels benefit from continuous optimization that incorporates lessons learned from earlier projects.
Optimized Production
SBM Offshore’s commitment to efficiency includes optimized production. This involves continuous improvement through innovative techniques like debottlenecking, which maximizes production output while staying within safety standards.
“Optimization is at the heart of how we achieve high production levels… This approach lets us push the limits safely and responsibly, which is crucial in a high-stakes industry like this,” Tangen explained.
By relying on real data rather than conservative estimates, the company makes informed decisions on production capacity. This is especially relevant in Guyana, where rapid development timelines are essential to maintaining the momentum of the oil sector. Optimizing efficiency on each FPSO maximizes production while minimizing environmental risks.
Local Content and Supplier Engagement
SBM Offshore Guyana’s local content strategy extends to its supplier relationships. A prime example is its initiative to source steel from Guyanese suppliers.
“We see it as an investment in the local economy. We’re working with these suppliers to meet international standards, giving them a foothold in an industry that can be challenging to enter,” Tangen disclosed.
Through this partnership, the company helps local businesses meet stringent oil and gas standards, positioning them for future opportunities within and outside Guyana. The CEO acknowledged that working with local suppliers requires additional effort, including training and quality assurance. However, he believes that the long-term benefits justify meeting these challenges.
“This is about creating lasting value,” Tangen said. “By building capacity in the local supply chain, we’re not only meeting today’s needs but also preparing for the future.”
Guyana’s Lessons Shape Global Operations
Guyana’s distinct oil industry dynamics have influenced SBM’s strategies in other regions. Tangen credits Exxon’s rapid development timeline as a catalyst for SBM’s fast-paced operations, setting a benchmark that is now being applied worldwide.
“Guyana is a model for how quickly we can go from discovery to production,” he explained. “We’re taking the lessons we learn here and applying them globally.”
The Guyana model embodies a broader vision of efficiency and sustainability that can serve as a blueprint for other markets. “We see Guyana as a proving ground… The lessons we learn here are shaping our global perspective and helping us redefine what’s possible in oil and gas,” Tangen said.
Looking Ahead
SBM Offshore links its strategic vision for sustainable operations in Guyana to a broader strategy aimed at creating long-lasting positive impacts in oil-rich regions. Investing in people, industries, and communities underpins its operations in Guyana and strengthens its sustainable growth plan.
Tangen emphasized that SBM Offshore is determined to leave a positive and lasting legacy in Guyana, upheld by local training, community engagement, and efficient production methods. “Our focus is on creating value that extends beyond the lifespan of any single project,” he stated.
