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Metro de Santo Domingo

A Game Changer Celebrates 10 Years 2019 marks 10 years of Metro de Santo Domingo, the most extensive metro system in the Central America region.

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CONTENTS

COVER STORY

6 Metro de Santo Domingo

A Game Changer Celebrates 10 Years Metro de Santo Domingo, the most extensive metro system in the Central America region.

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[ LATIN AMERICAS ] BUSINESS EXCELLENCE

BE [ LATIN AMERICAS ]

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Metro de Santiago

Where the City meets The metro as a socio-economic melting pot that offers beyond a means of transportation.

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Jamaica Public Service Company

Powering Jamaica’s future The Jamaica Public Service Company Ltd. (JPS), has been Jamaica’s primary energy company for over 90 years.

36

PetroPerú’s Talara Refinery Showing that expansion can be sustainable The Talara Oil Refinery is Peru’s second largest oil refinery.

74 46

Codelco

The “Super Cave” mine project As the biggest copper mine in the world, the vital statistics of Chuquicamata are quite staggering.

The Guyana Oil Company Leading Guyana’s Transition to New Energy Guyana, the small country on the north coast of South America, is a country like no other on the continent.

BUSINESS EXCELLENCE [ LATIN AMERICAS ]

5

Metro de San

A GAME CHANGER CE

2019 marks 10 years of Metro de S metro system in the Ce RESEARCH BY

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[ JULY 2019 ] BUSINESS EXCELLENCE

Fe

nto Domingo

ELEBRATES 10 YEARS

Santo Domingo, the most extensive entral America region.

ernando Ruiz BUSINESS EXCELLENCE [ JULY 2019 ]

7

019 marks 10 years of Metro de Santo Domingo, the most extensive metro system in the Central America region.

During this time, the metro transported in excess of 500 million passengers around the city, with each year showing significant passenger growth. Remarkably, ten years after its opening, a metro ticket still costs the same as it did the day it opened: RD$20 (around forty cents in US dollars).

Very often, small countries like the Dominican Republic don’t always have the scale to achieve world class infrastructure, which makes the arrival of Metro de Santo Domingo all the more impressive. Furthermore, in 2018, a new set of wagons was added to cater for the increasing demand. Manuel Saleta, director OPRET, the parent company of Metro de Santo Domingo, recently sat down with Business Excellence to tell us more.

2

Background The Metro Santo Domingo story starts with OPRET (Oficina Para El Reordenamiento del Transporte), its parent company. OPRET was established by government decree in 2005.

Its mandate was to plan, design, construct, implement, operate and maintain the lines of the future Mass Rapid Transit System (SITRAM) in conjunction with existing means of transport in the greater Santo Domingo area.

Mr. Saleta tells us: “One of the first steps taken by OPRET to develop this task was the

“One of the first steps taken by OPRET to develop this task was the planning of a metro line running from north to south of the capital”

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[ JULY 2019 ] BUSINESS EXCELLENCE

METRO DE SANTO DOMINGO

“The incorporation of eighteen new wagons to the network shows that we continue to expand in quantity and quality” planning of a metro line running from north to south of the capital, serving as the backbone of the transport system to be implemented in Santo Domingo. The studies, designs and plans by OPRET, resulted in Line 1 of the metro, with its 16 stations, being delivered in February 2009, with a total of 16 stations and about 14 and a half kilometres of track.”

OPRET and the Dominican government didn’t stop there. Buoyed by the success of the first line, and seeing the difference it made to the city in just a couple of short years, both parties began looking into the construction of a second metro line in the capital. As Mr. Saleta says: “the planned route of the line ran from west to east of the urban and interurban environment of the city, linking the satellite populations of Los Alcarrizos and San Luis.”

The first section of the line, with a total length of 12.85km and 14 stations, has been in operation since April 2013. A cable car of 5km in track length was inaugurated in May 2018, and was soon followed by Line 2B in August that year. Line 2B has 3.4km of track and introduces four new stations to the network.

Mr. Saleta notes: “the incorporation of eighteen new wagons to the network shows that we continue to expand in quantity and quality, substantially increasing the daily number of users using the mass transit network.”

Key Statistics When asked about the figures behind the metro system, Mr. Saleta is quick to rattle off an

BUSINESS EXCELLENCE [ JULY 2019 ]

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100% ON TIME WITH SECURITY AND QUALITY Servicios de Ingeniería, S.A. (SERVINCA) was founded on December 29, 1979. SERVINCA is a 100% Dominican firm whose main office is located in Santo Domingo, a National District dedicated to offering services of Engineering, Procurement, Construction, Manufacturing, Assembly, Testing, Commissioning, Operation and maintenance of projects in the various sectors of construction at the national level and in the process of international projection.

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SERVINCA has participated in the development and construction of numerous projects in the power generation, Infrastructure and Transport (Coal / Gas / Diesel Plants, Transmission Lines, Distribution and Substations) sectors, in Renewable projects (Mini Hydroelectric, Hydroelectric, Parks Wind farms, Photovoltaic Parks and Biomass) and in civil works projects in different sectors of the Dominican industry and Haiti.

1. Central Termoeléctrica Punta Catalina 2X376mw

Our vast experience over the course of 39 years has positioned us in a highly qualified option that responds to its delivery commitments on time with the highest standards of quality, safety and environment.

7. Subestaciones Y Plantas De Generación De Energía Metro De Santo Domingo

2. Mina De Oro Puebli Viejo Dominicana Corporation Barrick Gold 3. Aes Andres 4. Aes Los Mina 5. Presa De Montegrande 6. Proyecto Parque Eólico Matafonfoo 30Mw/ Proyecto Parque Fotovoltaico Mata Palma 50Mw

8. Proyecto Metro De Santo Domingo Línea 1 9. Epc Mini Central Hidroelectrica En Planta Aes Itabo 481Kw

SERVINCA Headquarter – No. 737, Francisco Prats Ramírez, st, El Millón, Sto. Dgo., Dominican Republic.

Phone: (809) 363-0928 / 0925 / 0926 | Fax: (809) 363-0570

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9 E-mail: servinca@servinca.com.do/cjcabrera@servinca.com.do/ccabrera@servinca.com.do www.servinca.com.do | RNC 1-01-08699-8

SUBSTATION PARADISE 40MVA • Supply and Assembly of Power Transformer 138kV-69 Delta 12.5kV, 40 / 56MVA, 3Ø, 3 poles. Class OA / FA, 60HZ, 350-110kV. BIL, ABB. • Supply and Assembly of 138kV Power Transformer, Two (2) Cores, 150-300: 3.0A • Supply and Assembly of Hot Galvanized Metallic Structures for 138kV and 15kV gantries.

• Supply and assembly of 120kV lightning arresters, 700kV BIL. • Supply and Assembly of 139kV disconnector blade, parallel type, Three (3) poles, 1200A, Vertical Mounting, Operated in group.

• Supply and Assembly of Switch 138kV, 1200ª, 3Ø, 60HZ, SF6, Tank type Dead.

• Supply and Assembly of Medium Voltage (MT) Cells, Metalclad Type. 12.5kV located in Control room.

• Supply and assembly of control panel, protection and signaling of transformer with TPU 2000R relay • Supply and assembly of control panel, protection and signaling equipment 138kV. • Supply and Assembly of battery rechargerrectifier 400A-H, 125vdc Output 120 / 208V. • Supply and Assembly of lead-acid battery bank, 20 cells of 6vcd 200A-H, including terminals and mounting structures.

• Supply and Assembly of auxiliary service boards of alternating and direct current, 120 / 208vac 500ª.

• Supply and assembly of auxiliary services dry transformer, 150KVA, 12.5 / 7.2Kv, 120 / 208kV.

SERVINCA Headquarter – No. 737, Francisco Prats Ramírez, st, El Millón, Sto. Dgo., Dominican Republic.

Phone: (809) 363-0928 / 0925 / 0926 | Fax: (809) 363-0570

INTERCONNECTION PACKAGE: • MT and BT wiring, connections and terminations.

• Measurement, communications between equipment.

• Laying of Santa Isabela airline (Supply and Assembly of 800mts in 138kV, including metal towers, insulators, conductors et • Laying, connection and installation of trays and supports for 20 KV buried conductor for direct use of section 400 MM2 (1) of AL, in a configuration of two conductors per phase.

• Supply and Assembly of Power Transformer 32/40 MVA-138kV in primary winding and 21kV in the secondary winding ONAN / ONAF, OLTC in AT, Copper immersed in oil. Temperature elevation tests, measurement of audible noise, atmospheric impulse and factory supervision for assembly and commissioning.

• Supply and Assembly of three (3) fields of SF6 138kV in the existing part and two (2) in the new S / E encapsulated in gas type EXK-0 • Supply and assembly of four (4) 21kV fields.

Medium voltage (MT) equipment including protections.

• Supply and Assembly of auxiliary service transformer.

• Supply and assembly of control and protection for the fields and automation system.

• Supply and assembly of 120kV lightning arresters, 700kV BIL. • Supply , laying and connection of power cables from the existing S/ E to the new S/ E approximately 200mts of high voltage cables with their cups and accessories. Structures with conventional equipment for assembly.

• Supply and Assembly of auxiliary service boards • Supply and assembly of 21kV cables.

• Civil work.

E-mail: servinca@servinca.com.do/cjcabrera@servinca.com.do/ccabrera@servinca.com.do www.servinca.com.do | RNC 1-01-08699-8

PROJECT: METRO SANTO DOMINGO LÍNEA I

EXPANSION OF ISABELA SUBSTATION 32MVA

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Supply and assembly of three-pole disconnector blade. Central opening, Horizontal mounting, nominal voltage 138kV, 60Hz, NBA 1650kV, Rated current 1,299 A, Short-time current 31.5kA. Motorized operation 220Vac.

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Supply and assembly of 3 lightning arresters-auto metal-oxide station-class valves for a 138kV system.

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Unipolar Power Switch 1250A (Line).

TC Current Transformer.

•

Power transformer TP.

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Control panel and line protection for 138kV.

•

Accessories and Equipment Materials

SERVINCA Headquarter – No. 737, Francisco Prats Ramírez, st, El Millón, Sto. Dgo., Dominican Republic.

Phone: (809) 363-0928 / 0925 / 0926 | Fax: (809) 363-0570

E-mail: servinca@servinca.com.do/cjcabrera@servinca.com.do/ccabrera@servinca.com.do www.servinca.com.do | RNC 1-01-08699-8

impressive array of numbers and statistics: “Line 1 was built with an investment of $800 million. and executed within 3 years and counted with the collaboration of national and international companies for the construction of the 16 stations, tunnels and viaducts. Likewise, advanced railway systems were installed and 19 trains of 3 wagons were acquired, with a capacity of 547 passengers each. The current line capacity is 13,128 passengers per hour in each direction.”

“Line 2A was built with an investment of 650 million dollars and executed within 3 years.

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As with line 1, it counted on the collaboration of national and international companies for the construction of the civil work of the 14 stations and tunnels. Finally, in August 2018, Line 2B was inaugurated, with 3.4 km in length, connecting this time to the National District with the same heart of Santo Domingo Este and a total investment of 350 million dollars.”

What a Difference a Train Makes By their nature, metro systems are transformative in practical and environmental terms, and Metro

METRO DE SANTO DOMINGO

de Santo Domingo is no different. In fact, being a relatively small city in international terms may make its metro all the more transformative.

To begin with, there has been the economic impact; Mr. Saleta says that, “at present, the operation of the system has about 3,500 jobs.

About 1800 direct, occupied by OPRET staff and the rest indirectly in security personnel, maintenance companies and other suppliers of goods and services.”

Next, there is the indisputable positive environmental impact. He tells us: “In 2009,

the year of opening to the public of Line 1, the Santo Domingo Metro transported nearly 11 million passengers. After 10 years of operation and the growth of the network, in 2018, 89 million passengers were transported” He conservatively notes that this would have incurred 3 million extra bus journeys, but by our calculations, this assumes that everyone on the metro would have otherwise used the bus. Instead, it has unquestionably removed many single driver vehicles from Santo Domingo’s streets.

BUSINESS EXCELLENCE [ JULY 2019 ]

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VEGAZO INGENIEROS ELECTROMECÁNICOS, SRL.

Especialistas en Sistemas Eléctricos y de Climatización

Electricidad: • Plantas eléctricas de emergencia • Distribución de energía • Controles digitales Mecánica: • Sistemas de climatización con agua helada o expansión directa • Sistemas de aire acondicionado de precisión • Ventilación mecánica • Sistema de extinción de incendios Descripción de la compañía Vegazo Ingenieros Electromecánicos SRL es una compañía dedicada al diseño e implementación de obras eléctricas y mecánicas para la industria y la construcción. Ofrecemos además servicios de mantenimiento preventivo y correctivo de sistemas electromecánicos. Podemos desarrollar: • Diseño, construcción y mantenimiento de sistemas eléctricos que incluyen alimentación de potencia, generadores de emergencia, paneles eléctricos, distribución de energía,

iluminación interna y externa, sistemas de aterrizaje, pararrayos, paneles de aislamiento, UPS, TVSS y controles digitales para integración de sistemas.

• Sistemas de climatización con agua helada o expansión directa que pueden ser de volumen variable o constante tanto en agua como en aire, o bien contar con control de humedad.

Podemos incluir además control de presión de zona climatizada, ventilación y extracción de aire.

• Sistemas de ahorro de energía mediante: recuperación de energía, monitoreo y control remoto de equipos de climatización, aplicación de productos químicos para mejorar la transferencia de calor, Ahorro de energía de iluminación tanto interior como exterior y uso de paneles solares.

• Suministro, instalación y mantenimiento de cámaras refrigeradas, fábricas de hielo.

809.255.1968 info@vegazo.com www.vegazo.com.do

BUSINESS EXCELLENCE [ JULY 2019 ]

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[ JULY 2019 ] BUSINESS EXCELLENCE

Your weekly digest of business news and views

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METRO DE SANTO DOMINGO

“So far there have been eighty-five visits, which have involved nearly nine thousand students, from schools and colleges, from all over the country”

The impact has even extended to the city’s culture. Metro de Santo Domingo has established the “Metro Culture” program, which looks to educate future generations about values, heritage protection and the transmission of knowledge of the integrated transport system. Mr. Saleta says: “We are building a “Metro Culture” understood as a model of social, educational and cultural management that produces transformations

towards a new citizen coexistence in harmony, good behavior, sense of belonging, solidarity and respect.

He adds: “So far there have been eightyfive visits, which have involved nearly nine thousand students, from schools and colleges, from all over the country. We have also received the visit of numerous international guests.

More than twenty-five cultural activities have been carried out, which directly impacted

BUSINESS EXCELLENCE [ JULY 2019 ]

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Did you know?

In 2019, Metro de Santo Domingo is expected to pass the

19 million

passenger mark.

By definition, that’s 19 million journeys which will have been made cheaper, easier, more sustainably and faster than was ever possible before.

“We’re defining which phases should be developed next.

We need to reevaluate the changes that occurred in the transport habits of the citizens of Gran Santo Domingo” approximately one million people, among users of the Santo Domingo Metro and visitors attracted by the activities.”

Partners and Suppliers With no previous experience of what was required to deliver a world-class metro system, OPRET had to turn to experts in the field. They turned to an old friend of Business Excellence, Metro de Madrid for assistance. Of them, Mr. Saleta says: “during the beginning of the project and during the development of engineering construction and

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start-up of lines 1 and 2A, Metro de Madrid contributed its knowledge, experience and work methodology to ensure the success of our project.”

He continues: “Of the strategic partners that have helped and continue to help the Santo Domingo Metro project is the French Development Agency (AFD). It has participated with the issuance of financing through the Ministry of Economy, Planning and Development for a part of the construction costs of Line 2B. The AFD continues to collaborate to achieve the objectives of OPRET.”

METRO DE SANTO DOMINGO

Other partners and suppliers which merit mention include those such as Servinca, Vegazo Ingenieros Electromecanicos and Siemens, all for engineering; ICAT is a local construction firm which excelled when called upon to build its first underground metro system; Alsom, the ever-reliable provider of metro carriages; and finally, Schaltbau Sepsa and Sofratesa for both the control systems and other complex technology required for a metro system to operate without any hitches.

transport habits of the citizens of Gran Santo Domingo,” he says.

What a massive change in transport habits that has been: In 2019, Metro de Santo Domingo is expected to pass the 19 million passenger mark. By definition, that’s 19 million journeys which will have been made cheaper, easier, more sustainably and faster than was ever possible before. Miss Solete says: “The subway of Santo Domingo is the backbone of the mobility of Greater Santo Domingo.” There is perhaps no more succinct way to describe what the metro means to this capital city.

Just the Beginning More development plans are afoot. Mr. Saleta tells us that when the master plan for the metro was first drawn up, it included 6 metro lines in total, only two of which have been developed so far, along with the cable transport project. “We’re defining which phases should be developed next. We need to reevaluate the changes that occurred in the

METRO DE SANTO DOMINGO

 info@metrosantodomingo.com @metrosandomingo www.metrosantodomingo.com

BUSINESS EXCELLENCE [ JULY 2019 ]

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WHERE THE CITY MEETS Metro de Santiago Guaripola Guachaca Dióscoro Rojas recently described “the Metro is the most democratic and republican place we have in Santiago” this statement best describes the metro as a socio-economic melting pot that offers beyond a means of transportations to this great city.

RESEARCH BY

Joseph Philips

BUSINESS EXCELLENCE [ LATIN AMERICAS ]

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hen Business Excellence first visited Metro de Santiago, nearly 6 years ago at the end of 2013, its management was about to implement a plan for infrastructure improvements in the network. This was to involve the purchase of new train carriages, the modernization of older trains (which were to be fitted with positioning systems, in-carriage screens and air conditioning) platform extensions and improvements in technology.

However, the highlight of the US$400 million investment was to be the construction

W

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of lines 3 and 6, totalling 37 kilometres of track and 28 stations. Maintaining the same standards across the extended and new lines would be a challenge - Metro de Santiago system is renowned for its low waiting time for passengers. We were looking forward to seeing how everything shaped out in the intervening eight years.

Lines 3 and 6 As its name suggests, Line 3 of the Metro de Santiago system has a history which extends

METRO DE SANTIAGO

“The highlight of the US$400 million investment was to be the construction of lines 3 and 6, totalling 37 kilometres of track and 28 stations”

beyond our 2013 article. It was first conceived over 30 years ago but faced significant delays, largely due to the 1985 earthquake that shook Chile’s capital city. Its arrival is not only a valuable addition to the metro system - halving the journey times for many commuters in the city - but also, in some ways, symbolic: a sign that Santiago gets things done.

The metro features the same attention to design that commuters had become accustomed to with the existing lines. The passageways at the Universidad de Chile

BUSINESS EXCELLENCE [ LATIN AMERICAS ]

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METRO DE SANTIAGO station, resembling space-age tunnels are a particular highlight. No sooner had it arrived, in January 2019, than extensions were already planned. Such is the speed of change with this metro. It is being extended to the western outskirts of the city, adding three new stations and a total of 3.8 kilometres of track.

Line 6 was delivered in November 2017, and serves 10 stations between Los Leones and Cerrillos. It stands as a testament to Metro Santiago’s commitment to modernity and technology: For example, it has forsaken traditional manned ticket offices for easy to use automatic machine (with a range of international language options to cater for visitors). The ticketing hall isn’t the only part of this line which is unmanned: Its sleek new trains are also all driverless.

Line 6 also takes advantage of the most modern rolling stock in Latin America, known

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[ LATIN AMERICAS ] BUSINESS EXCELLENCE

Our products and services: • Engineering • 1D and 3D simulation • Supply • Mechanical and Electrical assembly • Automation and control • Testing and commissioning

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Among other worldwide projects, in Chile we developed the Forced Ventilation System for the subway lines 3 and 6 of Metro de Santiago. This Project included the design and engineering of the system, 1D and 3D simulation, manufacturing and supply of the equipment and the mechanical and electrical assembly in the tunnel. We also

implemented the control, logic and automation of the ventilation system, including the integration with other systems, tests, pre-commissioning and commissioning. Additionally, we are currently developing and performing the Predictive, Preventive and Corrective Maintenances for the Forced Ventilation System of this Project.

The Forced Ventilation System of lines 3 and 6 is composed by 34 Axial Fans (model KTF2500) with a flow rate of 150 m3/s, sound attenuators of 45DB and 75 DB, ventilation grids, power and control panels, 2 servers, 9 Jet Fans (5 model KJF 1120 and 4 KJF 630) and air quality control system in tunnel and stations. The ventilation system acts based on different operation modes, designed accordingly to the state of air quality, delivering an automated system.

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BUSINESS EXCELLENCE [ LATIN AMERICAS ]

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IMPROVING QUALITY OF LIFE

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ARCADIS CHILE

Arcadis Chile participated in the design of the largest expansion in the history of the Santiago Metro With almost three million passengers per day, the Santiago de Chile Metro is already one of the largest in South America.

In recent years, Metro de Santiago S.A has developed an important growth plan for its transport network which currently serves a growing population of more than five million people. The plan is to increase the network capacity by approximately 40%, through two new lines whose objectives are to decongest traffic in the city.

Since 2012 Arcadis has collaborated in the design engineering of project 63 (lines 6 and 3), and in two extensions of lines. Forming a Consortium with WorleyParsons, Arcadis participated in the basic engineering and environmental studies of the new Lines 3 and 6. Subsequently, and as part of the same Consortium, Arcadis was dedicated

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[ LATIN AMERICAS ] BUSINESS EXCELLENCE

to the engineering and supervision designs during its construction of the Line 3 in all its stages, including its subsequent extension, as well as the extension of Line 2.

For the development of the Metro projects, several professionals were included with experience in the design of underground works (tunnels), architecture, hydraulic, structural, mechanical and electrical works, programming and construction costs, among other specialties.

In this way, Arcadis has participated in the Detail Engineering of Tunnels, Fires and Galleries, in the Station Detail Engineering and in the Supervisions during the construction of the last Metro SA expansion projects. info.cl@arcadis.cl www.arcadis.cl

METRO DE SANTIAGO

“Chileans have already taken to calling 2026, ‘the year of the metro’ because three new lines - lines 7,8 and 9 - will be delivered that year” as AS-2014 (Acero Santiago 2014). The carriages also include ramps for wheelchair access and platform safety barriers for the safety of waiting passengers. In total, the line crosses about 15 kilometres and serves an estimated 1.1 million people. The 20 minutes that it takes to get from one end of the line to the other gives a strong indication of the efficiency of this operation.

2026: The Year of the Metro Chileans have already taken to calling 2026, ‘the year of the metro’ because three new

lines - lines 7,8 and 9 - will be delivered that year, in addition to extensions to lines 2,3 and 4. Line 7 will cross a total of 25 kilometres and will have 19 stations, running between Brazil and Estoril; line 8 will cross 20 kilometres and will have 14 stations, running between Renca and Estoril; finally, line 9, running north to south, will have 12 new stations spread across 17 kilometres.

Combined, the three new lines of the metro are expected to directly benefit between 3 and 4 million people in the city on a daily basis, in some cases halving the time required for their commute. All will feature the same technology

BUSINESS EXCELLENCE [ LATIN AMERICAS ]

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EXPERTS IN

UNDERGROUND WORKS

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GEOCONTROL develops services in Chile since 1998 and has carried out many civil underground projects for METRO DE SANTIAGO: Detailed Design for Line 6; Inspection of the State and Conservation Plan for Lines 1 and 2; Technical assistance during construction of Line 3 (Sections 1&2) and Line 6 (Sections 3&4); Basic Design for the extension of Line 2; Basic Design for

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[ LATIN AMERICAS ] BUSINESS EXCELLENCE

Line 7; Feasibility Study for Lines 8, 9 and 4 (Ext). GEOCONTROL is currently developing the Detailed Design for Section A Line 7, which will be constructed by means of TBM’s.

With its vast experience designing underground infrastructures, GEOCONTROL’s designs ensures to meet client’s expectation at all stages of an underground infrastructure, delivering, for the construction phase, security, tight deadlines and reduced costs and, for the operation phase, high functionality. www.geocontrols.es

METRO DE SANTIAGO

CEO - Ruben Alvarado

“Combined, Lines 7,8 and 9 will constitute an investment of over US$5 billion and dramatically enhance mobility in the city� that was seen with line 6 as well as introducing some new innovations. The extensions of line 2 (four stations and 5.2 kilometres) line 3 (three stations and 3.8 kilometres) and line 4 (three stations and 4.2 kilometres) will also include an updating of the technology in those stations and trains.

Combined, Lines 7,8 and 9 will constitute an investment of over US$5 billion and dramatically enhance mobility in the city, bringing several underserved areas of Santiago into the metro network. This

includes the popular Brazil neighbourhood with its restaurants and bars which until now has relied on over ground transport despite having a massive student population.

Furthermore, the lines set a new bar for metro systems globally. All three will be driverless, electric with unmanned, self-service stations creating an unprecedented level of efficiency.

The show must go on It would be understandable if the aforementioned grand plans disrupted the

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cultural agenda of the metro in some way over the next few years. However, that hasn’t, and won’t be the case with Metro de Santiago.

Santiago is a city of museums - the square at Quinta Normal has five alone - and the metro is very much an extension of that culture.

In addition to the permanent artworks, it continues its ongoing support of local artistic and cultural exhibits.

An example of this commitment to the arts can be seen in the June 2019 installation of a permanent exhibit of indigenous Chilean artist,

Antonio Paillafil. This latest art installation, under the title, “Los pasos de la vida por la Tierra” (the steps of life along the earth”) can be seen on Line 6 - the most modern of all lines. It’s also indicative of how Santiago de Chile (in general, and not just the metro) seamlessly mixes ancient culture with the state of the art.

Partners and Suppliers The almost continuous development and improvements at Metro de Santiago have

“The almost continuous development and improvements at Metro de Santiago have enabled it to maintain a team of partners and suppliers that it can depend on to deliver on time and on budget.”

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enabled it to maintain a team of partners and suppliers that it can depend on to deliver on time and on budget. First and foremost, these are the architects and engineers behind the extensions and new lines. PLH Arkitekter, a Danish firm, was the architectural team behind the new stations, while the extensive engineering works will be carried out by Geocontrol Chile, Arcadis Chile SpA, IDOM, Tapel Williamette. and Thales International.

Elsewhere, Colas Rail, the British firm and one of the oldest in its area, will provide much of the railway infrastructure (and has consulted with Metro de Santiago about the specific nature of the carriages required), Thysseenkrupp Elevadores S.A. will kit out each station with its elevators and escalators, Lamp Lighting will take care of lighting and much of the electrics, while Fischer Polska will take care of building logistics and materials.

A Path to Santiago’s Future When the latest phase of modernization to Metro de Santiago has been completed in 2026, the city that it serves will be just 16 years from celebrating its 500th birthday.

Few cities in the world can claim to have preserved their heritage as well as Santiago while continuously looking forward. The metro is a vivid illustration of this. Having seen the progress it made in the 8 years since our last visit, we’re already eager to see how its future evolves.

METRO DE SANTIAGO

 22937 2000  info@metro.cl @metrodesantiago www.metro.cl

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SHOWING THAT EXPANSION CAN BE SUSTAINABLE PetroPerú’s Talara Refinery The Talara Oil Refinery, located in a desert district a little over 1,000km from Lima, is Peru’s second largest oil refinery RESEARCH BY

Joseph Philips

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he Talara Oil Refinery, located in a desert district a little over 1,000km from Lima, is Peru’s second largest oil refinery. Since the refinery was first established, at the outset of the 20th century, it has played a central role in Peru’s domestic energy scene. It has an output of around 65,000 barrels per day (bpd), making it one of the largest in the Petroperú portfolio. In addition, it produces domestic LPG, motor gasoline, solvents, A-1 turbo, diesel, kerosene, industrial oils and even asphalt.

T

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You could be forgiven for believing that Government-owned Petroperú might be satisfied with such an impressive setup, but recognizing the potential of the refinery, it has undertaken a massive upgrade of the refinery. This will not only modernize the Talara Refinery, making it one of the most sophisticated of its kind in South America, but also increase its oil producing capacity to around 95,000 barrels per day - pushing it very close to the top spot in Peru.

PETROPERÚ’S TALARA REFINERY

“We decided to take a closer look at the modernization of Talara to understand the complexities involved in bringing a project of this size to fruition”

We decided to take a closer look at the modernization of Talara to understand the complexities involved in bringing a project of this size to fruition.

Background The history of Talara goes all the way back to 1917, a little over a hundred years ago, when the refinery was first developed by the Standard Oil Company. By 1965, a series of upgrades had brought capacity at the refinery to 65,000 barrels per day, where it

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CIME COMERCIAL CIME COMERCIAL is a Peruvian company specialized in data center, air conditioning, renewable energy, ups, ac / dc energy, energy efficiency, cabinets and shelters.

CIME COMERCIAL S.A. implemented an HVAC project in thirteen buildings of the Talara Refinery (all located near the sea and ten of them intended to house electrical equipment associated with the Plant) to achieve adequate conditions of temperature, humidity, air cleaning and overpressure in e-rooms and rooms of various use.

For this, chilled water systems were installed in eight buildings and direct expansion units in the remaining five.

The installed equipment was: sixteen AERMEC (Italy) Chillers condensed by water, twenty nine chilled water AHU and nine Rooftop direct expansion units, with an installed capacity of 7.537 KW. Due to the severity of the operating conditions, the project also included: - Chemical filtration units, CAMFIL brand, to treat fresh air to be entered in six of the buildings.

- Blast valves, TEMET brand, for all incoming and outgoing air from the perimeter of the four buildings located in explosive zone, in order to avoid the entrance of the shock wave of an eventual external explosion.

- Epoxy protection for the coils of all AHUs and rooftops units. www.cime.com.pe

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PETROPERÚ’S TALARA REFINERY

“To provide some indication of the scale of the Talara project, the US$2.7 billion was the largest turnkey project worldwide This all funded by the company’s own finances” has remained ever since. At the beginning of this decade, however, plans were announced which would raise its capacity by nearly 50% a hugely ambitious expansion in any industry.

In May 2014, after a public tender process, Técnicas Reunidas, S.A. (TRSA), a Spanish general contractor was awarded the Engineering, Procurement and Construction (EPC) contract for the refinery modernisation.

TRSA’s previous awarded tenders have included oil refineries in destinations as diverse as Oman, Algeria, Venezuela and its

clients include some of the largest private and government-owned oil and gas companies in the world.

To provide some indication of the scale of the Talara project, the US$2.7 billion was the largest turnkey project worldwide This all funded by the company’s own finances.

An additional US$765 million will come from several private companies which will be involved in the construction and operation of the new service units at the refinery. The additional funds generated by sales of output

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“An additional US$765 million will come from several private companies” - both domestic and international sales were enough to convince management at Petroperú that it was a worthwhile investment.

The brief for TRSA at Talara is extensive.

It includes the expansion and modification of Talara’s existing process units (primary distillation unit, catalytic cracking complex and vacuum distillation unit), the construction of new processing units (diesel hydrotreating, cracked naphtha hydrotreating, vacuum

MR & ASOCIADOS S.A.C Your geotechnics partner MR & ASOCIADOS S.A.C. (MRA) is a Peruvian company with more than 54 years of experience in Civil Engineering Consulting service.

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PETROPERÚ’S TALARA REFINERY

distillation, naphtha catalytic reforming, amine and cogeneration, and the expansion and upgrade of the utilities and offsites facilities.

Environmental Impact The modernization of Talara was driven as much by the Peruvian government desire to bring it to the highest environmental standards, as merely expansion for its own sake. Peru has introduced a range of new

environmental requirements (with a maximum sulphur content of 50 ppm) at competitive prices. This is a considerable reduction on the current figure, which has been estimated at close to 1,800 ppm.

As many readers will also be aware, operating an oil and gas refinery requires extraordinary amounts of water. On this measure as well, Talara is already showing outstanding results.

Petroperú’s 2017 sustainability report shows

“The modernization of Talara was driven as much by the Peruvian government desire to bring it to the highest environmental standards, as merely expansion for its own sake”

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“After 100 years of delivering fuel to domestic and international clients, it would have been easy for the Peruvian government to continue on the same trajectory”

that the plant used nearly 820,000 cubic metres of desalinated water in the previous year - effectively negating the requirement for it to draw water from existing reservoirs and creating a sustainable solution for the years ahead.

Social Impact As mentioned at the outset of this document, Talara is located in a desert area, making it a locality characterized by high unemployment.

To tackle this issue, Petroperú has committed to ensuring that 70% of the people involved in the construction and operation of the refinery are locals (referred to as ‘talareños’), many of whom are underskilled. The upskilling and employment of these individuals will continue to make an invaluable contribution to the region.

Talara has also benefited - and will continue to benefit - from a range of social programs implemented by Petroperú to improve the lives of Peruvians in a variety of ways. These include educational, safety and health programs. For example, by 2017, 63,000 educational kits have been distributed, 110 students have been awarded scholarships, more than 200 women had taken part in its female leadership program, and over 3,000 participants in an ongoing human rights education program.

Partners and Suppliers While Técnicas Reunidas, S.A. was awarded the tender for the Talara modernization project, several other firms, both Peruvian and international, will contribute to Talara and many of Petroperú’s other projects. The case of Peruvian general contractor Graña y Montero (GYM S.A.) is indicative. It won a $352

million contract to provide services at Talara, to look after construction, procurement and engineering services at Talara.

GYM will be assisted in its endeavors by Cobra Peru, who are also responsible for the large desalination operations at Talara, JJC Schrader Camargo Peru and Kaefer Kostec, two large Peruvian engineering firms. The considerable task of providing electrics to the refinery is being taken care of by CIME Commercial, a Peruvian electrics firm. Finally, U-Peru SAC will provide onand off-site accomodation for the 3,000-strong workforce at the refinery. Another key partner is MR & Asociados S.A.C; a specialist consulting and Geotechnical Engineering Studies company with more than 50 years of experience.

Becoming a standard bearer The scale of the Talara project gives some indication, not only of the ambition of the Peruvian government and Petroperú, but also of its commitment to sustainability. After 100 years of delivering fuel to domestic and international clients, it would have been easy for the Peruvian government to continue on the same trajectory. Instead, it has looked to slash the ppc of its output, and becoming a standard bearer in the process.

PETROPERÚ’S TALARA REFINERY

 (511) 614-5000  info@petroperu.com.pe @petroperu_sa www.petroperu.com.pe

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Codelco’s Ch

THE “SUPER CAV

As the biggest copper mine in the world, the vital statistics a modernization of the mine had begun, it was already pr mineral resources total RESEARCH BY

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E

huquicamata

VE� MINE PROJECT

s of Chuquicamata are quite staggering; at the time, before roducing 366,000 tons of fine copper per year and proven ling 4,200 million tons.

Eurides lopes BUSINESS EXCELLENCE [ LATIN AMERICAS ]

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CODELCO’S CHUQUICAMATA

hen Business Excellence first visited Codelco’s Chuquicamata mine all the way back in 2013, what stuck out most was the sheer scale of the operations.

As the biggest copper mine in the world, the vital statistics of Chuquicamata are quite staggering; at the time, before a modernization of the mine had begun, it was already producing 366,000 tons of fine copper per year and proven mineral resources totaling 4,200 million tons.

As the most important asset of mining firm of its parent company Codelco, not to mention arguably the most important in Chile, Chuquicamata is constantly being updated, modernized and improved to cement its standing as world number one. A relatively recent example of this came in 2012, when Codelco announced that it was to convert

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measures at Chuquicamata. After almost six years since our last visit, we decided to return to Codelco’s most important mine and see what its next phase of development has in store.

A complete overhaul After over 100 years in its current guise as an open pit mine, located 2,870 metres above sea-level, the development work which began in 2016 to change the mine to an underground facility, was nothing short of revolutionary. The major shift at Chuquicamata is the highlight of a major overhaul at Codelco’s operations around Chile, which for which investment funds of nearly US$40 billion have been earmarked over the next decade.

The shift to underground mining will not just offset the risk of dwindling profitable

“As the most important asset of mining firm of its parent company Codelco, not to mention arguably the most important in Chile” Chuquicamata from an open cast mine into an underground facility.

On September 9, 2018, the last blast at the bottom of the open pit operation occurred, after 103 years of the mine. However, “Chuqui,” as the locals call it, wasn’t closing up. Rather, it was just closing the page at the end of the first incredible chapter. Codelco also announced that it had awarded a $50m contract to Rockwell Automation to take charge of the transformation of the mine into, what industry onlookers are calling ‘a super-cave` mine.

The estimated cost of this transformation is estimated at around US$5.5 billion, putting it among the top twenty largest capital investments announced by any company in the world in 2012. Nothing is done in half

ore, but also open up new untapped resources for the mine. Codelco’s geology experts forecast that the change will give the mine at least a further 50 years of operations, bringing operations to at least 2058. Once the mine is fully converted to an underground operation, it is expected to have an annual production of 320,000 tons of fine copper and a further 15,000 tons of molybdenum.

This first phase involved the construction of four tunnels, two for ventilation, one for access and one for transport totallin about 20 km in length whilst the second and main phase of the project, involved the construction of no less than 100 km of tunnels and drifts. These will be used for production, material transport,

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“As a 100% government-owned entity, Codelco gives all of its profits back to the government, which then distributes it to the public budget”

ventilation levels and auxiliary facilities such as crusher stations.

Importantly, the project has the full backing of the Chilean government, whose Finance Minister, Felipe Larrain, recently told gathered press on the announcement of the mine’s transformation: “This is a show of the confidence we have in the company and in the importance of these resources for Codelco to be able to complete its structural reform programme.” Copper has played a crucial role

in the development of Chile and it appears that role will continue.

Furthermore, as a 100% government-owned entity, Codelco gives all of its profits back to the government, which then distributes it to the public budget. Contributing around 40% of these profits, Chuquicamata is clearly important on a social level, contributing jobs directly and indirectly, but also paying for schools, education, infrastructure, health and other social projects by driving money into the public coffers.

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CODELCO’S CHUQUICAMATA

Over 1,200 Codelco employees have been deployed on this project. These include around 150 new staff employed specifically to work on the expansion project. The company has already established a training and induction program for 150 people, out of which 102 were selected for high-skilled roles at the mine. The training received by the selected individuals will ensure that they possess the technical aspects of the roles required in the mine.

Partners and Suppliers Since we last spoke with Codelco, not only have its operations grown, so too has its network of partners and suppliers. Rockwell Automation has been awarded a $50 million contract to supply a “number of important” systems for the Chuquicamata underground mine including will implement a blockcaving extraction process for the asset life time expansion and improvement of the

“Since we last spoke with Codelco, not only have its operations grown, so too has its network of partners and suppliers.”

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Its mission is to provide a technical, efficient, timely and innovative response and is in a position to offer a comprehensive service that meets the ever-increasing and permanent needs of the market.

It is formed by professionals and specialized technicians, with experience in the area of Large Mining, Assembly, Execution of Works, Consultancies, Technical Inspections, Non-Destructive Testing (NDT).

CODELCO’S CHUQUICAMATA

“Over 1,200 Codelco employees have been deployed on this project. These include around 150 new staff employed specifically to work on the expansion project” asset’s utilization. In Chile, the switchover to underground mining involved the assistance of Derk, Ingeniería y Geología Ltda. specialist mining consultants, based in Santiago de Chile. Redco Mining Consultants will also be involved in the extremely extensive block cave engineering and construction effort, to get the operation up and running.

In terms of the infrastructure and capital equipment involved inside the mines, Sandvik Mining supplied eight Loaders LH621 (21 ton) that will operate throughout an integrated

automation system in the new Chuquicamata Underground Mine, Sandvik will also automate and digitalise the underground operations supplying digital technologies such as AutoMine and OptiMine solutions as well and Howden, a Scottish firm with a 165-year pedigree in mining, was awarded the installation of the main fans of the Chuquicamata underground project in Chile.

Other key contributors include Sika Chile has been awarded with 70% of the total concrete admixture business technologies

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CODELCO’S CHUQUICAMATA

“Few mines in the world have experienced such a dramatic transformation, let alone at this scale.

Who’s to say how many more chapters this incredible mine will write” for the underground infrastructure. S-INTEC an established provider of ​​ Industrial Technical Inspections.

Beginning Chiqui’s 2nd century The story of Chuquicamata is an incredible one. It’s not just a prolonging of the mine’s life – and by extension, continuing to generate employment in the region – it’s also a case of going deeper into the mine for a level of efficiency which hasn’t existed till now. A good metric of this can be seen in the estimation that the exploited minerals will account for around 60% of the total mined over the last 90 years.

In our first article on Chuquicamata back in 2013, we noted that ‘bigger is better,’ in reference to the enormous scale of the mine in Chile’s abundant northern territory. To that list, we now add ‘brave’ as the mine makes a brave new beginning. Few mines in the world have experienced such a dramatic transformation, let alone at this scale. Who’s to say how many more chapters this incredible mine will write.

CODELCO’S CHUQUICAMATA

 +56 2 26903000  info@Codelco.com @codelcochilie www.Codelco.com

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POWERING JAMAICA’S FUTURE Jamaica Public Service Company The Jamaica Public Service Company Ltd. (JPS), has been Jamaica’s primary energy company for over 90 years. In that time, it has expanded from a modest energy network with just a few thousand customers, to one capable of serving the country’s roughly 2.8 million residents.

RESEARCH BY

Wisner Gomes

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JAMAICA PUBLIC SERVICE COMPANY

he Jamaica Public Service Company Ltd. (JPS), has been Jamaica’s primary energy company for over 90 years. In that time, it has expanded from a modest energy network with just a few thousand customers, to one capable of serving the country’s roughly 2.8 million residents. With a current customer base of just over 650,000 accounts, the company is the sole distributor of electricity in Jamaica and has a generating capacity of about 620 Megawatts (MW), provided by a combination of steam, gas turbines, combined cycle, diesel, windfarm and hydroelectric technologies. The Company also purchases electricity from four Independent Power Producers (IPPs).

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“Expanding and improving JPS’ generation, as well as its transmission and distribution capabilities, has not been without challenges.”

Expanding and improving JPS’ generation, as well as its transmission and distribution capabilities, has not been without challenges.

An island’s electricity system, such as that of Jamaica, is inherently more complicated than that of a mainland system of comparable size. Certainly one of the major considerations at this point is the focus on increasing fuel diversity and the proper integration of renewables.

At present, Jamaica ranks favourably among countries with high levels of renewable penetration - a testament to the investments that have been made by the Company and the Ministry of Energy over the years. One of those available renewable resources is

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JAMAICA PUBLIC SERVICE COMPANY

“Hunts Bay B6 and all the Old Harbour Bay units are scheduled to be retired by the end of 2020,”

wind - which constantly blows over Jamaica, sometimes affectionately referred to by residents as the ‘Undertaker Breeze’ and the ‘Doctor Breeze’. This wind resource will be among the key components necessary, to move Jamaica away from the market risk that comes with importing heavy fuel oil and diesel, towards a future of increased energy security. This is all part of the Caribbean Community’s (CARICOM) energy policy, which factors in energy security, mitigating the effects of ongoing climate volatility, as

well as improving environmental standards across the board. Achieving increased fuel diversity involves continuing evolution of all the energy companies in Jamaica, and not least of them - JPS. CEO Emmanuel DaRosa explains that one of the Company’s key priorities is to find a solution for every Jamaican “through expanding the options available to our customers. That requires an ability to integrate renewables in an effective way and to partner with diverse and innovative providers.”

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He further adds that “One of the facilitators of renewable integration is the procurement of gas”.

Finding the right balance is a delicate act for JPS. While their earlier projects depended on heavy fuel, they’re constantly seeking more environmentally-friendly alternatives, while looking to balance this with the economic imperative. At the moment 22% of the electricity JPS supplies is by gas, however, the plan has that increased to around 50% by 2020. This they hope to achieve by

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afullswitchover from oil fuel, HFO to LNG, this program will go beyond 2020. It will decommission all its plants that run on heavy fuel oil, HFO whilst constantly increasing its use of LNG. “Hunts Bay B6 and all the Old Harbour Bay units are scheduled to be retired by the end of 2020,” said Winsome Callum, director of communications at JPS.“However, the Rockfort units are to be retired at a later date, subject to the finalised Integrated Resource Plan, which is being developed by the Ministry of Energy,”

JAMAICA PUBLIC SERVICE COMPANY

“The evolution to renewables at JPS is already having an effect on the culture at the company”

Another example is, the country has a small but growing amount of distribution-connected solar. Present estimates indicate that they’ll have a total of about 110MW of renewables by 2017, with about 80MW of that currently under construction. And then there’s the heat-rate workhorse, which runs on distillate.

As more renewable units are integrated into the system, however, it has become clear to management at JPS, that the Company alone cannot provide the full capacity of electricity required, due to its intermittency rates.

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inspired Your weekly digest of business news and views

www.bus-ex.com

JAMAICA PUBLIC SERVICE COMPANY

“This network has been established over its 90-year history and it continues to be fostered. The list includes both local and international companies”

JPS will, therefore, introduce gas to its combined cycle plant at the Bogue Facility in Montego Bay, Jamaica. This particular project is driven by two motives: to enable the long term reduction in the cost of electricity and pass those reductions on to JPS customers; but also to provide the flexibility that comes with gas, to the system, in order to integrate the 80MW of new renewable units. An IRP (Integrated Resource Plan) is to get underway soon. This IRP is looking at the dynamics of system stability with those intermittent resources and what the business will require to integrate them.

What’s evident from looking at JPS is an ongoing effort on their part to improve on their energy resources and feed that back to its customers. In 2019, the company expects to have some additional gas plants operating, and the government is looking to pursue additional resources through a 37MW solicitation for renewables. When all of the planned resources come online in 2019, management will have a better overview of the dynamics and flexibility of the JPS system and where it stands in relation to the Jamaican Energy Policy, which is aiming for 20% renewables by 2030, but given the

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inroads that JPS is making in this evolution, some are speculating that the target could be reset to 30%. For example, in 2016 alone, the country’s’ renewable energy capacity is set to double.

The evolution to renewables at JPS is already having an effect on the culture at the company: the oil-is-the-only-possibility mentality that once existed at energy firms has been replaced with a philosophy which is more open to change. This is having an effect on the bottom line already: in 2014, profits at JPS were up to $23 from $9 million the previous year. This result was achieved through

improvements in operations and is doubly impressive given the continuous slide of the Jamaican dollar against its US counterpart: the currency has experienced a slide of over 30% against the greenback since 2011.

Strategic Partnerships Naturally, JPS cannot achieve all of this without a sophisticated support network of local and international partners. This network has been established over its 90-year history and it continues to be fostered. The list includes both local and international companies. Its local partners have been crucial to optimizing

“It’s encouraging to see that in the midst of such fast-paced change that attention to CSR clearly hasn’t diminished at JPS”

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the company’s value chain in Jamaica. The scale of the JPS operation means that services such as haulage, professional services and chemical sales can all be outsourced to local companies, in turn contributing to stable employment on the island.

There’s also a sizeable list of international partners on the JPS books, which not only provides the firm with access to economies of scale but also exposure to the best equipment, know-how and advances in the industry as they occur. Energy companies need to keep abreast of changes arguably more than companies of other industries.

Its international partners provide it with gas turbines, pumps and controls, consulting services, as well as parts and maintenance.

These partners include Quantex International Limited, GE International Parts, IMCA Jamaica Ltd, Corrosion Control Limited and Wood Group/Ethos Energy.

American based New Fortress is also supplying 60,000 t/yr of LNG from another FSRU for JPSCo’s 120MW Bogue power plant. The company looks to expand its offering in the region with the completion of a second FSRU installation in Jamaica in December 2018 that will supply 200,000 t/yr of LNG to a 190MW power station that utility JPSCo plans to commission by June 2019. These contracts are especially important in relation to the JPSco’s goal of a total switchover from Oil fuel, HFO to LNG at its plants.

Community Engagement JPS work in the community starts with its workforce. It has instilled a set of values in its 1,600 workforce and work practices using the acronym ASPIRE (Accountability, Service, Passion, Integrity, Respect and Excellence). One of its strategic objectives

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is to ‘attract, develop and retain the best talent in Jamaica.’ It has enhanced its employee engagement program and now records over 80% total satisfaction among its employees, a number which is on an upward trend. Likewise, the firm continues to invest substantially in communities across Jamaica in education, and youth development through the JPS Foundation.

In 2013, the Foundation included an Early Childhood Nutritional Support Program which benefitted more than 26,000 children and opened a partnership with the United Way. Whilst in 2018, the company in partnered with USAID and John Hopkins University of the USA, hosted a “Train the Trainer Enterprise Entrepreneur Training” as part of the Social Intervention initiatives that will be used to train customers from the company’s Community Renewal project areas. The expectation is that this initiative will empower residents in these communities to be more efficient entrepreneurs, with the capacity to be socially mobile.

It’s encouraging to see that in the midst of such fast-paced change that attention to CSR clearly hasn’t diminished at JPS. Indeed, it is part of the change that continues to drive the firm forward. Satisfying customers continues to be the most important part of our business. Our commitment to Corporate Social Responsibility supports our customer, our community, and Jamaica. It is well established that the utility rises and falls with the fortunes of its market. We are committed to supporting Jamaica at all levels.

JAMAICA PUBLIC SERVICE COMPANY

 1-888-935-5577  info@jpsco.com @myjpsonline www.jpsco.com

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The Guyana O

LEADING G TRANSITION TO

Guyana, the small country on th is a country like no ot RESEARCH BY

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Oil Company

GUYANA’S O NEW ENERGY

he north coast of South America, ther on the continent.

oseph Philips BUSINESS EXCELLENCE [ LATIN AMERICAS ]

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Ms. Renatha Exeter, CEO at The Guyana Oil Company Ltd

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uyana, the small country on the north coast of South America, is a country like no other on the continent. Unlike every other country on the continent, its people speak English. Cricket, rather than football, is the sport of choice. Home to less than one million people, its population is one of the smallest on the continent, coming in just ahead of Suriname and French Guinea.

But big things come in small packages.

Guyana is fast becoming one of the most important focus points in the world for the petroleum industry, with vast offshore reserves. We recently caught up with Ms. Renatha Exeter, CEO at The Guyana Oil Company Ltd. (“Guyoil”), who spoke to us about the company and the role it plays in Guyana.

G

Lubricants in Guyana and we’ve had this partnership with them for decades.”

Despite being well-established in the country, Ms. Exeter herself is a relatively new acquisition: “I’m very new to the company.

I’m here just over one year. I’ve always been in management at senior level, but not necessarily in this industry. As the first female CEO of the company it’s quite a humbling opportunity but one I’m proud of.”

“The journey thus far, has been amazing - very challenging but very rewarding at the same time. I joined the company at a time where Guyoil was no longer enjoying preferential prices, something we enjoyed many years ago, so the market is very competitive.”

The preferential prices that she speaks of was an agreement with the Government of

“We have eight company-owned service stations and 42 dealer-owned stations, stretching across the length and breadth of Guyana” Background Ms. Exeter began by telling us about the company, and her own journey to Chief Executive Officer. “Guyoil is wholly owned by the Government of Guyana through the National Industrial Commercial and Investment Limited (N.I.C.I.L) and governed by a Board of Directors. We’re one of Guyana’s largest public agency. The business of Guyoil is guided by the Companies Act. We employ over 400 locals and that’s a proud benchmark for us as a Guyanese entity. ” “We are the largest distributor of petroleum products in Guyana. We have eight company-owned service stations and 42 dealer-owned stations, stretching across the length and breadth of Guyana. Guyoil is also the licenced distributor of Castrol

Venezuela that allowed Guyana’s Government to avail of favourable oil prices, not always available to private companies. “Once that agreement came to an end, we were on a level playing field with our competitors so it became a game changer for the company as a whole.”

When the favourable oil prices finished in 2015, Guyoil picked up the competitive slack by opening a subsidiary - Guyoil Aviation Services Incorporated, also known as ‘GASI’ – is involved with the importation, marketing and distribution of Aviation Jet Fuel. Miss Exeter explains: “It arose from two things. Firstly, at the time, there was only one company in Guyana providing aviation fuel, so it was definitely a good market space to enter.

Secondly, the growing tourism in Guyana will

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create a greater demand for aviation fuel; so we saw this as a growth opportunity.”

GASI has been a huge commercial success for the company. She tells us: “In just four short years, the company has experienced tremendous growth. The company recently expanded its fleet with the commissioning of brand new 10,000 gallons Refueler.

The company is growing at a pace which is beyond what we expected when it was founded in 2015.”

wholesale operation. We have three terminals - one in every County, with the main one being in Georgetown at Providence. Our distribution comes from these terminals.”

“Quality assurance and safety are paramount at Guyoil. All fuel imports supplied

by Guyoil are tested and certified by an independent lab at the port of loading. Once the fuel arrives in Guyana further certification and verifications are conducted by the local authorities.”

Logistics and Operations

Green Credentials

As a Government entity, Guyoil mandate is to ensure accessible right across the country.

It does this through an extensive retail and wholesale operation: “Outside of our retail operation, a huge part of our business is our

While noting herself that the petroleum industry is a carbon producer, Ms. Exeter is clearly keen to be part of its movement towards something more sustainable. She tells us: “Guyoil recognizes the environmental

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impact of utilizing alternative energy and we are playing our part in investing in green improvements to our infrastructure. We fully support Guyana’s Green Agenda and as a state-owned company we have committed to this initiative.”

She continues: “We were one of the first companies in Guyana to introduce a UltraLow Sulphur diesel (ULSD), which is an environmentally friendly product. We’ve also made improvements to our operations. For example, some of our stations are now solar operated and we’re constructing a new office complex, which will be 100% solar powered.”

“Moreover, we’ve made a series of small incremental changes within what we can control. For instance, our paperless initiative and energy saving devices throughout our

facilities. These are just small but significant steps we have taken towards a more substantial role in sustainability of the environment in which we operate.”

In fact, business entities are already signally plans for the introduction of electric cars to the roads of Guyana. Ms. Exeter tells us: “Charging points for electric cars are already in our pipeline - as part of our strategic plan.

We’ve started consultations with all of the stakeholders in rolling this out.”

Corporate Social Responsibility The work of Guyoil extends into working with the local population on a range of social projects. As Ms. Exeter explains: “It’s very important to us as a local entity

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that we reinvest in the community where we operate. Our community contribution is executed through our CSR programs and also as part of general marketing activities. Over the years, Guyoil continues to contribute towards youth initiatives/ programs and development of academic activity. We have partnered and given support to the University of Guyana and other academic institutions. Health and Wellness programs is another area we continue to give support to.”

“We partner with other Ministries and the Busines community for Breast Cancer Awareness Month, Blood Drive Programs and other health related initiatives. We also implement a number of these programs in-house with staff..”

“Our company offers exchange programs to students of the University of Guyana. Mostly, these are engineering students who come to our company as interns and work with the engineering team. In the past, this has led to employment opportunities for these students

“Our company offers exchange programs to students of the University of Guyana. Mostly, these are engineering students who come to our company as interns and work with the engineering team”

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after they’ve completed their studies. We also support the Ministry of Education for work study programs.

“For employees of Guyoil, we have a bursary program for employees children who have excelled at the National Grade Six Assessment Exams (NGSA). We reward them with financial assistance to continue their studies throughout high school.

One to Watch It’s truly refreshing to visit a company like Guyoil and see, not only are they empowering women and committed to the environment and the community, but they’re also an example of a wholly-owned government company which is taking on all corners on a level playing field.

The pride is reflected in Ms. Exeter’s answer to our question about what differentiates the company from others. “We’re a Guyanese

entity, contributing to the development of Guyana ” is her sincere response.

This is one to watch like no other. Thanks to oil discoveries off the coast of Guyana, the country is expected to see its GDP quadruple over the next 15 years. Few countries if any will experience anything like this growth in the same period. In fact, it’s almost unparalleled in history. You get the impression from talking to Renatha Exeter that Guyana, and indeed Guyoil, are entering a golden period in their history.

THE GUYANA OIL COMPANY

 (592)225-1595-8  info@guyoil.gy www.guyoil.gy

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IT’S TIME TO FOCUS ON YOU

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