The Local Content Secretariat is currently assessing Guyana’s capacity to meet the growing demands of the Oil and Gas Industry with respect to services, ahead of any changes to the legislation and or the schedule, Minister of Natural Resources, Vickram Bharrat has said.

Recognizing the need to strengthen the Local Content Act passed in 2021, the Government has committed to having the legislation amended. However, to date, the amendment bill has not made its way to the National Assembly.

Minister Bharrat told reporters on Tuesday that in addition to consulting the local private sector, ExxonMobil and its sub-contractors, the Local Content Secretariat is assessing the country’s capacity ahead of any changes.

“It is not only about changing the legislation or changing the schedule. It has a lot to do with assessing our capacity locally as well too, and that is what the secretariat is currently engaged in as well to assess the in country capacity,” Minister Bharrat said.

A total of 40 services are covered in the Local Content Act Schedule mandating contractors and subcontractors to procure various percentages of certain services such as transportation, accommodation, surveying and pipe welding from local businesses and companies.

The Natural Resources Minister said Guyana has no doubt built significant capacity in the 40 areas since 2021, with growth also seen in other sectors. He said the review and additional consultation are therefore critical. 

“The next step basically is to finalize the assessment as to what capacity we have built out over the last few years, do the consultation, and then make a decision on whether we will add services to schedule one and change targets only, or if we are also going to amend the legislation in terms of strengthening certain provisions like in terms of payment periods, in terms of penalties, in terms of what qualifies you to be a Guyanese or Guyanese company. As you know, we would have had a few issues in the initial phase where Guyanese were basically fronting – on paper it would appear as though they have 51% the shares, but in reality it wasn’t so,” Minister Bharrat said.

The Natural Resources Minister assured that before the end of the year, a determination would be made and the amendments would be submitted to the National Assembly.

He said Guyanese are reaping significant benefits, with many local businesses and companies forming partnerships with international companies.

It is estimated that more than 1,200 local businesses are participating in the Oil and Gas Sector with a consortium of over 17 catering businesses or companies in Guyana offering meals offshore to our workers on the FPSOs and drill ships.

Additionally, there are almost 7,000 Guyanese employed in the industry.

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