– Energy Department maintains December deadline for completion

By Navendra Seoraj

THE final draft of the much-anticipated Local-Content Policy is being edited and is on course for completion this month.

With “first oil” expected anytime this month, the Department of Energy (DoE) will be looking to complete the policy so that there will be a guide for the participation and inclusion of Guyanese in the new oil-and-gas sector.

“The Local Content Policy Consultant has submitted his final report; the policy is being edited, with a completion date of December 2019 still being the aim of the DE,” said DoE Director Dr. Mark Bynoe during a press briefing on Monday.

The policy framework is meant to outline the guidelines by which local content will be understood, developed, measured, secured and implemented in Guyana’s petroleum sector.
It also takes into consideration the urgent need for the optimisation of revenues received from oil to benefit Guyana’s economy and citizens, present and future.

Although the policy is not complete, the DoE has been working with operators to commence reporting on local-content performance as per the conditions of the final draft of the policy.

“We have commenced the process of ensuring that their reports are coming in the format identified in the local-content policy, so that that will allow for an easy transition, standardisation and cohesion of those reports,” Dr. Bynoe said.

Local participation in the oil-and-gas sector was also supported by operators like Esso Exploration & Production Guyana Limited (EEPGL), which is working with the Council for Technical Vocational Education and Training (TVET) on revising the curriculum for electrical, welding and fabrication Level 1 programme. This will improve the capacity of the students and better prepare them for the sector.

It was reported that over 1,529 Guyanese are directly employed with EEPGL and its contractors, with 76 per cent of them being in the skilled and professional categories.
According to Dr. Bynoe, the representation of those employed in the sector was from Regions Four (Demerara-Mahaica), Three (Essequibo Islands-West Demerara) and Six (East Berbice-Corentyne). Additionally, the company engaged with over 435 Guyanese vendors, and spent over US$82M in the third quarter of 2019, which represented an increase of more than 150 per cent, compared to their expenditure in 2018.

With EEPGL’s local-content plan on stream, Government has started to work with both CGX and Tullow to develop their local-content plans.

“We are encouraged by the continued contributions made to raising capacity and standards in Guyana,” Dr. Bynoe said, adding that the DoE is encouraged by the recent US$2M donated to the University of Guyana by Halliburton for capacity building at the institution.
This was a relationship brokered by the DoE, and the grant was signed off on at the recently-held Guyana International Petroleum Exhibition and Summit (GIPEX 2019).