…demands fair, adequate access to employment opportunities

GUYANA’S recently released Local Content Policy demands that Guyanese citizens and suppliers be given first preference and “fair and adequate access to employment and supplier opportunities” coming from the petroleum sector.

The document, marked as completed on Monday, has now been made available to the public and to operators and contractors for their knowledge.

It defines Local Content as “the active participation and development of Guyanese labour and suppliers in the petroleum sector and the benefits that arise from expenditure in the sector on labour, goods and services for Guyanese industry, the economy and wider society”.

As a part of a Local Content Report, it states that a Local Content Plan must be submitted yearly by an Operator to the Minister Responsible for Petroleum within 60 days prior to the beginning of each year and updated annually.

It should describe forward-looking local content objectives, related activities and programmes covering the Operator’s petroleum-related work and activities in the block.
The plan will include details on the estimated utilisation of Guyanese persons, suppliers and sub-contractors for a specific project as well as the training of Guyanese persons, the capacity building of Guyanese suppliers and other capacity building initiatives to support the sector.

The policy’s scope details matters on the promotion of education, inclusion and advancement of Guyanese persons with the expertise and experience required to participate in the petroleum industry; localised supply chains in procuring goods and services that support the petroleum industry; growing the competencies of Guyanese oil and gas professionals and goods and services companies; expenditures on local labour, goods and services; investment in physical utilities, infrastructure and facilities that develop the petroleum sector; the partnership of firms for effective capacity building, transfer of knowledge and technology and more.

Recognising that whilst many provisions can be delivered immediately, others may need prior capacity building, study or more detailed policy guidance, the Minister may elect to phase implementation of parts of this policy over time.

FIT FOR PURPOSE
At the moment, the policy is limited to the upstream petroleum sector and does not as yet directly address mid and down-stream petroleum sector opportunities, the upstream petroleum sector and other petroleum-related national issues.

“This policy framework therefore precedes an overall petroleum sector policy for Local Content, and shall be updated from time to time to be aligned with a maturing petroleum sector and with evolving national development strategies and goals,” the document states.
To ensure that the policy is implemented in full, the government is considering codification of the policy through regulation, underpinned by the necessary legal framework, consistent with international trade obligations, including those under CARICOM.

CONSIDERATION FOR STANDARDS
Understanding that the sector requires a significant input of highly-specialised skills and services, materials, products and equipment —- many of which are unlikely to be competitively sourced or manufactured in Guyana — the policy takes this into consideration until these capabilities have been developed.

It points out: “The presence of international petroleum sector service providers and manufacturers in Guyana provides a unique opportunity for Guyanese suppliers and government to learn from these foreign contractors, with local businesses working alongside and for them, and the authorities developing capabilities in governance to international standards to ensure Guyanese persons and suppliers adhere to good industry practice.”

Even so, the Government insists that operators, primary contractors and sub-contractors cooperate to deliver the policy in both “letter and spirit” as the document urges that operators “find ways to give first consideration to capable and competitive Guyanese persons and suppliers”.

The document also demands “fair and adequate access to employment and supplier opportunities” for Guyanese persons and suppliers.

Overall, the policy takes note that Guyana’s history has made its people cautious of the opportunities which can be lost through the export of raw, unprocessed commodities due to the capacity limitations of its institutions, businesses, capital markets and more.
Therefore, the document gives attention to both opportunities and the risks such as the resource curse, thereby insisting:

“Implementation of this policy cannot be left to chance and shall therefore take the steady and deliberate efforts of the Government, the Operators in the industry, the private sector and civil society – all working together, and with unity of purpose, to ensure the attainment of the Local Content objectives of this policy.”