LOCAL content is a hot topic in the discussion space on oil and gas in Guyana—as it should be. Guyanese are eager to get a well-deserved piece of the pie that is this newly discovered oil resource.

Guyana’s local content policy is defined 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.”

Simply put, local content is building a skilled workforce and a competitive supplier base to enable Guyanese people and companies to actively and fairly participate in the opportunities available in the sector. As noble and necessary as these goals may be, they are not attainable overnight. In fact, it will take a concerted effort by all involved: proper policies and regulations by the government and a commitment on the part of foreign investors and companies.

From all indications, these parties seem serious about their respective roles. The new government has taken commendable steps by setting up what appears to be a qualified and experienced advisory panel on local content to review the existing policy with the expressed intent of drafting related legislation.

And ExxonMobil, operator in the Stabroek Block, has said more than 2,000 Guyanese are already working on its overall activities and that it has spent more than GY $60B with more than 700 local businesses since 2015. At the just-concluded Caribbean Virtual Oil and Gas Summit (CARIVS), ExxonMobil Guyana President Alistair Routledge mentioned the 24 operations and maintenance technicians who just returned from 18 months of training in Canada and the others who have been trained in Brazil, Singapore and the United States. According to Routledge, Guyanese staff were exposed to more than 100,000 hours of training in the first half of the year alone. And the Centre for Local Business Development (CLBD) continues to offer courses and to mentor local businesses in an effort to enhance their competitiveness.
Last Sunday, we heard the eagerness of some of the technicians who are starting to head off to the Liza Destiny. Among them was an impressive 22-year-old woman, Faudia Ramjohn, who has vowed to hold herself, her colleagues and her employer accountable for doing a good job ,while ensuring that Guyana gets value from the production of this resource.

While there are some critics who downplay what has been achieved already in the local content space, it is remarkable, considering we are so new to oil- and- gas production, thus do not count on a bank of experience and skilled workers or technical expertise found in more mature producing countries. These critics also ignore the many success stories being written by ambitious Guyanese companies.

At CARIVS, a group of local businesses that have benefitted from the services at the CLBD, either by attending the courses or being mentored for ISO certification, even forming partnerships with foreign companies shared their experiences. Of note was Panthera Solutions, which is a Guyanese joint-venture that seems to be built on due diligence, a commitment by both partners and knowledge transfer.

CEO Andrew Mendes on a local content panel said his company has been challenged to “improve all of our processes and practices to really become a consistent supplier of goods and services to the industry.” He also mentioned that this translates to the other sector his company supports.
This is exactly the kind of capacity-building that is needed and should be augmented.

The oil-and -gas industry requires highly skilled participants, which can only be developed over time, guided by careful strategy that considers the broader economic landscape.