– Minister Bharrat tells local content panel about urgent need for local content legislation

LOCAL participation in the new oil and gas sector remains a top priority for the Government of Guyana, said Natural Resources Minister, Vickram Bharrat, as he reminded the Advisory Panel on Local Content about the urgent need for local content legislation and stronger policies.

The panel, which was established a few weeks ago, has been tasked with undertaking a review of all existing initiatives and policies relating to local content in the petroleum sector and to provide guidance for the development of Guyana’s Local Content Policy and Legislation.

The panel comprises Shyam Nokta (chair), Carl Greenidge, Anthony Paul, Kevin Ramnarine, Carville Duncan and Floyd Haynes.
According to a press statement from the Ministry of Natural Resources, Minister Bharrat told the panel about government’s commitment to local content and reiterated the need to have a ‘solid’ policy and legislation in place very soon.

He also emphasised the need to maximise opportunities for goods and services produced by Guyanese or sourced locally and to take advantage of opportunities that exist now, even as the country plans for the future.

A top priority is to also ensure that as many Guyanese, including small businesses and semi-skilled labourers benefit from the oil and gas industry.
The panel has been meeting regularly and with support from the ministry, will be reaching out during the month of October to key stakeholders in government, the private sector and civil society to solicit inputs and perspectives. The panel is expected to submit its report and recommendations by November 2020.

It was reported that the former APNU+AFC administration had created a local content policy after many consultations with various stakeholders.
This policy framework recognises the broader goal of the previous administration to optimise national income from development of the country’s sovereign hydrocarbon resources, and prudently invest these revenues to transform the economy to the benefit of all Guyanese, now and in the future.

The policy was designed to deliver both short-term opportunities for Guyanese citizens and Guyanese suppliers, and longer-term capacity building by raising the standards of Guyanese industries to be internationally competitive.

Despite the aims and objectives of the policy, Minister Bharrat is of the firm view that a policy is not enough.
“The previous administration spoke about first oil; oil and gas, and all this talk about the industry, and there is no local-content legislation; no draft of it… There is a local- content policy, but you need a legal framework to ensure that things happen,” said the minister during an exclusive interview with the Guyana Chronicle.
He said that having a policy is not enough to hold a major player, or any player, in the oil-and-gas sector accountable, as there is nothing binding or regulating their operations.