–realistic, pragmatic targets still being derived from stakeholder engagements
THE draft local content policy, as it is, includes a series of phased targets for improved local participation, benefits and general advancement across all sectors, which will be achieved within the next ten years, should the timeline remain unamended at the end of the ongoing national consultation exercise.
The overarching aim, as outlined by the government, is to create a policy which guides and regulates local participation in existing and emerging sectors. This policy and subsequent legislation must be responsive to change and provide the ‘space’ to accommodate expansions in an economy such as Guyana’s, where there has been an increase in investors’ interest.
The government, in September, had established an advisory panel on local content. The panel was tasked with undertaking a review of all existing initiatives and policies pertaining to local content in the petroleum sector and to provide guidance for the development of Guyana’s local content policy and legislation.
The panel comprised Shyam Nokta (chair), Carl Greenidge, Anthony Paul, Kevin Ramnarine, Carville Duncan and Floyd Haynes. While the panel would have done its part, the government has committed to engaging the public and key stakeholders on critical components which should be included in such a significant document.
According to a press statement from the Ministry of Natural Resources, the purpose of this revised local content policy document, inter alia, is to guide the legal drafting process.
“Having realistic and pragmatic targets in place is crucial before any action is placed towards Guyana’s legislative framework. Essentially, these targets will serve as the schedule of the local content legislation,” the ministry said.
Reaching to this target would require a gap analysis study which is instrumental and critical in crafting the local content policy. However, so too is an extensive and broad-based consultation process with all relevant stakeholders and segments of civil society, which indeed shares similar methodology and outcomes, the ministry reasoned.
“Therefore, in the interest of time and the urgency in having a robust local content policy in place, which would then serve as the principal driver of the legislative framework, the Ministry has opted for the broad-based consultation process. The idea is for stakeholders to come up with both realistic and pragmatic targets. To date, this consultative process is ongoing,” the natural resources ministry said.
In crafting a comprehensive policy, it is important for one to be aware that the upstream oil and gas sector has a particular language that mirrors certain standardised characteristics and pre-defined roles that are common across the industry worldwide.
And, while this sector is new to Guyana, the ministry believes it is wise to not re-invent the wheel and further complicate the description of these services.
For this reason, the ministry said it is important that it reduces loopholes in the policy by addressing the local content regulations, job descriptions and services, which must be both pellucid and unambiguous.
The continuing development of the offshore energy sector is an important element for Guyana’s industrial growth since it holds the potential of stimulating sustained economic growth. A central idea here is that the economic impact of the offshore energy sector can be enhanced by increasing local participation.
The Government of Guyana, through the Ministry of Natural Resources, has so far worked with both international and local professionals to craft a comprehensive policy, which includes realistic and realisable targets.
The existing local content policy document, in its crude form is not final. The idea is for the various stakeholders and segments of civil society to examine the draft document and propound realistic and pragmatic targets.
As is, those targets and measures are meant solely to entice discussion. It is also pertinent to note that the draft has been endorsed by many representatives of civil society and industry since its release.
