THE Region Three Private Sector Inc. (R3PSInc) has commended the government for tabling the Local Content Bill which paves the way for local companies to meaningfully participate in the oil and gas sector.

Head of the organisation, Halim Khan, said he is especially pleased with the Bill which includes the establishment of two key institutions – the Local Content Secretariat and the Inter-Agency Advisory Committee.

He said that these two institutions engender the dynamism which such a Bill ought to encapsulate.
According to Khan, the private sector countrywide will benefit from this piece of legislation way into the future.

He told this publication that he anticipates further improvements and reforms to both the institutional and legislative framework necessary to support the country’s development, including the establishment of the Petroleum Commission.

Further, he noted that the local content policies will create incentives for local businesses, services, and workers from Guyana to be included in the development process of a specific sector or broader economy.

While these policies ensure inclusion of locals, Khan said they also seek to create opportunities for international expertise and the transfer of skills and technology to the local market.

“The purpose of local content legislation is open spaces for Guyanese companies to win business without holding back oil development or damaging other sectors of the economy. Facilitating the transfer of skills and technology that can benefit the country long-term is also a crucial concern with parts of the industry that require technical expertise,” the R3PSInc Head said.

Additionally, he said that the demand for services and workers in Guyana’s oil and gas sector are only expected to rise over the next decade. “This is why tradeoffs must be considered as the local content policies are implemented. A careful process of cost-benefit analysis is vital to avoiding negative unintended consequences.”