–TOTALTEC founder tells local stakeholders, advises that companies must differentiate in order to move beyond Guyana’s borders

FOUNDER of TOTALTEC’s Oilfield Services, Lars Mangal, on Wednesday said that the local content legislation is one of the greatest drivers of growth for native businesses, affording them the opportunity to lay the foundation to tap into international markets, access world-class experts, and set their companies up for long-term success.

In his address to participants at the second annual International Energy Conference and Expo at the Marriott Hotel, Mangal said that Guyanese companies must think “big and long term” in their vision and business strategy.

The Local Content Act sets out several areas in which companies are mandated to use the services of local businesses.

It outlines 40 sub-sectors which would legally require oil companies to procure goods and services as well as employ specific percentages of Guyanese in their day-to-day operations. It also sets out what defines a local company.

According to Mangal, the “energy industry is extremely competitive on multiple levels” and local content is the “driving economic diversity in Guyana,” which is transformative to the business landscape.

He said that such transformation is evidenced by the Guyana Shore Base Incorporated’s (GYSBI) recent commissioning of the US$25 million heavy-lift berths, which will bring more jobs to the sector with the building out of support services and other things.

“I suggest there are many more possibilities for enhanced competitiveness for a new generation of Guyanese companies on the global stage. Realising those would require strategic support through local content legislation.

“Our situation is unique. Guyana is starting from a clean sheet in developing its oil resource at a time when there is significant pressure to move away from hydrocarbons as an energy source,” he said.

Mangal posited that this “clean sheet” offers unique opportunities for innovation and technology introduction locally, while also developing capacity and gaining experience that could open the door to local companies going international.

“We want these operators and international service companies working around the world, when faced with a new project, to say ‘we have experience with this from working with a Guyanese company, and we want to bring them into the project,” the TOTALTEC founder said.

He urged attendees to consider the upcoming multimillion-dollar gas-to-energy project at Wales, West Bank Demerara (WBD), and Guyana’s priority of “low-carbon development,” which they had heard quite a bit about at the conference.

According to Mangal, this will be a “world-leading project” which will efficiently develop power delivered to environmentally responsible end users, with performance metrics never seen before.

On this note, he suggested that Guyanese-owned companies aspire to be successful in the energy industry outside of Guyana.

Mangal added that significant pressures around the world for responsible development while moving away from hydrocarbons, create a unique environment to establish leadership beyond Guyana’s borders.

“This is where the role of government is critical in crafting local content legislation. Develop, compete, grow locally, but with a vision to build capacity to expand and compete internationally. Only the best companies who differentiate themselves will move outside of Guyana,” he said.