-Jagdeo affirms

VICE President of Guyana, Dr. Bharrat Jagdeo, on Thursday, said unlike under the A Partnership for National Unity and the Alliance for Change (APNU+AFC) regime, Guyanese businesses are protected in the oil and gas sector by the People’s Progressive Party (PPP) government.

Addressing reporters at a press conference at the Arthur Chung Conference Centre (ACCC), Jagdeo said, “There was no protection of Guyanese businesses in the oil and gas sector and that is why it was this government that passed the Local Content Act.”

According to Dr Jagdeo, because of the Local Content Act, which was passed in 2021, Guyanese are now benefitting from the rental of vehicles; prior to the passage of the Act, rentals were being done from companies abroad, particularly Trinidad and Tobago.

In May of this year, ExxonMobil Guyana announced new data relating to the spending in the local economy and the latest employment figures for the oil and gas industry. The oil major stated that combined spending amounted to GY$83 billion (US$400 million) locally in 2022, with more than 1,500 Guyanese businesses, and over 5,000 Guyanese workers employed by the company and its contractors.

ExxonMobil Guyana also stated that the number of Guyanese workers offshore continues to grow, with over 1,300 Guyanese committed to supporting operations and making up about 48 per cent of the total offshore workforce.

“We believe that the true measure of our success lies not only in the barrels produced but also in the positive impact we create for our people and the communities in which we operate. By prioritising local talent, partnerships, and investments, we aim to cultivate a thriving and sustainable environment that benefits everyone,” President of ExxonMobil Guyana, Alistair Routledge said.

The past year was a prime example of the impact that strong but achievable local content policies can have on the economy. It is expected that with more Guyanese training in the crucial skills needed for the oil and gas sector, the overall number and percentage of Guyanese employed will continue to grow—especially in more technical and higher-level roles.
The Local Content Act ensures that companies operating in the country hire a certain percentage of local workers and use a certain percentage of local goods and services.

Since then, it has published several related guidelines designed to maximise the participation of Guyanese companies wherever they have the skills and capacity to get involved. That starts with services such as office space rental, janitorial services, laundry and catering services, pest control services, insurance services, supply of food and accounting services and extends through long-term involvement in highly skilled subsectors like subsea installation, geophysical analysis, marine welding and engineering.