–identify possible areas for amendments, Natural Resources Minister says

AS part of efforts to create a roadmap for amendments to Guyana’s Local Content Legislation and educate the wider public on the abundance of opportunities in the oil and gas sector, the Ministry of Natural Resources will soon begin a countrywide sensitisation workshop.

This was according to Natural Resources Minister, Vickram Bharrat, during a press briefing on Monday.

According to the minister, the workshop will begin shortly after Budget 2024 is approved by the National Assembly.

“What we are going to start just after the budget is the local content sensitisation workshop throughout the entire country, and that is a requirement in the legislation that we at the Ministry of Natural Resources and local content Secretariat must do,” Bharrat said.

The workshop will be a collaboration among the ministry, oil and gas operators and contractors.

“One reason for doing that is to ensure that people understand truly what local content is and how they can benefit from it. Because we here in Georgetown, we hear about it every day. You’re part of it, you benefit from it, but if you will maybe if we go to Kwakwani or Crabwood Creek, Essequibo Coast, Region Nine—Lethem, I know that they probably all heard about it, they probably saw it on the news, but they don’t know exactly how they can actually benefit from the Local Content Legislation,” Bharrat said.

And to ensure there are wider benefits, the workshop will also be used as a guide to make amendments to the existing legislation not only to increase the capacity, but also to address the existing loopholes that were exploited over the past two years.

“A lot has changed from 2021 and we are aware of that, and by going around the country and listening to people and engaging them, I think it would put the ministry and the government in a better position to truly assess what has changed from 2021 to now in 2024 in terms of capacity to offer goods and services to the oil and gas companies,” Bharrat said, adding: “We know that there are a few loopholes that people took advantage of.”

One area that has been identified is “fronting,” whereby companies have used Guyanese conveniently in order to obtain a 51 per cent stake to merely satisfy the provisions of the Local Content Act.

According to the legislation, companies must procure from Guyanese companies, 90 per cent of office space rental and accommodation services; 90 per cent janitorial services, laundry and catering services; 95 per cent pest-control services; 100 per cent local insurance services; 75 per cent local supply of food, and 90 per cent local accounting services, among other things.

Last year, Attorney-General and Minister of Legal Affairs, Anil Nandlall, S.C., had said that officials would update the local content laws to reflect the lessons and recommendations from stakeholders in the growing industry.

On December 31, 2021, the Government of Guyana passed the Local Content Act 2021. Subsequently, it published several related guidelines that were designed to maximise the participation of Guyanese companies wherever they have the skills and capacity to get involved, beginning 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 extending through long-term involvement in highly skilled subsectors like subsea installation, geophysical analysis and engineering.

The Local Content Act was designed with the overarching goal that Guyana’s oil and gas industry will support an economy where small and medium-sized businesses can grow, thrive, and benefit from those resources.

Over 6,000 Guyanese are already actively involved in the oil and gas sector, and this figure is expected to climb significantly as time progresses.

Senior Petroleum Coordinator at the Ministry of Natural Resources, Bobby Gossai Jr. had said: “We have seen the growth in the establishment of more infrastructure, support, and the service sector. We have seen major businesses that have been established, we have seen the establishment of the Local Content Secretariat and the approval of Local Content Certificates.”