THE third edition of the Local Content Summit, held last Tuesday at the Marriott Hotel in Kingston, emerged as a pivotal forum for advancing Guyana’s local content agenda. This collaborative effort by MBW Inc., Prestige Management Consultants, and the Government of Guyana brought together key stakeholders, including local businesses, regulators, policymakers, and international investors.

President Irfaan Ali, in his keynote address, noted the all-day event’s importance as a space to reflect on how far Guyana had come under the Local Content Act 2021, citing the registration of 1,100 Guyanese companies on the Local Content Register and over US$1.5 billion in contracts awarded to Guyanese companies by the end of 2024. He celebrated the inclusion of women-led enterprises and the emergence of 100 percent Guyanese-owned service providers in fields like customs brokerage and medical support to the industry.

President Ali acknowledged that while the gains have been substantial, there remained ongoing attempts to bypass the intent of the Local Content Act. He offered reassurance that his government will close loopholes and tighten enforcement measures. The President firmly rejected the notion that local content is protectionist, clarifying instead that the law is there to promote inclusive national development. He also challenged audience to form consortia to pursue viable projects stemming from the day’s dialogue.

The government was well-represented at the summit, with multiple officials from the Ministry of Natural Resources, including Minister Vickram Bharrat, addressing the forum and engaging with attendees. The discussions provided valuable insights on proposed amendments to the Local Content legislation and efforts to shorten payment times to the benefit of Guyanese firms.
Industry leaders converged during panel discussions to talk about the work they do to keep opportunities open for locals. Major companies, including ExxonMobil Guyana, Baker Hughes, Halliburton and SBM Offshore were represented on the closing panel, titled ‘Industry Perspectives’.

Vahman Jurai of Halliburton said the company has spent a lot of time training its vendors on its invoicing process to improve their understanding. Elchin Rzayev, of SLB, talked about the company’s work to diversify its supplier pool, boosting the share of enterprises that are women-owned, as well as small and medium scale enterprises (SMEs). Martin Cheong, General Manager of SBM Offshore, talked about the meticulous application of regulatory guidelines to the company’s work, including with respect to requests for information (RFI) that are published, with a view of boosting inclusion. SBM Offshore, the first major contractor to have an approved local content master plan, also hosts events like its Vendor Days and Let’s Talk Local Content seminars, Cheong explained, to sensitise companies. Jon Rhodes of Baker Hughes impressed that it is just part of their culture to set aside opportunities for locals. He said Baker Hughes spends about US$35 million a year in Guyana, with about 10 percent of that going to female-owned businesses. Rhodes stressed that it was a common practice among major contractors in the sector to provide opportunities for locals with or without legislation.

Local Content Supervisor at ExxonMobil Guyana, Natina Singh, explained that ExxonMobil’s examination of Guyana in the early days, which led to the formation of the Centre for Local Business Development (CLBD), focused on the need for development of businesses across a range of sectors, not just those necessary to support oil and gas. “Those are the kinds of things that we want to ensure are integrated into the oil and gas supply chain, but also being prepared for any other industry that may come to the shores of Guyana,” Singh said.
CLBD has done tremendous work, including placing specific focus on SMEs and women-owned businesses with its ElevateAll and AccelerateHer programmes. These have resulted, based on Exxon’s reconnaissance, in women-owned businesses seeing increases of millions of dollars in revenue.

Government and industry leaders signalled plans to translate the day’s dialogue into needed reforms. The summit underscored growing momentum to improve the Local Content legislation, close loopholes that result in value leakage, and expand opportunities for Guyanese firms as the oil economy grows.