APPROXIMATELY 14,000 Guyanese are now directly benefitting from jobs and opportunities created in the oil and gas sector as a result of the landmark Local Content Act, which came into force in December 2021.  This was the central point emphasised by Minister of Natural Resources, Vickram Bharrat, during his recent appearance on the Starting Point Podcast – The Oil and Gas Edition.

According to Minister Bharrat, the legislation has transformed the landscape of Guyana’s rapidly developing petroleum industry by ensuring that citizens are no longer bystanders but active participants in the sector. “Today, because of the way in which we have managed the oil and gas sector, our local private sector is playing an integral part in the provision of goods and services to the oil and gas companies, because of that local content legislation,” he said.

He cautioned that without strong local content laws, international oil companies often dominate new petroleum economies to the exclusion of citizens. He explained: “When international oil companies come to that country, they usually bring their suppliers with them. They build their own ecosystem around them to provide them with goods and services. In many countries, this is what happens, and the locals are left on the outside as bystanders.”

Under the Local Content Act, oil companies and their subcontractors are obligated to give first preference to Guyanese goods, services, and human resources.  Local employment has increased noticeably since its promulgation, and thousands of citizens benefit from the opportunities opened to them in areas such as logistics, transportation, accommodation, catering, and technical support, among others.

Furthermore, the law has facilitated partnerships between international corporations and local businesses, leading to technology transfer and increased skill sets for Guyanese workers.

He also pointed out that the figure of 14,000 does not only represent those employed offshore or in technical oilfield roles. A significant portion of the jobs are in supporting industries such as hospitality, transportation, maintenance, and administrative services.

Minister Bharrat stated: “We have over 7,000 Guyanese who are trained and employed in the oil and gas sector. Another 7,000 Guyanese are employed indirectly through the oil and gas sector.”

Mandated by the Local Content Act, the Local Content Register in Guyana is a government-managed database maintained by the Local Content Secretariat, that lists Guyanese citizens and companies qualified to supply goods and services to the country’s petroleum sector.

Its purpose is to prioritise Guyanese participation and ensure local capacity development in the oil and gas industry by facilitating connections between local businesses and international operators.

The government has pledged to continue reviewing and strengthening the Local Content Law to ensure its effectiveness.

Since its enactment, the law has been hailed for giving Guyanese businesses the leverage needed to negotiate fairer deals with multinational oil companies.

Plans are also underway to expand the number of categories under which local participation is mandated. The minister’s statements come at a time when Guyana is preparing for another major round of offshore development, with ExxonMobil and its partners continuing to expand production in the Stabroek Block.

Exxon Mobil is the operator of the Stabroek Block and holds a 45 per cent interest. Hess Guyana Exploration holds a 30 per cent interest, and CNOOC Petroleum Guyana holds a 25 percent interest.

The Stabroek Block has solidified Guyana’s position as a major player in the global oil industry and the fastest-growing economy in the world.