-says government to enhance oversight with digital compliance system
THE government is moving to further strengthen oversight of Guyana’s local-content framework through increased monitoring and the introduction of a digital compliance system, as it seeks to ensure oil companies and their contractors continue to meet their obligations under the country’s legislation.
Minister of Natural Resources Vickram Bharrat made this position known during an appearance on the ‘Starting Point’ podcast on Saturday, when he disclosed that the Local Content Secretariat has expanded its capacity and is intensifying its oversight of companies operating in the petroleum sector, while plans are underway to digitise the monitoring process.
“We’re even working to strengthen the system,” Bharrat said, adding, “At some point in time everything will be digitised because that is the direction in which the President is heading. This local-content system will undergo that transformation too, to make it easier in terms of monitoring these companies and ensuring that they are following the legislation.”
The minister explained that beyond the mandatory reports companies are required to submit under the Local Content Act, the secretariat conducts regular field inspections to verify compliance.
According to Bharrat, the head of the Local Content Secretariat leads weekly visits to companies to examine records, engage Guyanese employees and assess training programmes, while also gathering feedback from private-sector organisations and business chambers on the effectiveness of the legislation.
“This is besides the reporting because the reporting has to be done by law, but going and doing physical checks is very important,” he said.
The minister noted that oil companies are also required to submit annual work programmes detailing their planned activities, including the number of Guyanese they intend to train, the value of local goods and services they expect to procure, and their projected local-content targets.
These are measured against half-yearly and annual reports submitted to the secretariat.
The minister said the strengthened oversight has given government confidence that the legislation is delivering tangible results.
“We are satisfied that there are 7,000 Guyanese who are working directly in the oil and gas sector,” he said.
He went on to add that graduates of the Port Mourant Training Centre are now securing employment aboard Guyana’s floating production, storage, and offloading (FPSO) vessels.
Bharrat also maintained that Guyana’s Local Content Act has exceeded expectations despite early criticism that it would discourage foreign investment.
Instead, he said, the legislation has encouraged international companies to partner with Guyanese businesses, even in areas not currently covered under Schedule One of the Act, in anticipation of future expansion.
“We have proved them wrong,” the minister said, while noting that foreign investors are increasingly seeking local partners rather than waiting for additional services to be added to the legislation.
He pointed to the growing participation of Guyanese businesses in transportation, catering, accommodation, legal, accounting and agricultural services supporting the offshore petroleum industry.
Against this backdrop, Bharrat also praised ExxonMobil’s approach to compliance, describing the company as a responsible partner that recognises the importance of adhering to Guyana’s laws and ensuring its contractors do the same.
