Gov’t approves Local Content Master Plans with new 45-day payment period
The Ministry of Natural Resources on Wednesday, September 14, 2022, approved the Local Content Master Plans of tier-one contractors – SBM Offshore, Halliburton among others – operating in Guyana’s oil and gas sector.
The signing, which took place in the boardroom of the Ministry of Natural Resources’ head office in Kingston, Georgetown, comes on the heels of a newly proposed modification by the Local Content Secretariat. This amendment, which is included in the five-year local content plan and is enforceable by law, will now see contractors and sub-contractors operating in the nation’s petroleum sector issuing payments to Guyanese suppliers within 30 to 45 days following the receipt of a correct invoice.
At the signing, Minister of Natural Resources Hon. Vickram Bharrat underscored the importance of contractors and sub-contractors implementing this amendment. He reminded that the move promotes local suppliers’ competitive financing and growth through appropriate contract and payment terms, and is in keeping with Guyana’s Local Content Act.
Also sharing comments on the signing, the General Manager of SBM Offshore Mr Martin Cheong expressed the company’s excitement about the approval of its Master Plan. He went on to state, “We have been hiring an increasing number of Guyanese, engaging more local suppliers for the provision of goods and services, and expanding our training and capacity building programmes as our operations increase in the country.”
Meanwhile, Halliburton’s Country Lead Mr Vahman Jurai said with the approval of the company’s five-year local content plan, it is cognizant of one of Halliburton’s guiding principles of “Global Citizenship”.
Mr Jurai related, “Halliburton is eager to work closely with our local vendors, sharing our knowledge when needed. We hope to significantly contribute to the development of Guyana’s talent in the oil and gas sector, whether through the university programmes we support or through hands-on experience working with us.”
The identified contractors, sub-contractors and licensees have demonstrated, through their Master Plan submissions, their commitment to fostering local content in their operations by:
- prioritizing Guyanese nationals for employment;
- having policies aimed at non-discrimination and equal treatment of Guyanese nationals;
- implementing training and other programmes to build the capacity of both their employees and the larger Guyanese workforce;
- coordinating with industrial and technical education training institutions in Guyana to provide sponsorships and/or internship opportunities;
- incorporating the requirements of the Act and the Procurement and Bid Evaluation Guideline issued by the Secretariat into their procurement strategy;
- outlining the criteria for the supply of goods and provision of services relating to their operations;
- planning capacity-building activities for Guyanese nationals and Guyanese companies that supply goods and services to the industry, such as feedback sessions, supplier forums, etc.
- projecting anticipated expenditure on local content values
The Ministry of Natural Resources through the Local Content Secretariat will continue to work with stakeholders to ensure that the goals of the Local Content Act are achieved.