Gov’t taking action to avoid ostracism in oil, gas sector – AG Nandlall

Guyanese are at the forefront of the government’s plan for the oil and gas industry, with a focus on providing them with ample opportunities for training and employment, and avoiding marginalisation.

Attorney General and Minister of Legal Affairs, Mohabir Anil Nandlall, SC, gave the assurance as he addressed those gathered at the Local Content Summit, at the Pegasus Suites and Corporate Centre, in Kingston, Georgetown, on Tuesday.

The AG acknowledged that the oil and gas sector is fairly new to Guyana, and began operations at a time when Guyana suffers from severe skills shortages.

In addition to this, he noted that many of the international oil and gas companies seeking to capitalise on this opportunity have already established the economic credentials to support their investment.

“These companies have decades of experience. They will have had institutional relationships with [each other], they would have had a proven track record of competence in the various endeavours. So there has been comfort, expediency, and obviously efficiency,” the AG explained.

However, the government believes that local content is the driving force behind economic expansion. He explained that the government has crafted the enabling mechanism to bolster the sector.

This mechanism, according to Minister Nandlall, also prevents ostracism, especially on the basis of inexperience. 

“If affirmative action is not taken, in the most effective way, then the ostracisation to which I made reference would have happened. And you would have had a deeply divided society, which has happened in other countries,” the minister underlined.

The local content act, which was passed in 2021, was established for this very reason.

This is a proactive piece of legislation that ensures every Guyanese is given an opportunity to gain employment within the sector and even provides for training and upskilling so that these persons can compete in the industry.

The act has led to the employment of more than 6000 locals in the industry and lays out 40 areas in the services sector that oil and gas companies and their subcontractors must procure locally.

Recounting the journey leading to the establishment of the legislation, the AG said the government perused existing policies in other countries.

“Many countries have used the policies, not law. We felt that the policies would have been ineffective. We needed the strongest institutional instrument to ensure that the Guyanese workforce will be protected and will be offered a fair and reasonable opportunity to participate in the sector,” the attorney general underscored.

In addition to the act, other training opportunities complement this aim, such as the Guyana Online Academy of Learning (GOAL), the Board of Industrial Training (BIT), and the recently opened oil and gas Facility Simulator, which will be accompanied by the Guyana Technical Training College Inc (GTTCI).

“It is a good foundation for us to build on, and I believe that we have done well so far in what we have achieved,” the minister said.

Even so, the act is being revised to tackle existing loopholes, and strengthen various elements. Already, the government has identified fronting as an issue that requires a concrete strategy to mitigate.

Fronting is a deceptive practice in which foreign companies employ local companies as a ‘front’ to bypass the provisions of the act.

“As we continue to build local capabilities and local capacity, and as the industry grows, that scale will be adjusted accordingly to minimise reliability on foreign companies and foreigners. That is the objective that will drive the changes,” the legal affairs minister posited.