Guyana positioned to promote local content in unique ways

Guyana’s oil and gas potential, coupled with the government’s robust local content policy framework has once again received commendation.

Head of Upstream Americas (non-L48) Research, Mark Oberstoetter has said that the government is already capitalising on the resources and opportunities gained from the nascent oil and gas sector, which bodes well for the industry’s future.

Speaking during a panel discussion on Day One of the Guyana Energy Conference and Supply Chain Expo, he said it is encouraging to see that 6,000 Guyanese are actively employed within the oil and gas sector.

The theme of the panel discussion was ‘Shaping the Future of Energy: Trends and Challenges’, and Oberstoetter was responding to a question posed regarding measures that can be implemented to ensure that Guyanese are incorporated in the oil and gas development.

He touted a creative approach to educating Guyanese about available opportunities and creating employment.

“I’m excited to watch Guyana because I think they are well positioned to tackle it in some unique ways that we have never seen before. An educated population that has transparent data given from the government and companies enable a fruitful economy. They have more awareness of where they can participate,” he said.

Guyana’s Local Content Act is a key piece of legislation designed to advance this goal. The act was designed to ensure the oil and gas industry supports an economy where small and medium-sized businesses, and individuals can grow and benefit.

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.

Additionally, the government is keen on increasing its engagements with Guyanese on opportunities in the sector.

The Local Content Legislation is set to undergo a series of amendments to strengthen its policies and as part of this aim, a countrywide sensitization workshop will begin this year, piloted by the Ministry of Natural Resources.

This workshop will see the participation of oil and gas operators and contractors, and the discussions with locals will also provide a basis for the amendments to the legislation.

Another participant in the panel discussion, Director of Diversity and Inclusion, SLB, Carlos Sarmiento lauded the country’s development matrix for the sector, as presented by President, Dr Mohamed Irfaan Ali during his address earlier on Monday.

“I was impressed when I heard the speech from Guyana’s president. I understand that the policy is about creating energy affordability, making connections, and giving the right opportunities for other industries to flourish. All of that is great, and I want to add that it is also an opportunity to bring everyone together,” he commented.

This blueprint entails the creation of a functional development network that links both the oil and non-oil sectors to drive economic growth and people-centred development.

Guyana also recognises the importance of making renewable and clean energy a pivotal element of its development matrix and as such, has been taking bold steps to reduce the dependence on fossil fuels and ease the transition to clean energy.

The government’s ambitious energy diversification plan stems from its Low Carbon Development Strategy 2030, which aims to align Guyana along a path of economic and social prosperity, while simultaneously addressing issues associated with climate change.

This plan includes the incorporation of hydropower, natural gas and solar power sources, adding to the national grid while ensuring that renewable resources are paramount in the nation’s energy landscape.

Several key projects along this vein include the 300-megawatt gas plant, national grid upgrades, the Amaila Falls Hydropower project, as well as solar and wind systems.

These large-scale projects are expected to rake in additional revenue streams, which will fund projects geared towards improving the lives of all Guyanese.

The panel discussion also featured remarks from Theodore Kahn, Director, Control Risks, and Pepe Zhang, Senior Fellow, Adrienne Arsht Latin America Centre. It was moderated by Wazim Mowla, Associate Director & Fellow, Caribbean Initiative, Adrienne Arsht Latin America Centre.

This year’s Energy Conference is being held under the theme “Fuelling Transformation and Modernisation”, and will run from February 19-22 at the Marriott Hotel.