Guyanese businesses earn nearly US$1B from oil sector in two years

Guyanese sub-contractors and entrepreneurs have earned nearly US $1 billion from oil and gas companies since the passage of the Local Content Act in December of 2021.

In 2022, some $440 million was earned by registered companies, while in 2023, there was an almost 20 per cent uptick in earnings, with companies ending the year with $524 million in profit.

In an exclusive interview with the Department of Public Information, the Director of the Local Content Secretariat Dr Martin Pertab described the tremendous success Guyanese entrepreneurs have seen as a result of the passage of this piece of legislation.

“We have seen how Guyanese are benefitting. We have seen how Guyanese have moved from owning one car to thirty cars…From owning one apartment and now they have apartments, all because of the preference that is given to them under the law for the provision of those goods and services that are listed under the First Schedule of the Act,” Dr Pertab explained.

As of April 2024, more than 800 companies have been approved and are currently part of the Local Content Register.

More than half a billion US dollars is expected to be attracted through procurement activities in 2024, a five per cent increase from 2023.

“The 40 sectors that we carved out, those sectors this year is expected to attract $550 million in businesses and that includes accommodation, transportation, laydown yard facilities, all those sectors that we have listed under the First Schedule of the law,” the director stated.

He pointed out that the secretariat is focusing on ensuring farmers outside of Georgetown benefit from the oil and gas sector’s food demands.

The intention, he said, is to establish a consortium of farmers that will connect with a food processing company, supplying produce directly to oil and gas companies.

Collaborations will also be facilitated with catering companies to utilise produce from these farmers.

The Local Content Bill was passed in the National Assembly after intense debates on December 29, 2021.

Guyanese business owners can find out the documents needed to register for the Local Content Register here.