Local Content Law preparing Guyanese companies to compete regionally and internationally – Director
Guyana’s landmark Local Content Law is not only paving the way for Guyanese companies to secure employment and procurement opportunities in the oil and gas industry. It is also providing the enabling environment to help them build the capacity needed to compete regionally and internationally, says Local Content Director, Dr. Martin Pertab.
Speaking on the Energy Perspectives Podcast, a programme powered by the Guyana Energy Conference and Supply Chain Expo, Dr. Pertab emphasized the importance of preparing local companies to survive well beyond the oil and gas industry. However, he noted that there is a need to foster an environment of growth and competition locally first.
The Director explained that handing a Guyanese company a local content certificate is not enough to make that company competitive in the oil and gas sector, or to guarantee entry into the supply chain.
Dr Pertab underscored the finite nature of resources, like oil, and urged local companies to boost their capacity now, to not only compete at home but also abroad. He encouraged local businesses to use the current environment to their advantage.
“Once they can compete locally among themselves and get into the supply chain, when you remove that barrier, the local content barrier which basically protects them, they can compete regionally and that is what we want. And once you can compete regionally and internationally [it is] because we created that environment for them to compete, and to innovate…” the Director explained.
Moreover, Dr. Pertab also spoke about building the portfolios of small and medium-size businesses. He warned that without intervention, larger companies could dominate the sector, thereby sidelining smaller enterprises.
He said, “We need to start changing the mindset where the wall is there protecting them yes, but it wouldn’t be there forever; we need them to become competitive and you can’t have competition if there’s one dominant company, because that very same company would eventually keep dominating, and the small ones that can’t get in would eventually fall out.”
Dr Pertab explained that while some large-scale contractors might be willing to work with smaller businesses, the oil industry has zero tolerance for error so most companies are inclined to use services of specialized companies.
As such, he said the Secretariat has decided to make changes to its approach in order to ensure that there are not only a few dominant local companies in the sector, but the landscape is as such that it enables broad based growth and development of companies, particularly small and medium-sized businesses. Dr Pertab added, “We want to create an environment where there is competition, where we have growth and development for not only one company, but several companies providing those services, so as long as there is competition, it helps stabilize prices, it helps with innovation.”