Local content raked in over US$2 billion in businesses to date – President Ali

Guyana’s local content legislation continues to create numerous opportunities for Guyanese involvement in the oil and gas sector, enabling more than US$2 billion in revenue generation for small and medium-sized local enterprises. 

This is according to President, Dr Mohamed Irfaan Ali, who has emphasised that 65 per cent of the oil and gas workforce are Guyanese, more than half of which are women.

We have created more than US$2 billion of business for local enterprises.

“The legislation was carefully thought out because we understood how important the legislative framework was in creating these opportunities for Guyanese today,” the president said during a special sitting of the National Assembly on Thursday, October 11.  

The Local Content Act establishes baseline requirements for foreign and local firms operating in the country’s oil and gas sector to hire Guyanese and source local materials.

The Act defines 40 sub-sectors that include transportation, accommodation, legal services, marketing, and public relations. The Act makes it mandatory that a percentage of these goods and services must be provided by Guyanese.

In the first half of this year, over 454 new hires were recorded within the 40 specified areas.

President Ali added that the law is currently ready to undergo a comprehensive review that will allow for even greater reach and opportunities.

Through this process, the government will evaluate what additional services can be added to the list for local content providers, and how the existing services outlined in the Act can be expanded.

“The law was not built without an understanding of the future. That is why that future was an important part of this law,” the president asserted.  

Additionally, the law provided for the establishment of a Local Content Secretariat, which aims to ensure the prioritisation of Guyanese nationals and Guyanese companies in the procurement of goods and Services.

The Secretariat is already pursuing a slew of measures to better connect local businesses with their international counterparts.

Plans are in place to implement a Local Content Mobile App that will enhance job creation.

The app is expected to complement the work of the Local Content Registry, which compiles a list of Guyanese nationals seeking employment and Guyanese companies from which goods and services can be procured.

To further tap into the oil and gas sector while adhering to the country’s LCDS vision, the government plans to pass new legislation to address oil spill prevention and management.