THE discussions around local content took hold when it became apparent that Guyana was destined to become a producer following the discovery of oil in 2015. This ultimately led to the introduction of the Local Content Act in December 2021, marking a key milestone and accomplishment by the government.

In passing this law, it was mandated that oil and gas companies operating in Guyana follow several related guidelines that were designed to maximise the participation of Guyanese companies in the industry. The Act carved out 40 areas at varying percentages exclusively for Guyanese participation. Those 40 sectors included 90 per cent accommodation services, 90 per cent janitorial services, 75 per cent local supply of food, 90 per cent accounting services, 90 per cent legal services and 100 per cent customs brokerage services.

Additionally, the Local Content Secretariat was established within the Ministry of Natural Resources in 2022 as part of the Act. Its mandate is to ensure the effective implementation of the measures outlined in the legislation and the development and implementation of strategies that give preferences to or ensure equal treatment of Guyanese nationals and companies.

Fast forward to 2024 where Guyana has seen significant wins in the area of local content, evident in the statistics being released by the Secretariat. In an interview with the Department of Public Information, the Director of the Secretariat, Dr. Martin Pertab, shared that Guyanese sub-contractors and entrepreneurs have earned nearly US$1 billion from the oil and gas companies since the passage of the Act.

“We have seen how Guyanese are benefitting. We have seen how some 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.

These achievements in Guyana’s local content sphere were further highlighted by Dr. Pertab during the 2024 Local Content Summit which was hosted on April 16. Attendees were told that, as of April 2024, over 800 companies have been approved to be included in the Local Content Register. He further noted that the Secretariat anticipates business opportunities for locals to earn approximately US$550 million this year. It is important to note that, in 2022, registered companies earned some $440 million and, in 2023, an almost 20 per cent increase in earnings was recorded, ending the year with $524 million in profit.

On the heels of these achievements, the Attorney General and Minister of Legal Affairs, Anil Nandall, who was also present at the Summit, announced that the country is expected to amend its Local Content law later this year. He noted that this amendment will target increasing the areas in which companies are mandated to utilise Guyanese goods and services, adding twenty services.

Importantly, this amendment will also cater for the inclusion of persons living with disabilities. Once implemented, Dr. Pertab expects that the addition of services will add $350 million for Guyanese companies.
As the government continues its push to increase benefits to Guyanese, oil and gas companies have also been expanding their efforts to increase the workforce and supplier base in the sector.

These efforts, which even precede the introduction of the Act, has seen to date well over 6,000 Guyanese supporting oil and gas operations locally. This represents an impressive 70 per cent of the total employment within the sector. The sector is also projected to hire over 1,600 more Guyanese over the next three years, sending a clear indication that oil and gas companies are integrally involved in the success of Guyana’s local content mission.

Meanwhile, Guyana’s Gross Domestic Product is expected to grow by 33.9 per cent in 2024. This growth is primarily attributed to the increasing oil production at the Stabroek Block. Notably, the Payara project achieved its first oil in November 2023 and, by January, it had already exceeded its target production of 220,000 barrels per day.
With more projects coming onstream, like the sixth development in the Stabroek Block – Whiptail – the benefits to Guyanese and Guyanese businesses will continue to accelerate.