The Local Content Secretariat will be intensifying its efforts to ensure Guyanese businesses get a total of US$900M in revenues this year. This was disclosed on Wednesday at the International Energy Conference Guyana 2023 by Local Content Secretariat Director, Dr. Martin Pertab.
He told over 800 delegates that the implementation of the Local Content Act preserved the substantial use of Guyanese goods and services across 40 categories of work, earning a whopping US$700M last year. Dr. Pertab said Guyanese have been fearless in expanding their capacities over the year in the more sophisticated elements of the oil and gas sector. As such, the law will be revised to include more categories of work.
Dr. Pertab said, “We have commenced a revision of the Local Content Act to help close all potential loopholes and further prioritise Guyanese suppliers. Specifically, we are reviewing all existing targets under the First Schedule of the Act. Based on our engagements with the private sector and other stakeholders over the last year, we are confident that locals are now capable of providing a larger share of the identified services.”
He added, “For instance, we have seen significant increases in the capacity of our locals to provide medical services, environmental services and studies, hazardous waste management, pipe welding, and ship and rig chandlery services. Therefore, these areas will see significant increases in their respective targets.”
Dr. Pertab said the secretariat has identified several new carved-out areas which include lab supplies, rope access services, offshore pipe coating, vessel chartering, etc. Based on preliminary assessments, Dr. Pertab said these areas will bring in an additional US$150 to US$200 million in business opportunities.
In addition to expanding the scope for Guyanese to secure more fiscal benefits, Dr. Pertab said the secretariat will be engaged with ensuring further technical training of locals. In this regard, he said the secretariat will be collaborating with the Government Technical Institute (GTI) and some of the major subcontractors operating in the oil and gas industry to provide paid internships to 40plus students. Once completed, students will be given an opportunity to join the workforce of these companies. The aim of this programme is to take a proactive approach towards possible labour shortages in the oil and gas industry. During the course of the year, he said the secretariat will engage other technical institutions.
It is also slated to host several public education workshops with Guyanese and Guyanese-owned businesses. These will go hand-in-hand with an intense communications campaign.
