Vice President, Dr. Bharrat Jagdeo recently highlighted that the government is taking strategic steps to integrate the oil and gas sector into the economy so that more benefits are dispersed to the ordinary man.
“While sectors like agriculture are fully grounded here, operating in a more integrated fashion with significant spin-off benefits, the oil and gas industry presents challenges due to its (non-integrated) nature,” Jagdeo explained.
To address this, Jagdeo shed light on the government’s efforts to aid in more integration, particularly through the implementation of the Local Content Law. He emphasized that this legislation compels companies in the oil and gas sector to contribute more significantly to the domestic economy.
“The law forces them to spend more, not just on the revenue stream to the treasury, but on a quantum level in the local economy,” he stated. He clarified that the law mandates these companies to procure services, including labour, and a variety of other goods from local sources.
“This is how we make it more integrated, balancing the economic flows and contributing to greater distribution of wealth and national wealth,” Jagdeo added. He highlighted that this early initiative has positioned Guyana as a frontrunner in addressing the contentious issue of resource integration faced by many countries.
As a result of these measures, Jagdeo pointed out a noticeable shift in the Guyana’s Gross Domestic Product (GDP)composition. “More and more of the GDP is now coming from domestic sources because the goods and services are produced by our people,” he concluded.
He said the government’s commitment to enhancing integration of the oil and gas sector and local content is poised to reshape Guyana’s economic landscape, with a focus on broader wealth distribution and a more sustainable future.
