Guyanese are expected to benefit from US$550 million in procurement opportunities, thanks to the provisions in the Local Content Act 2021. This important development was outlined in the 2024 mid-year report which notes that there is an ongoing review of the law to generate more benefits for Guyanese.
With public consultations aimed at refining the Act’s first schedule, stakeholders in the business community are being sensitized to the potential for new services and enhanced capacity in the sector. The consultation process began in Leonora and involved engagement with the Private Sector Commission, yielding feedback that indicates the possibility of supplying 25 additional services.
This review, and the anticipated revisions, reflect the government’s commitment to ensuring equitable access to employment and supplier opportunities for all Guyanese. Under the Act, contractors and subcontractors are required to submit half-year reports to the Local Content Secretariat detailing procurement activities, employment, and capacity-building initiatives. The first half of this year saw the submission of 40 reports, revealing total expenditures of US$314 million.
The report noted it to be a significant growth compared to the same period last year, particularly in engineering and machining services, accommodation services, equipment rental, and catering, driven by increased activity in the petroleum sector following the arrival of the third Floating Production Storage and Offloading (FPSO) unit in late 2023.
“For the entire year, US$550 million is projected in the procurement of goods and services, while US$8.9 million is estimated in training, exceeding 2023 levels of US$524 million and US$5.2 million, respectively, the report noted.
It added, “The 2024 procurement position includes estimates for construction, manpower and crewing, and accommodation of US$56 million, US$36 million, and US$21 million, respectively.”
Employment figures are also promising, with more than 454 new hires reported in the first half of the year among these 40 companies, bringing the total number of Guyanese employed in this sector to 4,467. Overall, it is estimated that approximately 6,500 Guyanese are currently working in the oil industry.
Moreover, the reported outlined additional expenditures for laydown yard facilities (US$20 million), ground transportation (US$16 million), and catering (US$2.7 million).
To enhance transparency and local supplier participation, the Local Content Secretariat is also developing a Local Content Mobile App, which is expected to become functional by the end of the year.
In the first half of the year, the Secretariat held two workshops to inform the public about the opportunities presented by the Local Content Act.
Furthermore, collaborations with eight technical institutes have led to the establishment of a three-month paid internship program, targeting 100 interns to be placed across over 25 companies in the sector.
To date, more than 45 students have already been assigned under this programme, providing them with invaluable experience and enhancing their prospects for future employment in the industry.
