Within a year of existence, Guyana’s Local Content Secretariat (LCS) had made tremendous strides, and in 2023, it aims to continue along that path. Head of the Secretariat, Dr. Martin Pertab disclosed that it has targeted the approval of 750 critical Local Content Certificates.
“Last year, we were essentially testing the depth of the water and getting a feel of the industry. This year, we are focused on strengthening the [Local Content] law, particularly the services we provide,” he explained.
Dr. Pertab noted that local content raked in a whopping US$700 million for Guyana.
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“This translated into additional job opportunities and spill over effects in other sectors,” he added.
The First Schedule of Guyana’s Local Content Act is up for review this year, eventually leading to a revision of the 40 areas that Guyanese can have preference, in the oil sector. Dr. Pertab explained that new services are being examined and could potentially rake in an additional US$200 million in revenue for the South American country.
Pertab had told OilNOW that having a Local Content Certificate not only demonstrates to regulators that you are a legitimate Guyanese company or joint venture in the oil and gas supply chain, but also puts you in an advantageous position during the evaluation process for contracts.
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In 2023, the LCS Head explained that one of the criteria being used in the approval process is assurance that the payment period for local contractors falls within its mandatory guidelines. Last year, the LCS issued an ultimatum to all contractors and sub-contractors operating in its oil and gas industry to institute a 45-day payment period following complaints from local vendors.
“We have made it quite clear to the companies that the lengthy payment periods would have a significant impact on the viability of these small companies. So, we want to ensure that commitment remains this year,” Dr. Pertab outlined.
The LCS has approximately 560 local entities registered on its database.
