Guyanese businesses should not view the 40 categories listed under the Local Content Act as the only opportunities available in the country’s oil and gas sector, Finance Minister Dr. Ashni Singh said Tuesday.
Speaking at the opening of the fourth annual Local Content Summit at Four Points by Sheraton Hotel, Singh said the categories outlined in the legislation represent minimum requirements and do not restrict the range of goods and services local companies can provide.
“This is exactly why we are currently engaging in consultations on the possibility of revising the first schedule to the act, whether to expand the 40 categories of goods and services against which minimum local content thresholds have been prescribed,” Singh said.
The minister said the existing framework was designed to guarantee participation by Guyanese businesses, but companies should also pursue opportunities beyond those areas.
“There is nothing written in law that Guyanese companies can only supply these 40 categories of goods and services,” the Minister said.
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The Local Content Act, enacted in December 2021, established minimum participation requirements for Guyanese companies and nationals in a range of activities supporting the petroleum sector.
Singh told participants that competitiveness remains the key factor in securing business.
“The reality is that if you can produce anything under the sun that ExxonMobil requires, and you’re able to do so competitively, and obviously you have to do so competitively, but if you can produce literally anything under the sun that they might require, whether it is in the local content schedule or not, and you can satisfy ExxonMobil or their tier one or tier two contractors, or any one of their suppliers, if you’re able to do so competitively, there is a business opportunity for you,” he said.
The minister urged businesses to position themselves to take advantage of future opportunities as the industry expands.
He noted that more than US$2.5 billion in procurement opportunities have already been awarded to Guyanese companies and nationals through the oil and gas sector.
Singh said opportunities are also emerging outside of direct oil and gas services as economic growth drives demand across multiple industries.
“If you build up logistical capabilities, there is no reason why your logistics services should be confined to ExxonMobil or their tier one contractors,” he said.
“If you build up advisory services capabilities, there is no reason why those services should be confined to the oil and gas sector at all.”
The two-day summit is being held under the theme, “From Policy to Prosperity: Unlocking Opportunities Through Collaboration” and brings together government officials, industry representatives, and members of the private sector to discuss local content participation and economic development.
