Guyana’s Local Content Secretariat is conducting a data-driven review of the Local Content Act, which could expand participation across additional sectors, based on spending patterns already observed in the oil and gas industry.
Local Content Secretariat Director Michael Munroe said the review is being informed by several years of procurement data submitted by contractors and subcontractors, rather than assumptions about market readiness.
Speaking on a recent Energy Perspectives podcast episode, Munroe said companies are required to submit annual plans outlining projected procurement activity, including spending tied to sectors listed in the Act’s First Schedule.
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“Every year the contractors and subcontractors from their aggregate spend they need to achieve the stipulated percentage that earmarked for [Guyanese] companies within these sectors,” he said.
He explained that reporting has also revealed sustained spending beyond the current scope of the Act, creating a clearer picture of where local capacity already exists.
“We already have about four years’ worth of data where the companies are showing us the other areas… where they’re procuring spend,” Munroe said.
That information, he said, allows policymakers to consider expansion without disrupting existing supply chains.
“We don’t want to do it in a way that disrupts the supply chain of the company,” Munroe said. “So we need to be very thoughtful and very purposeful in how we treat this.”
Munroe said the Secretariat has also received formal proposals from industry stakeholders as part of a recent call for submissions on amendments to the Act, adding another layer of validation to the review process.
“We have their proposals as well as the data that we’re seeing from their reporting,” he said.
Rather than announcing specific sectors at this stage, Munroe said the Secretariat is compiling its findings into a policy brief for senior government officials, who will determine the scale and timing of any changes.
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“We’re now compiling a dossier to take forward to no less a person than His Excellency the Vice President and the Minister of Natural Resources,” he said.
He said decisions will ultimately balance proven local capacity with broader economic considerations.
“Do we take 20 areas? Do we take 10? Do we take 15? Do we go beyond,” Monroe said, noting that the final direction will be set at the policy level.
Munroe said the review is expected to gain momentum in 2026, alongside broader consultations on updates to the Local Content Act.
Since the enactment of the Local Content Act in 2021, the total procurement of goods and services from Guyanese companies and nationals has surpassed US$1.5 billion.
Guyana’s Local Content Act has facilitated the employment of Guyanese nationals in the industry, with 40 specified areas in the service sector mandating local procurement by oil and gas companies and their subcontractors.
