The much-anticipated Local Content Policy (LCP) that sets the framework within which companies in Guyana’s oil and gas sector are expected to operate has been completed and will be made public shortly.
Director of Guyana’s Department of Energy (DE), Dr. Mark Bynoe, told reporters at a press conference on Monday the LCP remains a ‘fit for purpose policy’ as it offers a balanced alignment between the Government of Guyana policy goals whilst maintaining consistency with the country’s international and regional trade and economic obligations.
“It promotes education, inclusion and advancement of Guyanese persons who demonstrate expertise and experience required to participate in the petroleum industry,” he said, pointing out that it also ensures participation of Guyanese persons and suppliers in employment and contracting opportunities in the petroleum sector.
He said the DE has begun working with operators on reporting on Local Content performance as per the conditions in the new LCP.
The last report as of December 2019 indicated that over 1900 Guyanese are now directly employed within the petroleum sector through ExxonMobil and its contractors. Of this, he said, 75 percent is in the skilled and professional categories with 100 percent basic skills being supplied by Guyanese.
“The representation of these employed in the sector came mainly from Regions 4, 3 and 6,” he said. “Additionally, the companies have engaged over 750 Guyanese vendors and spent over $120 million in the fourth quarter of 2019.”
Dr. Bynoe said the DE is working with contractors to have them not just submit annualized plans, but to provide a more programmatic approach so that they can precisely see where, on an annual basis, they are headed. The Operators also have to provide an annual procurement plan so Guyanese suppliers can know what is expected and when, so that they can better position themselves to be able to access these opportunities.