For oil and gas companies operating in Guyana’s petroleum sector, local content is more than a requirement on paper; it must translate into concrete opportunities for Guyanese workers and businesses through employment, procurement and capacity development.
In June, the Ministry of Natural Resources approved the 2026 local content plans of 40 companies, including ExxonMobil Guyana Limited, MODEC Guyana Inc., CNOOC Petroleum Guyana Limited, Guyana Deep Water Operations Inc. (SBM Offshore), and SLB.
But how did this framework come about, and what systems are in place to ensure Guyanese workers and businesses benefit from the country’s petroleum sector?
From a master plan to annual targets
Recognizing the rapid development of petroleum activities in the Stabroek Block, the Government of Guyana passed the Local Content Act in 2021 to ensure that the sector’s expansion created lasting opportunities for Guyanese businesses and workers.
Part III of the Act requires contractors, subcontractors and licensees to submit a Local Content Master Plan for approval. The plan must be updated every five years and must include three main areas:
- Employment — how Guyanese workers will be incorporated.
- Procurement — how Guyanese companies will be used to supply goods and services.
- Capacity development — how local skills and capabilities will be strengthened.
The master plan must also outline the quality and quantity requirements for goods and services and estimate the value of local content the company expects to acquire in Guyana.
Each year, companies must turn those broader commitments into a Local Content Plan, setting out the program they intend to implement.
These plans are due within 60 days before, but no later than 30 days after, the start of the year.
The plans do not end with approval
The Local Content Secretariat and the Minister responsible for petroleum review the plans, with the Secretariat required to notify companies of the decision within 45 days of receiving them.
Once approved, companies are required to implement their annual plans.
They must also submit local content reports within 30 days after the end of each half-year, showing their compliance with the approved minimum local content levels.
That creates a cycle of planning, implementation and reporting, rather than a one-time commitment.
Local content also enters the bidding process
The Act takes the requirement into the procurement process itself.
Companies must include local content in their bid evaluation criteria. Where competing bids are financially equal, or within 5% of each other and otherwise considered equal, the bid with the higher level of local content must be selected.
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Companies must also hold workshops twice a year to help Guyanese businesses understand procurement procedures, qualification requirements, bid evaluation and performance standards.
Building capacity beyond contracts
The Act also looks beyond immediate jobs and contracts.
The Local Content Secretariat is required to develop strategies to address knowledge and skills gaps in the petroleum sector, while companies must support and facilitate local capacity development under those strategies.
The result is a framework designed to make local content part of how petroleum companies hire, buy, train and plan — with their annual plans showing how those commitments are expected to translate into opportunities for Guyanese businesses and workers.
