Local content framework in Guyana to be in place “long before first oil” – Dept. of Energy

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“We are confident that there will be a Local Content framework long before first oil.” This assurance was given by Director of the Department of Energy, Dr. Mark Bynoe as he addressed media operatives at his first press conference since assuming office in August of this year. Also present at the press conference was oil and gas Advisor, Mathew Wilks.

Currently, the Department is in the process of recruiting a consultant to finalise the draft local content document.

“Out of that, we then hope to have…a white paper which can be taken to Parliament,” he told the media.

A white paper informs readers about a complex issue and contains proposals for the specific policy area suggested during the consultation process. It goes to Parliament for approval before it becomes the official policy.

Dr. Bynoe noted that there have been consultations with the private sector which has in the past few months made a lot of fuss about local content.

“What we’re aiming at is to take the points they would have raised and input that into the second draft and so finalise – before the end of the year,” Dr. Bynoe said.

He noted that one of the areas being promoted in the document is the need for joint ventures –something which he said not only contributes to upgrading local companies but also prosperity of the sector. Such ventures he said, can “capture the benefits accruing to Guyana in jobs and revenue derived.”

The Georgetown Chamber of Commerce and Industry (GCCI) had submitted a draft local content policy document to the Government in an effort to fast track this process.

However, local businesses have already begun taking steps to benefit from the oil and gas industry through joint ventures and training.

Additionally, the Department is also reviewing legislation governing the Energy sector even as it works to build its local expertise.

Dr. Bynoe noted that the review covers the Petroleum (Production and Exploration) Act 1986. The review will also include fiscal policies.

Advisor on Oil and Gas, Mathew Wilks noted that “if you’re looking to increase and protect state revenues going forward, not only do you have to look at renewed or modified Production Sharing Agreements (PSA), you also have to look at the surrounding legislation which includes fiscal legislation and tax schemes.”

A first presentation on the review is expected on November 13, Dr. Bynoe said. He added that finalization can be expected before the end of 2018.

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1 COMMENT

  1. My thoughts on how I think OIL & GAS will contribute significantly, shaping a SECURE & fulfilling future for a GOOD LIFE for ALL Guyanese. We must work TOGETHER in the spirit of ONENESS, ALL Guyanese should be able to access the WEALTH of our resources efficiently & sustainably, our FOCUS should be PASSION & INNOVATION on our UNIQUE STRENGTH & SKILLS on the quality of our people, recognizing that diversity across ALL aspects of our people is a UNIQUE VALUE to be CHERISHED. We must believe in the spirit of PARTNERSHIP as this will help to STRENGTHEN & CONCRETE our relationship with the countries & communities we operate. If we are to ENJOY a SECURE & fulfilling future for ALL Guyanese, we must embrace the TRUE essence of ONE PEOPLE ONE NATION ONE DESTANY. We need to determine what is the current state of the oil & gas industry & where it is heading, what trends have we experienced & what impact should we expect. The OIL & GAS market must be CAREFULLY actioned as it is a JOURNEY of WEALTH & PROSPERITY for our people, we CANNOT seek achievement for ourselves and forget about progress & prosperity for our COMMUNITIES, our ambition must be broad enough to include the NEEDS of others for their sake & our own, this could gain even more momentum as we move into the future. We should use ALL available resources in our country as this will contribute significantly to molding a true Guyanese society, we should be able to shaping our dreams from this BLESSINGS as it can be long standing & lucrative as it remains innovative, expanding into the WORLD

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