Minister of Natural Resources, Vickram Bharrat, emphasized that Guyana’s local content legislation is not a shield for substandard services. Speaking at the Local Content Forum, Bharrat urged the private sector to focus on maintaining high standards.
“The local content legislation is in no way protection to provide poor services or poor quality goods at inflated prices,” Bharrat stated. He stressed that local companies must compete regionally and internationally by delivering quality, not relying on protectionism.
Bharrat acknowledged the progress made since the implementation of the local content law, noting the active role of the private sector. However, he warned that the legislation’s success should not lead to complacency. “Let us ensure we use it to raise the standard and quality of what we produce,” he urged.
Guyana’s Local Content Act has facilitated the employment of Guyanese nationals in the industry, with 40 specified areas in the services sector mandating local procurement by oil and gas companies and their subcontractors. To further strengthen local content policies, a series of amendments to the legislation have been planned.
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The minister highlighted the law’s flexibility, allowing for changes as Guyana’s capacity grows. “Local content will continue to evolve as we move on,” he explained, pointing out that the schedule of services covered by the law can be revised without returning to the National Assembly.
While praising the partnerships between the government, private sector, and international oil companies, Bharrat stressed that collaboration has been key to the success of local content initiatives. “If these three were not working together, I don’t believe we would have seen the kind of success that we’re enjoying today,” he remarked.
Oil production in Guyana is being led by ExxonMobil Guyana and its partners Hess and CNOOC. Currently, Guyana produces over 600,000 barrels per day from three developments. Three other developments are under construction.
