Once the Local Content Bill 2021 becomes law, international oil companies and their subcontractors will have a one-year grace period to get their proverbial house in order and be fully compliant with the legislation says Attorney General of Guyana and Minister of Legal Affairs, Anil Nandlall.
The official recently said, “The law allows for transition periods for existing contractual arrangements not to be affected and to be executed in accordance with pending contracts. But a long period of one year is given for one to get oneself in order for the Act to apply.”
Nandlall was also in high praise of the Bill becoming a reality as he noted that it is one of the most important pieces of legislation to be enacted since Guyana’s independence. He said it is fundamental to nationhood and the interest of Guyanese as it seeks to protect the welfare of future generations. “So, it is an important period in our legislative history,” the Attorney General noted.
He stressed however that the crafting of the Bill along with the Natural Resource Fund Bill 2021, was by no means, a simple exercise. Nandlall said citizens ought to bear in mind that the oil sector is new to the economy; so too are the requisite legislative and regulatory instruments that are needed. Taking this into consideration, Nandlall said both Bills benefited from the guidance of international experts while noting that this work commenced since last year.
The Attorney General recalled that the government, when it assumed office in August 2020, established a unit and charged it with doing widespread consultations in terms of formulating the relevant policies to inform the legislative framework for the oil sector. He said the unit was guided by international experts and discharged its functions by hosting several consultations nationwide. The AG said the unit subsequently produced a huge report which was reduced into a workable set of principles that the government used as a platform to craft the two pieces of legislation.
Nandlall said, “The Local Content Bill received input from experts around the world and we drew heavily from jurisdictions such as Ghana, Norway, Nigeria, Uganda, and Trinidad and Tobago.”
He added, “We consulted with the Private Sector Commission and the wider private sector, professional organizations and the sector itself such as operators and licensees in the sector. So, these two Bills have benefitted from a tremendous amount of consultations nationally and internationally.”
The Minister of Legal Affairs said every Guyanese should be proud that legislation will soon be enacted to guarantee them a permanent and significant place in providing employment and services to the trillion-dollar sector.
