Private sector body urges swift payment reforms in Guyana’s oil and gas sector

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The Private Sector Commission (PSC) has raised urgent concerns over payment delays from oil and gas companies, calling for reforms to ensure timely payments. In a meeting on June 14, 2024, with Minister of Natural Resources Vickram Bharrat and the Local Content Secretariat, the PSC highlighted this issue among several others.

PSC Chairman Komal Singh led the discussion, which included presentations from PSC Local Content Sub-Committee Chair Shyam Nokta and other PSC Council representatives. They emphasized the necessity to “revisit and expand on the 40 areas in Schedule I of the Local Content Act” to accommodate the growing capacity and investments by Guyanese businesses.

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A significant point of contention was “the process and lengthy delays in receiving payments from some oil and gas companies.” The PSC stressed that these delays hinder the ability of local businesses to operate effectively.

PSC Chairman Komal Singh led the discussion, which included presentations from PSC Local Content Sub-Committee Chair Shyam Nokta and other PSC Council representatives.

Mr. Bharrat acknowledged the concerns and confirmed the government’s commitment to addressing them. He emphasized the success of the joint approach between the government and the private sector, stating, “The government is strongly interested in seeing local content expand and will examine all the areas put forward by the PSC.”

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To ensure ongoing dialogue and progress, it was agreed that the PSC’s Local Content Sub-Committee and the Ministry’s Local Content Secretariat will meet monthly. These meetings aim to “discuss the issues facing the private sector and also to come up with recommended actions to advance local content.”

The PSC commended the government’s firm stance on local content, highlighting the significant role of Local Content Legislation in facilitating Guyanese participation in the oil and gas supply chain.

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