Guyana’s local content legislation will have served its purpose when local businesses can compete directly with international companies without relying on the law’s protections, according to Private Sector Commission Chairman Gerry Gouveia Jr.
Gouveia made the remarks on the Energy Perspectives podcast on August 10, arguing that the legislation was designed to give Guyanese businesses a foothold in the oil and gas industry while they build the capacity to compete on their own.
“I think that the success of the local content legislation will be when we don’t need it anymore…When we get to that level, it means that local content has done its job,” he said.
The PSC Chairman explained that Guyana has made tremendous progress since the enactment of the Local Content Act; however, he noted that the next stage is to ensure local companies develop the technical and commercial strength needed to compete beyond the local content framework.
He explained that training and capacity building are already part of the law. When companies cannot fill jobs with Guyanese workers, they can submit training plans to close the gaps.
“I think that we understand that there’s only so much of us [Guyanese] to do the job, and we have to be creative and we have to be realistic in terms of our demands that we’re putting on our manpower,” Gouveia explained.
Guyana passed its Local Content Act in December 2021 to expand participation by local workers and businesses in the oil and gas sector through hiring and procurement requirements linked to offshore operations.
The government has already reviewed potential amendments to the Act as more local firms enter oil and gas services, to strengthen opportunities across the value chain. The Local Content Secretariat has submitted proposed changes to the Minister of Natural Resources for Cabinet consideration following consultations with the private sector.
A six-month consultation will be conducted with communities across Guyana to identify additional goods and services that Guyanese businesses can supply to the oil and gas sector and related industries.
