Guyana’s Local Content Act – implemented in 2021 – has enabled significant investment in small and medium-scale logistics and transportation enterprises to service the expanding oil sector.
During a virtual discussion on investment opportunities in Guyana and Ghana, Senior Petroleum Coordinator at the Ministry of Natural Resources, Bobby Gossai Jr. revealed that the trend was noted from 2022 to this year along with other major accomplishments.
“We have seen the growth in the establishment of more infrastructure, support, and the service sector…manpower…we have seen major businesses that have been established, we have seen the establishment of the Local Content Secretariat and the approval of Local Content Certificates…and overall how the Local Content Policy has been able to grow the economy,” he outlined.
Gossai Jr. reported that local content gains massive revenue for the economy “directly and indirectly” as figures show. The accumulated amount, he said, stands between US$400 million and US$700 million from offshore investments, prime contractors, and sub-contractors working in the industry.
Guyana sought assistance from Ghana in crafting the unique piece of legislation and aims to continue along that path, seen from the establishment of the Guyana-Ghana Chamber of Commerce back in May.
“We can learn from Ghana, we can learn from the challenges as well as the partnerships… We will always push for effective private-sector collaboration and we want to make sure that there are synergies between the approach to growth and the objectives of the Chamber to provide that linkage of experience of Ghana, readily to Guyana,” he continued.
The First Schedule of Guyana’s Local Content Act is up for review this year, eventually leading to a revision of the 40 categories of services, in the oil sector, for which Guyanese companies deserve preferential treatment in procurement. New services are being examined and could potentially rake in an additional US$200 million in revenue for the South American country.
“The law will be adjusted to include other areas, new opportunities that we have seen have grown over the years. And by the end of 2022, it would have reached the stage where these businesses/services can be provided in the country. And we will, of course, not only add new areas to the schedule but also amend the targets that we would have set originally back in 2022,” Gossai explained.