The Petroleum Production Licence (PPL) for the US$10B Yellowtail Project stipulates that ExxonMobil’s affiliate, Esso Exploration and Production Guyana Limited (EEPGL), must provide the government with a list of potential opportunities for local and overseas training or secondee positions within its organisations or affiliated companies, together with estimated costs.
EEPGL is required to provide this information to the State within six months of the date it received the Yellowtail PPL (April 1, 2022). It must also update this list each calendar year.
Furthermore, the document states that the licensee shall accept Government of Guyana personnel as nominated by the subject minister for such positions. Notwithstanding the foregoing, the licence states that this provision shall not be interpreted or applied so as to require EEPGL to accept a nominee if doing so would constitute a violation of any law applicable to the company.
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Along with the foregoing, the PPL states that EEPGL must comply with the provisions of the Local Content Act and regulations made thereunder, as amended from time to time.
The country’s landmark Local Content Law was assented to by President, Dr. Mohamed Irfaan Ali on December 31, 2021.
The law serves to provide for the implementation of local content obligations on persons engaged in petroleum operations or related activities in the petroleum sector. The legislation also prioritises Guyanese nationals and Guyanese companies in the procurement of goods and services for the enhancement of the value chain of the petroleum sector and enables local capacity development.
Importantly, it provides for the investigation, supervision, co-ordination, monitoring and evaluation of, and participation in, local content in Guyana; promotes competitiveness and encourages the creation of related industries that will sustain the country’s social and economic development.
The First Schedule of the law ring-fences 40 categories of work for Guyanese participation which include: food supply, rental of office space, accommodation, insurance, accounting, legal services, engineering and machining, aviation support, public relations, manpower and crewing services, dredging services, ventilation, environmental services and studies, and transportation.
The foregoing categories carry varying percentages for participation that have to be secured by companies in the oil sector by the end of 2022.
