Introduction

1.1 A Governance Policy is a system of principles that is implemented as a procedure or protocol that guides the Government’s objectives supported by through the use of regulations, laws, regulations, guidelines and other instruments to deliver better economic and social outcomes and thus enhance the life of citizens and Thispolicydocumentdelineatestheframework by which Local Content shall be understood, developed, implemented, measured and governed within the petroleum sector in the Cooperative Republic of Guyana (hereinafter referred to as Guyana). Government policy on Local Content is evolving and as the petroleum industry develops and lessons are learned, updates may be made to this policy and associated instruments, as applicable.

The policy is designed to be fit-for-purpose

1.2 The policy framework recognises the broader goal of the Government of the Cooperative Republic of Guyana (hereinafter referred to as Government of Guyana) to optimize national income from development of the country’s sovereign hydrocarbon resources and prudently invest these revenues to transform the economy to the benefit of all Guyanese, now and in the future. Achievement of these goals depends on demonstrating to the world that Guyana is a viable destination forinward investment within what is a highly-competitive and technically-challenging industrial sector. At the same time, expectations within Guyana are high that the rapidly-developing petroleum sector will bring employment and local supplier benefits, as well as build new skills and industrial capacity, and that these opportunities shall serve to grow and sustain the size and competitiveness of the country’s local industrial base.

The combination of these factors determines that our Local Content policy be fit-for-purpose: optimal alignment between policy goals to stimulate the above local economic benefits, maintain a positive investment climate and assure the optimal raising of national revenues for economic transformation. As such, the policy is designed to deliver both short-term opportunities for Guyanese citizens and Guyanese Suppliers and longer-term capacity building and raising of standards of Guyanese industry to be internationally- competitive, and to achieve these goals whilst adhering to Guyana’s international and regional obligations on trade and economic cooperation.

1.3 The policy has been informed by stakeholder consultation. This policy framework was crafted after formative consultations with stakeholders in public and private sectors, academia and civil These stakeholders were inclusive of:

• Government Agencies: Ministry of Public Infrastructure, Ministry of Health, Guyana Office for Investment, Small Business Bureau, Civil Defence Commission, Maritime Administration Department, Environmental Protection Agency, Guyana Civil Aviation Authority, Regional Democratic Councils- Region 5 and 9 inter alia
• Private Sector groups: Private Sector Commission, Georgetown, Berbice, Essequibo, West Demerara and American Chamber of Commerce, Linden Chambers of Commerce, GAICO Construction and General Services Inc, Institute of Chartered Accountants of Guyana, Institute of Private Enterprise Development, African Business Roundtable inter alia
• Education Institutions: University of Guyana
• Civil Society Organisations: Guyana Bar Association, Guyana Women Lawyers Association, inter alia
• Oil and Service Companies: ExxonMobil, Ratio Oil, Guyana Oil Company Limited, Tullow Oil, Repsol, Total SA., CGX Energy.

Broad purpose of the policy

1.4 The primary goal of this policy is to facilitate the active participation and development of Guyanese Persons and Guyanese Suppliers in the petroleum sector and to give rise to benefits from expenditure in the sector on labour, goods and services for Guyanese industry, the economy and wider

1.5 In an effort to maximise benefits and retain long- term value from Guyana’s petroleum resources, considerable focus shall be given towards local capacity development as well as local participation, such that Local Content policy does not drive undue additional costs into the petroleum sector but instead strengthens the competitiveness of Guyana’s people and

1.6 The effectiveness of this policy is based on a viable and multi-faceted implementation and governance This includes Government embracing a multi-stakeholder collaborative approach to implementation of the policy.

1.7 The policy framework acknowledges the need for continuous assessment to ensure its future relevance for national

Scope of the policy

1.8 At this time the policy is focused on upstream oil and gas activities. Looking beyond the upstream development of petroleum to the mid and downstream petroleum processing and refining sub-sectors, Guyana’s history has made its citizens acutely aware of the opportunities that can be lost through the export of raw, unprocessed commodities, imposed in part by the capacity limitations of its institutions, businesses and capital markets, among other things. At the same time, the market-competitiveness risks of investing national income into mid and downstream petroleum opportunities in a small economy, in the context of a highly-competitive and volatile international market for petroleum-based products, is an important consideration. Guyana’s policy-makers are currently giving attention to these opportunities and risks.

Importance of managing resource curse risks

1.9 The Government of Guyana and its citizens are aware of the many cases of oil, gas and mineral windfalls being perceived as a resource curse, rather than a blessing. Expressions of expectations, hope and fears in Guyana are abundant. At the core of these emotions is the desire for a better quality of life for current and future generations of Guyanese and recognition that many important policy issues will need to be addressed as the industry evolves, inter alia: policy, regulatory and institutional frameworks developed and administered transparently; the feasibility of mid and downstream forward-linkage opportunities for the petroleum sector explored; Local Content within non-oil sectors strengthened to counter these existing productive sectors from being undermined by resource movement effects, (i.e. the impact of capital and labour shifting out of mining, forestry, agriculture, tourism and services into the petroleum sector); and petroleum benefits being broadly accessible to all Guyanese.

Urgent need for detailed policy guidance on Local Content in the upstream petroleum sector

1.10 Because of the scale of the emerging discoveries in the upstream petroleum sector in Guyana, realising the best chance for Guyanese Persons and suppliers t access the opportunities requires the matter of Local Content and value retention to receive special attention by Government now. This policy framework therefore precedes an overall petroleum sector policy for Local Content, and shall be updated from time to time to be aligned with a maturing petroleum sector and with evolving national development strategies and goals.

1.11 At this time the current policy framework is therefore limited in scope to the upstream petroleum sector, and does not as yet address directly the following policy areas:

• • mid and down-stream petroleum sector opportunities
  • other policy issues related to the upstream petroleum sector, such as health, safety, security, environment, community impacts, tax and fiscal matters
  • other petroleum-related national issues, such as national development and planning

1.12 Section III of this policy provides details on policy implementation, including the structure and timing of annual Local Content Plans; templates to estimate and report local employment and contracting and procurement opportunities; minimum tender procedures to give full and adequate opportunity to Guyanese Suppliers; the division of roles between Government, Operators and contractors; and guidance for local skills and supplier capacity

Policy sets the stage for a forthcoming legal framework for Local Content

1.13 It is the intent of the Government of Guyana that this policy be implemented in full, with Government, Operators, Primary Contractors and sub-contractors all cooperating and working positively and constructively to deliver the policy in both letter and spirit. As a backstop to assure policy delivery, the government is considering codification of the policy through regulation, underpinned by the necessary legal framework, consistent with international trade obligations, including under CARICOM. In the interim, it is the expectation of the Government that all relevant parties implement the policy speedily, comprehensively and in good-faith, facilitating the smooth transition of all parties to formal regulation in due course. The extent to which the Government will establish specific mechanisms to assure delivery of this policy remains to be determined and depends in part on the willingness and good-faith implementation of the policy by all relevant parties in the near-term.

 

 

Section 2

Policy Context, Objectives and Principles

2.1 Definitions 

Local Content

“Local Content” means the active participation and development of Guyanese labour and suppliers in the petroleum sector and the benefits that arise from expenditure in the sector on labour, goods and services for Guyanese industry, the economy and wider society.

Project Phases

“Upstream” is that section of the oil and natural gas industry that is responsible for the exploration and production of crude oil and natural gas deposits.  The Upstream industry is sometimes known as the Exploration and Production (E & P) sector.

“Petroleum Operations” means Prospecting Operations and/or Production Operations, as defined in the Petroleum (Exploration and Production) Act No.3 1986.

“Exploration Phase” means the phase comprising all the activities companies undertake to find hydrocarbons (oil and gas) including seismic activities, and exploration and appraisal drilling. These activities are typically short in duration (~1-3 months) and utilize cutting edge technology.

“Development Phase” means the phase of an oil and gas project comprising all the activities and investments related to preparing a field for production. Development requires extensive analysis and field planning to guide crucial decisions regarding the number and design of producing wells and the engineering, fabrication and logistics of surface and subsurface infrastructure. The Development phase also includes extensive drilling, however, the objective is no longer primarily that of acquiring data but to drill targeted wells as efficiently as possible.

“Production Phase” means the phase that starts when the first marketable hydrocarbons (first oil) flow from the wellhead. Production volume will depend on various factors including the number of producing wells and the capacity of the installed production facility(ies). This is the longest phase of an oil and gas project and can extend over one or more decades in some circumstances. “Decommissioning Phase” means the decommissioning activities involved in the safe plugging of wells in the earth’s surface and disposal of the equipment used in offshore production.

Acquisition and Development of Guyanese Resources

“Guyanese Resources” goods and services provided by Guyanese Suppliers and/or goods and services that contribute to the economy of Guyana

“Supplier”, “Sub-Contractor” or “Contractor” means a third party to whom the Operator or a Primary Contractor has entered into a contract, agreement or alliance for the supply of goods or provision of services for petroleum operations

“Primary Contractor” means approximately five (5) to ten (10) of the largest contractors involved in Operator activity by contract value for each phase a project  and who are required by the Operator   xecute a  Local Content Plan as part of contract delivery. Primary Contractors are responsible to the Oper or for the completion of the scope of work under the contract terms, and may utilise or manage subcontractors or hire people for specific parts of the work.  The intent  is that contractors involved in Operator activity who are classed as Primary Contractors are those who utilise or manage directly or indirectly the substantial majority of opportunities for Guyanese Persons and suppliers to participate in a project phase, and as such are contractually bound by the operator to implement a Local Content Plan associated with their scope of work.

“Guyanese-Owned, Registered in Guyana” (for efficiency, also referred to in this policy as a “Guyanese Supplier”) means an existing or potential supplier or sub-contractor company that  has  fifty-one  percent  or greater (>=51) of its share capital or partnership share owned by Guyanese Citizens, and is registered in Guyana with the Guyana Revenue Authority, and where the offices, plant or facilities of the company that relate to the supply, distribution or manufacture of goods or the provision of services for petroleum operations in Guyana are located in Guyana.

“Guyanese-Owned, not Registered in Guyana” means an existing or potential supplier or sub-contractor company that has fifty-one percent or greater (>=51) of its share capital owned by Guyanese Citizens, and is not registered in Guyana with the Guyana Revenue Authority or does not have offices, plant or facilities   of the company that relate to the supply, distribution or manufacture of goods or the provision of services for petroleum operations in Guyana that are located in Guyana.

“CARICOM-Owned, Registered in Guyana” (for efficiency, also referred to in this policy as a “CARICOM Supplier”) means an existing or potential supplier or sub-contractor company that has fifty-one percent or greater (>=51) of its share capital owned by Citizens of a CARICOM country that is not Guyana, is registered in Guyana with the Guyana Tax Authority, and where the offices, plant or facilities of the company that relate to the supply, distribution or manufacture of goods or the provision of services for petroleum operations in Guyana is located in Guyana.

“CARICOM-Owned, not Registered in Guyana” means an existing or potential supplier or sub-contractor company that has fifty-one percent or greater (>=51) of its share capital owned by Citizens of a CARICOM country, and is not registered in Guyana with the Guyana Tax Authority or does not have offices, plant or facilities that relate to the supply, distribution or manufacture of goods or the provision of services for petroleum operations in Guyana located in Guyana.

“Foreign-Owned,  Registered in  Guyana”  means an existing or potential supplier or sub-contractor company that has less than fifty-one percent (<51) of its share capital owned by Guyanese Citizens or Citizens of another CARICOM country, and is registered in Guyana with the Guyana Tax Authority, and where the offices, plant or facilities that relate to the supply, distribution or manufacture of goods or the provision of services for petroleum operations in Guyana is located in Guyana.

“Foreign-Owned, not registered in Guyana” means any existing or potential supplier or sub-contractor company that is not registered in Guyana with the Guyana Tax Authority or is not registered for tax purposes in another CARICOM country.

“CARICOM/Foreign-Owned, registered Guyana” means the combination of the following:

• CARICOM-Owned, Registered in Guyana
• Foreign-Owned, Registered in Guyana

“Government” means the Government of the Cooperative Republic of Guyana and its ministries and agencies

“Group A” means categories of goods and services where evidence shows the presence of one or Guyanese

Suppliers with the required capability, capacity and competitiveness sufficient to be invited to provide and expression of interest or otherwise engage in a tender process, either directly, as a partner or sub-contractor to another supplier.

“Group B” means categories of goods and services where evidence shows an absence of any Guyanese Suppliers with the required capability, capacity or competitiveness sufficient to be invited to provide an expression of interest or otherwise to  engage in a tender process, or where the Operator or its Primary Contractors can justify single or sole sourcing for reasons fully consistent with good industry practice.

“Contracting process”, “Procurement process”, “Tendering process” or “Tendering procedures” (used interchangeably in this Policy) means the process of acquiring goods and services including all stages in tendering, and/or sole or single sourcing, the receiving of goods or delivery of services, the storage of goods and the payment process for goods and services.

“Certified Made-in-Guyana Good” means a specified material, product or equipment that has been issued with a certificate by the relevant Guyana certifying agency] stating that the good meets requirements of domestic value addition to be classed as ‘Made-in-Guyana’.

Employment and Training of Guyanese

“Guyanese Person” or “Guyanese Citizen” or “Guyanese” means a person or persons who have Guyanese Citizenship under the Constitution of the Co- Operative Republic of Guyana Act, Chapter 1:01, 1980, which includes inter alia a person born in Guyana (Article 43) and a person born outside Guyana who is a child of a parent with Guyanese Citizenship (Article 44).

“Non-Guyanese Person” or “Non-National” means a person who is not defined as a “Guyanese Person”

“Person-hours” means hours worked in the reporting period. Overtime and extended working hours are included. For partial days worked (e.g. a design engineer spreading time across different Operators or Primary Contractors, only those hours involved in Operator activity are to be counted. To convert Full  Time Equivalent (FTE) headcount to person-hours assume one (1) full time equivalent (FTE) position works 2,080 hours per year and a rotator position works 1040 hours per year regardless of their days on/off rotation.

“FTE Headcount” (Full Time Equivalent Headcount) means number of persons working full time across the reporting period. For employees of the Operator this is simply the headcount of full time employees (and in- house contractors/agency staff). But for contractors and sub-contractors it means only the work of contractor personal who are Involved in Compan Activities. For example, if four (4) workers from a contr  firm are on the Operator’s site for 50% of a half- reporting period (e.g. 60 days), then the FTE headcount for the half-year period for this contractor is 2.0. To convert person-hours to FTE headcount assume one (1) FTE headcount position works 2,080 hours per year and a rotator position works 1040 hours per year regardless of their days on/off rotation.

“Involved in Operator Activity” means that contracted or sub-contracted work or supply of goods which is undertaken in relation to scopes of work or supply for the activities of a particular Operator or one its contracted Primary Contractors.

“Senior Manager”: Accountable for performance and strategic direction of the organization/division and execution of work activities. Examples include General Managers, Directors, Vice Presidents, members of the Executive Board. Senior Managers would be expected to have at least 15 years relevant work experience. Total number of persons assigned to position of Senior Managers is in the range of four to ten persons. Assign other managers to Supervisory/Middle Manager position.

“Professional”: Personnel engaged in a qualified profession possessing a high skilled diploma. Examples include Engineer, Lawyer, Accountant Scientist, Surveyor, Assessor.

“Supervisory/Middle Manager”: Responsible for the supervision of personnel/teams executing work activities. Examples include Superintendent/Forman/ First Line Supervisor

“Skilled”: Highly skilled, typically certified, craft or  trade personnel responsible for executing complex or experience driven work activities; may provide oversight to other technicians/work crews. Skilled workers would require one to two years of training and experience. Examples include: Master Plumber, Master Electrician, Rigging and Lifting Lead; Heavy Equipment Operator; Senior Welder, Mill Wright, Crane Operator, Senior Administrative Assistant.

“Semi-Skilled”: Experienced, ideally certified, craft or trade personnel responsible forexecutingwork activities with some oversight. Semi-skilled workerswould require no more than a few months to acquire the experience and become certified. Examples include Journeyman Electrician, Mechanical Erector, Basic Welder, Light duty Vehicle Operator, Security Guards, Radio Operator, Roustabout, Deckhand, Data Technician, Administrative Assistant, Drivers, Block/Brick Laying, Receptionist, Meet and Greet.

“Basic Skilled”: Entry level position with little to no prior experience and not certified. With a few months of training and experience, Basic skilled workers could progress to Semi-skilled. Examples include Custodian, Landscaper, Craft Apprentice Electrician, Plumber, Carpenter.

“Training Hours Received by Guyanese” means hours training received by Guyanese Persons relevant to the petroleum industry in Guyana, including both on-site and off-site training, e.g. induction, EHS/HSE and technical and professional skills, internships and apprenticeships (do not include scholarships, which are to be included in other investment activities). To convert FTE headcount to person-hours assume one (1) full time equivalent (FTE) position works 2,080 hours per year and a rotator position works 1040 hours per year regardless of their days on/off rotation.

“Off-site training” means training delivered to workers relevant to the petroleum industry in Guyana, taking place not on premises of the reporting company, Primary Contractor or Operator.

“On-site training” means training delivered to workers relevant to the petroleum industry in Guyana, taking place on premises of the reporting company, Primary Contractor or Operator.

Local Content Plan

“Local Content Plan” means a yearly plan from period 1st January to 31st December, or part thereof for the first year as applicable, submitted by the Operator to the Minister within sixty (60) days prior to the beginning of each year and updated annually. It describes forward- looking Local Content objectives and related activities andprogramscoveringtheOperator’spetroleum-related work and activities in the block, sub-divided between different petroleum projects to enable identification of the project-specific estimated utilisation of Guyanese Persons, suppliers and sub-contractors, the training of Guyanese Persons, the capacity building of Guyanese Suppliers, and other capacity building initiatives to support the objectives of Government policy for Local Content in the petroleum sector.

“Local Content sub-Plan” means a local content plan to be executed by a Primary Contractor, in cases where a major contract offers significant opportunities for Guyanese Persons and Guyanese Suppliers, and which is consistent with the relevant objectives and sections of the Operator’s Local Content Plan, made a material consideration in the selection of a Primary Contractor, and the execution thereof is contractually binding commitment integral to the contract scope.

“Local Content Report” means, at a minimum, half- year and end-of-year reports, each submitted by the Operator to the Minister within 30 days after the end of each half calendar year, providing evidence of progress in achieving the objectives, activities, programs and estimated utilisation of Local Content contained in the Operator’s Local Content Plan.

Other

“Minister” means the Minister Responsible for Petroleum or his/her duly appointed and/or established representative/s.

“GGMC” means the Guyana Geology and Mines Commission, established under section 3 of the Guyana Geology and Mines Act 1979.

“Operator” means the party charged with conducting day to day activities under a Petroleum Agreement

“Petroleum Agreement” means an agreement between the Government of the Cooperative Republic of Guyana represented by the Minister Responsible for Petroleum and one or more entities relating to prospective (exploration), production, and/or decommissioning operations, including without limitations such agreements as described in the Petroleum (Exploration and Production) Act of 1986, Article 10.

“Productive Capital Assets” means property, plant, equipment and physical infrastructure that promotes the development and efficiency of the petroleum sector in Guyana and increases the country’s overall competitiveness, and includes only investments: (i) made directly by a company from its own, or raised, capital; (ii) that are included within the company’s Balance Sheet; and (iii) which are utilised wholly in Guyana for the life of the asset. Value is the depreciated value, as recordable in the relevant company accounts.

2.2  Policy Statement

2.2.1 Transformational opportunity of petroleum resources. This policy recognises that the petroleum resources of Guyana belong to all people, and represent an asset of significant intrinsic value, which, once removed, diminishes the wealth of the nation, unless there is transformation in value from resources below the ground to improved quality of life above it for current and future generations of Guyanese

This shall involve utilization of revenues from hydro- carbons to transform the contribution to the country’s economy from agriculture, finance, tourism, mining and other non-hydrocarbon sectors.

Policy principles

2.2.2 Guyana shall approach the development of its petroleum resources, people and businesses in a pragmatic, collaborative, transparent, flexible and accountable manner, and with clarity of purpose. Implementation of this policy shall be conditioned by existing circumstances and an analytical approach to understanding the resource, the activities it engenders and the  country’s  input    Consistent  with Guyana’s international economic cooperation obligations, the country shall aggressively pursue strategic opportunities for local participation and capacity development in the petroleum sector that gives its people and businesses the maximum possible benefit now and in the future. The Minister responsible for Petroleum shall ensure that effective government oversight, instruments and administrative institutions are in place, properly resourced and functioning adequately such that stakeholders are held accountable.

2.2.3 To maximise the benefits of the petroleum sector local employment and local businesses, investor

Operators and their Primary Contractors shall participate in a manner that gives Guyanese Persons and Guyanese Suppliers fair and adequate opportunity and first consideration where capable and competitive to provide labour, goods and services and improve and enhance their capabilities, and in so doing become internationally competitive and progressively provide a greater share of future labour and services to the sector.

2.2.4 Additional burden of Local Content to be cost recoverable. With the desire to enable more value retention for the Guyanese economy from expenditures in the petroleum sector, costs related to Local Content participation and capacity development for Guyanese labour and suppliers, including those which are costs recovered by investors and therefore  paid  for  by  the people of Guyana, shall be seen by Guyana as its investment in its

2.3   Policy Context

2.3.1 Rapid rate and size of hydrocarbon discoveries in The Government of Guyana’s policy on Local Content in the petroleumsector is a response to the rapid rate and size of hydrocarbon discoveries in the territory and the substantial opportunities this presents, not only to generate income for the State to fund social policies and invest to transform the country’s other industrial sectors to grow a long-term sustainable economy, but also to leverage expenditure in petroleum realize the participation and development of Guyanese sons and Guyanese Suppliers. As such, Guyana’s recent major oil and gas discoveries shall contribute to local benefits maximization and value retention through the activities surrounding both ongoing petroleum development and projected production, as well as current and upcoming exploration.

2.3.2 The petroleum sector is a globally competitive industry requiring the meeting of international standards for quality in services and high-tech specifications for equipment, products and materials. Currently, the vast majority of goods and services for Guyana’s petroleum sector are imported into the country, although considerable progress has and continues to be made to raise Guyanese Supplier capabilities to international standards.

Demand side opportunities for Local Content

2.3.3 Notwithstanding this reality, the opportunities to realize local benefits and value for Guyanese Persons and suppliers in the petroleum sector and to add value to locally-produced goods are The following factors contribute to this opportunity:

• Given the size and number of declared discoveries, and assuming market conditions are supportive, Guyana can expect a series of multiple capital projects over a sustained period of five plus years, as well as a relatively long-term period of production (twenty-five plus years).
• A robust exploration programme is underway in new blocks, with new investors arriving and further field discoveries
• There is hope these investments will yield further discoveries, proven reserves, field developments and production operations, and as such an increase in associated activities and demand for local labour, goods and

Specialisation and high international standards

2.3.4 Guyana is nevertheless mindful that the sector requires a significant input of highly-specialised skills and services, as well as materials, products and equipment, many of which are unlikely to be competitively sourced or manufactured in Guyana until these capabilities have been developed.

2.3.5 The petroleum sector also requires high standards of quality, efficiency, reliability, ethics, care and attention to the environment, communities and property and the well-being of its labour force. By and participating in the sector, those who develop and provide labour, goods, infrastructure, equipment, facilities, networks, systems and other services will need to demonstrate these high standards in order to be competitive and take advantage of the opportunities provided. The petroleum industry is a global industry, where activities are conducted by some of the world’s premiere firms, utilising best-in-class people, technology, systems and procedures to manage their businesses and relationships. Included are those required for information technology, human resources, accounting, procurement and risk, financial, project and operations management. The sector also adopts world- leading approaches to transparency and accountability.

2.3.6 The presence of international petroleum sector service providers and manufacturers in Guyana provides a unique opportunity for Guyanese Suppliers and governmentto learn from these foreigncontractors, with local businesses working alongside and for them, and the authorities developing capabilities in governance to international standards to assure Guyanese Persons and suppliers adhere to good industry

2.3.7 As many of the services required in the petroleum sector are also required by other industries, Guyanese Persons and Guyanese Suppliers who take on the challenge of becoming competitive in the petroleum sector shall find these attributes highly relevant to winning work in the non-petroleum sectors, as well as enhancing their potential to access international supply

2.4  Scope of Policy

2.4.1 The scope of this policy is the participation and development of Guyanese Persons and Guyanese Suppliers in the petroleum sector and the securing of benefits that arise from expenditure in the sector on labour, goods and services for Guyanese industry, the economy and wider

2.4.2 At this time, the petroleum sector in Guyana comprises predominantly upstream oil and gas activities, in the form of hydrocarbon exploration, development and production. As such the practice of Local Content under this policy is directed at the promotion of backward economic

2.5   Policy Objectives

2.5.1 The goal of this policy is to achieve the active participation and  development of Guyanese Persons and suppliers in the petroleum sector and o maximise benefits and retain value from expenditure in the sector on labour, goods and services for Guyanese industry, the economy and wider society.

2.5.2 In support of this goal, the objectives of the policy are to:

• be fit-for-purpose, a balanced alignment between the Government of Guyana policy goals of stimulating local economic benefits,  maintaining a positive investment climate, and assuring the optimal raising of national revenues for economic transformation, whilst maintaining consistency  with Guyana’s international and regional trade and economic cooperation obligations;
• promote the education, inclusion and advancement of Guyanese Persons with the expertise and experience required to participate in the petroleum industry;
• achieve participation of Guyanese Persons in employment opportunities and Guyanese Suppliers in contracting and procurement opportunities within the petroleum sector, within and outside of Guyana;
• localise supply chains in procuring goods and services that support the petroleum industry by providing opportunities for Guyanese Persons and suppliers, whilst concurrently bringing efficiency and cost benefits to the sector in Guyana, for example, potentially increase supplier response speeds, reduce spare parts and inventory stock in-country, and reduce operation and maintenance costs;
• enhance the capacity of Guyanese Persons and suppliers, and Guyanese public and private education and regulatory institutions, to align with good industry standards in the petroleum sector, thereby to enhance local competitiveness and so increase the range and scale of employment and supplier opportunities to Guyanese Persons and suppliers, and contribute to efficiency and reduced costs for investors;
• use the opportunities presented by international companies operating in Guyana to grow the competencies of Guyanese oil and gas professionals and goods and services companies down multiple supply chains, becoming world-class and internationally competitive, with local suppliers developing export potential;
• retain value in the Guyanese economy through investments in the petroleum sector and particular expenditures on local labour, goods and Value retention can be created in Guyana as a consequence of Guyanese Persons participating in the petroleum sector, and through the purchase of goods and services provided by Guyanese Suppliers and non-Guyanese Suppliers alike, where these suppliers are employing Guyanese or supplying locally-produced materials, components or products. To determine retained economic value the Government of Guyana, in consultation with industry, may develop standardized multipliers to convert Local Content performance into direct, indirect and induced economic impacts, and may expand capabilities to certify goods as Made-in- Guyana where the production of these goods contributes sufficient domestic value;
• build Guyanese Persons and supplier competencies to enhance other sectors of the Guyanese economy (i.e. achieve lateral economic linkages) thereby supporting wider national development policies, diversifying the economic benefits of hydrocarbon discoveries and protecting the economy against the inevitability of swings in fortune of oil and gas markets;
• build and enhance institutional capacity in national education, training and research organisations;
• invest in physical utilities, infrastructure and facilities that promotes the development and efficiency of the petroleum sector and increases the country’s overall competitiveness, through collaboration of the Government of Guyana with the private sector;
• encourage partnering between firms for effective capacity building, transfer of knowledge and technology and to enhance the capabilities of Guyanese Persons and Guyanese Suppliers to participate as fully as possible in the petroleum Various partnering models mayovercome the challenges of local suppliers winning work directly, including consortia, sub-contracting, licensing and joint ventures. Mindful of the experience of other countries where mandated joint ventures have encouraged the creation of fronting companies or acted as a disincentive to inward investment, it is the policy of the Government of Guyana to not mandate local/foreign joint ventures as a requirement for market access in the upstream petroleum sector, but instead to encourage such alliances among a range of partnering options, and ensure these are market-competitive ventures and effective in supporting competitive local supplier participation and development;
• develop world class capacity in key state institutions and high quality governance to implement this Local Content policy, which can act as a model to raise the standards of government services across the country, through collaboration of the Government of Guyana and private sector.

2.6  Core Principles

The following principles shall underpin this policy and its implementation:

2.6.1  Learn from Others’ Experience

Guyana’s petroleum discoveries and this policy framework come at a time when several other developing economies have made similar, potentially transformative, discoveries of petroleum resources. These countries have begun to implement Local Content policies and legislation, with varying degrees of success. At the same time, a number of mature oil and gas producing countries have also made new discoveries or are deploying new technologies to extend production, and these governments too have implemented or evolved new Local Content policies and regulation. In the process of implementing this policy Guyana shall continue to learn from both the successes and mistakes of others, especially those countries that have been successful in developing fit-for-purpose policy and regulation, and where Local Content is positioned as a catalyst for sustainable, transformative, national development.

2.6.2  Local Content Plan

For efficient and effective administration by both government and industry, a Local Content Plan covering all the Operator’s petroleum-related work and activities in Guyana is positioned as the central instrument of this policy. Similarinmannertohowastrategicenvironmental impact management plan lays out in a single document the commitments of an Operator to implement measures to mitigate the adverse environmental and socio-economic impacts of multiple activities, this policy places a Local Content Plan as the core instrument of policy implementation for Local Content. The policy requires an Operator to compile in a single document or the operating block, the totality of information needed for Government to approve and subsequently review an Operator’s progress against Local Content objectives for each phase of each project and against estimated utilization levels, planned programs and activities for Local Content across individual or multiple projects. Positioning a Local Content Plan as central to delivering Local Content policy is the emerging standard practice for the upstream petroleum industry, including, inter alia, experiences in Canada, Australia, Ghana, Nigeria, Tanzania, Mozambique and Sierra Leone.

2.6.3 Fit-for-Purpose

2.6.3.1 Guyana is fortunate to be able to benefit from experiences with Local Content in the petroleum sector across a range of countries and These were considered in designing this Local Content policy to be fit-for-purpose for Guyana at this early stage of its petroleum industry, delivering real opportunities for Guyanese Persons and suppliers to participate in the industry and develop, allowing for fair and simple implementation and oversight, and remaining flexible and innovative to respond to changing circumstances.

2.6.3.2 Throughout this policy the provisions herein have been drafted to apply the principle of fit-for-purpose. This includes the following:

• Operator Local Content Plans shall be updated annually, informed by recent performance and current market information, including information from Primary Contractors and, where available, from sub-contractors, describing estimated levels and activities and programs for the utilisation of Local Content for the upcoming year;
• holding Operators to account for delivery of their yearly Local Content Plans through, at a minimum, half-year and end-of-year Local Content Reports, and recognising that effective estimates of Local Content require up-to-date market ormation, as well as realism and flexibility to be able t adapt and react to changing circumstances;
• use of yearly Local Content Plans and, at a minimum, half-year and end-of-year Local Content Reports to review, learn and collaborate between industry and government to explore what is working in delivering Local Content and what can be improved, when to make appropriate adjustments a Plan or to government policy or initiatives, and to identify new areas of Local Content opportunity;
• appropriate procurement procedures for the acquisition of goods and services that ensure that wherecapableandcompetitivepartsofthe Guyanese Supplier market are able to meet industry standards, they are able to access contracting and procurement opportunities, whilst ensuring also that where there is clearly as yet no local market capability in Guyana, wider project tendering procedures progress in ways that do not unduly compromise project schedules and costs, or the timing or magnitude of expected government revenues from the petroleum sector;
• recognize innovation by Operators and Primary Contractors to find ways to give first consideration to capable and competitive Guyanese Persons and suppliers, and recognise that for the next decade much emphasis on Local Content needs to be in the longer-term development of local labour skills and Guyanese Supplier capabilities and

2.6.4  Deliberate Efforts

Implementation of this policy cannot be left to chance and shall therefore take the steady and deliberate efforts of the Government, the Operators in the industry, the private sector and civil society – all working together, and with unity of purpose, to ensure the attainment of the Local Content objectives of this policy.

2.6.5  Pragmatic and Collaborative

Implementation of this policy is rooted in a pragmatic and collaborative approach to maximising the participation and development of Guyanese Persons and suppliers. Collaboration to implement this policy shall include the Government working with the industry, development partners stakeholders and civil society.

2.6.6  Well-Considered, Strategic and

Flexible

Given the limitations and uncertainty as to the future potential level of activities and demand for  goods  and services that shall be required, any investment to facilitate and support capacity building for Guyanese participation and value retained in Guyana shall be well considered, strategic and flexible to changing circumstances around the state of the petroleum resource base, activity levels and the capacity of the local supply chain.

2.6.7  Phasing

Building on the principle of pragmatism, the Minister may elect to phase implementation of parts of this policy over time, recognising that whilst many provisions can be delivered immediately, others may need prior capacity building, study or more detailed policy guidance.

2.6.8  Good Governance

It is the long-term growth and diversification in the economy and targeted development of local skills, services, technology and infrastructure that have leveraged sustainable development in those countries who have managed their petroleum resources well and not only focused their policy on the immediate impact of investments for local employment and businesses. These success stories are characterised by principles of good governance in the petroleum sector. Guyana shall apply this approach to the implementation of its Local Content policy. As a new industry, the petroleum sector in Guyana offers an opportunity to design and operate the required governance framework for Local Content to the highest standard. Done well, this shall ensure transparent, accountable and ethical management of

Local Content of the country’s petroleum resource and assure its contributionto the wider goals of transforming the economy to the benefit of all Guyanese now and in the future. To this end, it is the intent of this policy that the Minister shall exercise his/her authority to approve Local Content Plans with fairness, with consistency to the principles of this policy, and to the highest ethical standards. Likewise, it is the intent of this policy that Operators shall exercise their control over operations to implement the principles and requirements of this policy speedily, comprehensively, in good-faith and to the highest ethical standards as per Article 18 of the Petroleum Agreement.

2.6.9  Common Long-term Vision

Investments and activities in the sector are global in nature and require long timelines, often out of sync with national election cycles. Robust management of the petroleum sector to enable maximum benefit capture and value retention therefore requires a common vision and aspiration for the sector, across the political spectrum, one that lends itself to predictability in investment, policy direction and sector governance. As with other Government policies for the sector, this policy on Local Content is formulated for the long-term, and as such contributes in part to predictable sector governance.

2.6.10 First Consideration

2.6.10.1 In making decisions concerning recruitment and procurement to execute petroleum activities, Operators and their contractors shall give first consideration to Guyanese Persons having appropriate qualifications and experience, and to Guyanese Suppliers where capable and competitive. Acknowledging that the use of new or unfamiliar labour and suppliers introduces an element of risk, the Government shall work with industry partners to minimize the risks to manageable levels, rather than completely avoid them.

2.6.10.2 We are confident that given the industry’s hallmarks of innovation and risk management, Operators and their contractors can come up with mutually beneficial risk-based solutions that give first consideration to Guyanese Persons having appropriate qualifications and experience, and to Guyanese Suppliers who are commercially competitive and able to provide goods and services on a timely basis that meet the quality, quantity, financial and other technical requirements of the petroleum

2.6.10.3 In exercising the principle of first consideration to Guyanese Persons and Guyanese Suppliers, Operators and their Primary Contractors, shall:

• look first to the Guyanese labour market to fill positions with Guyanese Citizens who have the appropriate qualifications and experience;
• explore creative solutions to provide on-the-job training which, without compromising workplace safety, enable Guyanese Personsto be hired and then learn-whilst-doing. Solutions may include, inter alia, apprenticeships, mentoring, job-shadowing, on-site and off-site training;
• identify categories of goods and services required for petroleum operations for which there is evidence of Guyanese Suppliers having the required capability, capacity and price competitiveness to be considered for inclusion in an expression of interest or otherwise be engaged in a procurement process, either directly or as sub-contractors, or through forms of partnership with more experienced firms, such as consortia, alliances and joint ventures;
• identify categories of goods and services required for petroleum operations for which there is evidence of three (3) or more Guyanese Suppliers or CARICOM Suppliers, including Guyanese uppliers) with sufficient capabilities, capacity and competitiveness for contracts in this category to be restricted to bid lists comprising only Guyanese Supplier (or only CARICOM Suppliers including Guyanese Suppliers), and where this evidence is sufficient to ensure that in restricting bid lists in this way does not drive undue additional cost, delay or risk into projects when measured against industry standards and international price

• identify categories of goods and services for which there is evidence that there is no current capable and competitive local supplier These categories may become the focus of local capacity building, knowledge transfer and upgrading with the intention that local supplier participation grows over time.
• demonstrate innovation to apply the policy of first consideration to help develop the Guyanese Supplier

2.6.10.4 With regards to the determination of a ‘Guyanese Supplier’, the Minister may elect to establish an appropriate agency to be responsible for the issuance of supplier classification certificates, in accordance with the definitions under this

2.6.10.5. With regards to exercising the principle of innovation, the Minister may elect to establish,  or to nominate a reputable third-party to establish, a Local Content annual awards scheme to incentivise Operators, contractors and other stakeholders in the industry to demonstrate innovation and commitment to the principle of first consideration, including the management of associated risk. In such cases the Operator is to identify in their end-of-year Report which performance successes or capacity building initiatives are to be considered by the Minister for the awards scheme.

2.6.11  Fair and Adequate Opportunity

Guyanese Persons and Guyanese Suppliers shall be afforded fair and adequate access to employment and supplier opportunities founded on the principle of being competitive against industry standards and based on the following processes and activities:

• the government, Operators and Primary Contractors working in concert to maintain up- to-date information on the Guyanese labour market sufficient to determine the availability of appropriately qualified and experienced Guyanese to participate in petroleum operations;

 

• the government, Operators and Primary Contractors working in concert to maintain access to up-to- date information on the Guyanese Supplier and sub-contractor market sufficient to determine the availability of suppliers with capability and capacity to meet the timeliness, quality, quantity, financial and other technical requirements to participate in Thismay include Government or Operatorprovided industrial baseline studies, and/

 

or similar information generated by government- sponsored or Operator-sponsored business development organisations and supplier forums. The Minister shall retain the option of appointing   a qualified and reputable  agent  or  organisation to determine sufficiency in  the  Guyanese Supplier market for procurement and contracting opportunities to be categorised as in Group A or B. Such an agent or organisation shall be accountable for the quality and impartiality of its determinations to the Department of Energy, informed by the Guyana Local Content Oversight Committee (see Section 3.2 of this policy document).

 

• Operators and their  contractors  communicating to the local market in a timely manner readily- accessible and readily-understandable information on opportunities for local hiring and procurement for which there is existing capacity and competitiveness in the Guyanese labour and suppliers’ markets;

 

• in their yearly Local Content Plans, Operators providing transparency over which planned tenders are categorised as Group A and Group B, and therefore for which is it, or is not, viable to issue Expressions of Interest to the Guyanese Supplier market or otherwise engage the Guyanese Supplier market in a procurement process, either where Guyanese Suppliers are engaged directly or as partners or sub-contractors;

 

• the Operator and its contractors establishing processes of recruitment and procurement procedures consistent with the principle of first consideration in this policy; and

 

• without compromising good industry practice in procurement within the petroleum industry, the Operator and its Primary Contractors will maintain records of supplier selection processes. Operators and Primary Contractors will contribute information to the Minister upon request, and to local business development organisations at least half  yearly,  on typical reasons why Guyanese Suppliers were unsuccessful in winning bids, and will acilitate on  a regular basis, directly or through third-parties, information sessions for Guyanese Suppliers to provide consolidated

 

2.6.12  Local Content Measurement and Reporting

Delivery  of  this  policy  shall  be  measured  through

standardized, at a minimum, half-year and end-of-year

reporting of Local Content performance to the Minister. Common metrics and definitions shall be applied across the petroleum industry in Guyana.

• The Minister will use the standardized half-year and end-of-year reports to measure each Operator’s performance against the estimated levels and activities and programs for Local Content utilisation described in their Local Content

 

• Reporting will inform the extent of flexibility needed to increase or decrease expectationsfor utilisation of Guyanese resources and personnel for future Local Content The intent of Operator reporting is to ensure effective delivery of Government policy, take account of changes in the business environment, and consider any emerging unintended consequences, for example, levels of utilisation leading to adverse resource movement effects where capital and labour from other sectors of the Guyanese economy move at an excessive rate into the petroleum sector.

 

• The half-year and end-of-year reports will be used to continuously review and refine the opportunities and constraints in developing Local Content in Guyana, as well as to inform how government and industry collaborate to drive Local Content

 

• Notwithstanding legal constraints that may prevent disclosure of reported information on Local Content to parties beyond the Minister, such as contractual and commercial confidentialities and/or obligations to anti-trust and anti-bribery legislation, the Minster shall disclose information on Local Content anticipated tenders and Local Content performance sufficient for Government to be held accountable for implementation of this policy, and for Operators to be accountable for implementation of their Local Content Plans consistent with the Extractive Industry Transparency Initiative (EITI) reporting stipulations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Section 3

 

Policy Implementation

 

Operator yearly Local Content Plans are the core instrument of policy implementation for Local Content in the petroleum sector in Guyana. Each Plan contains the projected utilization levels, activities, programs and the hiring and procurement processes to be implemented by the Operator and their Primary Contractors.

 

The role of the Minister is to provide the governance to ensure accountability of Operators to develop robust Plans and to execute these Plans to the maximum extent practicable.

 

3.1  Local Content Plan

• It is the policy of the Government of Guyana for Operators to prepare and execute Local Content Plans updated annually that operationalize the objectives and principles of this Operator’s yearly Local Content Plans, and the information they contain, shall form the principal instrument of Government  policy on Local Content in the petroleum sector. Operator’s Local Content Plans provide a forward-looking, efficient, focused and flexible mechanism for government and Operators to  identify, plan, implement and assure delivery of Local Content.

 

• The estimated levels of Local Content utilisation and extent of activities and programs within an Operator’s Local Content Plan shall be commensurate with the stage of project development/s. Local Content Plans, or parts thereof if covering multiple projects, prepared for and during an Exploration Phase will be more limited in scope and opportunities than the information submitted in relation to projects in their Development Phase, Production Phase or Decommissioning Phase. For Exploration Phase activity anticipated to be of less than year in duration, the Operator shall submit, at a minimum, an end-of-activity Local Content report, in a ormat consistent with Appendix For Exploration Phase activity anticipated to be of greater than one year in duration, a Local Content Plan shall prepared and reported on consistent with this policy   Where   an Operator is conducting exploration or appraisal activities whilst concurrently developing other projects, then all activities – exploration activities included – form an integral part of the Operator’s single, comprehensive, Local Content Plan.

 

• Pursuant to the scope of application above, an OperatorshallprepareandexecuteayearlyLocalContent

Plan covering all of the Operator’s petroleum-related work and activities in the block, sub-divided between different petroleum projects to enable identification of the project-specific estimated utilisation of Guyanese Persons, suppliers and sub-contractors, the training of Guyanese Persons, the capacity building of Guyanese Suppliers, and other capacity building initiatives to support the objectives of Government policy for Local Content in the petroleum sector.

 

• Within sixty (60) days prior to the beginning of each year, or part thereof as applicable for the first year, the Operator shall submit to the Minster a yearly Local Content Within twenty-one (21) days from receipt of the Operator’s Local Content Plan the Minister shall issue an invitation and shall meet with the Operator to discuss the effectiveness of the Local Content Plan and agree to the final information in the Local Content Plan and to any modifications to ensure the Plan’s consistency with this policy and with the Operator’s contractual obligations under the applicable Petroleum Agreement/s. Within twenty-one (21) days from the meeting with the Minister, the Operator shall submit  to the Minister a final Local Content Plan for approval, inclusive of any agreed modifications. Within fourteen

(14) days from the receipt by the Minister of a final Local Content Plan with agreed modifications, the Minister shall determine its approval. General timings for submission, review and approval of Local Content Plans are provided in Appendix E.

 

• The Operator shall identify in its yearly Local Content Plan (a) the names of prospective major contracts, which because of the Local Content opportunities they offer, will require the bidders (i.e. prospective Primary Contractors) to submit, and then execute, a Local Content Plan as part of contract delivery; and (b) the names of major contracts already awarded that remain in their execution phase during the forthcoming year, and the associated names of the Primary Contractors selected to execute their wn Local Content sub-Plan as part of contract delivery obligations. The criteria for selection of contracts that will require the Primary Contractor to execute a Local Content sub-Plan shall include prior consideration by the Operator of whether the contract scope affords significant opportunities to Guyanese Persons and Guyanese

 

• Where a particular major contract affords

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

such opportunities, the Operator shall request from prospective Primary Contractor tenderers a Local Content sub-Plan and shall treat the quality of the bided Local Content sub-Plan as a material consideration in the process of awarding the work. Primary Contractors Local Content Sub-Plans shall be consistent with the relevant objectives and sections of the Operator’s Local Content Plan. A Primary Contractor awarded work shall be contractually bound by the Operator to implement the commitments made in their Local Content sub-Plan.

 

• The Operator’s Local Content Plan shall be structured in accordance with, and shall contain the information required by, policy sub-sections in Section

• of this Any determination by the Minister  to modify a submitted or updated end-of-year Local Content Plan so as to assure its effectiveness shall be added as an addendum to the yearly Local ontent Plan, including details of how these modifications are to be operationalised within the business processes of the Operator and its Primary Contractors.

 

• Where justified on grounds of significance or scale of the potential contribution to government policy for Local Content, at the time of final approval of an Operator end-of-year Local Content Plan the Minster

may elect to designate a Local Content sub-Plan of an individual Primary Contractor to be included within the Operator’s Local Content Plan, and require detailed half-yearly reporting of performance against these designated Primary Contractor Local Content sub- Plans as a discernible part of an Operators half-yearly reporting.

 

• Where an Operator’s Local Content Plan has been approved by the Minister, the Operator’s costs for delivery of the activities and programs in the Plan shall be eligible for cost-recovery to the extent consistent with the applicable contractual and legal

 

3.2  Local Content Plan Information

The Operator’s Local Content Plan shall be structured in accordance with, and shall contain the information required in sub-sections 3.2.1 to 3.2.10 below.

 

3.2.1 Local Content Management Philosophy and Principles

An Operator’s yearly Local Content Plan shall include a

description of the Operator’s proposed management philosophy and key principles for maximising benefits and retaining value from Guyana’s petroleum resources

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

consistent with Government policy on Local Content in the petroleum sector.  Key Operator principles to   be included are those for Employment and Training of Guyanese, and for Acquisition and Development of Guyanese Resources.

 

3.2.2  Organisation for Local Content

The Operator’s yearly Local Content Plan shall include:

 

• a description and organogram clarifying which positions within the  Operator  are  responsible  for what roles and activities relating to Local Content, including decision-making, accountability, operational management, program activities, monitoring and reporting;

 

• a description of the organization for Operator engagement with key stakeholders to implement the Local Content Plan, including Government authorities, Primary Contractors, other ontractors, third parties, civil society groups and the general The description to include Local Content steering or advisory committees, groups or organizations contributed to, or set up by, the Operator; and

• a description and identification of public or private third-party organizations used or collaborated with to implement the Local Content Plan, including, inter alia, industry organizations, educational institutions, supplier development organizations, workforce development organizations, civil society groups and government

 

3.2.3 Work Activities

The Operator’s yearly Local Content Plan shall include a summary description of the work activities for the current phase of operations for each of the Operator’s projects across all applicable blocks and projects, and also a detailed description of work activities associated with each specific project, and where applicable by discrete activity components. Where work activities are relevant to more than one project, work activities are to be apportioned appropriately, with an indicative quantification.

 

3.2.4 Local Content Objectives

The Operator’s yearly Local Content Plan shall include the multiple objectives of the Local Content Plan and how each relate to the Government’s Local Content policy for the petroleum sector. Described shall be, for each of the Operator’s projects:

• Local Content objectives to be achieved by the end of the current phase of operation, be that Exploration Phase, Development Phase, Production Phase or Decommissioning Phase, and the applicable work activities and components to which the phase- based objectives relate; and
• Local Content objectives to be achieved by the end of the forthcoming year (or part thereof as applicable for the first year) and the applicable work activities and components to which these yearly objectives relate.

 

3.2.5 Identification of Local Content Opportunities

The Operator’s yearly Local Content Plan shall describe

in general the process and evidence of efforts that the Operator, the Operator’s Primary Contractors, the wider petroleum industry in Guyana and the government have made to assess the supply of skilled, qualified and xperienced Guyanese Persons and capable and competitive Guyanese Suppliers in meeting the demand of the Operator and its Primary Contractors for labour, goods and services in the upcoming year, for example, through industrial baseline studies, industry surveys and forecasts and supplier assessments.

 

3.2.5.1    Local Content Opportunities in Contracting Strategies

The Operator’s yearly Local Content Plan shall describe

how evidence from the assessments of the Guyanese labour and supplier market have been taken into account in the formulation of contracting and procurement strategies of the Operator and its Primary Contractors, relevant to the upcoming year of petroleum operations. This description is to include identification of opportunities, where applicable, to:

 

• categories of goods and services that could be tendered by the Operator or Primary Contractor to only Guyanese Suppliers (or to only CARICOM Suppliers, including Guyanese Suppliers), where there is verifiable evidence of a minimum of three

(3) Guyanese Suppliers (or CARICOM Suppliers, including Guyanese Suppliers) with sufficient capabilities, capacity and competitiveness to be placed on a restricted competitive bid list without driving undue additional cost, delay or risk into projects, when measured against industry standards and international price benchmarking.

 

• unbundlingorbundlingcontractscopessoastoafford opportunities to Guyanese Suppliers to either (a) be engaged in a tender process directly, or (b) engaged indirectly as a sub-contractor to a contractor whose own terms of contract oblige the competitive tendering of sub-contract opportunities to include engagement with Guyanese Suppliers; and

 

• invite consortia, alliances or other forms of partnering between supplier firms to tender for contracts, such that opportunities are available to Guyanese Suppliers who have capabilities to tender for parts of larger contract scopes, but likely would not be capable of progressing through a tendering process if approaching the market

 

3.2.5.2              Local Procurement Opportunities

Informed by the assessments of the Guyanese labour and supplier market and project demand, Operator’s Local Content Plan shall describe how this assessment has been used to determine the sufficiency Guyanese Supplier to categorise anticipated procurement of goods and services for the upcoming year into two groups, as follows:

 

• Group A means categories of goods and services where evidence shows the presence of one or more Guyanese Suppliers with the required capability,

capacity and competitiveness sufficient to be invited to provide an expression of interest or otherwise engage in a tender process, either directly, as a partner or sub-contractor to another supplier.

 

• Group B – categories of goods and services where evidence shows an absence of any Guyanese Suppliers with the required capability, capacity or competitiveness sufficient to be invited to provide an expression of interest or otherwise to engage in a tender process, or  where  the  Operator  or its Primary Contractors can justify single or sole sourcing for reasons fully consistent with good industry practice and with the principles of this Policy for first consideration to Guyanese Suppliers when capable and competitive, full and adequate opportunity to tender for Guyanese Suppliers, and a risk-management approach to promoting Local Content. Justification for single sourcing based only on roll-over criteria or limited by existing Framework contracts shall not be acceptable. Acceptable justification criteria are those that are project-critical, for example: health and safety risks or events that cannot be managed in any other way; risks to project schedules likewise that cannot be alternatively managed; and other project- critical criteria as may be agreed with Government authorities in Petroleum Agreements or as integral to development plan approvals or equivalent, including specified categories of contract that meet the above

 

3.2.5.3              Local Content Capacity Building Opportunities

Informed by the assessments of the Guyanese labour

and supplier market and project demand, the Operator’s Local Content Plan shall describe how this assessment has been used to identify and prioritise what could be done in Guyana in the near future, and what local labour, supplier and infrastructure capacity building programs and activities shall be put in place to realise these opportunities for the forthcoming year, and for tw (2) to five (5) years out, as follows:

• programs of training for Guyanese to participate in the petroleum sector and progress into higher skilled positions, and the skill sets, competencies and related certifications that training participants will gain;

 

• programs of support for long-term workforce succession and development for the forthcoming year and 2 to 5 years out;

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

• programs of support and development to Guyanese Suppliers for the forthcoming year and for 2 to 5 years out ;

 

• support for education and vocational training institutions in Guyana where involved, or potentially involved, in the petroleum sector in Guyana, including the curricula, courses and certifications being supported;

 

• support to research and development institutions in Guyana;

 

• investments in Productive Capital Assets made by the Operator and Primary Contractors in Guyana that support the Government’s Local Content policy; and

 

• other capacity  building  programs  or  vations that adhere to the principle of risk-managed Local Content or that demonstrate innovation in the implementation of this policy

 

3.2.6 Local Content Utilisation Levels

In relation to the work activities described in the  yearly Local Content Plan, the Operator is to include completion of Table A1 for each project (Appendix A of this policy document). Informed by recent performance

and current market information, including information on commitments by Primary Contractors  in  their  Local Content Plans to be delivered as part of contract obligations, the Operator shall complete Table A1 with estimated levels of Local Content utilisation, across all described work activities and projects, for the upcoming year for personnel, goods and services, training and capacity development. The estimated levels of Local Content utilisation are to include:

• estimated Guyanese Persons in the workforce in the Operator, Primary Contractors, and sub-contracts managed by the Primary Contractors, by job position;

 

• estimated Guyanese received training hours;

 

• estimated number of active Guyanese Supplier

 

• estimated expenditure with Guyanese Supplier

 

• anticipated Tenders in Group A;

 

• estimated investment in Productive Capital Assets in Guyana that support the Government’s Local Content policy;

 

• [year 2 of policy implementation] estimated Monetary Value Contributed to the Guyanese

 

 

economy from expenditure on services; and

• [year 2 of policy implementation] estimated Monetary Value Contributed to the Guyanese economy from expenditure on

 

Estimates shall be sub-divided between different petroleum projects of the Operator to enable identification of project-specific planned utilisation. In such cases, in addition to the sub-divided estimates, the Operator’s Local Content Plan shall provide a total of estimates aggregated across all applicable projects.

 

The Minister may issue additional guidance as to the standardised method Operators are to use to estimate and calculate Productive Capital Assets and the Monetary Value Contributed to the Guyanese economy from expenditure on services and goods.

 

3.2.7 Local Content Activities and Programs

Operatorsshalldescribeintheiryearly Local ContentPlan

activities and programs that address employment and training of Guyanese Persons and capacity development of Guyanese Suppliers, as well as other capacity development initiatives to support local education, national training institutions and local research and development,andalsotomakeinvestmentsinproductive assets in Guyana that support the Government’s Local Content policy. In addition to the detailed descriptions of activities and programs in the Operator’s yearly Local Content Plan, the Operator is to include a summary of the planned activities and programs by completing Table A2 (Appendix A of this policy document). The description of activities and programs shall be aggregated or sub- divided as applicable in relation to the different projects to which the activities and programs are targeted. For clarity, descriptions are to distinguish whether an activity or program is aimed generally at all of the Operator’s projects in Guyana, or specifically at individual projects, and if so which.

 

• Employment and Training for Guyanese

In association with each project and related work

activities described in the yearly Local Content Plan, the Operator shall provide a list of job positions anticipated to be required by the Operator and by Primary Contractors, and provide yearly estimates of the utilization of Guyanese labour, as follows:

 

• A list of job crafts/roles/expertise by work activity,

and how these maps onto the following job positions defined in this Policy:

• Senior Management
• Professional
• Supervisory/Middle Management
• Skilled
• Semi-skilled
• Basic-skilled

 

• For the forthcoming year, an estimate of the FTE headcount number of Guyanese Persons to be utilized in each of these six job positions by the Operator, Primary Contractors and sub-contractors involved in Operator activity for the forthcoming year, and the percentage (%) of Guyanese Persons in the six job positions in relation to the total workforce for each position (Table A1, Appendix A).

 

These lists and estimates are to be supported with more detailed information as needed, and this supporting information included in Appendices to the Operator’s Local Content Plan.

 

In relation to the work activities described in the Operator’s Local Content Plan, the Operator shall include in its Plan a description of programs of recruitment, training and workforce succession and development for Guyanese Persons involved in the activities of the Operator and its Primary Contractors, as follows:

 

• For the forthcoming year, an estimate of the percentage (%) of annual training hours to be received by Guyanese Persons in the six job positions, as a proportion of their total working time (Table A1, Appendix A);

 

• programs of outreach activities for the upcoming year to recruit and employ Guyanese Persons having appropriate qualifications and experience in the conduct of petroleum operations in Guyana (Table A2, Appendix A);

 

• programs of training for the forthcoming year be that on-the-job and/or off-site training of Guyanese Persons to participate in the petroleum sector and progress into higher skilled positions (Table A2, Appendix A), including:
  • types of courses,
  • mode of training (e.g. formal curricula, informal shadowing),
  • anticipated qualifications,
  • recruitment process
  • milestones to be delivered

 

• anticipated outcomes Course types to include:
• Safety, Security, Health & Environment (SSHE)
• Leadership/Management
• Technical/Professional
• Trade & Crafts Training
• Basic and induction
• Administrative
• others as agreed with the Minister

 

• programs of training and support for long-term workforce succession and development for the forthcoming year and 2 to 5 years out that contribute to the supply of Guyanese Persons appropriately qualified and experienced to participate in petroleum operations in Guyana, and once in the industry to progress in their careers to more senior positions (Table A2, Appendix A).

 

The program descriptions for recruitment, training and workforce development are to be supported with more detailed information as needed, and this supporting information included in Appendices to the Operator’s Local Content Plan.

 

3.2.7.2              Acquisition and Development of Guyanese Resources

This section covers both acquisition of Guyanese

resources and Guyanese Supplier development programs.

 

Acquisition of Guyanese Resources

In association with each project and related work activities described in the yearly Local Content Plan, the Operator shall provide:

 

• a list ofcontracts anticipated to be tendered or issued over the forthcoming half-year by the Operator and Primary Contractors either directly (in open tenders or through restricted competitive tenders to Guyanese Suppliers or single/sole sourced) or through partnerships or indirectly as sub-contracts. The list to include the buyers; a summary description of the goods and services to be procured; the anticipated dates, as applicable, f issuing Expressions of Interest and Invitations o Tender and date of contract award; the categorisation of the tender as Group A or B; and if Group A, the most likely type of tender (Table A3, Appendix A).

 

• estimates for the forthcoming year of the number of Guyanese Suppliers to be executing contracts

directly or indirectly (Table A1, Appendix A)

• estimates for the forthcoming year of expenditure with Guyanese Suppliers as percentage of total in- country expenditure (Table A1, Appendix A).

 

• [from year 2 of policy implementation] Monetary Value Contributed to the Guyanese economy from expenditure on services (Table A1, Appendix A).

 

• [from year 2 of policy implementation] Monetary Value Contributed to the Guyanese economy from expenditure on goods (Table A1, Appendix A).

 

These lists and estimates are to be supported with more detailed information as needed, and this supporting information included in Appendices to the Operator’s Local Content Plan.

 

Guyanese Supplier Development Programs

In association with each project and related work activities described in the Operator’s yearly Local Content Plan, the Operator shall describe in its Plan programs of support and development to Guyanese Suppliersfor the forthcoming year and for 2 to 5 years out that involve the Operator and its Primary Contractors, and shall include milestones and anticipated outcomes (Table A2, Appendix A). In the selection and design of such programs, the Operator shall give consideration to:

• activities to support Guyanese Suppliers access to and navigation of procurement processes of the Operator and Primary Contractor;

 

• skills competencies development for Guyanese Supplier workers;

 

• quality standards and certification of Guyanese Suppliers;

 

• access to finance to develop capacity for Guyanese Suppliers;

 

• support to enhance the capabilities, capacity and competitiveness of Guyanese Suppliers;

 

• information to Guyanese Suppliers on how their partner of foreign suppliers to increase local opportunities and foster capacity building and

knowledge and technology transfer.

 

These Supplier Development program descriptions are to be supported with more detailed information as needed, and this supporting information included in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appendices to the Operator’s Local Content Plan.

 

• Other Capacity Building Activities and Programs In association with each project and related work activities described in the Operator’s yearly Local Content Plan, the Operator shall include in its Plan other activities and programs for the forthcoming year and for 2 to 5 years out, unilaterally or in collaboration with other parts of the industry, that support capacity development of Guyanese labour and businesses for participation in the petroleum sector, and shall include milestones and anticipated outcomes (Table A2, Appendix A). In the selection and design of such programs, the Operator shall give consideration to:

• support for education and vocational training institutions in Guyana where involved, or potentially involved, in the petroleum sector in Guyana;

 

• support to research and development institutions in Guyana; and

 

• investments in Productive Capital made by the  Operator  and Primary Contract       Guyana that support the Government’s Local In describing these investments, the Operator shall provide clarity on the extent t which Primary Contractor investments are relevant to Operator activities only, or bring benefits to Guyana more broadly.

 

These other capacity building program descriptions

are to be supported with more detailed information as needed, and this supporting information included in Appendices to the Operator’s Local Content Plan.

 

3.2.8 Procurement Procedures

• The Operator shall describe in its yearly Local Content Plan the tender procedures of the Operator and its Primary Contractors that in combination will assure consistency with the principle of Government policy for fair and adequate opportunity to Guyanese Suppliers and sub-contractors in the supply of goods and services, and with the principle of Government policy for first consideration to Guyanese Suppliers when capable and competitive and able to satisfy the Operator’s or Primary Contractors’ financial requirements and technical specifications for timeliness, quality and

 

• The procurement procedures described by the Operator in its yearly Local Content Plan shall include, at a minimum, the following:

• For contracts categorised as Group A:
  • the stages of the Operator’s tender process and those of its Primary Contractors, in cased where open competitive bidding is the selected method of tender, including but not limited to: Expressions of Interest or equivalent, Pre-Qualification, Bid List formulation, Invitations to Tender or equivalent, pre-and post-award stages;

 

• the half-yearly dates when the Operator shall

 

disclose contracting and procurement opportunities for Guyanese Suppliers (Group A) as completed Tables A3 and Table B5 (Appendices A and B of this policy document);

 

• the specific criteria to justify when single or sole sourcing might be applied, consistent with the principles for categorising contracts as Group B described in this policy, and in summary any other non-competitive methods of contractor selection such as restricted competitive tendering;

 

• how suppliers and sub-contractors are invited to submit an Expression of Interest (or equivalent);

 

• in what circumstances pre-qualification activities might take place and how pre-qualification is then taken into consideration in progressing tenderers towards selection;

 

• the timing of the different stages of tendering such that sufficient notice is given to Guyanese Suppliers to prepare for pre-qualification or bid submissions; and

 

• the process and basis upon which a final bid list is selected under different circumstances, e.g. with pre-qualification vs without pre-qualification; supply contract vs service

 

• For contracts categorised as Group A, the Operator and Primary Contractors shall maintain internal records justifying why Guyanese Suppliers who make it onto a bid list were, or were not, sufficiently competitive to be awarded the contract. Where not in conflict with Operator or Primary Contractor legal obligations for confidentiality, this information is to be made available upon request to the Minister in an anonymised and aggregated form, for the purpose of demonstrating consistency with the principles of this policy for fair and adequate opportunity and first consideration.  This information is also to be used by the Operator and Primary Contractors to  inform the design of feedback sessions to Guyanese Suppliers and Supplier Development

 

3.2.9 Role of Primary Contractors

The Operator’s yearly Local Content lan shall include a description of how the Operator shall ensure that its Primary Contractors contribute to the utilization levels, activities and programs in the Operator’s Local Content Plan, specifically the Operator’s Local Content Plan shall include:

• Names of forthcoming major contract tenders that, because of the Local Content opportunities they offer, will require potential Primary Contractors at tender stage to prepare a Local Content sub-Plan as part of bid submission;

 

• Names of the Primary Contractors selected to execute a Local Content sub-Plan as part of their contract delivery obligations and which are in execution during the forthcoming year;

 

• Confirmation that the Operator has and will treat the quality of bidders Local Content sub-Plan as a material consideration in the process of the award of work to a Primary Contractor and include contract clauses that assure the Primary Contractor is contractually bound to deliver the Local Content sub-Plan;

 

• A summary of the Local Content sub-Plans of Primary Contractors awarded contracts by the Operator, with Appendices as needed;

 

• Full Local Content Sub-Plans of Primary Contractors as Appendices, in cases when such sub-Plans are designated by Government for additional oversight due to significance or scale of the potential contribution of contract execution to Local Content;

 

• The division of utilization levels, activities and programs so as to clarify which parts of the Operator’s Local Content Plan is to be executed by the Operator and which parts by the Operator’s Primary Contractors or other contractors;

 

• The contractual obligations that the Operator shall apply to Primary Contractors to hold the Primary Contractor to account to deliver its Local Content Plan and to adhere to the Operator’s overall Local Content Plan objectives; and

 

• How the Procurement Procedures in this Policy are to be flowed down to Primary Contractors to assure first consideration and full and adequate opport y to Guyanese Suppliers in procurement undertaken by Primary

 

3.2.10                 Local Content Measurement and Reporting

• he Operator shall gather information on progress in achieving the objectives, utilisation levels,

 

 

activities and programs described in their yearly Local Content Plan, sufficient to inform half-year and end- of-year Local Content Reports to the Minister. This information shall be retained securely by the Operator and in sufficient detail to facilitate verification for a period of five (5) years.

 

• The Operator shall provide to the Minister, at a minimum, half-year and end-of-year Local Content Reports submitted within 45 days of the end of each half calendar year detailing and quantifying its achievements in respect of the objectives, utilisation levels, activities and programs described in its yearly Local Content General timings for Local Content Reports are provided in Appendix F.

 

• The Operator’s half-year and end-of-year Local Content Reports shall comprise, at a minimum, the following information:

 

• A description of progress, with milestones, as measured against (i) Local Content objectives established for the end of the current phase of operation for each project, be that Exploration Phase, Development Phase, Production Phase or Decommissioning Phase; and (ii) Local Content objectives established for each project for the end of the forthcoming year (or part thereof as applicable for the first year). In addition to this description, the Operator shall complete and submit as part of its half-year and end-of-year Local Content Reports the completed Table B1 (Appendix B to this policy);

 

• A description of progress in achieving the estimated Local Content utilisation levels in the Operator’s Local Content Plan regarding personnel, goods and services, training and capacity development. In addition to this description, the Operator shall complete and submit as part of its half-year and end- of-year Local Content Reports the completed Table B2 (Appendix B). This information shall be submitted manually, or if advised by the Government, entered into a secure government-endorsed reporting portal. The Operator shall include in reports a commentary on achievements or variance from the estimated levels;

 

• A description of progress against the activities and programs described in the Local Content Plan for the employment and training of Guyanese, capacity building of Guyanese Suppliers, and other capacity building programs regarding national institutions for education, training and research development,

and investments in infrastructure. In each case, the Operator is to identify milestones delivered and any other outcomes achieved. In addition to this description, the Operator shall complete and submit as part of its half-year and end-of-year Local Content Reports the completed Table B3 (Appendix B);

 

• A listing and summary description of all contracts awarded in Group A to Guyanese Suppliers for the previous half-year period by  the  Operator  and Primary Contractors, and the party to whom the award was made, their supplier type and the associated goods/service category. The Operator shall complete and submit as part of its half-year and end-of-year Local Content Reports the completed Table B4 (Appendix B);

 

• A listing and summary description of all contracts anticipated to be tendered or issued by the Operator and Primary Contractors in Group A and Group B for the upcoming half year period, including the customer/buyer, the associated goods/service category, and where available the anticipated dates as applicable for the (i) issue of Expressions of Interest (or equivalent), (ii) issue of Invitations to Tender (or equivalent), and (iii) contract The Operator shall complete and submit as part of its half-year and end-of-year Local Content Report the completed Table 5 (Appendix B);

 

• ForcontractscategorisedinGroupAandawarded,the Operator’s half-year and end-of-year Local Content Reports are to include a summary description of the design and delivery of supplier feedback sessions provided by the Operator, Primary Contractors or third-parties to groups of Guyanese Suppliers who submitted an Expression of Interest but did not make it onto a bid list, and who were on the bid list but failed to win an The design of feedback sessions should be consistent with good industry practice in maintaining fair competition in subsequent tenders, and consistent with Government policy for Guyanese Suppliers to learn how to develop their ability to compete for work in the petroleum sector. Methods of feedback may include seminars, group workshops, training courses, and expositions t match international and local suppliers. Feedback should be offered periodically, at a minimum twice per year. The Operator shall complete and submit as part of its half-year and end-of-year reports the completed Table B6; and

 

• [year 2 of policy implementation] quantification of

 

the half-year and cumulative end-of-year Retained Economic Value in Guyana from expenditure on goods and services, personnel, training and return on investment from investments in capacity development, in accordance with the standard methodology supplied by the Minister. The Operator shall complete and submit as part of its half-year and end-of-year reports the completed Table B7. The Minister shall issue guidance as to the standardised method Operators are to use to calculate Monetary Value Contributed and Retained Economic Value .

 

• Data gathered and reported in Tables B2 and Table B7 is to be for work Involved In Operator Activity only (see Definition), meaning that information  on  the utilisation of local goods, services and personnel by Primary Contractors and other suppliers and sub-contractors working for the Operator shall be apportioned to a particular Operator’s activities in There shall be no double-counting.

 

• Based on review of half-year and end-of-year Local Content Reports, and in light of changing domestic and international business circumstances, the Minister may invite the Operator to meet to agree adjustments to levels of utilisation or activities and programs in  the Operator’s yearly Local Content Plan to better accomplish the Plan’s

 

• Consistent with Government policy for accountability in the development of the country’s non-renewable sovereign hydrocarbon resources, the Minister shall disclose to the general public whether or not Operators have submitted yearly Local Content Plans and half-year and end-of-year Local Content Reports, and whether the contents of the Plans and reports are consistent with the full range of information requirements by this

 

• To facilitate effective Local Content Plan implementation, the   balance    of    transparency and disclosure versus maintaining legitimate confidentialities, shall be as Notwithstanding legal constraints that prevent disclosure of submitted and reported information on Local Content parties beyond the Minister:

• the Minister shall disclose the anticipated contracting and procurement opportunities for Guyanese Suppliers (Group A) in the form of the completed Tables A3 in an Operator’s Local Content Plan and Table B5 in the half-year and end-of-year Local Content Reports (Appendices A and B of this policy document);

• the Minister shall on an annual basis disclose an Operator’s Summary Local Content Utilization Report as completed Table C1 in an Operator’s end- of-year Local Content Report (Appendix C);

 

• The Operator shall include additional commentary to these disclosures: Tables A3, B5 and C1. At a minimum, Operators are required to explain and justify inconsistencies between the anticipated levels of Local Content in the applicable annual Local Content Plan and actual performance;

 

• the Local Content Oversight Committee shall have the authority to request from the Ministry to view in confidence the approved Operator Local Content Plans, Minister-designated Primary Contractor Local Content sub-Plans and Operator half-year and end- of-year Local Content Report, for the explicit and sole purpose of carrying out its function of policy implementation oversight;

 

• in all other cases, information submitted to the Minister in Operator Local Content Plans and appendices and half-year and end-of-year Local Content Reports shall remain confidential to the Operator and

 

3.3  Governance of Policy Implementation

• The principle instrument of implementation for this policy is an Operator yearly Local Content Plan and, at a minimum, half-year and end-of-year Local Content Reports submitted to the

 

• As noted, it is the intent of the Government of Guyana that this policy be implemented in full, with Government, Operators, Primary Contractors and sub-contractors all cooperating and working positively and constructively to deliver the policy in both letter and spirit. As a backstop to assure policy delivery, the government is considering codification of the policy through regulation, underpinned by the necessary legal In the interim period, it is the expectation of the Government that all parties will implement the policy speedily, comprehensively and in good-faith, facilitating the smooth transition of all parties to formal regulation in due course, should this be the direction take by Government.

 

• During this interim period, the Minister has the sole authority o administer the policy, including the review and approval of Local Content Plans and Local Content

 

 

Reports (in due course this authority may be devolved to a regulatory body). The Minister may elect toconsult with other parties in exercising his/her authority. Officials  or official advisors within the Ministry, and within other Ministries as so agreed by Cabinet, may be assigned by the Ministry and take day to day responsibility for:

• management of the process of Operator annual Local Content Plan submission, review, modification and approval described in section 2 of this policy;

 

• verification and assurance of  the  completeness of information provided in an Operator annual Local Content Plan, in accordance with the details described in section 2.1. to 3.2.9 of this policy and the associated templates in Appendix A;

 

• management of the process of half-yearly Operator Local Content Reports submission and review described in section 2.10 of this policy;

 

• verification and assurance of the completeness of information provided in Operator half-yearly Local Content Reports, in accordance with the details described in section 3.2.10 of this policy and the associated templates in Appendix B;

 

• management of the process of Summary annual Local Content Utilization Reports submission and disclosure, in accordance with section 2.10 of this

policy and the associated template in Appendix C;

 

• coordination and preparation of materials for meetings of the Guyana Content Oversight Committee;

 

• provision of quarterly briefings to the Minster on progress in implementation of the policy; and

 

• preparation of materials for the Minister to report annually to Cabinet on progress in implementation of the

 

• The Minister shall establish a Guyana Local Content Oversight Committee, whose purpose is to:
• review progress of the Minister in implementation of the policy; and

 

• make recommendations to the Minister to improve policy implementation

 

• The Guyana Local Content Oversight Committee shall meet quarterly, and shall comprise:
• the Permanent Secretary of the Ministry;
• representatives of
  • Ministry of the Presidency
  • Ministry of Business
  • Ministry of Education
  • Ministry of Public Infrastructure
  • Ministry of Finance

 

• Guyana Office for Investment;

• Representatives of established Guyanese supplier and professional associations;
• Representative of Operators in Guyana;
• Representative of Primary Contractors in Guyana;
• Representatives of established Guyanese training/ academic institutions

 

• The final composition, terms of reference and modus operandi of the Guyana Content Oversight Committee shall be determined by the The Committee shall have the authority to request from the Ministry to view in confidence the approved Operator Local Content Plans, Minister-designated Primary Contractor Local Content Sub-Plans and Operator half- yearly and end-of-year Local Content Reports, for the explicit and sole purpose of carrying out its function of policy implementation oversight. The modus operandi of the Oversight Committee shall include a Code of Conduct for participants to assure, in part, that viewing these documents remains confidential.

 

• The role of the Guyana Local Content Oversight Committee is The Minister shall be accountable to Cabinet for policy implementation.

 

• Operators shall permit an agent designated by the Minister to access records of the Operator and Primary Contractors for the explicit and sole purpose of assessment and verification of the information provided in Operator Local Content Plans and Local Content The Operator shall include the necessary provisions in contractual arrangements with Primary Contractors so as to enable such assessment and verification by the Minister or his/her designation.

 

• The Operator is responsible for implementing its yearly Local Content Plans and submitting, at a minimum, half-year and end-of-year Local Content Reports in accordance with the provisions of this

 

• The Minister may put in place measures to ensure the development and adoption of Local Content by an Operator under this Policy, including, but not limited to:
• issuance of guidance to provide clarifications or interpretations to support implementation of this policy;

 

• facilitating awareness sessions to bring Guyanese Suppliers up to date on Local Content policy developments and activities;

 

• undertaking, or designation of a credible third party to undertake, industrial baseline studies

 

 

and industry surveys and forecasts to understand the opportunities for increasing Local Content or informing capacity development programs and activities;

 

• identifying sectors in which domestic value addition opportunities exist with respect to certain goods and services required in the sector, and accordingly identify capacity building and infrastructure investment strategies (physical, financial, technological) and related action plans and programs to realise these opportunities;

 

• incentivizing local capacity building programs that ensure Guyanese Suppliers can participate in the sector, through fiscal or other mechanisms;

 

• the implementation of strategies and programs for the development of local skills, business know-how, technology, financing, capital market development, and wealth capture and distribution;

 

• adopt measures aimed at progressively enhancing the capabilities of local enterprises to compete effectively on quality, price, quantity and reliability in the supply of goods and services required in the petroleum industry, including access to relevant supplier quality and management certification processes; and

 

• adopt measures that direct Local Content opportunities to areas where the Operator carries out significant

 

• On an annual basis, the Minister shall prepare and submit a report to Cabinet and Parliament on the implementation of this policy and shall, for this purpose, set out information on:
• the achievements of each Operator in delivering the objectives and undertakings of their annual Local Content Plans;

 

• objectives that are yet to be attained by an Oper or and the Minister under this policy and the associated rationale;

 

• agreed strategies for corrective measures by Operators and the Ministry, where objectives are yet to be attained; and

 

• recommendations for improved implementation to attain the objectives of this