Guyana is abuzz with economic activity; a direct result of the massive oil and gas finds in the ExxonMobil-operated Stabroek Block, and this has led to increased interest from investors across the globe looking to cash in on the action.
Its Minister of Natural Resources, Vickram Bharrat sought to remind investors not to view the country’s Local Content legislation as a deterrent to any business activity being explored.
“I want to say to you [investors] that we have an open-door policy to investment, to any investor coming into our country. I want to repeat that our Local Content legislation is in no way a hindrance to investment. It was never designed for that because we need the investment,” he reiterated.
Guyana’s Local Content Act has been criticized by some as being too stringent. Sections of the Trinidadian press have said the law ought to be examined for its compliance with CARICOM’s Revised Treaty of Chaguaramas (RTC).
Guyana will not be bullied on Local Content Policy – VP Jagdeo | OilNOW
There was also the contention on whether it significantly blocks investment.
But the overarching function of the Act is to ensure that the rights of Guyanese are protected and to ensure they get first preference for opportunities in the oil and gas sector.
And it has achieved this, thus far and has even pulled more investors to the country, as observed by one economist, Richard Rambarran.
The Act features 40 schedules for services carved out for Guyanese participation including catering, accounting and welding. Foreign investors wanting to operate within those areas are required to partner with local companies with the Guyanese having 51% or more beneficial ownership, among other critical factors.
