Dr. Alicia Roberts, Dean of the Faculty of Law at the University of the West Indies St. Augustine, cautions that poorly formed local content laws or policies can create major inefficiencies and delays in the oil and gas sector.
At an event in Suriname last month, she stressed the need for careful planning and stakeholder consultation to ensure these laws and policies achieve their intended objectives.
“You would usually want to find out the capacity within the state to supply services and goods before you have that goal,” Roberts stated.
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Roberts said governments should take a balanced approach when creating local content policies. She said companies in the oil and gas sector often have more experience and resources than newly emerging producer states. This makes it essential for governments to engage with industry experts to enhance local capabilities.
“You want to have training, you want to have the laws, but as you draft laws, have dialogue and ensure the state has the backing to enforce them effectively,” she said.
Currently, Suriname has no local content law in place. The country has a local content clause in its Production Sharing Contracts. And work on developing a policy has started. The head of Suriname’s state oil company, Staatsolie said he prefers a policy instead of a law. The country is preparing for its first offshore oil development, Gran Morgu.
Suriname’s neighbor to the west, Guyana, has a local content law in place. The law ensures that the rights of Guyanese are protected and they get first preference for opportunities in the oil and gas sector.
