Local content legislation crafted for the benefit of local businesses from oil revenue.
Local content success stories, the role of local content in foresting economic growth and local content’s legislative framework were some of the critical topics addressed at the recently concluded inaugural Local Content Summit at the Pegasus Corporate Centre, Georgetown.
The summit aimed to foster local content partnerships for sustainable growth, with hundreds of attendees, many of whom were from the local business community, contractors in Guyana’s petroleum sector as well as senior government officials.
In his presentation Minister of Natural Resources Vickram Bharrat M.P., highlighted that the local content legislation was crafted so that Guyanese companies and Guyanese businesses could benefit directly from the proceeds of the nation’s oil and gas sector and well as to gain exposure and experience through first preference in the sector.
Under the Local Content Act, a piece of legislation that has been in place for the past fifteen months, the government carved out forty sectors and sub-sectors for Guyanese suppliers of the nation’s burgeoning oil and gas sector.
Ranging from accommodation, logistical, food supply, medical and accounting services, the law sets explicit targets for petroleum contractors and sub-contractors – adding a level of preference and security for local businesses.
Minister Bharrat was keen to note that while these areas are ringfenced for Guyanese, it does not shield them from providing substandard goods and services.
“We should not look at the Act as a protection mechanism for mediocracy. We should ensure that our products and services are competitive at the regional and international level, in quality and well as price. That is where we have to go as a country,” the Natural Resources Minister related.
He went on to articulate, “When we can increase our supply boats from forty-two to one hundred in the near future, it spells more opportunities for Guyanese. You have a partner in the government and we are willing and we will consult with you. Once we build capacity, we will amend the First Schedule in the legislation to broaden the number of services that you can offer to the oil companies.”
The organizers of the summit, MBW Energy Support Services highlighted that as the fruit of the big turnout at this year’s affair, the company intends to make it an annual event.
Vice President Dr Bharrat Jagdeo was also present at the summit and delivered the keynote address.
