Guyana’s local content regulator, the Local Content Secretariat, has issued 354 Local Content Certificates to Guyanese suppliers to the nation’s oil and gas sector, according to the Ministry of Natural Resources.
In a release, the ministry said its internal assessments show that certified Guyanese companies supplied goods and services, valued above a preliminary estimate of $129 billion, across 37 of the 40 areas ringfenced for nationals in the First Schedule of the Local Content Act.
Director of the Secretariat, Martin Pertab noted that this preliminary assessment represents 23% of Guyana’s $552.9 billion budget for 2022. In the release a breakdown of sectors and sub sectors are enclosed but the ministry nor did the secretariat provide any data on a breakdown of the 354 certificates with the list provided. The release also did not provide a performance appraisal of the listed sectors and sub sectors.
According to the release, a Guyanese national or Guyanese company issued a certificate by the Secretariat receives preferential treatment in the award of contracts by the oil companies and their sub-contractors. This document provides confirmation that the Secretariat is satisfied that the holder of the certificate is a Guyanese national and/or satisfies its criteria that the company is Guyanese owned. The ministry said in its release that oil companies and their sub-contractors are more incentivized to utilize vendors who are approved by the Secretariat.
Regarding registration of locally owned companies with the Secretariat, the release stated that suppliers are asked to submit certain crucial documents, depending on the type of proprietorship. Once those necessary documents have been lodged, the applications go through a rigorous screening process by the Secretariat’s Registration Unit. This firm system, the release says, is designed to filter out companies’ intent on circumventing the spirit of the law. Registration by the Secretariat is free of cost.
In keeping with the provisions of the legislation, all certified Guyanese companies are published via the Local Content Register (https://lcregister.petroleum.gov.gy/local-content-register/) – a website that the general public can easily access. Pertab said that the unit is working alongside, and will continue to engage with contractors, sub-contractors, licensees and Guyanese suppliers to ensure that the goals of the Act are met. Local content, Pertab underscored, gives Guyanese businesses a fair opportunity to directly tap into and benefit from Guyana’s multi-billion-dollar petroleum sector.
