“Oil can be a blessing, and it can be a curse”- Minister of Natural Resources

The Private Sector Commission, on Thursday, hosted a Local Content Forum aimed at exchange and deliberations on the First Schedule of the Local Content Act, slated for review on December 31, 2022. At this forum, Chairman of the Private Sector Commission, Mr. Paul Cheong, stated that local content regulations have remained a top priority of private sector stakeholders. Since the formation of the Local Content Advisory Committee and Local Content Secretariat, the private and public sector have been kept abreast with matters regarding local content as they appear, while the operationalisation of the latter has led to the issuance of 354 Local Content Certificates to Guyanese suppliers within the oil and gas sector. Senior Petroleum Coordinator of the Ministry of Natural Resources, Mr. Bobby Gossai reiterated how the Local Content Secretariat has maximised local content opportunities, with the first schedule to the Local Content Act which outlines the 40 areas oil and gas companies and their subcontractors must procure from Guyanese companies by the end of 2022, the key topic at this forum. “Oil can be a blessing, and it can be a curse,” said Honourable Minister of Natural Resources, Vickram Bharrat as he discussed at length, the “unprecedented” movement of the economy due to Guyana having been projected to produce a million barrels of oil per day from as early as 2027, with two more production licences signed, and a Field Development Plan to be submitted in the near future. He emphasised that comparatively, Saudi Arabia and places like Abu Dhabi have been oil producers for decades, producing an average of 3 million barrels of oil per day in this respective time frame, with Guyana matching levels with these nations after only 6-7 years of oil extraction activities having commenced. Minister Bharrat expressed his gratitude to the partnership with ExxonMobil for significant extractive works that have strengthened the GDP of Guyanese economy, and the implementation of the single window system for creating ease of efficiency within the permitting process. He thereon, reflected on Guyana as a “model oil producing country” given that taxes are not paid on fuel, and the offset losses by far-extensive earnings, a labour force of over 4000 employees in the oil and gas sector, through which households are directly benefited, and the consortium of over 100 caterers to work offshore on the two FPSOs. Further, he implored Guyanese entrepreneurs to form strategic partnerships, in recognition of competitive nature of Guyanese business people and proprietorships which while excellent in bringing a national advantage, must be redefined to accommodate cooperation as the energy market globally evolves.

17 Nov 2022 13:00 | by anaraine