Local suppliers could access over US$1B in business by 2027 – Guyana Chronicle
–as operations ramp up in oil and gas sector
GUYANESE are constantly being exposed to new opportunities with the expansion of the oil and gas sector, and crucial investments in other areas within the economy.
Earlier this year, ExxonMobil Guyana released new data on spending in the local economy and the employment figures for the oil and gas industry.
The company stated that combined spending amounted to G$83 billion (US$400 million) locally in 2022, with more than 1,500 Guyanese businesses, and over 5,000 Guyanese workers employed by the company and its contractors.
General Secretary of the People’s Progressive Party (PPP), Dr. Bharrat Jagdeo, said that more is in store for Guyanese as the industry expands and the government continues to invest in developmental initiatives.
During a press conference on Thursday, Dr. Jagdeo said that with the expansion of the offshore industry and the government’s plans, local suppliers could access more than US$1 billion in business by 2027.
Local companies are better positioned to access such opportunities as a result of the Local Content Act.
Dr. Jagdeo acknowledged that with the implementation of local content policies, many Guyanese businesses within the oil and gas sector have seen brighter prospects.
“We’re very pleased that we passed the law. That law has created a lot of room for Guyanese and Guyanese investors,” he said.
He also pointed out that the Local Content Act was a commitment the PPP/C made when it was in opposition.
“It was a commitment we made when we were in opposition as one of the ways we can get more benefits that we can get outside of the revenue stream that was already affected because of the lack of ring-fencing and the low royalty,” the PPP General Secretary said.
On December 31, 2021, the Government of Guyana passed the Local Content Act 2021.
Subsequently, it published several related guidelines that were designed to maximise the participation of Guyanese companies wherever they have the skills and capacity to get involved, beginning with services such as office space rental, janitorial services, laundry and catering services, pest control services, insurance services, supply of food and accounting services and extending through long-term involvement in highly skilled subsectors like subsea installation, geophysical analysis and engineering.
Notably, the private sector is in discussion with the government to add 35 more areas to the First Schedule of the Local Content Act, in addition to appealing for increases to the percentage of minimum local content required for respective sub-sectors.
