Even though the People’s Progressive Party/ Civic (PPP/C) Government has made it pellucid that it expects to see ExxonMobil and other oil majors doing more on the aspect of local content, it would be wise to examine the procurement strategies and practices of those companies, says Petroleum Expert, Dr. Valerie Marcel.

The expert who is attached to the Natural Resource Governance Institute (NRGI) stated during a recent interview that a careful examination of how companies engage in procurement would help Guyana understand whether those rules are a barrier to local participation, and if they are, allow it to spur conversations on how those can be addressed.

Dr. Marcel said, “The way governments and companies make decisions are very different, and yes, it is very valuable for the government to understand how a super major like Exxon or a smaller company or a service company will procure and how they do that.”

The industry expert added, “At the top, you have the operator which would sort of delegate some procurement decisions to lower down the chain and it’s very important for the government to have visibility of that as well, to ensure that the principles of procurement are followed; that they are in line with that the government requires; whether it’s transparency or local content due diligence of companies.”

Dr. Marcel opined that at the end of the day, it is critical that the government understands the procurement strategies and practices as it would ultimately lead to a more robust local content policy and law.


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