Guyana’s Local Content Register now lists over 900 Guyanese companies qualified to benefit from opportunities in the oil and gas sector, thanks to the Local Content Act. The Act, passed in 2021 by the People’s Progressive Party/Civic (PPP/C) Government, has established a clear framework to ensure that local businesses and citizens are prioritized in the sector’s growth.
Alistair Routledge, President of ExxonMobil Guyana, recently praised the Local Content Act during a press conference held at the company’s headquarters on Duke Street, Kingston. He emphasized that the legislation has opened the doors to significant opportunities for Guyanese businesses and workers, marking a crucial step in the nation’s economic transformation.
“The Local Content Act provides another avenue for Guyanese to benefit from developments in the oil and gas sector,” said Routledge. “We recognize that this is Guyana’s resource, and we want the people not only to benefit from what we pay in royalties, profit share, or taxes, but also in the development phase. We are making opportunities available as quickly as we can for people to be employed and for businesses to benefit and grow.”
The Local Content Act defines 40 sub-sectors, including transportation, accommodation, legal services, marketing, and public relations. It mandates that a specified percentage of these goods and services must be supplied by Guyanese companies, creating a steady flow of contracts and jobs for the local workforce.
Routledge also highlighted the Act’s effectiveness in guiding foreign companies on how to engage with the local market. “I think where the Act has been helpful is for new entrants to the country, being clear on the basis of which they are expected to come in and encouraging them to partner with local investors and companies. It provides clarity for new investors in the country,” he stated.
The Local Content Secretariat, which manages the register of local companies, has played a crucial role in coordinating efforts between the Government of Guyana and ExxonMobil. As a result, local businesses have already earned nearly US$1 billion through their participation in the industry.
