In finalising its Local Content Policy (LCP), the newly-constituted panel does not have to reinvent the wheel. They can modify appropriate policies from jurisdictions similar to Guyana that confronted new Oil and Gas Industries (O&GI). The following is adapted from Tanzania’s LCP:
“The Operator in the oil and gas industry is expected to prepare on-job training programmes in all aspects of the oil and gas industry activities, which may be carried out in or outside the country. The Contractor/Operator shall also facilitate recruitment of the same in their supply chains in Guyana.
“Furthermore, such an Operator is, therefore, expected to ensure that opportunities are given as far as possible for the employment of Guyanese having the requisite expertise or qualifications in the various levels of the operations.
“Such programmes shall provide field training to Guyanese in all aspects and phases of petroleum activities and as many staff categories including (a) senior management positions; (b) supervisory positions; (c) skilled positions and (d) semi/unskilled positions, and shall be reassessed and revised on an annual basis (the “Annual Recruitment and Training Programme) and may include scholarships, industrial training for students and other financial support for education. Scholarships should only be given to Guyanese nationals and should be publicly advertised.
“To enhance transparency and effectiveness in the implementation of this policy direction, an operator, contractor, sub-contractor, service provider, etc, shall publicly advertise and give preference to the employment of citizens of Guyana who have the requisite qualification, competence, and experience required to carry out the required work.
“Where a foreign national is being given employment, a succession plan to a Guyanese national needs to be submitted with the work permit application. The implementation of this succession plan will influence the extension of the work permit application. This will give effect to the operator, contractor, sub-contractor, service provider, etc, to take every reasonable effort within a reasonable time frame to empower the Guyanese national to be able to perform the same job that the foreign national was brought to perform.
“With respect to employee training, an operator, contractor, sub-contractor, service provider, etc, shall prepare a scheme for the training of its Guyanese employees, both inside and outside of Guyana including to conferences, workshops, and seminars. For the effectiveness of this policy, the scheme shall be submitted to the relevant Regulatory Authority for approval as part of the Annual Recruitment and Training Programme.
“Towards the objective of creating business opportunities to local firms, the Government shall:
(i) Ensure foreign experts have limited and non-renewable work permits;
(ii) Ensure maximisation of number of skilled Guyanese in every oil and gas operation along the supply and value chains;
(iii) Ensure deliberate preference is made for Guyanese during recruitment;
(iv) Ensure that certain employment cadres are reserved for Guyanese only; and
(v) Work with oil and gas companies and service companies to ensure implementation of approved employment and succession plans.
“In order to ensure increased economic benefits to Guyanese, all operators in the oil and gas sector shall, as far as practicable, use goods and services produced by or provided in Guyana by Guyanese-owned businesses for their operations in preference to foreign goods and services provided in Guyana by foreign-registered businesses in Guyana or foreign businesses not registered in Guyana. Where Guyanese-owned businesses can meet the quality, quantity, and time required but higher on price then Guyanese-owned businesses shall receive a margin of price preference as prescribed by legislation.
“Where bids are being evaluated, and where bids are otherwise equal, the bid containing the highest level of Guyanese content shall be selected. Where a foreign entity is to provide goods and services for the licensee, the foreign entity shall operate from Guyana and partner with a Guyanese-owned and registered company. After the commencement of operations, the participation of Guyanese for the first three to five years of operations shall be at least 10 per cent by value in the provision of goods and services or as may be prescribed by regulations.”
