Govt mulls amending local content law to enable Guyanese ownership of supply vessels

– VP highlights opportunity for Guyanese to partner, invest

The People’s Progressive Party/Civic (PPP/C) Government is mulling making amendments to the Local Content Act (LCA) 2021, that would allow Guyanese to own supply chain vessels, and thereafter benefit from long term contracts with the oil companies, exploring for and producing oil offshore Guyana.
This was explained by Vice President Bharrat Jagdeo, during his latest press conference where he was asked how Guyanese can get into supply chain contracts. According to the Vice President, while the PPP/C Government wants Guyanese to benefit from this area, the reality of the massive capital investment required may call for partnerships.
“We hope to amend the local content law, to give more room for local ownership of supply vessels. But these supply vessels are very costly. They run into millions of US dollars. So it may be beyond the reach of an individual in Guyana to afford these vessels,” Jagdeo said.

“But I think in partnership with companies abroad and also if they form a consortium of Guyanese companies, we may be able to get more Guyanese to invest in these areas and bring more income to our people. Because once you get a contract there, it’s a long-term contract. And its predictable. And therefore, you can make money on it.”
With the Government looking at reviewing and improving the LCA to include even more ways Guyanese can benefit, Jagdeo pointed to this as one area that the Government is looking at tweaking in the law.
“So we hope in the future that the local content law can evolve, to allow more room for Guyanese in these areas, like how we did with some other areas where we had 100 per cent procurement from Guyanese companies. We may not get up to 100 per cent immediately, but a bigger share of the supply vessels contracts should go to Guyanese,” he further said.
During his January presentation of the budget, Finance Minister, Dr Ashni Singh had revealed that the Local Content Register has now grown to over 1,100 companies. Additionally, he had said that US$743 million was spent in 2024 on local services, employment and capacity development… all of which the secretariat facilitated.
In November 2024, it was reported that 1032 companies were registered with the Local Content Secretariat, meaning they are in possession of a Local Content Certificate to confirm they are a Guyanese company and are eligible to supply oil and gas operations.
During his end of year press conference, President Dr Irfaan Ali had spoken about the review of the act. Asked if he was satisfied with the impact the LCA has had on Guyana, the President had expressed satisfaction with the results so far, while also looking forward to future improvements.
There are 40 areas in which oil companies have to seek services from local providers, to varying degrees. For instance, 100 per cent of immigration support, work permit and visa application, customs and ground transportation, as well as insurance have to be sought from local service providers by the oil companies.
Meanwhile, other targets include 90 per cent of office space rental and accommodation services; 90 per cent of janitorial services, laundry and catering services; 95 per cent pest control services; 75 per cent local supply of food; and 90 per cent local accounting services.