‘Guyana needs to accept foreign expertise in oil and gas sector’ – Canadian envoy

…urges to accept assistance from those without hidden agenda

While a lot has been said about the need to develop local content in the nascent oil and gas sector, Canadian High Commissioner to Guyana Lillian Chatterjee said the country does not have enough capacity and would need foreign help in this regard.
Chatterjee said it is important for Guyanese to develop the skills to eventually be able to manage the oil and gas sector themselves, but noted that “the hard reality is, they don’t have the skills now” and it may take years before that is fully developed.
The Canadian envoy therefore believes that while it may be the political correct thing to preach local content, she noted that Guyana will have to learn from others. She noted that at one point, Canada sought expertise of other oil producing

nations for their sector.
“So, you have to welcome others who have that expertise, who are willing to share it with you to learn from them. And once you learn from them, then you are in a position to manage your own industry,” she told Guyana Times in a recent interview.
The second review of the local content policy is expected to be completed by the first quarter of next year, Business Minister Dominic Gaskin has said.
Government recently completed a terms of reference for a consultancy to complete the local content policy based on consultations and a draft, also an implementation plan.
Gaskin said it was important for the new legislation to be ‘balanced’, since a ‘too strongly national’ local content policy can jeopardise the efficiency or the viability of the company being relied on to harness the resource.
“There seems to be a reticent to accept foreign expertise and Guyana sorely needs it. I hope the citizens of Guyana understand that you accept it from those who are well meaning, who don’t have a hidden agenda,” Chatterjee added.
Further, she said Canada is not asking Guyana for a special deals in oil, but rather, the country is here to share its expertise with the Government. “Why? Because Guyana has always been a good solid partner of Canada. We have accompanied Guyana from its independence and we have this good strong history,” she noted.
The Guyana government and the Canadian province of Newfoundland and Labrador will be signing a technical cooperation agreement on oil and gas in the coming week. Natural Resources Minister Siobhan Coady will be signing a MoU on behalf of her province with the Government of Guyana for technical cooperation on oil and gas.

Ownership
In recent times, there have been concerns, particularly by the private sector about whether foreign countries and their companies will be allowed to dominate the sector. The Georgetown Chamber of Commerce and Industry (GCCI) had expressed worry over the Energy Agreement that the Government signed with Trinidad and Tobago (T&T).
According to the GCCI Head Deodat Indaar, Guyanese businesses are already being sidestepped and instead contracts have been awarded to foreign-based companies to benefit from the local oil sector. But the GCCI wants the local Private Sector to get its “piece of the pie” and the Government to create a level playing field for all.
As such, the GCCI has put together its own draft local content legislation which was sent to Government and the Opposition. As part of that proposal, it said Guyanese companies must have 51 per cent ownership, the holding of board meetings must be in Guyana, 70 per cent of the staff must be Guyanese and its head office must be located in Guyana.
The Chamber lamented over the fact that several of GCCI members had submitted expressions of interest and most of them to date have not received a response. The GCCI, he said, hopes that the Government accepts the document in good faith and puts mechanisms in place so that foreign companies are legally obligated to purchase locally.
Meanwhile, the Private Sector Commission (PSC) has also come out stating that it is not against a T&T business presence here but believes that before oil agreements are signed with other countries, Guyana should have an established local content policy.
Minister Gaskin has however, warned that Guyanese would not be able to benefit from the local content policy if they were unable to meet the capacity of the oil and gas sector. According to him, capacity development costs should be borne by the industry.
He advised that Guyanese should be willing to carry the burden of oil expenditure and not only seek to benefit from oil revenue. Gaskin said despite the fact that oil and gas will provide growth opportunities, persons should not only depend on job opportunities in the sector, but seek to make investments to be part of the industry.
The primary aim of the policy is ensuring the education, inclusion, and advancement of as many Guyanese as possible in the industry.
The draft local content policy has been criticised in recent months for lacking provisions which would safeguard against exploitation by companies, especially since there have been intensified reports of the local companies being bypassed for contracts and services with foreign companies being favoured. The document does not cater for issues such as how to avoid procurement fraud, conflict of interest and favouritism, among others. (Samuel Sukhnandan)