Issuance of 500 Local Content Certificates by year-end on track – LCS Director

…says over 3500 Guyanese employed in oil and gas sector

Director of the Local Content Secretariat (LCS), Dr Martin Pertab related that its target of issuing 500 certificates to companies to operate in the oil and gas sector by year-end is on track.

He made this disclosure at the Guyana Supplier Forum on Tuesday during which he shared that they have been focusing heavily on registering companies to provide services in the oil industry.
“We’re receiving quite a lot. Over the past month, we have ramped up our capacity in the sense of processing those applications. And as of now, based on our portal, we have awarded or we have received in excess of 350 Local Content Certificates, which at the end of this year, I think we are well on target of reaching over 500 Local Content Certificates.”
The Secretariat, which was set up in February, has been making strides in several areas to enforce the Local Content Act. The Act lays out 40 carved-out areas that oil and gas companies and their subcontractors must procure from Guyanese companies by the end of 2022.
The original estimate when the Secretariat was created earlier this was year was that these areas are capable of bringing $150 billion in revenues to local businesses.
Pertab expressed that these areas are being monitored, with guidelines developed for implementation.
“That is essentially the focus of the Local Content Secretariat in terms of ensuring that business, the supplies of goods and services to the industry are prioritised for Guyanese. Those 40 areas are tracked and there are several targets that essentially speak to the supplies of goods and services…Over the past 10 months, we have made significant strides in terms of setting up the institutional administrative and monitoring framework for the Local Content Secretariat. In fact, we have developed several guidelines which speak to the implementation of the Act.”
Additionally, he noted that there has been some improvement in payments. Through a collaborative approach and a series of consultations and discussions with contractors, subcontractors, and licensees, payments will be made within 30 to 45 days.

Recruitment
The Director further explained that the Secretariat is paying attention to recruitment, since the prioritisation of Guyanese is not only limited to companies providing goods and services to the industry. The Secretariat had targeted 836 new employments between March and December but as it stands, 1125 new jobs were allocated, thus surpassing its target.
“Of the 1125 new jobs, 858 were filled by Guyanese. We have not only achieved our annual target within six months but on that target, almost 100 per cent was met by Guyanese nationals, taking the total amount of Guyanese in the industry to 3689.”
Some 80 per cent of those positions were within the technical field, which has a high demand.
“Going forward, the intent of the Secretariat is to have that open discussion, work with key stakeholders as we strengthen the local content, and close all possible loopholes. The idea is that while we continue to prioritise Guyanese nationals, it must be done in a sustainable manner. And again, we will reach out to the contractors and subcontractors and key stakeholders as we move the local content agenda forward,” he explained.