Local companies earned US$314M from Oil & Gas sector in 6 months
As of mid-2024, local companies have earned some US$314 million from the oil and gas sector, according to Director of the Local Content Secretariat (LCS), Dr. Martin Pertab.
As mandated under the Local Content Act, contractors and subcontractors must submit half-year reports to the LCS, providing an update on the procurement activities, employment and capacity-building programme.
Addressing a news conference on Wednesday, Dr. Pertab revealed that the Secretariat has received 40 such reports and it was observed that from the 40-carved-out-areas in the Local Content Act, local companies have earned some US$314 million so far – which is over 50 per cent of the 2024 projected estimate.
He noted that when compared to mid-2023, there was a 238 per cent increase in demand for engineering and machining services, a 39 per cent increase for accommodation services, a 48.5 per cent increase in equipment rental services and an 18.8 per cent increase in catering services.
Director of the Local Content Secretariat (LCS), Dr Martin Pertab
These increases, Dr. Pertab noted, can be attributed to the growth in petroleum activities as a result of the arrival of the third FPSO in local waters.
Some US$700 million was generated from local content in 2022 while in 2023, it was projected to have been US720 million.
It was also revealed that from January to June this year, there have been over 454 new hires by the 40 companies. Dr. Pertab noted that while the total number of Guyanese employed by these companies now stands at 4,467, it is estimated that over 6500 locals are working in the oil and gas sector.
He also noted that there has been an investment of over US$3.8 million in capacity building, with 14 individuals receiving scholarships amounting to US$525,000.
