Local Content Act 2021 still under review – Bharrat

…medical services among categories to be changed

The Local Content Act (LCA) of 2021 is still under review by the Government and its partners, with Natural Resources Minister Vickram Bharrat assuring that a number of categories including medical services, will be strengthened to ensure Guyanese receive a larger slice of the pie.
During the Local Content Summit of 2025, the Minister gave an update on the review of the LCA of 2021. The Government has been committing itself to expanding the percentage of local services that oil and gas companies have to source. According to Bharrat, that commitment is as firm as ever.
“Yes, we agree that we have to make changes. We said it, when we started the consultation, that the 40 carve outs or the 40 areas, services that are in schedule one of the local content legislations, that we’re going to add services to it and we’re going to review the targets of those 40 and the additional that will be included.”

“We are committed to that, we aren’t backpedaling. We are still working with our local and international partners and companies, to revise the schedule one. Because I think that is one of the most important components, when it comes to changing the legislation,” Bharrat said.
The Minister was adamant that of the 40 services in schedule one, enough capacity has been built to expand them. He gave as an example, medical service. Despite companies only being required to ensure 25 per cent of medical services is sourced from locals, companies have actually been going above this figure.
“We truly believe that of the 40 services that are in schedule one, we have built more capacity over the last three years. We have built more local capacity over the last three years. So much so that I believe these services. And the President mentioned medical services.”
“Today we are almost a 100 per cent medical service provider for the oil and gas sector. And in schedule one, I think its 25 per cent. So, there’s so much adjustments we will make in the near future, with regards to the schedule,” Bharrat added.
In 2021, the LCA was passed outlining 40 different service areas that oil and gas companies and their subcontractors must procure from Guyanese and Guyanese-owned companies.
These 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; 100 per cent local insurance services; 75 per cent local supply of food; and 90 per cent local accounting services.
Back in April 2024, Attorney General (AG) Anil Nandlall, SC, assured that the LCA could be put through revisions later this year to expand the carved-out areas of opportunity for Guyanese, following consultations with relevant stakeholders and further data from the Local Content Secretariat.
A review of the sector’s performance was conducted last year by the relevant authorities and according to Nandlall, once a report is forthcoming and consultations completed, Government can go ahead with revising the Act.
The AG had also explained that the Act is meant to be a living one, that is based on an elastic build as you go principle so that the legislation remains alive and responsive to changing needs in the industry.
Since the passage of the Local Content Act in 2021, the Government has reported that more than 1,000 companies are on the local content register. 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 January’s 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, US$743 million was spent in 2024 on local services, employment and capacity development… all of which the secretariat facilitated.