Local content laws: Govt looking to expand categories to obligate foreign companies to offer Guyanese 1st preference work

The government has made its determination clear to push beyond the 40 carved out areas in the Local Content Act, in an effort to provide more opportunities for locals, something the Private Sector Commission (PSC) will be working closely on with the administration.
While the Local Content Act has already accelerated the opening up of opportunities for Guyanese, Natural Resources Minister Vickram Bharrat was adamant that the government will continue to work on improving the act.
Bharrat noted that Government is looking to expand the categories from which foreign companies are legally obligated to give Guyanese first preference work.
“Clearly, Guyana’s oil sector is not just about extracting resources; about building a sustainable future with our people at the helm. Our local content legislation has already set the stage for Guyanese to thrive in 40 categories of work, but we are pushing further. Guyana is on a path to unprecedented growth, and we are ensuring that every citizen benefits from this prosperity,” Bharrat said.
Meanwhile, representatives from the Natural Resources Ministry also met with the PSC on Friday, during which they discussed the Local Content Act and ways in which the private and public sector can work together to improve it.

Chaired by PSC Chairman Komal Singh, the meeting featured presentations from Chair of the PSC’s Local Content Sub-Committee Shyam Nokta, and other members of the Committee which included representatives of the PSC Council.
“Principal among the issues raised and discussed was the need to revisit and expand on the 40 areas in Schedule I of the Local Content Act that have been set aside for Guyanese suppliers of goods and services, in light of increasing capacity and investments by Guyanese businesses; the process and lengthy delays in receiving payments from some oil and gas companies,” a statement from PSC read.
“Greater transparency in the procurement processes and the need for unbundling; more information and forecasting of the future needs of the oil and gas sector so as to guide local investments; among others,” the PSC stated.
During the meeting, Bharrat who was present, expressed the government’s “strong interest in expanding local content and examining all the proposals made by the PSC. Further, he pointed out that the government has previously collaborated with the private sector on local content, leading to much success. A commitment was made for the two sides to have monthly meetings, in order to jointly address local content challenges.
“It was agreed that the PSC’s Local Content Sub Committee and the ministry’s Local Content Secretariat will meet monthly to discuss the issues facing the private sector and also to come up with recommended actions to advance local content,” the statement said.
“The PSC wishes to commend the Government of Guyana for its firm stance on local content and for enacting Local Content Legislation which has facilitated, in a significant way, Guyanese participation in the oil and gas supply chain.”
In December 2021, the National Assembly passed the Local Content Act which outlines 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.
The Local Content Act mandates penalties such as fines ranging from $5 million to $50 million for oil and gas companies and their sub-contractors who fail to meet the minimum targets of the legislation, as well as those who are in breach of the Act.