Local Content Secretariat: 15% increase in youth-owned businesses registered

The Local Content Secretariat has recorded a 15 per cent increase in the number of youth-owned businesses registered to supply goods and services to the oil and gas industry.
The Local Content Act currently 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 Director of the Secretariat, Dr Martin Pertab has indicated that targeted measures will be put in place as Guyana capitalises on this positive trend.
One such measure Dr Pertab noted will see the Secretariat working hand-in-hand with contractors and subcontractors in the oil and gas industry to find avenues aimed at promoting the utilisation of youth-owned businesses.
“This will ensure that such businesses are afforded the opportunity to gain meaningful experience in the industry and build their capacity. Importantly, this decision by the secretariat will augment efforts that seek to promote the sector’s integration of small and medium-sized enterprises and women-owned businesses” the Director revealed.
Further, he explained that when combined, these actions will make good on the spirit and intention of the Local Content Act.
There are currently 1032 companies 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.
President Dr Irfaan Ali had noted in April this year that there has been a 20 per cent increase in value through local participation from 2022 to now, representing an increase of US$84 million and a total of US$524 million.
The Guyanese leader had also explained that for this year, the Local Content Secretariat estimates that procurement activities will increase to US$550 million, a 5 per cent increase from 2023 and a 25 per cent increase from 2022.
In December 2021, the National Assembly passed the Local Content Act, which 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.
According to Pertab, the Local Content Secretariat continues to execute its mandate of developing and maintaining measures for the effective implementation of local content by companies operating within Guyana’s petroleum sector as well as the implementation of strategies that will give preference to, or ensure equal treatment of Guyanese nationals and Guyanese companies.
Amendments
Back in April, Attorney General (AG) Anil Nandlall, SC, assured that the Local Content Act 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 earlier in the 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 added that the Act is based on an elastic, build as you go principle so that the legislation remains alive and responsive to changing needs in the industry.