Oil & gas contractors critical to local content success in Guyana – LCS

…as contractor KOTUG commits to increasing local content contributions

While oil and gas companies exploring and producing oil offshore Guyana play a dominant role when it comes to local content opportunities, the Director of the Local Content Secretariat (LCS), Dr Martin Pertab recently reinforced the importance of Tier 1 contractors in Guyana’s local content sector.
Pertab made these comments during a visit by him and his team to the state-of-the-art Offshore Terminal tug SD Power at the Guyana Shore Base in Georgetown. The tug is owned by KOTUG Guyana, a Tier 1 contractor providing services to the oil and gas sector offshore Guyana.
According to Dr Pertab, the visit is a step towards strengthening collaborations with Tier 1 contractors such as KOTUG and understanding the unique challenges and opportunities present in the industry.
“Embracing our guiding philosophy, the Local Content Secretariat views Tier 1 contractors as essential partners in the development of local content. We are committed to working closely with contractors like KOTUG, to forge a path of mutual success,” Dr Pertab was quoted as saying in a statement.
It was explained that KOTUG currently has 27 Guyanese supporting its operations, with plans to increase this number and to continue leveraging local goods and services. This, according to the company in its statement, will further solidify its investment in Guyana’s growth.

According to KOTUG’s Corporate Operations Director, Willem Van Woercom, the company remains committed to fostering local talent and resources. In fact, the executive spoke of the great value that increasing local content brings to the company.
“We are honoured to host the LCS team and showcase our efforts in integrating local content into our operations. KOTUG is committed to providing exceptional maritime services and building and nurturing the capabilities of our Guyanese team members.
“Our plan to steadily increase the number of local professionals in our operations is a testament to this commitment. We see great value in collaborating with the LCS and other local stakeholders to drive forward mutual goals of development and prosperity,” Van Woercom said.
Meanwhile, it was explained that the visit facilitated interactions between the LCS delegation and key Guyanese team members onboard, including Operations Manager Hemchand Deosaran, Port Engineer Stanley Ramsammy, and Chief Mate Reynard Ramsaroop of the SD Power.
“These engagements highlighted the valuable contributions of local professionals to KOTUG’s operations and their pivotal role in the industry’s success in Guyana,” KOTUG explained in its statement on the visit.
KOTUG is a maritime family-owned company, offering towage and maritime-related services on a global scale. Among the services KOTGU provides are designing, building, chartering and operating vessels to train people and providing innovative consultancy services.
“The company’s expertise is divided across five pillars: towage, training & consultancy, intelligence, subsea and maritime excellence. KOTUG is active in Europe, Asia, Australia, Africa, Middle East, North and South America and the Caribbean, and continues to expand its operations worldwide,” the company said.
In December 2021, the National Assembly passed the Local Content Act, which outlines 40 different services 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 of pest control services; 100 per cent of local insurance services; 75 per cent of local supply of food; and 90 per cent of 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.