…says new services to be added as a lot has changed since 2021
With the Government signaling its intention to update the Local Content Act 2021 next year, Natural Resources Minister Vickram Bharrat said that the private sector and other bodies, are already on board and ready to support the review process… even as he assured investors, they have nothing to worry about.
During a steel strike ceremony for the Jaguar Floating Production Storage and Offloading (FPSO) vessel at the Guyana Shore Base Incorporated (GYSBI), attendees were also told by the Government about its plans to update the Local Content Act. Bharrat explained that the private sector is already onboard for the review process, as well as what they will be looking to change.
“I know at some point in time, we will relook and review the local content law. As a matter of fact, the private sector, the Georgetown Chamber of Commerce and a number of other bodies have already indicated their willingness to participate in the review. I don’t think investors should be worried about that review,” Bharrat said.
“Because the review will be done in consultation and partnership and will be done to ensure whatever loopholes in the law today, that are being taken advantage of, are corrected. And to also look at the schedule one of the 40 services, to look at areas in which we have built capacity locally.”
Bharrat acknowledged that when they first passed the Local Content Law in 2021, they accounted for oil and gas services which could be serviced locally, at the time. This, of course, has since changed and expanded.
“A lot has changed from then to now. Our local private sector has expanded and invested significantly. And a lot has changed to ensure that today, they’re in a better position to execute even more complex projects, like this and many others. So, the review will be based on that. I don’t think anybody should be worried about it,” the Minister said.
The Minister also spoke of some of the challenges with enforcing the law. But he noted that the Government also wants to encourage companies to go above and beyond the law, off their own initiative. This is something he noted the steel strike ceremony is a manifestation of.
“I know there are some challenges that still exist. And like everything else, there will be challenges in life. And we mentioned from the inception that local content would be a work in progress. Like many other things. And we will continue to work with companies to ensure there is true compliance. That there are companies that are acting even above and beyond what is stipulated in the local content law.”
“Even today’s [Tuesday] ceremony is above and beyond what is stipulated in the local content law. And that is something we want to encourage by Exxon and contractors. To ensure that we don’t only stick to the 40 services in schedule 1 of the local content law, but whatever service you think can be done locally, once we have the capacity to do it, let us look beyond schedule 1 of the local content law.”
Guyanese included
Meanwhile, SBM’s Country General Manager Martin Cheong revealed that the company is actively working to ensure that Guyanese are included as much as possible into the work SBM does, such as the Jaguar FPSO vessel.
At present, three local companies are providing the fabrication service for the vessel. The three companies who were contracted are Guyana Oil and Gas Support Services, Industrial Fabrications Incorporated and ZECO Group of Services.
“This ceremony signifies the capacity of our local fabricators to continue providing essential steel structures for the FPSO, demonstrating their ability to reach and maintain international standards of fabrication. I’m both proud and humbled to witness this key milestone, as we prepare to commence the construction of our fifth FPSO for Guyana, having already constructed four.”
“Today’s steel strike ceremony is a direct reflection of SBM’s commitment to our local content objectives, as we continue to work with Guyanese companies to ensure their inclusion and benefit for the industry. We also continue to employ Guyanese to provide critical support for the vessels,” Cheong added.
During a recent press conference, Vice President Bharrat Jagdeo had indicated that the updating of the Local Content Act is expected next year. He had noted that the Government is reviewing the eligibility percentages for some of the sectors in the Act, as well as the potential of new sectors being added to the local content schedule. (G3)
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