Guyana passes landmark local content bill for oil exploration
Guyana’s minister of natural resources, Vickram Bharrat, spearheaded the passage of the landmark Local Content Bill
The South American Co-operative Republic of Guyana has joined the list of developing countries embarking on exploration of their carbon fuel resources which have enacted local content laws to protect the interests of their citizens in the oil and gas sector.
After more than seven hours of debating with a line-up of 15 speakers, the National Assembly of Guyana passed the landmark Local Content Bill, number 21 of 2021, on Wednesday 29 December.
The groundbreaking bill paves the way for local companies and citizens to participate in no fewer than 40 critical areas in the oil sector that the government and a number of private sector stakeholders say will ensure international oil companies and their contractors use more local services and products.
The bill will also prioritise Guyanese nationals and Guyanese companies in procuring goods and services for oil and gas operations.
This prioritisation will guarantee that there is increased retention of the economic benefits in Guyana and simultaneously allow for an upsurge in the number, competencies and capabilities of Guyanese nationals and Guyanese companies participating in the petroleum sector.
Opposition to bill
The opposition abstained from voting on the passage of the bill.
The shadow natural resources minister, David Patterson, said that although the opposition supports the establishment of a local content framework which would ensure that Guyanese benefit from the oil and gas industry, more time is needed for the bill to be reviewed and studied.
The new law
The bill passed on Wednesday is one of a series of updates to Guyana’s regulatory framework for oil exploration and production.
The Local Content Bill requires that energy projects use local businesses for certain jobs, including environmental studies and metal fabrication.
International oil producers have discovered ten billion barrels of oil and gas which promise to transform Guyana’s agricultural and mining economy into an oil powerhouse, providing billions of dollars to a nation of about 800,000 people.
Assurance of compliance
During the second reading of the bill, Guyana’s minister of natural resources, Vickram Bharrat, said on the floor of the National Assembly that the secretariat that is to be established under the provisions of the bill, to monitor and oversee the local content framework, will play a critical role in ensuring companies comply with the schedule of targets provided in the bill.
“We want to ensure that, with this bill, Guyanese benefit from the economic growth and growing opportunities in the country,” he said.
Bharrat also said the bill will provide for training and capacity-building and allow officials to assess the level of preparedness of local companies and their capabilities, particularly in the year 2022.
Click to read the bill:
Wilberforce Asare
Asaase Radio 99.5 – tune in or log on to broadcasts online
99.5 in Accra, 90.7 in Ho, 98.5 in Kumasi, 99.7 in Tamale, 89.5 in Tarkwa, 100.3 in Cape Coast and 106.9 in Walewale
Follow us on Twitter: @asaaseradio995
#AsaaseRadio
#TheVoiceofOurLand
