– as Local content continues to progress
Despite initial concerns that the Local Content Act might deter foreign investment in Guyana’s petroleum sector, performance statistics continue to demonstrate the significant benefits reaped by local businesses from the industry’s supply chain. In fact, during this year’s Budget Presentation, Minister of Finance and Public Service, Dr. Ashni Singh, highlighted that approximately US$743 million was spent on Guyanese suppliers in 2024 by oil companies operating in the country. The finance minister pointed out this expenditure covered procurement, employment, and the upskilling of Guyanese talent.
“Of the total, estimates suggest that US$612 million was related to the 40 designated areas of services, with notable expenditures of US$92 million on construction, US$88 million on laydown yard facilities, US$34 million on accommodations, and US$26 million on ground transportation,” Minister Singh stated. According to the minister, this brings the total procurement value from Guyanese companies and nationals to over US$1.5 billion since the enactment of the Local Content Act in 2021.
While US$612 million was spent on the related sectors, the remaining US$131 million went towards employing and upping Guyanese talent.
The Act has been instrumental in prioritising using Guyanese products and services while ensuring locals are adequately trained and employed. The Local Content Secretariat, tasked with regulating and enforcing compliance, has closely monitored the industry’s growth. Reports from that unit indicate that in 2022, approximately US$440 million was invested in the 40 designated local sectors, followed by US$532 million in 2023. This is a clear reflection of increasing participation in the supply chain by Guyanese businesses and is also evidenced by the over 1,000 Guyanese businesses that have made their way onto the Local Content Register. This register, operated by the secretariat, is the official database for anyone to track and verify Guyanese businesses eligible to provide goods and services in the petroleum sector.
Since the Act’s implementation, local capacity has expanded significantly, particularly in fabrication services. A fabrication workshop is currently being developed at the Vreed-en-Hoop Shorebase, which commissioned its first phase in January 2024. This facility will enable local companies to manufacture key industry components. Further underscoring this progress, three Guyanese firms are set to provide fabrication services for the construction of the Jaguar FPSO. Meanwhile, local machining suppliers have begun producing premium downhole drilling accessories, such as crossovers, pup joints, landing joints, and blast joints, according to recent data from the Secretariat.
Spanning across food catering, legal and medical services, and food supply – to name a few – the Act’s First Schedule outlines 40 different services which allow the active participation of Guyanese suppliers in the petroleum sector. It is important to note that while there are 40 sectors ringfenced in the legislation, it does not stop Guyanese from offering goods and services that are not included in that list. Already, locals have capitalised on this, with suppliers now offering services such as offshore painting, offshore construction and GIS services.
Dr. Martin Pertab, Director of the Local Content Secretariat, underscored the impact of these developments, stating, “The figures speak for themselves; Guyanese businesses are no longer on the periphery of the oil and gas sector but are firmly embedded within its supply chain. The continued expansion of local participation is a testament to the Act’s effectiveness in balancing economic growth with workforce development.”
With strategic investments in skills development, infrastructure, and service capabilities, Guyana’s local content framework continues to evolve, ensuring that the country’s economic gains from oil and gas extend far beyond revenue generation to meaningful, long-term opportunities for its people.
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