Guyana’s new Local Content Law is meant to strike a delicate balance for foreign and local involvement in its nascent oil and gas sector and, according to President Dr Irfaan Ali, the country should accumulate at least US$650 million from local production by the end of this year.
Ali said that conservative estimates project that local businesses and Guyanese nationals will earn this sum by year-end. Of that figure, some US$80 million alone will be earned through direct employment costs.
And these benefits and the government’s ability to monitor how Guyanese are benefitting from local produce in the new sector is made possible through the new local law, Dr Ali said.
He said: “What local content legislation allows us to do is establish an infrastructure and institutional environment in which we can measure the impact in the local environment.”
The new Local Content law was enacted in December 2021, and demands oil-and-gas companies, their contractors and sub-contractors to hire/procure goods, services and employment from Guyanese companies and Guyanese nationals.
Guyana and Suriname are hoping to work together to develop their oil and gas resources and establish a wider energy corridor with northern Brazil. This is expected to ensure that the Caribbean region is energy secure.