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Local Content Policy very likely by year end –Natural Resources Minister
-Initial document already updated by Advisor to Govt.
It is very likely that come year end, Guyana will have in place, a robust Local Content Policy for the oil and gas sector. This is according to the nation’s “optimistic” Natural Resources Minister, Raphael Trotman.
Natural Resources Minister, Raphael Trotman
Trotman reminded that the Government has retained the services of world-renowned expert, Mr. Anthony Paul. Minister Trotman noted that Paul was keen on completing and having distributed for consultation, the first draft policy.
Trotman expressed, “The idea for this is that we could not move to legislation without first having a policy. Legislation should follow policy rather than the reverse and so it was thought that we should craft the policy before 2020.”
The Parliamentarian added, “Paul, who was away for a few weeks, has returned and in September last, he held consultations with various members of the Private Sector along with others across the region. He has resubmitted another draft taking into consideration the new views and ideas shared by stakeholders.”
The Natural Resources Minister said that the “updated” draft is expected to be shared with the public soon. “And hopefully by the end of the year, we will have a national Local Content Policy that we can all sign on to.”
Be that as it may, Guyana’s draft local content policy has been criticised in recent months for lacking provisions which would safeguard against exploitation by companies.
The draft speaks nothing of how to avoid procurement fraud, conflict of interest and favouritism among other crucial areas.
Instead, the draft Local Content Policy framework seeks to address, the suite of opportunities that may arise and the approaches to be taken in selecting and developing opportunities related to enhancing the capabilities of Guyanese nationals and businesses.
The Policy articulates that this will be don’t through; training, development and employment initiatives (Capacity Development), ensuring availability of ownership participation for qualified Guyanese equity interest (Ownership Value), supplier development provisions for goods and services by locals to support sector operations (Local Content); and well-tailored social contributions for greater impact and benefits (Societal Benefits).
It also describes what will be done to ensure that the activities in the petroleum sector are conducted in a manner that transparently secures the maximum benefit for the people of Guyana, while recognising the limitations of the country and holding all actors accountable to the present and future generations of Guyanese who are the owners of the nation’s petroleum resources.
Additionally, the draft policy recognises that the petroleum resources of Guyana belong to all its citizens, and represent an asset of significant intrinsic value, which once removed diminishes the wealth of the nation, unless there is transformation in value from resources below the ground to improved quality of life above it for current and future generations of Guyanese.
The draft says, “Guyana will approach the development of its petroleum resources, people and businesses in a pragmatic, transparent and accountable manner. This will be conditioned by existing circumstances and an analytical approach to understanding the resource, the activities it engenders and our input capabilities.
“We shall pursue strategic opportunities for local capacity development and participation that give us the maximum possible benefit now and in the future.”
The Policy also states that Guyanese will participate in a manner that gives preferred access and opportunities to improve and enhance the country’s capabilities so that it can become internationally competitive and in the end, the country will progressively provide a greater amount of future services.
Capacity development, to enable more value retention, will be treated as an investment, rather than as a cost, the policy outlines.
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