Draft Local Content Policy paves way for regulation by ‘accountable’ agencies

May 19, 2018 News

In an effort to ensure that the services and supplies of locals are given priority in the oil and gas sector, drafters of the second local content policy framework have included a provision for regulation by accountable agencies.
The document notes that the development of the sector must see Guyanese as viable participants in it.

Business Minister, Dominic Gaskin

It would require stewardship and collaboration for managing the risks involved. The draft policy which was prepared by Trinidadian Local Content Expert, Anthony Paul, notes that governance of the sector will require policies and strategies that engender and leverage partnerships between the Government of Guyana and other participants.

Local Content Expert, Anthony Paul

For assurance, Paul, in the document, states that the policy will be enforced through appropriate legislative mechanisms and regulated by capable, well-resourced and accountable institutions/agencies.
The draft document notes that the Regulator will be steered by a multi-stakeholder body representing those Guyanese parties involved in delivering national development and sector goals that support and/or are impacted by local capacity development and participation in the sector.
The selected regulator will be expected to report to the people of Guyana through their elected representatives in the Parliament of Guyana, as provided for in the Constitution of Guyana.
The regulator will also require international operators and contractors to manage their procurement through local content policies and strategies that align with the national policy for every licence or contract awarded by the Government of Guyana.
Furthermore, the document notes that Government should use work permits and the licensing/registration of international firms as tools for capacity development and knowledge transfer, rather than barriers to entry of skilled personnel and competent companies.
Business Minister, Dominic Gaskin has noted that the Government will be moving to conduct a series of consultations on the document.