Latest update January 1st, 2025 1:00 AM
Latest News
Beware Guyana! Measure local content by value not volume – T&T Oil Expert
By Kiana Wilburg
While the Energy Department is in the process of adding the finishing touches to the draft Local Content Policy, there is one key rule that should not escape its attention—Measure the number of goods and services used as well and locals employed by value and not by volume alone.
Oil Expert, Anthony Paul
This was recently noted by Anthony Paul, a Trinidadian Local Content Expert. He made this revelation during a guest appearance on Kaieteur Radio’s Guyana’s Oil and You Programme on Thursday evening.
There, the Energy Advisor said, “I like to think of local content as something we can measure because if we can measure it, then we know how well we are doing. People often describe local content as the number of people employed; the number of companies engaged.
“But remember, every activity has to be budgeted for. As such, I like to think of local content in a monetary sense. I ask, ‘What is the value of inputs for the activities being carried out in the sector?”
On this premise, the Energy Advisor said that a company’s local content plan must therefore spell out how many people would be employed, for how long, to do what, and how much they will be paid. And while this is being done, he said that one must examine how the foreign participants can be used to build capacity.
Paul said, “So if you have a five-year project, you must ask what the company’s starting point for local content is, where will you be after year one, after year two, and so forth, in a way that you will see progress. For this, you will also need targets.”
Additionally, the Trinidadian said that the foregoing information needs to be stored in a place where the right institutions can have it.
“In this way, the University of Guyana, for example, can see what skills the agencies serving the sector need down the road and figure out what it needs in order to provide that.
“Even the investors, they need to have access to information that will allow them to see what projects are coming down the road so they can take that and build a business and build proper plans they can take to the bank,” the Energy Advisor expressed.
Paul stressed that access to information will be critical to Guyana’s success in achieving maximum local content while noting that an accountable regulator would be instrumental to the process.
The Local Content Expert said, “Remember, at the end of the day, your oil is paying for every person that is trained or employed. You pay for everything…so make sure you get it right.”
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
The eternal optimism of the human spirit
Peeping Tom… Kaieteur News- Every New Year’s Eve, like clockwork, we engage in a ritual that is predictable as... more
Breaking the Chains of Poverty: A need for political will
By Sir Ronald Sanders Kaieteur News- The year 2024 has underscored a grim reality: poverty continues to be an unyielding... more
Weekend Cartoon
