Minister given total power over oversight body – Local Content Policy

Mar 03, 2020 News

According to Guyana’s Local Content Policy, the Minister of Petroleum has the sole authority to administer the policy, including the review and approval of the Local Content Plans and Reports of oil companies and their subcontractors.
The policy notes that in due course, this power “may” be bestowed upon a regulatory body.
But in the meantime, the Minister shall establish a Guyana Local Content Oversight Committee, whose purpose is to review his progress in the implementation of the policy; and make recommendations on how to improve same.
The policy also places the oversight committee on the Minister’s leash since the final composition, terms of reference and even the modus operandi of the Guyana Content Oversight Committee shall be determined by the Minister.
The Local Content Policy goes on to state that the Committee shall have the authority to request from the Ministry to view in confidence, the approved Operator Local Content Plans, Minister-designated Primary Contractor Local Content Sub-Plans and Operator half yearly and end-of-year Local Content Reports, for the explicit and sole purpose of carrying out its function of policy implementation oversight.
It was noted that the modus operandi of the Oversight Committee shall include a Code of Conduct for participants to assure, in part, that viewing these documents remains confidential. The policy explicitly states that the role of the Guyana Local Content Oversight Committee is “advisory”.
Furthermore, the policy states that the Minister who holds total control over the committee is only answerable to Cabinet.
Of significance is the fact that the Guyana Local Content Oversight Committee shall comprise the Permanent Secretary of the Ministry; representatives of Ministry of the Presidency, Ministry of Business, Ministry of Education, Ministry of Public Infrastructure, Ministry of Finance and the Guyana Office for Investment; Representatives of established Guyanese supplier and professional associations; Representative of Operators in Guyana; Representative of Primary Contractors in Guyana; and Representatives of established Guyanese training/ academic institutions.
While Guyana has opted to allow the Minister to have such control over the Local Content Committee and its members, in other countries, the practice is different.
In Ghana, Trinidad and Tobago and Nigeria, members of the Local Content Committees are selected by independent organisations, not the Minister.

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