Latest update February 9th, 2025 5:39 AM
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- 102 Venezuelans to be deported for illegally entering Guyana
- Mahipaul reiterates call for termination of ‘Guyanese Critic’s’ pump station contract
- AFC to prove biometrics can be implemented in three months during talks with diplomatic community – Hughes
- Soaring gold price entices Canadian company to renew permits in Guyana
- Terrence Campbell accuses Govt. of weaponizing Police Force after calls for accountability with oil revenues
More shocking provisions in 2020 Policy… Guyana has to pay Oil Companies to implement their local content plans
Once an oil company’s Local Content Plan for the use of Guyanese goods, services and skills, has been approved by the Petroleum Minister, the Operator’s costs for implementing the programmes in the plan shall be eligible for cost-recovery.
Energy Department Director, Dr. Mark Bynoe holding a copy of the Local Content Policy
This is explicitly stated in Guyana’s 2020 Local Content Policy which received its finishing touches from ExxonMobil’s contact, Dr. Michael Warner. He is the consultant who received the blessings of the World Bank and the Energy Department to put together the document, despite not having any experience in independently drafting one.
Based on the provision in question, it is quite clear that ExxonMobil , and all other oil companies investing in the use of local goods, services , skills and the transfer of technology, are by no means doing Guyana a favour nor will they lose out in this regard since Guyana is essentially footing the bill for the companies.
In acknowledgement of this fact, the document states, “…Costs related to Local Content participation and capacity development for Guyanese labour and suppliers, including those which are costs recovered by investors and therefore paid for by the people of Guyana, shall be seen by Guyana as its investment in its people.”
Even though Guyana is essentially paying the oil companies to use Indigenous goods, services and skills, it will not have access to the full reports on how these firms have been spending their funds and where.
This is due to a provision in the policy which states that the local content plans and reports that are submitted by the companies shall be kept confidential by the Minister. The said government official can only release a summary of the reports to the National Assembly.
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