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Guyana has power to demand that Field Development Plans ensure evolution of local content capacities – Expert
Kaieteur News – If Guyana wants to ensure there is early consideration of local content, then it would be wise to request that oil companies embed opportunities for maximum use of indigenous goods and services as well as the training and hiring of Guyanese in their field development plans (FDPs). Making this assertion recently was Dr. Valérie Marcel, an Associate Fellow of Chatham House for its Energy, Environment and Resources Programme.
Chatham House Associate Fellow, Dr. Valérie Marcel
Dr. Marcel made the foregoing comment in relation to questions premised on a Chatham House policy paper titled, “A Local Content Decision Tree for Emerging Producers.” That document notes that integrating local content objectives into procurement and engineering strategies for a company’s field development plans can significantly increase the impact of efforts to benefit the local economy. During discussions on this recommendation, Dr. Marcel acknowledged that indeed, it is a critical area that could be used to maximize local content capacities.
During her most recent appearance on Kaieteur Radio’s show, Guyana’s Oil and You, Dr. Marcel said, “It’s interesting that you look at that because the moment where the government is about to sign off on field development plans is not always noticed as the really critical decision gate in the project, and it is the moment where the government has a lot of power.”
The Chatham House Associate Fellow added, “Once the FDP is signed, the balance of power kind of swings back to the companies. So it is a really good moment for the government to emphasize on what it needs to create long term value in the country; to maximize the value of the asset in terms of the geology and reservoir management.”
The industry expert said too that it is also the moment where the government gets to decide connecting different projects so that costs can be reduced.
But on the local content front, Dr. Marcel who has advised governments in sub-Saharan Africa, the Eastern Mediterranean, South America and the Caribbean on petroleum sector policy and governance, articulated that the approval process for FDPs, does provide golden opportunities for the authorities of the day to make long term plans on exploiting a resource over many years while making a commitment to ensure the evolution of the local capacities in the process.
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