Local Content Policy must be hinged on realistic assessment of company’s needs vs. what nation can supply

Local Content Policy must be hinged on realistic assessment of company’s needs vs. what nation can supply – expert

Oct 09, 2020 News

Kaieteur News – As Guyana continues its efforts to develop a robust Local Content Policy, Chatham House Associate Fellow, Dr. Valerie Marcel has cautioned that the document would not be effective if it is not hinged on a realistic assessment of what the oil companies and its subcontractors need versus what the nation can supply.

Chatham House Associate Fellow, Dr. Valerie Marcel

During her most recent appearance on Kaieteur Radio’s programme, ‘Guyana’s Oil and You’, Dr. Marcel said that this step is one that countries do not do diligently. The industry expert offered that, “There are challenges in doing it because to get a good visibility of what the company will require, the company first has to share that information with the government. Many times the companies don’t; they don’t share a gradual view of precisely how many welders that they will need by year.”

Dr. Marcel added, “So, it’s difficult for the government to prepare, to tell universities that we will have 300 welders in this year of the project so get them ready with this kind of qualification.”

Even though there may be difficulty in bridging the gap, Dr. Marcel strongly advised that there has to be very good communication between the company, the vocational centres and the universities while adding that there needs to be a platform of some kind for that to happen.

She has also noted that the assessment for skills in country as well as for the supply chain should not be a one-off activity before the policy is drafted, but, rather, a continuous one.
“I emphasize this,” Dr. Marcel said, “because the situation will be evolving. I think it is an ongoing commitment to having a good picture of what’s available in Guyana, so the government can turn to the companies and say, ‘I think you can do more.’ Or, ‘I understand that this target would have been too ambitious and we’re not quite there yet.’ How can we get there? How can we bridge that gap?”

The Chatham House fellow said that there needs to be a commitment to an ongoing analysis of supply and demand while finding a way for the company to give key information on its needs. “They may not want to give a very detailed view of what they’ll need if they haven’t yet made the final investment decision; and further, contacted the service companies to find out who can do what. So, they may not want to commit too much information on that. But I think that the more they give, the better it is for the governments,” she concluded.