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Over 800 companies enlisted on Local Content Register – half year report
Kaieteur News – As of June 2023, the local content register has enlisted 876 companies. This is reflected in the Mid Year Report released by the Ministry of Finance earlier this month.
The report noted that Local Content Secretariat is aiming to exceed the issuance of 1,000 certificates by the end of the year.
Moreover, the report outlined in the first half of the year, that the Government of Guyana reviewed and approved annual plans of approximately 43 subcontractors and contractors, which systematically outline the companies’ utilization of Guyanese goods and services.
These annual plans are a subset of the 5-year local content master plans approved in the first half of the year.
The Government of Guyana, through the Ministry of Natural Resources, operationalised, its Local Content Registry as stipulated by the Local Content Act last year.
Local oil and gas workers
The Act, which was made into law in December 2021, mandates the Local Content Secretariat to develop and maintain Local Content Registers of Guyanese nationals for employment; and Guyanese nationals and companies from which goods and services may be procured.
In keeping with this, two registration options are available, namely, supplier registration and employment registration. Using the Supplier Registration Portal, a Guyanese national or Guyanese company can apply for and be issued with a Certificate of Registration from the Secretariat for the supply of goods and or the provision of services for petroleum operations in Guyana.
The Local Content Bill lays out 40 different services that oil and gas companies and their subcontractors must procure from Guyanese companies by the end of 2022.
For instance, these companies must procure from Guyanese companies, 90% of office space rental and accommodation services; 90% janitorial services, laundry and catering services; 95% pest control services; 100% local insurance services; 75% local supply of food; and 90% local accounting services.
These are just a few of the services highlighted in the first schedule in the Local Content Act. The Local Content Act penalties for oil and gas companies and their sub-contractors who fail to meet the minimum targets of the legislation, as well as those who are in breach of the Act. These fines range from as low as $5 million to as high as $50 million.
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