Latest update September 4th, 2026 10:24 AM
Govt. to revise Local Content Law
— as Jagdeo, Bharrat clash with Exxon over ‘no change’ stance
(Kaieteur News) – The government of Guyana (GoG) has commenced the process to revise the Local Content Act of 2021, with a view of increasing Guyanese participation in the oil and gas sector.
This was announced by Minister of Natural Resources, Vickram Bharrat during a signing ceremony held at the Pegasus Suites and Corporate Center, Georgetown.
Natural Resources Minister, Vickram Bharrat
Bharrat explained, “Already, the Local Content Secretariat has started the consultation process. Many companies, many business entities would have already received a correspondence from Michael (Munroe), Director of the Local Content Secretariat for submission towards Schedule One of the Local Content legislation.”
The First Schedule of the Act sets out 40 areas of work for Guyanese participation via the supply of goods and the provision of services. The government intends to increase these areas and adjust targets for the existing categories of work that have been carved out for local participation.
Following the submission process by key players, the minister indicated that a consultation among all stakeholders will be convened to address the recommendations before amendments are finalised.
He pointed out that upon the passage of the legislation, government was advised that the Act can shut down the petroleum industry.
“They said that the Local Content Legislation will close down the oil and gas sector in Guyana, will not attract the big players in the oil and gas sector, well today again we are defying that odd again because we are attracting major players while at the same time rolling out benefits to Guyanese and Guyanese businesses,” the minister boasted.
The Local Content Act was passed in the National Assembly in December, 2021. It is intended to regulate the way companies operate in Guyana’s oil and gas sector; employ persons, buy services and the way that they procure goods.
According to the Act, Guyanese must provide 90% of office space rental; 90% of accommodation services (rental of houses and apartments;25% pipe welding onshore; 75% non-hazardous waste management; 90% janitorial and laundry services; 90% catering; 75% food supply; 100% immigration services and 100% local insurance services to name a few.
Recently, President of ExxonMobil Guyana Limited (EMGL), Alistair Routledge said he does not believe there is need to increase the local content targets, citing demand issues.
According to him, “As it is always, the question is, is it a good thing or not to have, you know, those fixed targets. They can be both motivational, but they can also tend to lead to over investment because people rush in saying, well, I’m guaranteed to get work if I invest in that kind of skill or whether product or service offering.”
Routledge added, “But of course, there is only a certain amount of demand. So, I think what has been happening pragmatically over the last several years is that because as an industry, we’ve committed to working so proactively with the government on building up the capacity in the industry, matching the demand with the supply, encouraging other foreign direct investments through these smart partnerships, for now, at least we haven’t seen a need from the government to push additional targets.”
Vice President, Bharrat Jagdeo subsequently made it clear that government disagrees with the operator’s position. In fact, he signalled that changes will be made to the legislation in that regard. “Well, we believe it has to be changed. I disagree with him on that. We are going to be having that conference and that will require, either through the regulations or if the core Act has to be changed, we’ll change it,” Jagdeo said.
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