October 25, 2024
The government of Guyana has issued a stern reminder to companies within the petroleum sector to comply fully with the Local Content Act, emphasizing that substandard services and breaches will not be tolerated.
Minister of Natural Resources, Vickram Bharrat, made these comments during the opening of a Local Content Forum hosted by the Private Sector Commission.
Minister Bharrat affirmed that the government would not sign waivers for contractors who do not meet the necessary legal requirements, stressing that compliance with the Local Content Act is mandatory.
While waivers are allowed under the Act, Minister Bharrat made it clear that he would not grant them lightly.
Additionally, Bharrat warned local businesses that being covered under the Local Content laws does not give them the right to provide subpar services or inflate prices.
He emphasized that this would also be closely monitored.
Komal Singh, Chairman of the Private Sector Commission, echoed the importance of local businesses improving their competitiveness through corporate governance, proper financial mechanisms, and certifications, especially when seeking bank financing.
Guyana’s Local Content Act, implemented in 2021, mandates that oil and gas companies source goods and services from local companies across 40 sectors.
The Act will be reviewed soon, with plans to expand the sectors covered once the country has the capacity.