GCCI welcomes oil companies’ updated local content master plans

The Georgetown Chamber of Commerce and Industry (GCCI) has welcomed the inclusion of a 45-day payment period in the Local Content Master Plan by Tier One contractors.

The Ministry of Natural Resources approved the updated local content master plans for SBM Offshore, Halliburton and others on Wednesday.

The move, the ministry noted, follows the newly proposed modification for payment terms by the Local Content Secretariat.

This amendment, which is included in the five-year local content plan and is enforceable by law, will now see contractors and sub-contractors operating in the nation’s petroleum sector issuing payments to Guyanese suppliers within 30 to 45 days following the receipt of a correct invoice.

“In this regard, the GCCI takes the opportunity to commend the Government of Guyana for creating the obligation and enforcement mechanism of the payment timeline for Tier 1 contractors,” GCCI said in a press release on Thursday.

The Chamber noted that it is of the strong view that to fully realize the benefits of the Local Content legislation, suppliers to the industry must be paid within a timely fashion, such as the identified 45-day period.

“It is, however, unfortunate that the Tier 1 contractors could not make timely payments in an independent manner, without having to be regulated into such by the Government of Guyana,” the release stated.

GCCI noted that it looks forward to improved efforts by the Tier 1 contractors to support local content and, by extension, private sector development.