Almost two years after Guyana enacted local content legislation, senior government officials have repeatedly reported that more local businesses are directly benefiting from the country’s highly-valued oil and gas reserves.
The latest attestation came from Senior Petroleum Coordinator at the Ministry of Natural Resources, Bobby Gossai Jr. who spoke during a recent virtual roundtable discussion with officials from Ghana on the opportunities in the petroleum industry
Ghanian officials were instrumental in helping Guyana draft its Local Content Bill and the two governments have also signed a Technical Cooperation Agreement to further strengthen its decades-old relationship.
Now, businesses from Ghana are looking to forge partnerships with local entities to build capacity while at the same time ensuring adherence to the Local Content Act.
Gossai Jr., speaking on behalf of the Minister of Natural Resources, said he believes the time is right for these partnerships with many local small and medium scale businesses already benefiting from the sector.
Notwithstanding, he noted the need for capacity building to further expand and make bigger investments.
“…And we have seen from the time of implementation in 2022. We have seen that over the spread of the year, the measurement of local content has contributed significantly to the business of the Guyanese economy, particularly the direct approach to the sector, but more importantly to the indirect approach to the general economy.
“The figures have shown that we are contributing from the oil and gas economy directly combined, that accumulated amount is between US$400 million to around US$700 million as it relates to the operations in the offshore block,” Gossai Jr. told persons engaged in the roundtable discussion.
He said those benefiting are not only prime contractors but also sub-contractors that are working in the oil and gas industry, particularly those providing transportation and logistics services.
Now, the aim is to ensure is that the multiplier effect of local content is felt all across the economy.
“We have seen that from 2022 to 2023. For that entire fiscal year, there has been a range of opportunities in the Guyanese economy. We have seen the growth in the establishment of more infrastructure to support and service the (oil and gas) sector.
“We have seen new businesses that have been established, we have seen with the establishment of the Local Content Secretariat and the approval of local content certificates, how small and medium scale enterprises, particularly those who are in the business of transportation, logistics and manpower are being unable to invest, making a profit and continue to grow in the economy,” the Senior Petroleum Coordinator added.
He still believes that there continue to be lessons to learn from Ghana on this front. Already, a joint Ghana Chamber of Commerce-Guyana was established.
“We can learn from the challenges as well as partnerships and we can also see opportunities that are being established between respective groups in certain areas in the Ghanaian economy and those evolving in the Guyanese economy.”
Gossai. Jr. noted that the growth Guyana is currently experiencing is well measured among the growth of local businesses and said Ghanaian businesses will do well to form partnerships.
“We want to build the employment of Guyanese and related services. We want to build local capacity such as institutions and businesses. And we also want to ensure the procurement of goods and services… and Ghana has an impactful track record that has shown that their approach was pretty much based on their ability to learn very quickly,” Gossai Jr. added.
