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Over 3900 hires recorded in oil sector since passage of Local Content Law
Senior Finance Minister, Dr. Ashni Singh
Budget 2024 reveals…
– US$518M procured from Guyanese suppliers last year
Kaieteur News – Senior Finance Minister, Dr. Ashni Singh revealed on Monday that the Local Content Act which was promulgated in 2021 continues to bear fruit for Guyanese nationals and companies. Since January 2022 to present, Minister Singh said contractors, sub-contractors and licensees reporting to the Local Content Secretariat have recorded 3,938 local hires, of which 785 were within the first six months of 2023.
Of the total, Minister Singh during the unveiling of his 2024 trillion dollar budget said 824 Guyanese were employed as plant and machine operators, 1,203 as professionals (accountants, lawyers, engineers, etc.), and another 485 as technicians. This brings the total number of Guyanese persons employed in the sector to more than 6,000.
In accordance with the Act, Minister Singh said five-year master plans from 33 companies were received. He said these plans detail employment, procurement, and capacity development. Those firms project employment growth by 601 in 2024, 509 in 2025 and 536 in 2026.
Also in keeping with the Act, Minister Singh said annual plans received from contractors, subcontractors and licensees, amount to an estimated US$721 million in procurement of goods and services and training, which is US$21M above the 2022 plans, which covered 40 categories of services.
The Guyanese official said current estimates suggest that US$518 million will be procured from Guyanese suppliers providing goods and services in 2023. Of this amount, roughly US$15.8 million, US$5.5 million, and US$130 million will be spent on providing accommodation services, catering, and lay down yard facilities, respectively.
Minister Singh said other major expenditures include the provision of manpower and crewing services and ground transportation at US$74.6 million and US$13.6 million, respectively. These all constitute business, employment, and income earning opportunities for Guyanese nationals.
Expounding further, Minister Singh said the implementation of the Local Content Act in Guyana has proven to be a catalyst for numerous partnerships between foreign and local companies, fostering a collaborative environment in the nation’s burgeoning petroleum industry. He said notable alliances include joint ventures and partnerships to provide: shore base facilities, offshore support vessel services, offshore helicopter services, offshore catering services, machining and fabrication services, and hazardous waste management.
He said these partnerships not only signify compliance with local content provisions as stipulated by the Act, but also contribute significantly to business expansion, capacity development, and knowledge sharing within Guyana’s petroleum industry.
Notably, for the first time in 2024, Minister Singh said a local company will be providing specialised subsea services through a joint venture arrangement with a Norwegian company. Operations will begin in February this year.
The Finance Minister said other initiatives that will be rolled out during 2024 include a paid internship programme with the 45 Tier 1 contractors targeting approximately 100 paid internships, the development of an enhanced digital platform to allow immediate notification of employment opportunities and procurement needs, and local content sensitisation workshops to further increase awareness of opportunities that the Act affords.
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