Gov’t operationalises Local Content Registry

The Government of Guyana, through the Ministry of Natural Resources, has operationalised its Local Content Registry as stipulated by the Local Content Act. This Act, which was made into law in December 2021, mandates the Local Content Secretariat to develop and maintain Local Content Registers of Guyanese nationals for employment; and Guyanese nationals and companies from which goods and services may be procured.

In keeping with this, two registration options are available, namely, supplier registration and employment registration. Using the Supplier Registration Portal, a Guyanese national or Guyanese company can apply for and be issued with a Certificate of Registration from the Secretariat for the supply of goods and or the provision of services for petroleum operations in Guyana.

Onshore oil and gas workers

There are five steps for applicants to take in other to register. There are as follows:

  1. Registration applications can be electronic or hardcopy. Importantly, as per section eight of the Local Content Act, a Guyanese National or Guyanese Company which is not registered on the Local Content Register shall not be measured for purpose of compliance with the minimum local content levels.
  2. Once an application is submitted and received, the Secretariat will issue an Acknowledgement of Receipt along with a Reference Number for the Application and the review process will be initiated.
  3. After conducting the necessary checks and balances, the Secretariat will either approve the application and issue a Certificate of Registration or refuse the application and notify the applicant.
  4. The holder of a Certificate of Registration from the Local Content Secretariat has satisfied the requirements stipulated in the Local Content Act No.18 of 2021 as a Guyanese National and/or Company for the Provision of goods and services or employment within the Petroleum Sector.
  5. Once an application is approved and a Certificate of Registration granted, the applicant will be issued with log-in credentials to gain access to either the Supplier Registration Portal or the Employment Portal.
  6. Through the respective portals, the Secretariat will communicate available procurement opportunities to registered Guyanese suppliers and available employment opportunities to registered Guyanese seeking employment.

The Certificate of Registration becomes renewable on the anniversary of its issuance. The option to renew the Certificate is available in the Supplier and Employment Portals.

The Local Content Bill lays out 40 different services that oil and gas companies and their subcontractors must procure from Guyanese companies by the end of 2022. For instance, these companies must procure from Guyanese companies, 90% of office space rental and accommodation services; 90% janitorial services, laundry and catering services; 95% pest control services; 100% local insurance services; 75% local supply of food; and 90% local accounting services. These are just a few of the services highlighted in the first schedule in the Local Content Act. The Local Content Act penalties for oil and gas companies and their sub-contractors who fail to meet the minimum targets of the legislation, as well as those who are in breach of the Act. These fines range from as low as $5 million to as high as $50 million.

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