As of mid-2024, local companies have earned some US$314 million from the oil and gas sector, according to Director of the Local Content Secretariat (LCS) Dr Martin Pertab.
As mandated under the Local Content Act, contractors and subcontractors must submit half-year reports to the LCS, providing an update on the procurement activities, employment and capacity-building programme.
Addressing a news conference on Wednesday, Dr Pertab revealed that the Secretariat has received 40 such reports and it was observed that from the 40-carved-out-areas in the Local Content Act, local companies have earned some US$314 million so far – which is over 50% of the 2024 projected estimate.
He noted that when compared to mid-2023, there was a 238% increase in demand for engineering and machining services, a 39% increase for accommodation services, a 48.5% increase in equipment rental services and an 18.8% increase in catering services.
These increases, Dr Pertab noted, can be attributed to the growth in petroleum activities as a result of the arrival of the third FPSO in local waters.
Some US$700 million was generated from local content in 2022 while in 2023, it was projected to have been US$720 million.
It was also revealed that from January to June this year, there have been over 454 new hires by the 40 companies. Dr Pertab noted that while the total number of Guyanese employed by these companies now stands at 4,467, it is estimated that over 6500 locals are working in the oil and gas sector.
He also noted that there has been an investment of over US$3.8 million in capacity building, with 14 individuals receiving scholarships amounting to US$525,000.
The National Assembly passed the Local Content Act in December 2021. It outlines 40 different service areas that oil and gas companies and their subcontractors must procure from Guyanese and Guyanese-owned companies.
Those include 90 per cent of office space rental and accommodation services; 90 per cent of janitorial services, laundry and catering services; 95 per cent pest control services; 100 per cent local insurance services; 75 per cent local supply of food; and 90 per cent local accounting services.
