Guyana approves Local Content Master Plans with new payment period

The Local Content Master Plans of tier one contractors operating in Guyana’s oil and gas sector were approved by the Ministry of Natural Resources.

The signing, which took place on Wednesday, comes on the heels of a newly proposed modification by the Local Content Secretariat.

That 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.

At the signing, Minister of Natural Resources Vickram Bharrat underscored the importance of contractors and sub-contractors implementing the amendment. He reminded that the move promotes local suppliers’ competitive financing and growth through appropriate contract and payment terms and is in keeping with Guyana’s Local Content Act.

Martin Cheong, general manager of SBM Offshore, one of the contractors, said the company was excited about the approval of its Master Plan.

“We have been hiring an increasing number of Guyanese, engaging more local suppliers for the provision of goods and services, and expanding our training and capacity-building programs as our operations increase in the country,” he said.

Meanwhile, Halliburton’s Country Lead Vahman Jurai was also pleased with the approval of the company’s five-year local content plan.

“Halliburton is eager to work closely with our local vendors, sharing our knowledge when needed. We hope to significantly contribute to the development of Guyana’s talent in the oil and gas sector, whether through the university programs we support or through hands-on experience working with us,” Jurai said.

The government said the identified contractors, sub-contractors, and licensees have demonstrated, through their Master Plan submissions, their commitment to fostering local content in their operations by prioritizing Guyanese nationals for employment, having policies aimed at non-discrimination and equal treatment of Guyanese nationals, implementing training for the Guyanese workforce, and planning capacity-building activities for Guyanese nationals and Guyanese companies that supply goods and services to the industry, among other things.