Local Content Policy allows operators to reclaim all expenses as cost oil

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Oil and gas operators are eligible to reclaim any costs it endures in the implementation of activities and programmes under its Local Content Policy.

This is according to the Guyana Government’s Local Content Policy, which has been officially released to the public.

“Where an operator’s local content plan has been approved by the Minister, the operator’s cost for delivery of the activities and programmes in the plan shall be eligible for cost recovery to the extent consistent with applicable contractual and legal frameworks,” the policy reads.

According to the document, operators must prepare and execute local content plans, updated annually.

The plans, the report outlines, will be commensurate with the stage of the project development of the operator, i.e. development phase, production phase or decommissioning phase.

According to the policy, the operator is obligated to provide to the department a list of contracts it is expected to tender over the forthcoming half-year, as well as the dates when they will invite expressions of interest.

As part of its reporting, operators will also have to provide figures of how much money they spent in Guyana’s economy from expenditure on services as well as goods. Another feature of the policy is that the operator has to describe its plans for supporting the development of local suppliers.