Revised Local Content Act to include fixed returns for citizens

The Government is moving to revise the Local Content Act to include provisions that allow Guyanese citizens to earn guaranteed, fixed returns from investments in machining and engineering services linked to the oil and gas sector, President Dr Irfaan Ali has announced.

Speaking during a live interview last week, President Ali said the administration is actively engaging ExxonMobil to ensure that engineering and machining services – particularly those connected to service vessels operating in the petroleum sector – include a strong local content component.

The President explained that the revised framework is intended to better leverage liquidity already existing within Guyana, as well as capital from the Guyanese diaspora, by creating structured investment models that offer predictable returns.

“We are building out business models in the oil and gas sector that allow citizens to leverage their resources and receive guaranteed fixed returns,” President Ali said. He noted that discussions with ExxonMobil are focused on embedding local participation requirements within the Local Content legislation, specifically for machining services, engineering services, and service vessels.

It was in 2021, with the passage of the Local Content Act, that the Government established 40 service areas in the oil and gas sector reserved for Guyanese business participation. Under this legislation, oil companies must procure services from local providers to varying degrees.

However, to benefit from these opportunities, businesses must first obtain a Local Content Certificate from the Secretariat. Without this certification, Guyanese-owned companies are not eligible to access contracts in these protected service areas.

Established in 2022, the Secretariat was put in place to manage the Local Content Register for businesses and professionals to advertise their services. As of November 2024, 1032 companies had been certified and were listed on the Local Content Register, confirming their eligibility to supply goods and services to the sector.

According to the Head of State, the objective is not only to involve established local companies but also to create opportunities for individual families and diaspora investors to participate meaningfully in the oil and gas value chain.

President Ali said this approach would expand ownership, deepen local participation, and ensure that the benefits of the petroleum sector are more broadly shared among Guyanese, while strengthening domestic technical capacity in key support services.

To make this process, among others, seamless, the Ministry of Natural Resources, through the Local Content Secretariat (LCS), had announced new structured timelines for the reviewing and approving of applications for Local Content Certificates. The new timelines, aimed at modernising and streamlining the process, will take effect from January 2026.

Under the new structure, sole proprietorships and landlords will see new applications being processed within five working days, while renewals will be processed within three working days. For 100 per cent Guyanese-owned companies and business partnerships, the new applications will be processed within 15 working days, while renewals will be processed within 10 working days.

For all other companies the new applications will be processed within 21 working days, and renewals within 15 working days. The Ministry stressed that the new timelines will only begin after all required documents have been received.

The updated framework is part of the Government’s wider mandate under President Dr Mohamed Irfaan Ali to expand and improve public services