Gov’t endorses more Local Content Master Plan

Minister of Natural Resources Vickram Bharrat has approved the five-year Master Plans of Esso Exploration and Production Guyana Limited (EEPGL), Saipem Guyana Inc. and Gulf Engineering Services Guyana Limited (GESGI).

The five-year master plan is intended to provide the minister and the Local Content Secretariat with an understanding of the contractor, sub-contractor or licensee’s projected activities with regard to employment, procurement and capacity development of Guyanese suppliers.

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The plans reportedly include an amendment which ensures that Guyanese suppliers of the petroleum sector are paid within thirty (30) to forty-five (45) days upon receipt of the correct invoice. This plan is enforceable as per the Local Content Act.

At the October 26 signing, that minister reminded the signing companies’ executives that many of the suppliers of Guyana’s oil and gas sector operate on a cash flow basis and that the amendment to include a reduced payment period will bode well for suppliers’ growth and competitiveness.

The minister informed the signing partner the Government of Guyana is currently in discussion with the commercial banks to have contracts lodged as collateral and this would support access to capital for Guyanese businesses.