Gov’t approves Local Content Master Plans with new 45-day payment period
The Ministry of Natural Resources on Wednesday approved the Local Content Master Plans of tier-one contractors – SBM Offshore, Halliburton among others – operating in Guyana’s oil and gas sector.
The signing, which took place in the boardroom of the Ministry of Natural Resources Head Office in Kingston, Georgetown, comes on the heels of a newly proposed modification by the Local Content Secretariat.
This 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 this 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.
Also sharing comments on the signing, the General Manager of SBM Offshore, Martin Cheong, expressed the company’s excitement about the approval of its Master Plan.
He went on to state, “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 programmes as our operations increase in the country.”
Meanwhile, Halliburton’s Country Lead Vahman Jurai said that the approval of the company’s five-year local content plan is cognisant of its guiding principles of “Global Citizenship.”
Jurai related, “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 programmes we support or through hands-on experience working with us.”
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 and having policies aimed at non-discrimination and equal treatment of Guyanese nationals.
Further, implementing training and other programmes to build the capacity of both their employees and the larger Guyanese workforce, coordinating with industrial and technical education training institutions in Guyana to provide sponsorships and/or internship opportunities, among others.
The Natural Resources Ministry said that through the Local Content Secretariat, it would continue to work with stakeholders to ensure that the goals of the Local Content Act are achieved.
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