Monday 28 September, 2020

Local Content Policy for Guyana's oil and gas sector completed

Head of Department of Energy Dr Mark Bynoe holding his copy of the Local Content Policy for Guyana's oil and gas sector.

Head of Department of Energy Dr Mark Bynoe holding his copy of the Local Content Policy for Guyana's oil and gas sector.

Guyana’s Energy Department has finally completed the long-awaited Local Content Policy that will set out how energy companies operate in the local market.

Head of Department of Energy Guyana Dr Mark Bynoe made the revelation, yesterday, calling the policy “fit for purpose.”

“It offers a balanced alignment between the Government of Guyana’s policy goals, whilst maintaining consistency with Guyana’s international and regional trade and economic obligations.

“It promotes education, inclusion and advancement of Guyanese persons, who demonstrate expertise and experience, required to participate in the petroleum industry. It ensures participation of Guyanese persons in employment opportunities. It assures capable Guyanese suppliers of contracting and procurement opportunities inside and outside of Guyana,” he said.

The policy will be available online, later this week, after parliamentarians, government officials and the media are given copies.

According to Bynoe, over 1,900 Guyanese are already employed in the oil and gas sector and this figure will grow.

Over GYD$120 million was spent by energy companies in the local economy for staff and services in the fourth quarter of 2019.

The policy’s first draft was completed a year ago and was under-review by stakeholders.

Bynoe also revealed that Guyana’s first lift of one million crude oil, which was sold to Shell, is scheduled for next week.

“This will represent part of Guyana’s profit oil allocation of 12.5%. Additionally, the country will be receiving its 2% royalty on all oil produced,” he noted.

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