Local content director pushes for more business opportunities, high-value services

Local Content Secretariat Director, Dr Martin Pertab, has affirmed his commitment to enhancing opportunities for businesses and professionals within the oil and gas sector, with a specific focus on value-added services, enhancing procurement system credibility, and balancing investment with Local Content development.

Dr Pertab told Ignite News that in recent years, local capacity has been substantially enhanced in the provision of goods and services for the oil and gas industry.

He noted that this year, the Secretariat will work closely with industry participants to prioritise Guyanese companies in delivering high-value services.

“This iteration of adjustments to the Local Content Act emphasises the development of value-added services, aiming to expand the local economic footprint. For example, in the machining and fabrication sector, companies have demonstrated the ability to manufacture premium downhole drilling accessories, including crossovers, pop joints, landing joints, and blast joints. In the shipping industry, Guyanese companies now provide MSPVs (Multipurpose Supply Vessels) and subsea services. There has also been notable interest in other capital-intensive services, such as the supply of commodity chemicals,” Dr Pertab said.

Stringent Requirements

He noted that the oil and gas sector is well known for its stringent procedural requirements, such as certifications and extensive experience. However, while these are essential, Dr Pertab said they can be burdensome, particularly for small and medium-sized enterprises (SMEs), as services become more specialised.

To address this, he said the Secretariat is actively exploring ways to standardise requirements for specific services.

“For instance, imposing large insurance coverage requirements for pest control services has deterred SMEs from participating. By standardising these requirements, we aim to make opportunities more accessible to smaller businesses,” Dr Pertab related.

He added that the Secretariat is committed to strengthening the credibility of procurement systems within the industry, stressing that while the processes may differ across companies, adherence to established guidelines for procurement and bid evaluations is mandatory.

Warning

Dr Pertab warned that companies found guilty of malpractice will face penalties, as transparency in evaluation criteria is now a mandatory requirement for all stakeholders.

“To date, we have received numerous recommendations for the inclusion of new sectors and sub-sectors in the first schedule of the Act. These proposals will be carefully reviewed to ensure that the necessary capacity and expertise exist to meet the outlined demands. Our focus remains on fostering synergies between company objectives and broader social and economic goals,” he indicated.

The Local Content Secretariat is committed to fostering inclusivity by supporting SMEs, particularly women-owned and youth-led businesses, Dr Pertab highlighted.

He said that over the past six months, 54 women-owned businesses have registered in areas such as catering, accommodation, food supply, janitorial services, and immigration support.

“For the first time, 100 per cent Guyanese-owned businesses are now providing customs brokerage services, a development unheard of a year ago. Local businesses are also offering medical services,” he noted.

Dr Pertab added that the unit has already begun intensifying its monitoring efforts to ensure that operators and contractors adhere to local content requirements, with stricter penalties for non-compliance.

Training

He said the government remains committed to training Guyanese at every level in the sector. As such, Phase 1 of the Guyana Technical Training College’s Facility Simulator was commissioned last year at Port Mourant, Berbice.

This facility enables practical training for trainee technicians who are being upskilled to support petroleum activities.

“In 2025, the Secretariat will facilitate more targeted training programmes for local businesses, equipping them with the skills and knowledge needed to integrate into the oil and gas value chain. Already, a number of youths have been trained as part of the youth internship programme—a venture made possible through the support of technical training institutes across Guyana and sub-contractors. Plans are in place to resume this programme in 2025,” Dr Pertab said.

He noted that the Secretariat remains open to feedback as it strives to maintain a climate of confidence, predictability, and trust for investors, stressing that proposed amendments will be approached cautiously to avoid deterring foreign investments.

“Our objective is to strike a balance between fostering foreign investment and expanding local private sector opportunities,” Dr Pertab explained.

The Secretariat also launched its Local Content App at this year’s Energy Conference and Supply Chain Expo as a means of keeping local businesses informed.