Local Content Certificates to be issued in three weeks

The government, in a bid to increase the efficiency of the local content system and enable businesses entering the oil and gas sector, will be issuing Local Content Certificates within three weeks.
Additionally, the state is reviewing legislation aimed at giving Guyanese greater control over local companies operating in the sector.

A statement from the Ministry of Natural Resources today noted that, at the recently concluded Local Content Summit, Minister of Natural Resources, Vickram Bharrat, committed to a three-week timeline for the issuance of Local Content Certificates for applicants with complete and verifiable documentation.

It was highlighted that this favourable change follows numerous calls from local businesses for shorter approval times to participate in the country’s rapidly growing petroleum supply chain.

Since the passage of the Local Content Act in December 2021, hundreds of Guyanese companies have received certification to deliver services ranging from logistics and catering to transportation for offshore operators and their contractors.

“To date, 1,250 Guyanese companies have registered with the Secretariat, tapping into a supply chain that has witnessed over US$1.5 billion spent on Guyanese businesses. However, the certification process has not been without challenges,” the ministry said.

Minister Bharrat explained that attempts by some to exploit loopholes had caused delays, leading the Local Content Secretariat to tighten its scrutiny.

He stated, “…the process slowed down a little bit because we had some issues where we had to deal with individuals trying to front companies or forge documents.”

To address these issues, legal reforms are under consideration, according to Michael Munroe, Legal Officer at the Ministry of Natural Resources.

“A major area under review is the definition of who or what qualifies as a ‘Guyanese company’ under the Act — a key criterion for certification. Currently, a company must be beneficially owned by a Guyanese, with supporting operational and structural management based in Guyana,” Munroe explained.

He further noted that “some Guyanese are leveraging their nationality to allow foreigners, who should be minority shareholders, to effectively own the company.”

To strengthen the definition, a residency requirement and an obligation for applicants to be registered taxpayers in Guyana are being considered.

This strengthening of requirements forms part of a broader initiative to expand the impact of the Local Content framework. In addition to refining the law and expediting certification, the government also plans to expand the schedule of services covered under the Act.

The existing schedule outlines 40 categories — including catering, transportation, insurance, waste management, and legal services — where foreign companies operating in Guyana’s petroleum sector are required to use Guyanese firms.

This layered approach — tightening the legal framework, streamlining bureaucracy, and expanding opportunities — signals the government’s intent to entrench local participation in the oil and gas value chain.

For the thousands of Guyanese entrepreneurs and workers hoping to benefit from the sector, the promise of faster certification and greater inclusion could mark a new chapter of economic empowerment, the ministry stated.