Guyana Business Journal & Caribbean Policy Consortium hold webinar on new study: “Strategic Considerations for Local Content Requirements in Guyana’s Oil Sector” by Dr. Jerry Haar
Significant Research Findings:
Guyana’s dynamic and rapidly progressing oil and gas development can create boundless opportunities, which is the intent of local content policy (LCP). However, there has been an information vacuum related to the LCP—its rationale, structure, and pathway to implementation. Fortunately, the government of Guyana has addressed this shortcoming and produced a draft Local Content Policy. While the document has produced a reasonable policy framework, the LCP is jeopardized by a rigid compendium of local content targets that are questionable in their derivation or may be exceedingly difficult to attain.
It is urgent, therefore, that the government address and remedy the shortcomings of its LCP. After all there are many positive features of the LCP including: preferred access and opportunities for Guyanese; the need for good governance for the LCP to succeed; the need for appropriate legislative support for successful policy implementation; and engagement of the Guyanese diaspora as a vitally important resource.
Dr. Jerry Haar, Professor of International Business, Florida International University
Dr. Anthony Bryan, University of the West Indies & Caribbean Policy Consortium
Dr. Terrence Blackman, Medgar Evers College, City University of New York & Guyana Business Journal
Dr. David Lewis, Caribbean Policy Consortium & Manchester Trade Ltd. Inc. (Moderator)
- “I have great faith in the capacity of Guyanese to meet this challenge. What worries me is if Guyanese institutions aren’t able to fully hold to the path that is necessary in order to do this. I hope that these opportunities will be strengthened.” – Dr. Terrence Blackman
- “We know that the government’s goal is maximum quality and benefit of participation in the petroleum sector value chain by Guyanese. We see real positives in terms of preferred access and opportunities for Guyanese, in the emphasis on good governance, the appropriate legislative support for successful policy implementation and the engagement of the Guyanese diaspora community.”– Dr. Jerry Haar
- “[But] there is an extensive and rigid compendium of local content targets that are questionable in their derivation and exceedingly difficult to attain. In essence we believe that these targets may be pose a strong disincentive for potential foreign investors beyond the extractive industry of oil and gas.”– Dr. Jerry Haar
- “We are concerned that a number of these content requirements [were] derived excessively from the LCPs of other oil-producing nations. Any model developed has to be based upon Guyanese reality and this assessment and projected numerical targets need to be done through an independent party.”– Dr. Jerry Haar
- “The private sector—local and foreign—along with the public sector should be working closely together to assist local firms in meeting the technical requirements for oil services and equipment.” – Dr. Jerry Haar
- “We are not going to be able to function effectively as a society as a small oligarchy and this is where I think these institutions like UoG and others have a role to play. And this is one place where I must commend the current government.” – Dr. Terrence Blackman