Guyana's VP Jagdeo defends policy of sustained activity in oil and gas sector

 

The Vice President of Guyana, Dr. Bharrat Jagdeo, has reiterated the importance of maintaining a rapid pace of development in the country's oil and gas sector. He emphasized that sustaining high levels of activity in the industry for the next 15 years is critical to ensuring a return on investments made by local businesses. Many local companies have invested significant amounts of money in developing infrastructure and capacity in the sector and stand to suffer vast losses without sustained activity.

Dr. Jagdeo defended the government's policy to sustain high levels of activity in Guyana's oil and gas sector, stating that it is necessary to prevent the investments and skills of Guyanese entrepreneurs from becoming stranded. He pointed out that local investors who have put up buildings to rent will need business for the next 15 years to pay back their investments and make a profit.

Since the passage of the Local Content Act in December 2021, Guyanese businesses have been benefiting significantly from the oil and gas sector, with payments totaling around US $700 million in 2022. The Act requires oil companies to procure goods and services from Guyanese businesses and employ specific percentages of Guyanese in their operations.

The private sector is also in discussion with the government to add more areas to the Act's First Schedule and increase the minimum percentage of local content required for respective sub-sectors.