Oil Companies Urged to Support Guyanese Businesses in Energy Sector

According to the Guyana Times, during the Guyana Supplier Forum 2026 held at the Georgetown Marriott Hotel on Wednesday, Michael Munroe, the Director of the Local Content Secretariat, called on major oil and gas operators to ensure they do not erect artificial barriers and instead create opportunities for meaningful participation by local entities. Munroe advised that the manner in which procurement opportunities are structured can indirectly create barriers if not packaged correctly.

Furthermore, the Head of the Local Content Secretariat encouraged major oil operators to support Guyanese enterprises beyond the mere awarding of contracts. One suggested method for this support is by addressing the working capital requirements that many local businesses are experiencing. While the Government had previously set a payment timeframe of 30 to 45 days for local suppliers, Munroe suggested that oil operators could foster local business expansion by implementing even quicker invoice payments.

Munroe also recommended that oil companies provide an advance schedule of forthcoming procurement opportunities so that Guyanese businesses can be adequately prepared to take advantage of them.

Regarding the role of Guyanese businesses, Munroe emphasized that the responsibility for capitalizing on opportunities is not solely on the companies, as local entities must demonstrate their capability and willingness to perform the work. He stressed that Guyanese businesses need to move past securing a single contract and instead focus on developing sustainable business models to ensure long-term viability.

He advised businesses to thoughtfully consider operational challenges and the necessary responses to maintain growth. Munroe further urged local companies to invest in enhancing their systems, developing technologies, and improving human capacity to scale their operations effectively, noting that this requires a shift in thinking and systems to orient businesses for scaling.

Additionally, the Local Content Secretariat Director encouraged Guyanese companies to form partnerships, both domestically and internationally, to leverage opportunities within the oil and gas industry. However, he cautioned that these collaborations must be genuine, ensuring that the beneficial ownership reflects actual control and that the value retained in the country and converted to the Guyanese participant is appropriate.

Currently, the Local Content Act specifies 40 service areas where Guyanese-owned businesses are expected to benefit. Natural Resources Minister Vickram Bharrat had previously stated that the Government is actively working to curb illegal practices such as "fronting" or "rent-a-citizen" that exploit loopholes in the legislation. The Local Content legislation stipulates penalties, including fines ranging from $5 million to $50 million, for oil and gas companies and their subcontractors who fail to meet the minimum targets or breach the Act.

Despite these measures, Munroe stated that the Government remains committed to developing an enabling framework to support Guyanese involvement in the local energy industry. He mentioned that the Government is currently reviewing 20 additional areas, which would supplement the 40 areas already defined in the Local Content Act, for Guyanese suppliers to participate in.

Wednesday's Supplier Forum was held under the theme "From Capability to Growth: Building Guyanese Businesses for Long-Term Success," with the aim of helping Guyanese businesses understand oil and gas procurement processes, gain insight into future opportunities, and explore the strategies needed for sustained success.