Guyana’s Local Content legislation continues to deliver tangible economic benefits, with local businesses collectively earning more than US$1.6 billion since the law’s passage, according to Michael Munroe, the newly appointed Director of the Local Content Secretariat.
Speaking on the “Starting Point” podcast, Munroe outlined the steady growth in contract awards to Guyanese firms operating within the 40 designated categories of the Local Content Act.
“So just in these 40 areas… we’re in our fourth year of implementing the Local Content Act. We’ve already garnered in excess of US$1.6 billion,” he said.
The 40 specified areas referenced by Munroe include services such as accommodation, catering, transportation, and food supply—sectors that, by law, must be procured from Guyanese-owned companies.
According to him, the figures demonstrate a year-on-year increase in the value of contracts secured by locals since the Act took effect.
“In the first year, we would have seen the companies registered as local-content certified; they would have gathered, I think, in excess of US$440 million. In the second year, we more or less went to US$540 million, and in the third year, we went to US$704 million,” Munroe explained.
He added that the upward trajectory has continued into 2025, with approximately US$350 million already recorded between January and June. “So, we’re seeing increases year on year. Every half year, we are seeing increases in the level of procurement activity,” he noted.
Looking ahead, Munroe expressed optimism that the final figures for this year will surpass the previous year’s total. “I anticipate that there will be ramping up in the procurement activity, and we may, more than likely, if the trend holds true, we will exceed last year’s number, so we will be north of US$704 million,” he said.
Addressing questions about the difference between the Secretariat’s data and that published by ExxonMobil, Munroe clarified that the company’s figures—reported at over US$400 million at mid-year—cover a wider range of services beyond those outlined in the Act’s first schedule.
However, he said the Secretariat’s statistics focus strictly on those 40 listed categories. Munroe welcomed the fact that oil companies are engaging local suppliers beyond the legal requirements, describing it as a positive sign of deepening local participation.
“That is a good thing in my opinion, because it suggests that the companies are procuring beyond the first schedule. These companies now want to be a part of Guyana’s local content story, and in so doing, they are procuring from local companies beyond the first schedule,” he expressed.
He further commended this shift as evidence of the legislation’s transformative impact on corporate behaviour. “I think it’s a good indication for us to feel proud that the act is stimulating procurement beyond the first schedule,” Munroe remarked.
Guyana’s Local Content Act, passed in December 2021, aims to maximise the participation of Guyanese nationals and companies in the oil and gas value chain.
It requires that certain goods and services—including office space rentals, janitorial and catering services, and food supply—be sourced locally.
As of early 2025, more than 1,000 companies have been registered on the Local Content Register, underscoring the law’s success in expanding local business opportunities within the petroleum sector.
Moreover, the upcoming four new oil agreements are expected to further solidify Guyana’s position as one of the world’s fastest-growing oil producers, with local content remaining a cornerstone of the government’s development agenda.
