Oil companies urged to avoid artificial barriers, invest in Guyanese companies

…as locals told to scale up operations, build sustainable models

As the Government seeks to expand opportunities for Guyanese suppliers within the energy sector, major oil and gas operators are being asked to ensure that they avoid artificial barriers and create the space to allow for meaningful participation by locals.

These calls were made by the Director of the Local Content Secretariat, Michael Munroe, while delivering the feature address at the Guyana Supplier Forum 2026 held on Wednesday at the Georgetown Marriott Hotel.
Munroe pointed out that in order for large operators within the local oil and gas industry to create an enabling environment for Guyanese companies to grow, they must be mindful of how procurement opportunities are being packaged.
“So, think deeply about how you package work to allow for Guyanese companies to meaningfully participate because if you package it wrongly, then you, indirectly, are creating an artificial barrier to allow Guyanese companies to meaningfully participate and grow within your supply chain,” he noted.
In the same breath, the Head of the Local Content Secretariat urged major oil operators to invest in Guyanese businesses beyond the award of contract. One such way, he outlined, that this can be done is by addressing the working capital needs that many local companies are facing.
Following widespread complaints by Guyanese businesses over delayed payments, the Government had stipulated a 30 to 45-day timeframe within which local suppliers must be paid for their goods and services. But Munroe believes that the oil operators can support local business growth and expansion by making even faster invoice payments.
Similarly, the Secretariat Director noted that oil companies should outline an early pipeline of upcoming procurement opportunities so that Guyanese businesses are adequately prepared to capitalise on them.

Role of Guyanese businesses
But even as he called on the large players to create an enabling environment, the Local Content Secretariat Head says that Guyanese companies are equally responsible for positioning themselves to capitalise on the opportunities coming their way.
“The responsibility is not solely on the shoulder of the companies because while they provide the opportunities, you have to show that you are capable of doing the work and you’re willing to do the work,” he emphasised.
According to Munroe, Guyanese businesses need to look beyond just winning a single contract and prepare themselves for a wider scope of opportunities. This, he pointed out, calls for building out sustainable business models that would ensure the longevity of companies.
“We want to encourage businesses to think deliberately about the challenges or externalities that affect [their] business operations and what response measures [they] have to cater to that to ensure that [their] business remains growing… So, we encourage businesses to look not solely at [just] targeting a contract, but ‘Is my business model after I’ve gotten this contract such that it allows me to sustainably grow?’’” the Secretariat Head posited.
Against this backdrop, Munroe went on to urge local companies to invest in technologies, enhance their systems and upskill human capacity in order to scale operations effectively.
“You need to train your people in order to orient them in the type of culture that is needed in order to take the businesses [further]. That requires a shift in thinking. It requires an in-shift in systems because you need to reorient the right systems to allow [your] businesses to scale,” he stated.
Moreover, the Local Content Secretariat Director also encouraged Guyanese companies to forge partnerships, whether locally or internationally, in order to leverage opportunities within the oil and gas sector.
But in doing so, he cautioned that local businesses must ensure that beneficial ownership reflects actual control and value retention. He outlined that oftentimes Guyanese companies do not fully grasp the intention of the local content provisions.
“These collaborations must [be] genuine. You can’t allow yourself to be leveraged in a way in a way that doesn’t redound to the type of value we want to see retained in the country in the first instance, but secondly, the value that is converted upon the Guyanese participant within these collaborations,” Munroe noted.
Currently, the Local Content Act identified 40 different service areas that Guyanese-owned businesses must benefit from. However, some persons have been taking advantage of loopholes in the legislation to illegally enjoy the benefits carved out for locals through practices such as “fronting” or “rent-a-citizen”.
However, Natural Resources Minister Vickram Bharrat had previously stated that the Government has been working relentlessly to clamp down on these illegal practices, sending strong messages to perpetrators that they will face hefty penalties.
The Local Content legislation mandates penalties, such as fines ranging from $5 million to $50 million, for oil and gas companies and their subcontractors who fail to meet the minimum targets of the legislation, as well as for those who are in breach of the Act.
Nevertheless, Munroe went on to note for its part, the Government is committed to working on an enabling framework that supports Guyanese participation in the local energy industry. In fact, he noted that the Government is currently reviewing 20 additional areas, adding to the 40 already carved out 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.” The event was designed to help Guyanese businesses better understand procurement processes within the oil and gas industry, gain visibility into upcoming opportunities, and explore the capabilities and strategies needed for long-term success.

Source: Guyana Times