Measuring local content by value by volume – T&T Oil Specialist warns Guyana – Kaieteur News

Measuring local content by value by volume – T&T Oil Specialist warns Guyana

Kaieteur News – Although the Department of Energy is in the process of adding the finishing touches to the draft Local Content Policy, there is one key rule that should not escape its attention – Measuring the quantity of goods and services also consumed and local people employed by value and not just by volume. This was noted by Anthony Paul, Trinidadian Local Content Specialist. He made this revelation during a guest appearance in October 2019 on Kaieteur Radio’s program – Guyana’s Oil and You.
There, the Energy Adviser said, “I like to think of local content as something we can measure because if we can measure it, then we know how well we’re doing. People often describe local content as the number of people employed; number of companies participating.
But remember, all activities have to be budgeted for. As such, I like to think of local content in a financial sense. I ask, ‘What is the value of inputs for the activities taking place in the sector? “
On this premise, the Energy Adviser said a company’s local involvement plan must therefore specify how many people would be employed, for how long, to do what, and how much they would be paid. And while this is being done, he said there is a need to explore how the overseas participants can be used to build capacity.
Paul said, “So if you have a five year project, you have to ask what the company’s starting point for local content is, where will you be after year one, after year two, etc., in a way that you will ‘ n seeing it progress. For this, you’ll also need targets. “
In addition, the Trinidadian said the above information needs to be stored in a place where the right organizations can access it.
“In this way, the University of Guyana, for example, can identify what skills the agencies serving the sector need down the road and figure out what it needs to provide it.
“Even the investors, they need access to information that will allow them to see what projects are coming down the road so they can take that and build a business and build right plans, which they can take to the bank, ”the Energy Adviser expressed.
Paul emphasized that access to information will be critical to Guyana’s success in maximizing local content while identifying an accountable regulator as key to the process.
The Local Content Specialist said, “Remember, at the end of the day, your oil pays for every person trained or employed. You pay for everything … so make sure you get it right. “(This story was originally published in October 2019 and slightly modified for publication today).