European investors willing to work with Guyana’s local content policy

Georgetown: In the aftermath of US Ambassador and Co-Chair of American Chamber of Commerce (AmCham), Sarah-Ann Lynch stating that the recent advocacy for local content policy and legislation in Guyana could serve to create a situation that would scare away investors, European investors appear to be much more accommodating than their American counterparts of the need for Guyanese to participate fairly in the Petroleum sector.

It has been reported that there has been positive feedback from Guyana’s attendance at the recently held, annual Society of Petroleum Engineers (SPE) Offshore Europe Conference and Exhibition in Aberdeen Scotland.

President of GCCI, Nicholas Deygoo-Boyer, and Chief Executive of the Aberdeen & Grampian Chamber of Commerce, Russell Borthwick, after signing an MoU in Scotland

The chamber, in partnership with the government agency, GO-INVEST, attended the September 3rd to September 6th 2019 Conference and Exhibition, in Aberdeen, UK.

President of the Georgetown Chamber of Commerce and Industry, (GCCI), Nicholas Deygoo-Boyer stated that the international interest in Guyana from companies and business in attendance was encouraging.

“It is very heartening to hear people interested in the market and wanting to do business in one of the hottest destinations for investment in the oil and gas industry.” stated the GCCI President.

He was also happy that the collaboration for the conference was a united Guyana participating.  “Talking about the investment destinations and talking about how companies can find partners and explore expanding local content and the services and products that they sell, bringing them here to Exxon or Tullow, or any of the other potential operators here,” Deygoo-Boyer noted.

In the meantime, during the four-day conference, GCCI and the Aberdeen and Grampian Chamber of Commerce signed a Memorandum of Understanding, (MOU), intended to create and strengthen links between the two Chambers for the enhancement of trade, and for information sharing relating to issues of policy and trade development.

“The MOU stipulates that both Parties will facilitate access to events and briefings for visiting members from either Chamber at member rates, as well as provide visiting members with information that is relevant and useful during the period of their visit,” the GCCI stated on its website.

Under the agreement, both parties have also agreed to promote each other’s member companies, where appropriate, and publicise trade between the two areas. Both chambers will also seek to find practical ways to support each other through the assistance of partners such as the British Chambers of Commerce, Scottish Chambers of Commerce, the Department for International Trade, Scottish Development International and other similar bodies.

The MOU will be enforced from the day of its signing and shall be valid for a period of two years.

US Ambassador to Guyana, Sarah Ann-Lynch during her recent remarks at the first Annual General Meeting (AGM) for The American Chamber of Commerce of Guyana (AMCHAM GUYANA) at the Marriott Hotel stated “you are responsible parties and the decisions made today by all stakeholders will shape Guyana’s future. Guyana is already showing its commitment to future generations through efforts as the creation of a sovereign wealth fund, and we in the international community and the private sector each want to play our part to help the country on the path to prosperity,” the US envoy told the gathering.

US Ambassador to Guyana, Sarah Ann-Lynch

She said in order to maintain such as path, government, along with organisations like AmCham, needs to encourage more foreign direct investment.

Adding that foreign direct investment brings in capital and employment opportunities, Ambassador Ann-Lynch said it also introduces international standards that local companies need to reach global competitiveness.

“International investors require sub-contractors to accept clauses from standard international contracts, including audit requirements. This is good for Guyana’s businesses, as Guyanese companies adopt best international standards in ISO certification, inventory management, and logistics planning; they will reach a point where they can compete with, and beat, the larger players,” the ambassador said.

Such a process, Ambassador Ann-Lynch said is central to AmCham Guyana’s mission to create a greater appreciation for the value of more liberal investments and competitive business.

AmCham Guyana, she said, should ponder its leadership role in pursuing a strengthened investment and trade relationship with the US in support of the shared vision of a sustainable prosperous Guyana.

“As in most policy matters, such a vision requires that we avoid undermining our own objectives. Some recent suggestions of a Local Content Policy in Guyana may send a signal that some investors, and the employment of know-how benefits they bring, are not welcome,” the US envoy said.

The ambassador continued: “At a time of increasing integration, especially in a globalised energy sector, focusing on who owns a firm is counterproductive. Rather, the emphasis should be on whether firms are following international best practices on matters such as financial transparency and environmental protection and otherwise acting in a manner that contributes directly to Guyana’s overall sustainable prosperity.”

Further, she said Guyana should look at foreign investors as partners in growing the economy, rather than adversaries.

“The U.S. Embassy is prepared to, and very much want to work with AmCham to connect your leadership with U.S experts who can provide guidance on these key issues,” the US envoy noted.