Newly appointed Director of the Local Content Secretariat, Michael Munroe, says ExxonMobil Guyana Limited (EMGL), the operator of the Stabroek Block, along with other oil companies, has not limited itself to procuring goods and services from Guyanese, as dictated by the Local Content Law.
According to Munroe, this is one of the reasons why the government’s figures on local content spending differ from what ExxonMobil reports as its total spending on local companies. He made the disclosure during an appearance on the Starting Point Podcast- The Oil and Gas Edition.
It should be noted that the Local Content Act places an obligation on oil companies, as well as their subcontractors, operating in Guyana’s petroleum sector, to ensure that the services required to support their operations are provided by Guyanese companies.
The First Schedule, which is expected to be amended, currently identifies 40 categories in which Guyanese participation is mandatory.
With the Act now in its fourth year, the director stated that for the first six months of 2025, earnings were approximately US$350 million.
“So, we’re seeing increases year on year. Every half year, we are seeing an increase in the level of procurement activity, and if we’re to gauge based on the numbers that we had last year, and based on where we are at currently for this year, 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,” the director noted.
Addressing the 2025 mid-year figures, Munroe clarified that while the secretariat recorded approximately US$350 million, ExxonMobil Guyana and its contractors reported that they spent GY$87 billion (US$414 million) directly with 1,800 local vendors during the first half of the year.
The director explained, “Our numbers are confined to the 40 areas in the first schedule. So, what we report on is the amount of spend that is confined to the 40 areas on the first schedule.” He continued, “Their numbers might appear at variance with us, but it’s because they’re reporting beyond the 40 areas in the first schedule.”
Munroe described the oil companies’ spending beyond the areas required by law as a positive development for Guyana. He said such actions demonstrate that the oil companies are not limiting themselves and are supporting the local economy in broader ways.
He added that this could also indicate that when amendments are made to include additional areas in the law, the companies would have already established relationships with local suppliers in those areas.
“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 noted.
Further, Director Munroe commended the companies that have gone beyond the legal requirements and said he foresees continued growth in local content benefits for registered companies.
Munroe noted that since the law’s enactment in 2021, local businesses have earned more than US$1.6 billion. He explained that in the first year, companies registered with the Local Content Secretariat earned over US$440 million, while in the second year, earnings reached US$540 million. In the third year, he noted registered companies recorded earnings of US$743 million.