The Government is considering changes to Guyana’s Local Content Act that could require oil and gas companies to break larger contracts into smaller packages, in an effort to give more local businesses a chance to compete for work.
Director of the Local Content Secretariat Michael Munroe confirmed the consideration during the Guyana Supplier Forum on November 4, as Government reviews the legislation after five years of implementation.
Munroe said the Secretariat is examining whether contract unbundling should be included in the Act itself or introduced through subsidiary legislation.
“It’s an active consideration,” he said, explaining that the issue has emerged from feedback received from local suppliers.
Contract bundling occurs when several services are combined under one procurement package, requiring bidders to provide all of them rather than compete for individual components.
For example, a company seeking pest control work could be required to also provide sanitation and security services under one contract. A smaller Guyanese business specialising in only one of those areas could then find itself unable to qualify, even if it has the capacity to deliver that particular service.
Munroe has urged companies to consider how they package requests for information and proposals, warning that procurement requirements can create unnecessary barriers to local participation.
He also said Government is looking to amend the Local Content Act, which was enacted in 2021, and is examining whether to expand the areas reserved for Guyanese businesses.
The First Schedule of the Act currently identifies 40 areas in which Guyanese nationals and companies are given priority. Government has previously said it is reviewing an additional 20 areas for possible inclusion.
While contract unbundling is now being actively considered as a legal requirement, it is not a new principle in the sector. Existing procurement guidance encourages contractors, subcontractors and licensees to break work into smaller packages where reasonably possible to allow Guyanese firms to compete.
The proposed change would potentially give that expectation greater legal force, although no draft amendment, implementation date or final decision on the approach has been announced.
The issue is significant for smaller suppliers who may have the skills and equipment to provide individual services but lack the resources to compete for large, multi-service contracts.
At the forum, an ExxonMobil Guyana representative also reported that the company had spent US$3.9 billion with Guyanese suppliers since the start of its operations in the country.
The company said close to US$700 million was spent through 150 contracts with Guyanese businesses in 2025, while spending during the first half of 2026 was estimated at approximately US$317 million.
The Local Content Act was introduced to ensure Guyanese workers and businesses benefit from the development of the petroleum sector. Its review comes as oil production expands and local suppliers seek a greater share of the contracts generated by the industry.
Any amendment to the law would need to address how unbundling is enforced, the circumstances in which larger contracts may still be necessary and how the process can be monitored to ensure smaller businesses have a genuine opportunity to compete.
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