Decisive move to optimize benefits from industrial development, investment, and local content
Barely six years after pumping its first barrel of oil in 2019, policymakers are no longer content to hit national production targets. They are positioning the nation as the strategic nerve center for oil and gas services across the Caribbean.
For Dr. Martin Pertab, the former Director of the Local Content Secretariat (LCS), this is not just rhetoric. It is a strategic plan hardwired into Guyana’s industrial policy, local content legislation, and long-term infrastructure investments.
“The idea…the focus, is to ensure that Guyana becomes a central service hub in countries like Trinidad and Suriname,” Dr. Pertab said. “Most of their operations are here, and they’re eagerly awaiting; they really want their operation here to expand.
“But then, of course, there are certain obstacles…one is, of course, a high cost of electricity. So, once we manage to reduce that, we’re going to see much more in-country value-added and manufacturing being done,” he explained.
Breaking Bottlenecks
One of Guyana’s most persistent hurdles has been prohibitively high electricity costs. At nearly USD0.30 per kilowatt hour, the country is among the most expensive places in the region for industrial power.
That equation will change dramatically in 2026, when the flagship Gas-to-Energy project in Wales, West Bank Demerara, is expected to come online.The 300-megawatt plant, already three-quarters complete, will lower electricity prices by 50%, to around USD0.15 per kilowatt hour, or lower.
By harnessing associated natural gas piped from ExxonMobil’s offshore Liza field, the project will wean the country off expensive heavy fuel oil imports. Beyond power generation, the project includes a natural gas liquids (NGL) separation facility to monetize propane, butane, and other products.
The government is also pursuing a two-part procurement process to construct and manage an NGL storage and marine offloading facility, initially capable of handling 4,200 barrels per day with expansion capacity for an additional 5,900 barrels. Minister within the Ministry of Public Utilities and Aviation, Deodat Indar, announced in mid-September that progress on the power facility was ahead of schedule.
The implications are far-reaching. Cheap energy could boost local manufacturing exponentially, eliminate dependency on imports, and transform the country into a highly competitive player in regional supply chains.
Guyana’s oil story is often told in terms of barrels per day, production licenses, and revenue flows. Against this backdrop, Dr. Pertab noted that the focus must be on something more enduring, positioning the country as a service exporter
positioning the country as a service exporter. “We have had discussions with prime suppliers for more than two years now. Once we reduce electricity costs, you’re going to see much more in-country value-added and manufacturing. That’s when Guyana truly becomes the hub,” he said.
International service giants, such as Halliburton, Schlumberger, Baker Hughes, and Tenaris, are already shifting operations to Guyana. Currently, many operators import drilling components, steel pipes, and specialised equipment. However, with affordable power on the card, Guyanese firms could begin producing high-value accessories like flex joints, threaded pipes, and fabricated steel right at home.
According to Dr. Pertab, this evolution is not theoretical. Since 2022, the Local Content Secretariat has been steadily building trust between international primes and local suppliers. He explained that by enforcing compliance and technical benchmarks, the LCS has created the scaffolding for Guyanese firms to compete in logistics, catering, medical services, fabrication, and brokerage.
Local firms are now handling 88% of cargocarrying unit services and over 90% of freight forwarding and inspection. Such numbers point to a future where Guyanese companies service ExxonMobil’s offshore platforms, Suriname’s Block 58 projects, and beyond.
Building Human Capital
Dr. Pertab warned that infrastructure and policy are only half the battle, since Guyana’s bid to lead the region also hinges on human capital.
By 2026, the nation will emphasize maritime services, spanning offshore supply vessels to Floating Production, Storage and Offloading units (FPSOs). A local company is already in discussions with a UK institute about establishing certified maritime training programs in Guyana. Once implemented, Guyanese workers will graduate with internationally recognised credentials, enabling them to crew and manage vessels across the Caribbean.
Dr. Pertab stressed that inclusivity is crucial to this expansion. Apprenticeship programs will reach beyond Georgetown, targeting technical students in the hinterland and rural regions.
The goal is to prepare a workforce not just for Guyana’s oil patch, but for the regional maritime economy. At the heart of Guyana’s hub strategy is the Local Content Act, which compels international companies to partner with Guyanese suppliers.
Dr. Pertab noted that this framework propels rapid capacity growth across service sectors, but it needs refinement. For example, the law requires businesses in the industry to be 51% Guyanese owned and locals must make up 75% of senior management. This structure works well for low-tech services like catering and logistics, but it has proven difficult for specialised fields such as hazardous waste management and subsea engineering.
He emphasized that the LCS has to apply “a model that balances national interest with the demands of complex global supply chains.” The Secretariat is exploring reforms to ensure that Guyana remains competitive and attractive to foreign expertise. Without such adaptation, Guyana risks stalling its ambition to serve the wider region. This is why amendments to the Local Content law are underway.
Dr. Pertab, an economist, affirmed that the hub vision extends beyond electricity reform, which is a significant game-changer. Guyana is accelerating plans for a second power plant to meet rising demand from new industrial projects. Meanwhile, the government has partnered with Hess Corporation and Bechtel on a feasibility study for a Berbice Deepwater Port.
This project, President Dr. Irfaan Ali said, will “strengthen offshore energy logistics and serve as a major trade enabler,” especially once a planned bridge linking Guyana and Suriname is completed.
The Berbice facility is part of a wider transformation in East Berbice–Corentyne, which includes a stadium, a shopping mall, and a new four-lane highway connecting New Amsterdam to Moleson Creek. Plans are on track for a transmission line to facilitate electricity exports to Suriname
Private sector players are equally active. Muneshwers Ltd. and John Fernandes Ltd., through their joint venture Cranes Guyana Inc., are developing a state-of-the-art port facility that will enable large cargo vessels to dock directly in Guyana, replacing costly transshipment through Trinidad or Jamaica.
Complementing these efforts, the government is preparing to introduce a Modern Port Act, complete with an independent Port Authority to professionalise management and insulate operations from political interference.
The former LCS Director said the government designed these steps to ensure the maritime framework meets international standards. This strategy underpins the nation’s emergence as a serious contender in global logistics.
Trinidad and Suriname have long been the oil and gas giants of the Caribbean. Yet the scenario is shifting. With ExxonMobil and its partners anchoring their billion-dollar investments, industry experts increasingly view Guyana as a more efficient base of operations.
From its first barrel in 2019 to 11 billion barrels of recoverable reserves and counting, Guyana has surpassed all industry expectations. Dr. Pertab, who has spent years building bridges between global prime contractors and local firms, pointed out that the nation is making a compelling bid to become the services capital of the Caribbean.
Reflecting on his two years of painstaking stakeholder engagement, Dr. Pertab, is confident about the path forward. “Once we reduce electricity costs, you’re going to see much more in-country value-added and manufacturing. That’s when Guyana truly becomes the hub,” he asserted.
