Local Content Policy Framework:

Local Content Policy Framework: Capturing More Value Added for Trinidad and Tobago and Guyana

Abstract

In the Caribbean Community (CARICOM), Trinidad and Tobago (T&T) and Guyana, have active hydrocarbon industries. T&T’s hydrocarbon industry is old, spanning more than a century. Guyana is relatively a new entrant to the hydrocarbon industry as commercial reserves of crude oil were only discovered in 2015. However, the countries’ capture of their fair share of the hydrocarbon rents will not automatically occur.

It is against this backdrop that this chapter seeks to review successful local content policies, outline the key requirements for a successful local content policy, and provide local content policy recommendations for the hydrocarbon producers in the CARICOM region.

The experience of several countries such as Nigeria, Norway, Ghana, and Botswana reflects on the potential of partnerships. Indeed, the experience of TOFCO in T&T demonstrates the effectiveness of partnerships in building local capacity. 

Therefore, this study argues in favor of the development of joint ventures to facilitate knowledge and skills spillover as well as technology transfer. Furthermore, this study argues in favor of the use of partnerships between the private sector and local academic institutions to help build local capacity.