Local Content: VSB calls for clear information and action!

The developments in the oil and gas sector in Suriname promise a bright future for the country. However, it is crucial that there is clarity regarding the preparations and progress of the involved entities. The Surinamese Business Association (VSB) expresses its concerns about the current situation and calls for more transparency and active communication towards the society and the private sector.

There are two main structures focusing on preparations for the oil and gas sector: the EDC (led by Staatsolie), which operates at an operational level, and the Local Content Board at a strategic level. The Local Content Board, established by President Chandrikapersad Santokhi, aims to develop and coordinate a national local content policy until July 2025.

Since June 2021, the VSB has actively participated in various committees and presentations to monitor developments and share its insights. Despite this involvement, there still appears to be considerable uncertainty in society.

The VSB acknowledges the need for clear information and urges the relevant authorities to proactively communicate about developments in the oil and gas sector.

A crucial part of the preparation is the establishment of the Local Content Board, focusing on maximizing the value derived from the exploitation of natural resources. This committee, led by chairperson Arleen Emanuels, is tasked with raising awareness of local content in various sectors and compiling a list of implementation decisions.

Several milestones have been achieved in the recent period, such as the presentation to the State Council in December 2022 and the establishment of the Local Content Board in August 2023. However, concerns persist about the vagueness of the definition of ‘local content’ and the slow implementation of government policies.

Another critical aspect is the development of local skills and expertise needed in the oil and gas industry. Despite some efforts, such as the launch of the Oil and Gas Training by Staatsolie, there is concern about the government’s slowness in offering relevant training. It is vital for the government to take the initiative to improve education and ensure that the youth are prepared for future challenges in the sector.

The government must actively identify all sectors that can contribute to the oil and gas industry to prevent foreign companies from conducting activities independently, which may not benefit the local economy.

In conclusion, the Association calls for more collaboration, clarity, and action from the involved entities. With clear information about developments, there is a better understanding of business opportunities with proper preparation.

Date: 18 February 2024

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Tags:  Local Content Board, Private Sector, VSB