Staatsolie Director Annand Jagesar: ‘What we decide now impacts long-term planning’
The aim is to establish a local content policy in the short term, with clear guidelines for cooperation between oil companies, local businesses, and workers. An independent Local Content Unit must also be established to oversee the implementation of the policy, while regulations must be introduced for the entry of foreign workers into the oil and gas sector.
These points were discussed during the information and dialogue evening ‘Presentation of Advisory Document on Suriname Local Content Policy’, organized on July 7 by the Suriname Business Association (VSB). The meeting was held at Torarica Banquet Hall and attracted a great deal of interest. The recommendations from the advisory document were presented and discussed with representatives from the government, the business community, and other stakeholders.
Staatsolie Director Annand Jagesar emphasized that the decisions being made now will determine the future of the sector. “What we decide in these days will have an impact on our long-term planning.” At the same time, Suriname must continue to meet the quality requirements of the oil industry. Jagesar referred to Brazil, where projects are reportedly experiencing delays because the local market cannot always meet those requirements.
Maximizing value
Jagesar therefore stressed the need to invest in well-trained professionals and strong local companies. Staatsolie has already been working on this in recent years, while many companies have also taken steps themselves. “Companies must understand the 24/7 mentality that applies in the oil industry,” says Jagesar.
“An important condition is that we train people, further prepare our companies for this sector, and establish a Local Content Unit that supports and strengthens this process.” The ultimate goal is to extract maximum value from the oil and gas sector for Suriname.
Blue Wave program
During the presentation by Vandana Gangaram Panday, Vice President of the Staatsolie Hydrocarbon Institute (SHI), attention was given to the steps taken since 2022 to strengthen local content. For example, an oil and gas training program was launched in cooperation with NATIN, and the Blue Wave program was established, through which Staatsolie and Chevron support local suppliers in preparing for the sector.
The Suriname Supplier Registration Portal (SSRP) was also launched. “This allows Surinamese companies to register and become more visible to international oil companies,” said Gangaram Panday.
Shortage of qualified personnel
During the Suriname Energy, Oil & Gas Summit & Exhibition (SEOGS), an agreement was also signed for the SURICAP program, which focuses on supporting education and the Foundation for Labour Mobilization and Development (SAO). Among other things, SAO provides guidance to early school leavers.
Gangaram Panday pointed out that several challenges remain regarding local content. Certification is costly for many companies, and there is a shortage of qualified personnel. At the end of the presentation, a follow-up session was announced to discuss the progress of the advisory document.
The discussion also focused on the question of when a company can be considered Surinamese and how local businesses can be protected. Swami Girdhari, secretary of the Association of Economists in Suriname, argued for a fully independent position for the Local Content Unit. “The Local Content Unit must be able, if necessary, to hold Staatsolie accountable. This can only happen if the Local Content Unit operates independently.”