In the past decade, there has been a notable surge in petroleum contracts awarded to local entities, marking a significant milestone in the implementation of the Local Content Law. This law, aimed at promoting the involvement of domestic stakeholders in the petroleum industry, has undoubtedly played a pivotal role in bolstering opportunities for local businesses. The increase in these contracts underscores the positive impact of the Local Content Law, as it not only fosters economic growth but also empowers local communities. This milestone serves as a testament to the effectiveness of this legislation and the commitment to sustainable development within the petroleum sector. As we continue to witness this upward trend, it is evident that the Local Content Law has successfully contributed to the advancement of our domestic petroleum industry.
Local Content Regulation, LI 2204
Petroleum contracts awarded to locals in Ghana have seen a significant increase over the past decade, according to the Minister for Energy, Dr. Matthew Opoku Prempeh. The implementation of the Local Content Regulation, LI 2204, has played a crucial role in this progress. Speaking at the 2023 Local Content Conference in Takoradi, Dr. Opoku Prempeh commended the tremendous growth achieved through the passage of LI 2204, which has not only increased the percentage of contracts awarded to Ghanaian companies but also facilitated the discovery of oil by local entities.
Statistics on Local Content Development
Before the enactment of the Local Content Regulation, only 6.5% of contracts were awarded to Ghanaian companies involved in oil development. However, since the introduction of LI 2204, this figure has risen to approximately 20%. Dr. Opoku Prempeh expressed his satisfaction with this achievement, emphasizing that the drive towards optimal local content and participation has contributed significantly to the successes realized.
Indigenous Ghanaian Exploration and Production Company
He proudly highlighted the existence of a fully indigenous Ghanaian Exploration and Production company that has successfully drilled and discovered oil in the country's deep waters, acknowledging the challenging nature of such an accomplishment.
Recognition of Petroleum Local Content Conference
The Minister for Energy commended the Petroleum Local Content Conference for its accomplishments and recognized it as a flagship platform for industry players to convene and discuss pertinent matters. He suggested that it is time to open the conference to the international community to enable the exchange of experiences and knowledge from other regions.
Theme of Petroleum Local Content Conference
The theme for this year's Petroleum Local Content Conference is "10 years of Local Content in Ghana's Upstream Petroleum Industry: Achievements, Challenges, and Prospects."
Job prospects and capacity building
The Chief Executive Officer of the Petroleum Commission, Egbert Faibille Jnr., highlighted the tremendous opportunities and job prospects that the implementation of LI 2204 has brought to Ghanaian businesses. He also emphasized the growth in capacity building for locals, citing an upcoming enrollment of ten Ghanaians in pipefitting training programs.
Faibille Jnr. acknowledged that despite the crucial role pipelines play in the oil and gas industry, Ghana lacked a technical institution that offered certification in pipefitting. To address this concern, the Petroleum Commission collaborated with the Minister and sent nine individuals to Canada for training. They have since returned and are now enrolled at various technical institutions in Takoradi. Additionally, funding of $250,000 from Yinson has been secured to train ten more Ghanaians in pipefitting at a Polytechnic in Singapore. Upon their return, there will be a foundation faculty of 19 individuals capable of training and certifying pipefitters.
Four-day Petroleum Local Content Conference
The Petroleum Local Content Conference is a four-day event that provides a platform for stakeholders to share insights and experiences. On the second day of the conference, industry leaders such as the Managing Director of Tullow Ghana, Wissam Al Monthiry, the Managing Director of ENI, Giuseppe Valenti, and the CEO of PECAN Energies Ghana, Kadijah Amoah, among others, will present their reflections on ten years of Local Content Development in Ghana's Upstream Petroleum Sector.
Commendation for progress made in local participation and capacity building
The progress made in increasing local participation in petroleum contracts and fostering capacity building in Ghana's oil and gas industry is commendable. The implementation of LI 2204 has undoubtedly played a pivotal role in these achievements. As Ghana continues to develop its upstream petroleum sector, it is crucial to sustain and further enhance local content initiatives to maximize economic benefits for the country and its citizens.
(This article is sourced from citinewsroom.com and curated by Thetransporteronline24)
