Energy Ministry pushes for increase local content in oil industry

Business News of Thursday, 31 May 2018

Source: citibusinessnews.com

2018-05-31

Energy Minster, Boakye Agyarko

Energy Minister, Boakye Agyarko has given indication that the Ministry of Energy will focus on ensuring that more Ghanaians take advantage of investment opportunities in the petroleum sector.

The local content and participation policy for the downstream sector was submitted to cabinet for consideration in 2017 and approved in 2018.

But the draft policy is yet to be passed into law by Parliament.

The policy seeks to among other things increase local investment and create more jobs in the petroleum sector.

Launching the 2017 Petroleum Industry Report, Mr. Agyarko said there is the need to increase Ghanaian participation in the Petroleum sector.

“In spite of the fact that there is an active participation of Ghanaians in the petroleum downstream, there is more need for a coordinated effort towards ensuring that the subsector remains in the hands of Ghanaians.”

Local content and local participation policy for the downstream sector was one of the key issues discussed at Cabinet’s 30th meeting held last month.

The Local content and Participation policy was prepared by the Energy Ministry in consultation with the key stakeholders in the industry over a period of three years.

It has undergone several reviews and consultations to make it acceptable for all stakeholders.

According to Mr. Agyarko, it is government’s vision to achieve a minimum of 51 percent Ghanaian equity participation in all aspect of the petroleum downstream value chain.

He added that “government is implementing this policy to attract global investments, create more job opportunities and indigenize knowledge, expertise and technology in the petroleum downstream.”

The Local Content policy if passed into Law will require that existing petroleum providers operating in the country will ensure full compliance within a maximum of ten years from the date of implementation.

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