Petroleum Local Content law to be reviewed

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    By Iddi
    Yire, GNA

    Accra, Aug 23, GNA – The Petroleum Commission
    (PC) says the Petroleum Local Content and Local Participation Regulations, 2013
    (Legislative Instrument 2204) will be reviewed next year to make it more
    pragmatic and practical.

    Mr Kwadwo Asare Kyei, Manager of Local
    Content, PC, said proposals made towards the making of the new LI bothered on
    the Joint Venture Formation and some other interpretations of the law.

    He said the LI, which sought to enhance
    in-country value retention through participation of Ghanaians and Ghanaian
    businesses in the petroleum industry, had been beneficial to the country.

    Mr Asare Kyei said this on Thursday during a
    panel discussion on Ghana’s Oil and Gas Industry in Accra at a strategic
    roundtable forum organised by The Oil and Gas Year Ghana 2018 in Partnership
    with Ghana Oil Club (GOC).

    Speaking on the topic “Market Entry Strategies
    and Achieving Success”, Mr Asare Kyei said the Local Content Law had made
    possible for some Ghanaians working with international multinational companies
    operating in the country to rise to top management positions.

    He noted that the PC would soon crack the whip
    on defaulting oil companies, adding that the Commission would ensure full
    compliance with the Local Content Law and said the Monitoring and Evaluation
    Team of the Commission was currently inspecting 50 oil and gas companies to
    find out whether there were any infractions or violations of the law.

    He said defaulting companies would be invited
    to the Commission to find out why they were not complying with the law, and if
    their answers were not satisfactory, then the necessary sanctions would be
    applied to them and mentioned failure to engage Ghanaians, local insurance
    companies and local law firms as some of the infractions that attracted
    sanctions from the Commission.

    Mr Asare Kyei said the PC would ensure that
    local content was maximised for the benefit of the people of Ghana; stating
    that the PC was building the capacity of Ghanaians in the oil and gas sector.

    Mr Tesa Ayernor, Senior Commercial Advisor,
    Tullow Ghana, said one key factor, which helped them in their operations in
    Ghana was good stakeholder management and 
    their current focus was on good investment in Science, Technology,
    Engineering and Mathematics (STEM), as part of efforts to help build the human
    resource capacity of the country.

    Madam Rosalind Kainyah, Managing Director,
    Kina Advisory Services, said a lot of oil and gas companies knew what to do,
    but in doing it, things sometimes got complicated and urged them to do thorough
    due diligence before moving into any country to do business.

    Mr Fafanyo Kofi Martin Tengey, General
    Manager, DeepOcean, said the PC was moving in the right direction and called
    for the development of the human resource base of companies operating in the
    oil and gas sector.

    Mr Michael Ballmann, Country Director, The Oil
    and Gas Year, said Ghana needed to compete at the global market level to be
    able to attract investors into the country; adding that investors would only
    come if the right conditions were in place.

    Madam Hellen Adzoa Kpeglar, Managing Director,
    GOC, said the roundtable was held to give their members an opportunity to gain
    knowledge from-renowned industry experts and global players and as a non-profit
    making entity, the Club had the aim to facilitate lively and informed
    discussions on evolving and topical issues in the energy sector, as it
    concerned Ghana.

    GNA

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