Local companies operating in the upstream oil and gas sector are looking to liaise among themselves to increase the local content participation in the sector.
Although there is a law requiring some level of local participation in the sector, many indigenous companies do not have enough capital to venture into that area.
A group of companies in the oil and gas sector which took part in the just ended trade mission to Scotland are discussing ways of subletting contracts among themselves.
Speaking to Starr Business on the development, the CEO of the Petroleum Commission Egbert Faible said, “One of the key learnings from this is that, we found out that companies from Ghana, some of them did not even know one another and the fact is that there was ample space within the upstream sector for subcontracts to be awarded to Ghanaian companies.
“This platform has brought up that and companies have agreed and made deals, agreements to subcontract to one another among other things.”
He added “I am very happy and very optimistic and that there are other things to come, other trade missions after which the Petroleum Commission will look Ghanaians on the face and say we have delivered on that mandate among the many mandates that Act 821, the Petroleum Commission Act of 2011 has imposed on us.”
The Petroleum Commission in February this year served notice it would by the end of the year increase the local content requirement for foreign companies operating in the oil and gas sector.
The move follows the Public Accounts Committee’s (PAC) call on the Commission to expedite action on developing the required local technical skills that will enable the country take control of the production and management of its oil resources.
Contained in the audit report of the Auditor General on the implementation of local content in the oil and gas space of Ghana, PAC also advised the Commission to support local firms to raise capital to enable them increase their shareholding in future oil blocks.
In November, 2013, LI2204 was promulgated to inter alia promote maximisation of value-addition and job creation through the use of local expertise, goods and services business, financing in the petroleum industry value chain and their retention in Ghana.
The Local Content Committee established by the Board of the Commission is required to oversee the implementation of LI2204.
Currently, there are a number of services which have been reserved for locals under the act that established the commission. But many local firms are unable to meet the requirements.