BY PHILIP ASANTE-MIREKU 1
What is local Content? An Overview of the Petroleum Local Content and Participation Regulation (PLCP) What IOCs stand to gain. How Stakeholders can contribute to Technical Development. Potential Challenges facing PLCP and Mitigation. Existing Structures to Develop Local Content in Ghana. 2
Local Content and Participation refers to the level of use of Ghanaian local expertise, goods and services, people, businesses and financing in oil and gas activities. A local content policy aims at value addition and job creation. 3
Parliament has passed the Petroleum Regulation on Local Content and Participation, 2013 L.I 2204. The Local Content and Participation Regulations has been in implementation since Feb,2014 and defines the extent of Ghanaian involvement. 4
Objectives of PLCP include: Maximizing oil and gas revenue through the use of local expertise, goods and services as well as job creation for the Ghanaian. Development of the quality of Local capability through education, skill and technological transfer and research. 5
Attainment of a degree of influence and control over development initiatives for local stakeholders Attainment of at least 90% Ghanaian participation throughout the oil and gas value chain is expected within a decade 6
the policy also aims at increasing the capabilities and international competitiveness of Ghanaian business and to create supportive industries that will sustain economic development. 7
Preference is accorded to Ghanaian independent firms in the award of oil blocks, oil field licenses and in all projects involving the award of contracts. The Regulation also requires oil and gas operators to procure, as far as practicable, locally available goods and services produced by or provided in Ghana in preference to foreign goods and services. 8
The Policy also makes a mandatory requirement on all operators to prepare and implement plans aimed at training Ghanaians in all job classifications relevant to the petroleum value chain. The policy aims at local capability development through the provision of support to local training and technical institutions 9
PLCP affords the IOCs an opportunity to identify and assess the suitability of Ghanaian suppliers. It affords IOCs an opportunity to tap into the vast human resource Ghana has to offer. Through EDC, the IOC are presented with an opportunity to engage certified and recommended local businesses in the provision of supplies and services. 10
Incorporation of oil and gas resource development and management in educational curricula. Organizing training workshops and seminars for technological transfer. Well-structured internship and training programs. Increase in the number of petroleum and petroleum-related scholarship opportunities 11
Arcane regulatory environments. Poorly structured implementation of Policies. Misappropriation of scholarship funds. Negligence and non-compliance by IOCs. 12
The establishment of EDC by government and Jubilee partners. USAID has awarded a $4.9 million, 5-year grant to Pyxera Global, an American company, to set up a Ghana Supply Chain Development Programme to promote collaboration between local small and medium-sized enterprises (SMEs) and the IOCs, and to build capacity 13
The Russian Government in 2011 increased the quota of scholarships it awards Ghanaian scholars pursuing various courses in Petroleum Engineering and Resource Management. Tullow Ghana Ltd (TGL) also awards annual scholarships to local students to study abroad, and provides them with opportunities to gain practical work experience in South Africa. 14
The development of a vibrant and effective local content policy and its implementation will go a long way to prepare the Ghanaian technically to ensure Governments vision of achieving full local participation in the oil and gas value chain by 2020 a reality. 15
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