The government is to set up an Oil and Gas Business Development and Local Content Fund to support local capacity development to ensure that majority of the manpower in the sub-sector is Ghanaians.
The fund will be used primarily for education, training and research and development in the oil and gas upstream sub-sector, the Minister of Energy, Dr Joe Oteng-Adjei, has said.
He told the Daily Graphic in Accra that the training of Ghanaians to secure expertise in oil and gas would facilitate their participation in the industry towards ensuring that the country attained approximately 90 per cent participation level by 2020.
The fund would be resourced with contributions from licensed operators in the industry, a special oil and gas revenue, levies, grants and other support from the country’s development partners, while the ministry would have oversight responsibility for the disbursement of the fund.
The mandatory local content in oil and gas development policy would guarantee the interest of Ghanaian citizens in petroleum exploration, development and production; provision of goods and services by national entrepreneurs; training and technology transfer; employment and training of Ghanaian citizens; local capability development and ensuring gender parity in the oil and gas industry.
The minister said the policy stipulated that the government would support local training and technical institutions to develop the requisite capacity to international standards to be able to train Ghanaians to comparable high levels as required by the industry.
Areas of interest include lower skill artisanal training such as welding, catering services, middle-level skill training of technicians to provide maintenance services, offshore-and onshore drilling, as well as high-level skill training, including general management, engineering design, procurement and business strategy development.
The domestic content policy also commits the government to provide support for local businesses in the sector, saying, "The government will deploy fiscal and other financial sup-port mechanisms to promote the development of local businesses in the petroleum sub-sector."
A policy document shown to the Daily Graphic indicates that operators would enjoy fiscal incentives and rewards from the state for complying with all local content and local participation regulations, which directs all regulatory authorities, operators, contractors, sub-contractors and any other entities involved in any project, operations, activity or transaction in Ghanaian oil and gas industry to consider local content as an important element in their project development and management philosophy for project execution.
In that regard, the Energy Ministry has directed that every project, operation, activity or transaction must have a Local Content Plan that should include all aspects of the oil and gas operations.
The policy directs that authorities and regulatory bodies must give first consideration to Ghanaian independent operators in the award of oil blocks, oil field licences, oil lifting licences and in all projects for which contract was to be awarded in the Ghanaian oil and gas industry.
In the case of non-Ghanaian owners, the policy mandates at least five per cent ownership by Ghanaian citizens in any exploration and production activities under petroleum licences and that the interest of the citizen of Ghana shall not be transferable to a non-citizen of Ghana.
After the commencement of operations, the participation of Ghanaians shall be at least 10 per cent by value in the provision of goods and services or as may be prescribed by regulations.
In the provision of goods and services, all operators in the oil and gas industry would, as far as practicable, use goods and services produced by or provided in Ghana for their operations in preference to foreign goods and services, a policy measure to ensure increased financial benefits to Ghanaians, and the Ghanaian state.
According to the policy document, where bids 'are being evaluated, and any are found equal, the bid containing the highest level of Ghanaian content shall be selected and that any foreign entity to provide goods and services for the licensee must be registered in Ghana, partner with a Ghanaian-owned company and operate from Ghana.
Consequently, an operator or agent carrying out petroleum operations in the country would be required to prepare and implement plans for the transfer of technological know-how and skills relating to petroleum operations to Ghanaians and to establish in the country any necessary facility for technical work.
That, in the spirit of the policy framework, would become the bedrock for an operator in the petroleum subsector to ensure that opportunities are given as far as possible for the employment of Ghanaians having the requisite expertise or qualifications in the various levels of the operations.
And within 12 months after the grant of a licence, the local content policy requires the operator or agent to submit to the relevant regulatory agency for approval a detailed pro-gramme for recruitment and training of citizens of Ghana.
The programme shall provide for the training of Ghanaians in all aspects and phases of petroleum activities, including management.
Source: Daily Graphic
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Tags:
Latest Stories
-
Africa Food Systems Parliamentary Network urges governments to increase investment in agriculture
6 hours -
AU and partners urge youth to get involved in efforts to transform continent’s food systems
6 hours -
Fire kills 3-year-old at Asawase-Dagomba Line in Ashanti Region
7 hours -
Paskal A.B. Rois: How Mahama inspires me
7 hours -
Complete abandoned projects in Akatsi North District – Chiefs to Mahama
7 hours -
Painter and sculptor B. Acheampong turning his passion for art into profitable venture
8 hours -
Presidential lodge, RM residency in Ashanti region left to rot away
9 hours -
Herty Corgie highlights the essence of gratefulness in ‘My Gratitude’
10 hours -
ANNOUNCEMENT: Joy FM temporarily goes off air January 11
11 hours -
Yango honored with two titles at the Technovation Africa Awards 2024
11 hours -
Aowin Traditional Council declares war on illegal mining with spiritual intervention
11 hours -
Leadership must ensure equity for all citizens, regardless of faith – Asiedu Nketiah
11 hours -
Prof. Alex Manu appointed Executive Director at Centre for Social Justice
11 hours -
Imminent changes within some key security agencies, state institutions, and its implications
11 hours -
There are more women than men, but there’s a man for every woman – Rev. Nana Yaa
12 hours