The Minister for Energy, Dr. Matthew Opoku Prempeh has indicated that petroleum contracts for locals have increased by over 200% in the last ten years.
This is an increase from 6.5% recorded in 2013 to about 20% in 2023 since the implementation of the Local Content Regulation, LI 2204.
According to the minister, this is a sign of tremendous progress which inculcates locals in the petroleum industry of the economy.
Speaking at the opening of the 2023 Local Content Conference attended by Oil and Gas Industry players in Takoradi, he said the progress made possible by the passage of LI 2204 also propelled locals into discovering oil.
“The first oil development before the passage of the Local Content Regulation awarded only 6.5% of contracts to Ghanaian companies. After the passage of the regulations, about 20% of the value of contracts have been awarded to Ghanaian companies. We haven’t done bad at all. Let me point out that our drive towards optimal local content and participation also contributes to the successes we have achieved. I’m proud as a Ghanaian even now to say that we have a fully indigenous Ghanaian Exploration and Production company that has drilled and drilled successfully and discovered oil in the deep waters of this country. It’s not an easy feat,” he said.
However, while praising the achievements of the Petroleum Local Content Conference, which has become a flagship platform where oil and gas industry players meet to discuss the industry, Dr. Prempeh said it is about time the conference is opened to the international community for other experiences to be brought in.
The Chief Executive Officer of the Petroleum Commission, Egbert Faibille Jnr., on his part said the implementation of LI 2204 has brought tremendous opportunities for Ghanaian businesses and job opportunities for qualified Ghanaians.
In terms of capacity building for locals, Mr. Faibille Jnr added that it has also seen growth as ten more Ghanaians would soon be enrolled in pipefitting.
“Even though all oil and gas pass through pipelines, this country has never had any technical institution teaching and certifying anybody as a qualified pipe-fitter. We have identified that concern, and we have worked with our Minister, and we have sent 9 to Canada to train and are back at Takoradi Technical University, Kikam Technical, TTI, among others. We have also sourced funding of $250,000 from Yinson to start training ten more Ghanaians at a Polytechnic in Singapore in January for a 10-month training period in pipefitting. So by the time they come back, we will have a foundation faculty of 19 to train and certify pipefitting,” he added.
The Local Content Regulation, LI 2204 stipulates that every contractor, sub-contractor, and any other allied entity engaged in petroleum activities is required by the Local Content L.I. 2204 to incorporate local content as an important element in their project execution and management philosophy.
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