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The
Chief
Executive
Officer
of
the
Petroleum
Commission,
Egbert
Faibille
Junior,
said
foreign
companies
operating
in
the
upstream
oil
and
gas
industry
in
Ghana
are
required
to
incorporate
Joint
Ventures
(“JV”)
with
their
Indigenous
Ghanaian
Company
(IGC)
counterparts.
“As
an
alternative
to
the
JV
arrangement,
the
Petroleum
(Local
Content
and
Local
Participation)
(Amendment)
Regulations,
2021
(L.I.
2435)
has
introduced
strategic
alliances
and
channel
partnerships
as
new
arrangements
through
which
foreign
companies
can
participate
in
Ghana’s
upstream
oil
and
gas
industry.
This
is
in
line
with
the
Commission’s
objective
to
build
local
capacity
and
skills
as
well
as
develop
internationally
competitive
businesses”,
he
stated.
According
to
him,
his
outfit
will
not
discourage
foreign
participation
but
will
also
not
allow
inefficient
and
uncompetitive
local
processes.
He
assured
that
the
local
participation
will
be
maximised
through
procurement
of
local
goods
and
services
which
will
act
as
a
multiplier
for
national
economic
development.
“It
is
therefore
important
to
note
that
Ghana’s
local
content
law
is
not
about
nationalisation
of
the
petroleum
sector
or
a
protectionist
initiative
but
a
medium
for
partnering
investors
to
develop
local
capacities
that
will
bring
mutual
benefit
to
the
private
operators
and
the
citizenry
who
own
the
resources”,
he
added.
He
outlined
the
initiatives
undertaken
by
the
Petroleum
Commission
to
develop
local
capabilities
and
maximise
local
participation
in
the
oil
and
gas
sector.
First,
he
said
following
the
passage
of
Petroleum
(Local
Content
and
Local
Participation)
Regulations,
2013
(“L.I.
2204”)
as
amended,
the
Commission
embarked
on
a
comprehensive
stakeholder
engagement
with
all
international
oil
companies,
major
service
providers
and
other
key
stakeholders
on
the
provision
of
the
legislative
instrument
and
to
seek
their
inputs
and
cooperation
in
its
implementation.
“I
must
admit
that
this
exercise
has
gone
very
well,
and
we
are
able
to
clarify
various
provisions
or
concern
to
our
partners
throughout
the
various
areas
that
we
have
had”,
Mr.
Faibille
Junior
explained.
Secondly,
following
the
passage
of
L.I.
2204
as
amended,
he
said
the
Commission
established
the
local
content
committee
overseeing
the
implementation
of
local
content
programmes,
projects,
and
initiatives.
The
committee’s
membership
has
since
been
enhanced
to
include
key
stakeholders
in
the
sector.
Mr.
Faibille
Junior
continued
that
the
committee
plays
a
key
role
in
the
effective
implementation
of
local
content
regulations.
Deloitte
Ghana
and
Petroleum
Commission
have
jointly
held
a
webinar
on
‘Understanding
the
Local
Content
Regime
in
the
Upstream
Oil
and
Gas
Sector
Ghana’.
The
webinar,
which
was
highly
participated,
sought
to
deepen
the
discourse
on
the
current
local
issues
pertaining
to
the
upstream
oil
and
gas
sector
from
three
perspectives
–
Regulator,
Consultant
and
Industry
Players.
Opening
the
webinar,
Deloitte’s
Country
Managing
Partner,
Daniel
Kwadwo
Owusu,
said
Ghana
continues
to
explore
the
most
efficient
and
effective
ways
to
derive
maximum
value
from
its
natural
resources
to
build
a
more
resilient
economy
and
future
for
the
next
generation.
“An
important
theme
in
this
equation
is
the
“Local
Content”
framework
–
which
is
the
extent
to
which
the
output
in
the
extractive
sector
generates
further
benefits
to
the
economy
beyond
the
direct
contribution
of
its
value-added,
through
part
local
ownership
and
links
to
other
sectors”,
he
explained.
Mr.
Owusu
added
that
the
discussions
will
generate
valuable
insights
for
all
industry
players
and
shape
policy
direction
in
the
coming
years
towards
an
even
stronger
industry.