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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.
Petroleum
Commission
to
continue
to
build
capacities
of
local
firms
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.
New
local
content
LI
comes
with
channel
partnerships
and
strategic
alliances
For
his
part,
George
Ankomah,
Deloitte
Ghana’s
Lead
Tax
Partner,
highlighted
the
significance
of
the
introduction
of
channel
partnership
and
strategic
alliance
models
of
investments
that
allow
foreign
investors
to
partner
IGCs,
without
necessarily
incorporating
a
local
company.
“This
is
a
very
good
initiative
which
will
especially
allow
for
specific
short-term
projects
to
be
executed
without
the
administrative
burden
of
a
JV
entity.
I
think
that
this
introduction
once
implemented
would
be
very
great
for
the
industry”,
he
added.
“We
have
also
seen
amendments
around
the
definition
of
what
constitutes
an
IGC
which
used
to
be
that
the
Ghanaian
national
should
own
at
least
51%.
This
has
now
been
amended
to
100%
Ghanaian
ownership,
which
in
other
words
increases
the
involvement
of
Ghanaians
within
the
industry.
Then
we
have
also
seen
another
introduction
which
the
supplies
is
reserved
for
Ghanaians”,
he
added.
Upstream
petroleum
sector
witnessed
immense
progress
Sharing
insights
on
the
local
content
regime,
Kwaku
Boateng,
Director,
Local
Content
at
Petroleum
Commission
said
the
industry
has
come
far
since
the
discovery
of
oil,
adding,
a
lot
has
been
done
in
the
area
of
local
content
with
enviable
achievement.
Though
he
admitted
that
there
are
some
challenges,
he
pointed
out
that
the
Commission
continues
to
review
and
introduce
regulations
and
guidelines
in
line
with
the
current
development
in
the
industry.
The
Deloitte
Petroleum
Commission
webinar
witnessed
significant
participation
across
the
petroleum
ecosystem
and
other
sectors.
The
aim
of
the
webinar
was
to
discuss
the
current
local
content
issues
pertaining
to
the
upstream
sector
from
the
perspectives
of
a
regulator,
investor
and
business
consultant.
About
Deloitte
Deloitte
Ghana,
is
part
of
the
global
firm
“Deloitte”
and
has
a
long
history
in
the
country,
dating
back
to
1947.
Its
offerings
include
auditing,
assurance,
tax
and
regulatory,
consulting,
financial
advisory
and
risk
advisory.