Dr. Matthew Opoku Prempeh, the Minister for Energy, has noted a significant rise in petroleum contracts awarded to local entities, increasing from 6.5% to approximately 20% over the past decade since the implementation of the Local Content Regulation, LI 2204.
Speaking at the commencement of the 2023 Local Content Conference attended by key players in the Oil and Gas Industry in Takoradi, Dr. Opoku Prempeh characterized this advancement as remarkable progress.
During a press briefing session preceding the Local Content exhibition’s inauguration, he highlighted how the substantial progress, made possible by the enactment of LI 2204, has not only increased local participation in petroleum contracts but has also spurred locals to engage in the discovery of oil.
“The first oil development prior to 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.
Matthew Opoku Prempeh
“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 any easy feat.”
Dr. Matthew Opoku Prempeh
The Energy Minister, commending the accomplishments of the Petroleum Local Content Conference, a prominent platform for oil and gas industry stakeholders, suggested that it is high time the conference is extended to the global community, allowing for the infusion of international perspectives and experiences.
Petroleum Commission’s Impact
Addressing the theme of this year’s Petroleum Local Content Conference, “10 years of Local Content in Ghana’s Upstream Petroleum Industry: Achievements, Challenges, and Prospects,” Egbert Faibille Jnr., the Chief Executive Officer of the Petroleum Commission, emphasized that the implementation of LI 2204 has generated significant opportunities for Ghanaian businesses and created job prospects for qualified Ghanaians.
Regarding capacity building for locals, the Chief Executive of the Petroleum Commission noted positive growth, highlighting that ten additional Ghanaians would soon undergo enrollment in pipefitting.
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Egbert Faibille Jnr.
“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,”
Egbert Faibille Jnr.-CEO, Petroleum Commission
The CEO of the Petroleum Commission, Egbert Faibille Jnr., and the Minister for Energy, Dr. Mathew Opoku Prempeh, are prominent figures at this year’s 4-day Petroleum Local Content Conference. On the second day, various stakeholders, including Wissam Al Monthiry (MD of Tullow Ghana), Giuseppe Valenti (MD of ENI), Kadijah Amoah (CEO of PECAN Energies Ghana), among others, will deliver presentations reflecting on 10 years of Local Content Development in Ghana’s Upstream Petroleum Sector.
Over the past decade, local companies in Ghana have played a pivotal role in the petroleum sector’s growth. The implementation of Local Content Regulation, LI 2204, has led to increased participation, job creation, capacity building, and technology transfer. Local entities contribute to entrepreneurship, innovation, and community development, fostering a self-sufficient and competitive petroleum industry. Advocating for local content, these companies have become integral stakeholders, shaping Ghana’s position in the global petroleum landscape.
