In a bid to boost local participation and sustainability in Ghana’s rapidly expanding oil and gas industry, the government has made a bold commitment to support indigenous operators within the sector.
This major policy shift is designed to address the long-standing challenges faced by local companies, ensuring that Ghana’s oil and gas resources are utilized to benefit its people directly, while fostering a competitive domestic energy market.
Mr. Joshua Batsa Narh, Executive Chairman of the Energy Chamber Ghana and Director at Wingfield Group, in an interview with Vaultz News shared his insights on how partnerships between international and indigenous companies can drive Ghana’s energy sector forward.
“Partnerships between international oil companies (IOCs) like ENI and indigenous firms like Springfield can unlock transformative value for Ghana’s energy sector.
“Their success hinges on structuring collaborations that align incentives, leverage complementary strengths, and prioritize long-term sustainability.”
Mr. Joshua Batsa Narh, Executive Chairman of the Energy Chamber Ghana and Director at Wingfield Group
Ghana’s oil and gas industry has grown significantly since its first commercial oil discovery in 2007, largely driven by the involvement of major international oil companies (IOCs) like Tullow Oil, ExxonMobil, and ENI.
Despite the growth, local operators have faced challenges in competing with these larger players due to limited access to capital, technology, and expertise.
Mr. Narh outlined several partnership models that could foster shared value creation and promote local participation. He emphasized three key structures: “joint ventures (JVs), technical service agreements (TSAs), and capacity-building alliances.”
The Joint Ventures (JVs) with Equity Participation model sees international oil companies holding a majority stake while transferring their technical expertise to local firms, which contribute local knowledge, a skilled workforce, and community trust.
Mr. Narh noted that these partnerships can develop co-created operational strategies that are specifically tailored to Ghana’s unique geological and market dynamics.
He cited the example of a potential JV managing the Afina field, combining ENI’s deepwater expertise with Springfield’s insight into Ghana’s regulatory and social landscape.
Under the Technical Service Agreements (TSAs) model, Mr. Narh revealed “IOCs provide specialized services, such as seismic imaging and drilling expertise, while local firms maintain operational control.”
This approach reduces costs for local companies while enabling them to complete projects on time without ceding equity. Mr. Narh suggested that Springfield could contract ENI’s subsea engineering team to optimize well design, helping avoid costly delays.
For Capacity-Building Alliances, Mr. Narh indicated that the focus is on fostering long-term local expertise through training programs, research and development hubs, or technology transfer initiatives.
IOCs, such as ENI, would fund these efforts, which would align with the Petroleum Commission’s Local Content Policy, promoting self-reliance.
“This would not only foster sustainability but also create a workforce equipped with cutting-edge knowledge in areas like carbon capture and AI-driven reservoir modeling.”
Mr. Joshua Batsa Narh, Executive Chairman of the Energy Chamber Ghana and Director at Wingfield Group
Key Innovation Drivers in Partnerships
Innovation is key to maximizing the potential of Ghana’s oil and gas sector, and Mr. Narh highlighted several drivers that could propel these partnerships forward.
Mr. Narh noted that one of the key benefits of these collaborations is the transfer of advanced technology.
“IOCs can share proprietary tools like ENI’s 3D reservoir simulation software, while local partners adapt them to regional challenges, such as shallow-water gas seeps in the Tano Basin.”
Mr. Joshua Batsa Narh, Executive Chairman of the Energy Chamber Ghana and Director at Wingfield Group
This according to him would not only accelerate innovation but also reduce Ghana’s reliance on foreign contractors.
Mr. Narh suggested that a key area of focus for partnerships should be joint research and development (R&D) projects.
“Ghanaian universities and institutions, such as the GNPC Research and Training Centre, could work alongside IOCs to address sector-specific challenges like reducing gas flaring or improving produced water management.”
Mr. Joshua Batsa Narh, Executive Chairman of the Energy Chamber Ghana and Director at Wingfield Group
This collaborative approach would also strengthen local research capabilities.
Mr. Narh also pointed out the importance of co-investing in digital platforms that enable real-time data sharing. Technologies like IoT sensors for pipeline monitoring can allow predictive maintenance, which ultimately helps in minimizing downtime and optimizing operations.
Government’s Role in Facilitating Partnerships
The role of the Ghanaian government is pivotal in creating an environment where these partnerships can thrive.
Mr. Narh suggested the government could offer tax breaks or royalty reductions to partnerships that meet specific innovation or local content benchmarks.
These incentives would encourage international companies to collaborate with local firms and foster the growth of the domestic energy sector.
“Allowing pilot projects with relaxed regulations would provide an opportunity to test new models, such as blockchain-based supply chains, in real-world environments.
“This would lower the barriers to innovation for local companies and create a space for experimentation.”
Mr. Joshua Batsa Narh, Executive Chairman of the Energy Chamber Ghana and Director at Wingfield Group
To build investor confidence, strengthening arbitration mechanisms under Ghanaian law is essential. This would ensure that any disputes between local and international partners could be resolved fairly and efficiently.
In recent months, significant strides have been made to resolve disputes and enhance collaboration within the industry. President Mahama directed the Energy Ministry to resolve the unitization talks between ENI and Springfield, aiming to bolster investor confidence and enhance Ghana’s oil revenue prospects.
Additionally, Springfield is nearing the completion of the Afina appraisal drilling, positioning itself to become the first wholly owned Ghanaian company in the upstream oil and gas sector.
These developments underscore a concerted effort by the government, international partners, and indigenous companies to create a more inclusive and sustainable oil and gas industry in Ghana.
By fostering strategic partnerships, investing in local capacity, and implementing supportive policies, Ghana aims to ensure that its oil and gas resources serve as a catalyst for national development and prosperity.
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