Local Content Compliance: Employment and Training of Nonskilled Ghanaians In the Upstream Petroleum Industry
The objective behind Ghana's local content requirement is to ensure the involvement of Ghana's industry, including its national oil company, in the development of the exploration, production, and decommissioning value and supply chain.
Local content is an obligation recognized in any exploration and production contract or by law or regulation and enjoining companies to procure a minimum percentage of goods, equipment, and services from local suppliers.
The objective behind Ghana's local content requirement is to ensure the involvement of Ghana's industry, including its national oil company (i.e., Ghana National Petroleum Corporation), in the development of the exploration, production, and decommissioning value and supply chain.
One of the most significant vital objectives sought to be actualized under the local content platform is the maximization of the benefits of oil and gas industry wealth generation on a comprehensive local content platform by maximizing the use of
- Local expertise
- Goods and services
- Job creation for the people and businesses
- Financing in all aspects of the oil and gas industry value chain and the retention of the benefit within Ghana
The Petroleum Commission. The Petroleum Commission, created by Petroleum Commission Act, 2011 (Act 821), was established to oversee activities in the country's petroleum industry. Its functions extend to promoting local content and local participation in petroleum activities as prescribed in the Petroleum Exploration and Production Act 1984 (P.N.D.C. Law 84) and other applicable laws and regulations to strengthen national development.
In exercise of powers conferred on the Minister of Energy by Act 821, Ghana's local content and local participation regulations were made. The regulation, which came into force on the 20 November 2013, is known as Petroleum (Local Content and Local Participation) Regulations, 2013 L.I 2204. Despite establishing the Local Content Committee, the commission still retained its duty of promoting local content and local participation in the petroleum activities and shared the responsibility of implementing the provisions of the regulations with the Local Content Committee.
Local Content Committee. The Local Content Committee was established by Regulation 5 of L.I 2204 and is saddled with the duty of overseeing the implementation of the regulations. The responsibilities of the committee extend to
- Overseeing, coordinating, and managing the development of local content
- Preparing guidelines to include targets and formats for local content plans and reporting
- Making appropriate recommendations to the commission for smooth implementation of the regulations
- Setting minimum standard requirements for local content in local content plans where applicable
- Undertaking public education
- Conducting local content monitoring and audit
- Performing other functions conferred on the committee by the commission per the provisions of applicable laws
The committee is further required to submit quarterly reports of its activities to the commission.
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