Ghanas recent local content and participation in petroleum activities bill passed in 20 sets a goal of 90 percent local content in the industry in the next decade. This reader discusses how governments try to promote local content and some of the challenges they face in fostering lasting benefits. Ghana shipping amendment act, 2011, act 826 the amendment was intended to inject local content into the oil and gas development by encouraging ghanaians to participate in the shipping activities relating to offshore business. Petroleum commission ghana petroleum commission ghana.
The local content bill, 2018 7 local goods means materials or equipment mined, produced or manufactured in kenya and for this purpose, a good shall be considered to be manufactured, processed or assembled if it differs substantially in its basic characteristic, purpose or utility or in the case of a. We are optimistic that our website will provide all the information you require about ghanas upstream petroleum regulator. Local content policy for power sector the government will extend the local content policy to the power subsector to encourage more local participation, the minister of energy and petroleum, mr armah kofibuah, has disclosed. Cabinet approves local content policy for oil and gas. Nigerian oil and gas industry content development act, 2010. Part one districts and district assemblies establishment 1. Requirement for submitting local content performance report. Peninah aheebwa, director technical support services at pau, also noted that for sustainability in local content development, uganda is harnessing linkages between oil and other sectors of the economy such as agriculture, engineering, construction, health, education.
The resurgent ambition to achieve national development through oil catalysed strong elite support for increased local. Highlights the local content framework is set out briefly in the mining legislation, with more detail provided in the general mining regulations. Commencement be it enacted by the national assembly of the federal republic of nigeria as follows. Support for technology transfer to indigenous ghanaian companies. A minor find was made in 1970 in the saltpond field in eastern ghana and some 3. The objective of the regulations is to achieve a minimum of fiftyone percent 51% equity participation in wholesale supply and distribution in. Local content and local participation policy and legislation have come to stay in ghanas oil and gas industry. Thus, the focus of this paper is to briefly explain the local content act and its implication on tvet and the nigerian economy. Local content and participation in ghanas oil and gas.
Local content and private sector participation in ghanas oil industry. Pdf the politics of local content legislation in ghana. Local content policy document volta river authority. A push toward local content strives to ensure that a company is hiring local labor and procuring local goods and services from the host country. In the mining sector, ghana, long africas second largest producer of gold, operated on a scale sufficient to increase the development of the local supply chain. The local content committee established by the board of the commission is required to. The evidence suggests that ghanas local content and local participation legislation could be more effective in stimulating the growth of indigenous businesses in the oil and gas industry currently. The law required that mining companies procured inputs from ghana to the maximum extent possible consistent with the economy, efficiently and safely. Background oil exploitation in ghana began as far back as 1896 by the west african oil and fuel company. Local content in oil and gas legal and policy issues in uganda local content in oil and gas legal and policy issues in uganda 3 c. Local content policies in the oil, gas, and mining sector. Making the most of our oil and natural gas maximising benefits and value retention from guyanas petroleum resources through capacity development, local content and value addition a policy framework working draft for discussion and input ministry of natural resources april, 2017. On 22 nd december, 2017, the energy commission local content and local participation electricity supply industry esi regulations, 2017, l.
A similar commitment emerged in ghana following its 2007 oil discoveries. Local content policy for power sector ghana investment. Not for citation or quotation ana maria esteves bruce coyne ana moreno. Likewise, just as the ghanaian national ppp policy, the bill includes local content and technology as a guiding principle. This report an outcome of an expert group meeting held on the challenge of local government financing in developing countries documents both the challenges and solutions related to the ability of local governments to mobilize revenues from local resources. Pdf on jan 1, 20, john kwadwo oseitutu and others published a study of ghanas oil and gas industry local ghanaian content policy process find, read and cite all. Ghanas local content law petroleum local content and local participation regulations 20 sets out the framework for catalysing linkages between the oil and gas sector and the broader economy. The ghana integrated aluminium development corporation giadec was established under an act of parliament in 2018.
Local content requirements lcrs are policy measures that typically require a certain percentage of intermediate goods used in the production processes to be sourced from domestic manufacturers. Abstract the petroleum industry in nigeria is the largest industry and mean generator of gross domestic product gdp in the west african nation. Furthermore, whilst local content seems to be a recent fad, the policy has reflected in ghana s mining legislation, since the minerals and mining law pndc law 153 of 1986. With these myriad of challenges, the practical realities of achieving some of the goals in local content laws may not be achievable. The stateled enterprise development project is considered a pragmatic step by the state to enhance the capacity of ghanaian businesses and facilitate. Ghanas petroleum local content regulations li2204 came into effect in february 2014, after commercial discovery in 2007. Motivation for the application of distinct local content policies in several sectors of the ghanaian economy however local content application in the oil and gas sector has not been without issues. Local governance act, 2016 act 936 arrangement of sections section part one local government districts and district assemblies 1. Local content and local participation in petroleum activities aws.
However, tullow oil has also taken the effective initiative to create several local contents within the regions of ghana. The report also identifies successful governance mechanisms for efficient. The same tendency emerged with ghanas post2007 oil discoveries, where. Local content requirements in the mining sector of ghana also have not yielded optimal results issues in the oil and gas sector include. In line with setting stage to position ugandans to benefit from the massive investments during the oil and gas development phase, cabinet has approved the local content policy for the oil and gas industry. If successful, a policy to increase local content can. The nigerian oil and gas industry content development act the act is designed to. This is commendable, given nigerias local content law. Unlike in ghanas petroleum sector, there are no regulations dedicated to local content. The giadec is mandated to promote and develop an integrated aluminium industry from the mining of bauxite through to the refining, smelting, and marketing of finished products. The ghana local content and local participation bill 20 is a bill passed in november 20 by the ghanaian government that stipulates that ghanaians.
In november 20, li2204 was promulgated to inter alia promote maximisation of valueaddition and job creation through the use of local expertise, goods and services business, financing in the petroleum industry value chain and their retention in ghana. Enhancing the benefits at the subnational level policy framework prepared for revenue watch institute october 2012 draft. Local content refers to the local procurement and capacity building within the society. Nigerian oil and gas industry content development act 2010 no. A survey of the literature on local content policies in the oil and gas industry in east africa chilenye nwapi summary although oil and gas exploration has been going on in east africa for decades, until recently exploration activities grew more slowly compared to other regions in africa. The petroleum local content and local participation regulations are meant to, among other things, promote the maximisation of valueaddition and jobcreation. One of the main objectives of this bill on publicprivate partnerships is to encourage and promote local content in ppp projects section 1 objectives.
The overall approach to local content in ghana is governed by the interaction of the petroleum local content and local participation regulations, 20 l. Prospering local content of ghana can be included within the socio and economic impact of tullow oil plc within the region of ghana. Resourcerich countries are increasingly inserting requirements for local content local content provisions into their legal framework, through legislation, regulations, contracts, and bidding practices. Inspite of the huge financial investment made by the nigerian government in the oil and gas industry of. A nigeria content development and monitoring board the board has been established and vested with the responsibility to implement the provisions of the act, make procedural guidelines and monitor compliance by operators within the oil industry. In the case of ghana, some oil industry experts have deemed the. Local government act, 1993 act 462 act 462 local government act, 19931 an act to establish and regulate the local government system in accordance with the constitution and to provide for related matters. Demarcation of areas of authority of subdistrict structures 3. While the bill sets medium and longterm goals for various subsectors of the industry, it is still highly ambitious. A look at local content rules and the case of ghana devex. Its a thumps up for ghanas local content on petroleum. Content is very important in its operations which needs to be maximized. Conceptualizing tvet in most advance economies, industrialization most certainly emanate from tvet kutz, 2001.
Local content and local participation legislation a. Local content and value addition in ghanas mineral, oil, and gas. The world banks sustainable energy department and oil, gas and mining unit are organizing a global conference on local content in the oil, gas, and mining sectors. At petroleum commission, our mandate is to regulate, manage and coordinate all activities in the upstream petroleum industry for the benefit and welfare of ghanaians. In 2007 ghana made discoveries of oil and gas in two deepwater blocks. To recommend key actions and reforms uganda needs to take up to have an effective local content policy, legal and institutional regime.
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