Local Content

Additional Information

WHAT IS LOCAL CONTENT AND PARTICIPATION

 

Local Content refers to the quantum/percentage of locally produced materials, personnel, financing, goods and services rendered to the oil industry and which can be measured in monetary terms.

 

Local Participation refers to the level of Ghanaian Ownership in the oil and gas industry.

 

To qualify as a Ghanaian/indigenous company, the company must have at least 51% of its equity owned by a Ghanaian with 80% executive and senior management positions and 100% non-management and other positions occupied by Ghanaians.

 

 

PETROLEUM (LOCAL CONTENT AND LOCAL PARTICIPATION REGULATIONS 2013, (L.I. 2204)

 

In November 2013, L.I.2204 was promulgated to inter alia promote maximisation of value-addition 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. The Local Content Committee established by the Board of the Commission is required to oversee the implementation of L.I.2204.

 

The development of local content is premised on these key objectives as captured in the L.I.2204:

 

  • • Maximizing the patronage of Ghanaian goods and services and thereby increase in- country spend;
  • • Increased employment of Ghanaian Professionals by ensuring the localization of job opportunities;
  • • Facilitate Technology and Skills Transfer through Training, Research and Development;
  • • Local Participation by encouraging Ghanaians to have equity ownership and management participation in upstream petroleum activities; and
  • • Develop Local Capacities resulting in increased capabilities and competitiveness of indigenous Ghanaian companies and individuals.

 

Every contractor, sub-contractor and any other allied entity engaged in petroleum activities is required by the Local Content L.I.2204 to incorporate local content as an important element in their project execution and management philosophy. Every petroleum project, activity or transaction must have a Long-Term and Annual Local Content Plan which would be assessed and approved by the Commission.

 

The following metrics are prescribed by the L.I.2204 to measure local content in the upstream petroleum industry:

 

ACTIVITY

 

UNIT OF MEASURE

 

Human Resource

Headcount

Services (Direct) e.g Engineering services

Man Hours

Services (Indirect) e.g Vessels, ROVs, other rentals

Spend

Goods/Services (Distance) e.g Cables

Length

Materials (Raw or finished). e.g Fabrication

Tonnage

Goods Supply (Finished) e.g Valves, pumps, etc.

Number/Spend

Goods Supply (Liquids) e.g Chemicals, petroleum, etc.

Litres

 

 

COMMISSION’S FUNCTIONS WITH RESPECT TO LOCAL CONTENT

 

  • • Ensure compliance with local content targets as set in the Regulations;
  • • Ensure the utilisation of Ghanaian personnel, materials, services and businesses in the industry;
  • • Coordinate the flow of information among all relevant agencies and collaborate with other institutions on matters concerning the industry;
  • • Develop guidelines, directives and policies to promote local content; and
  • • Undertake public education on local content policies, laws, regulations, philosophy and implementation.

 

 

KEY IN-COUNTRY FABRICATIONS CARRIED OUT IN THE INDUSTRY

 

  1.  Module Stools
  2.  Jumpers 
  3.  Suction Piles
  4.  MSleepers
  5.  Riser Base
  6.  Riser Protection Framework
  7.  Manifolds (Gas Export Manifold)
  8.  Mud Mats 
  9.  Sealines

 

 

 

 

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Ghana

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P.O. Box CT 228 Cantonments, Accra, Ghana

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