Tuesday, 27 February

Oil & Gas: We will not relent on our Ghanaian local content drive – Energy Minister

Dr Mathew Opoku Prempeh , Energy Minister

Energy Minister Dr Matthew Opoku Prempeh has reiterated the Ministry of Energy’s resolve to ensure that Ghanaian local content and Ghanaian participation are pursued aggressively.

According to Dr Prempeh, it is the means by which Ghana will not be recipients of only petroleum revenue but maximise value in the exploitation of its hydrocarbon resource.

The Minister gave this assurance when he addressed the 2023 Local Content Conference and Exhibition in Takoradi on Wednesday, 22nd November, 2023. 

He said ten (10) years of the passage of the L.I. 2204 and its implementation, the upstream petroleum sector has witnessed remarkable achievements. 

“In 2021 for instance, out of a total of US$1.3 billion value of services available, US$ 238 million went to Indigenous Ghanaian companies whilst US$1.1 billion went to Joint Ventures (involving indigenous Ghanaian companies),” he said

The Manhyia South law maker added that between 2014 and 2022, out of total contracts valued at US$17 billion, indigenous Ghanaian companies and joint ventures benefitted from contract values worth US$3.4 billion and US$5 billion respectively.

“Most importantly, industrial establishments that were non-existent prior to the passage of the L.I have emerged.

“There have been significant in-country investments by way of capital Investments, cementing units, waste management / thermal absorption plants, fabrication yards, manufacture of bolts, nuts and valves and refurbishments of some aviation facilities in Takoradi,” he added

Dr Prempeh said in ensuring local content and local participation, it is imperative that the capabilities of local service providers and personnel are developed to enable them offer products and services that meet quality standards in the oil and gas industry at prices that are competitive and also provide adequate returns on the resources employed or consumed in producing them.

The conference is expected to end on Friday with a procurement conference where companies will outline their procurement processes for the coming year.

Source: Classfmonline.com/Cecil Mensah