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22.11.2019 Business & Finance

Takoradi: Petroleum Commission To Establish Local Content Fund

By Morris Ogbetey || GBC Business
Takoradi: Petroleum Commission To Establish Local Content Fund
NOV 22, 2019 BUSINESS & FINANCE

Regulator of Ghana's upstream Petroleum sector, Petroleum Commission is to set up a Local Content Fund by the first quarter of next year.

The fund will provide concessionary loans to local oil and gas companies to accelerate the country's local content drive.

Ghana' local content Regulations, LI 2204, passed in 2013, seeks to promote the maximisation of value addition and job creation through the use of local expertise, goods and services, business and financing in the petroleum industry.

It also seeks to develop local capacities develop local in the petroleum industry value chain through education, skills transfer and expertise development, transfer of technology.

Despite the many opportunities, access to funding and the lack of expertise has denied a lot of local players the opportunity to participate neck deep in the oil and gas business.

The local content fund together with other financing arrangement from banks will empower local companies to play significant role in the oil and gas sector the Petroleum Commission believes.

Despite a steady rise in the quantum of contracts to indigenous companies over the years, industry players still believe there more to be done.

Permits and certificates issued to oil and gas companies went up 16 percent from 618 in 2018 to 655 as at October 2019. Of then total, of 60 certificates and permits were issued to foreign companies, 553 to Fully Indigenous Companies and 75 to Joint Venture companies .

The Petroleum Commission approved contracts at a total value of 420Million.

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