[ 2016-08-25 ]

Minister of Energy and Petroleum, Emmanuel Armah Kofi Buah

Local participation in petroleum industry hits $221m in first half of 2016
The volume of contract awarded to Ghanaians in the
Petroleum and Gas Industry from January to June
this year has hit 221 million dollars.

The figure is an improvement on previous years
which was about half under same period of
review.

Speaking to Citi Business News, the Minister of
Petroleum, Emmanuel Armah Kofi Buah attributed the
feat to the passage of the Legislative Instrument
(LI) aimed at strengthening the Local Content
Law.

“The Petroleum Commission has been tracking
Ghanaian participation and the progress for
Ghanaians between January this year and June was
that, 221 million dollars of contract have gone to
Ghanaians because of the local content LI,” he
said.

According to him, the LI has also enabled the
commission to assess the volume of transactions
awarded to indigenous companies in the Tweneboa
Enyenre Ntomme(TEN) project .

“We now can track that almost one billion
dollars of the contract that went to TEN went to
Ghanaians and that is a huge achievement,” he
said.

Touching on other areas in the upstream sub-sector
that could be improved, Mr. Buah maintained that
it is pertinent to strengthen the capacity of
Ghanaian companies to help them compete
favourably.

Foreign companies dominate petroleum sector

Figures released by the Petroleum Commission
earlier this year indicated that the value of
activities ceded to indigenous companies in the
Petroleum Upstream sector between 2010 and 2015
was only one billion dollars.

In all, total value of activities in the Petroleum
Upstream sector between the period was 6.3 billion
dollars with foreign companies having access to
5.3 billion dollars of the transactions compared
to one billion dollars for local firms.

Currently there are 300 indigenous companies
registered with the Petroleum Commission to work
in the sector, while only 150 foreign companies do
business in Ghana’s Petroleum Upstream Sector.

Source - citibsinessnews.com

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