Ghanaian oil and gas companies have called on the Petroleum Commission to reposition the local content policy as an industrialisation strategy that builds domestic businesses, expands exports and strengthens the country’s capacity to retain more value from petroleum operations.
The companies said local content implementation must go beyond regulatory compliance to create an enabling business environment in which indigenous firms could grow, remain profitable and compete sustainably along the petroleum value chain.
Mr Kofi Yalley, Managing Director of Ensol Energy, made the call during a working visit by the Petroleum Commission to the company’s facility at Amanfo-Kuma in the Western Region to assess the performance of indigenous businesses in the oil and gas sector.
He said the industry had generally experienced a slowdown, forcing local companies to diversify their operations and export their expertise, skills and services to other countries to remain in business.
Dr Stephen Narh Wayoe, Chief Executive Officer of Wayoe Engineering, also called for fair competition to enable indigenous companies to contribute more effectively to the domestic economy.
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He said local firms generated employment for skilled workers and brought foreign exchange into the country through their operations, making their sustainability important to Ghana’s economic interests.
Dr Wayoe said his company was researching the use of local materials in bridge construction as part of efforts to diversify its business and explore new opportunities beyond the petroleum industry.
The companies identified limited access to long-term financing, weak cooperation among indigenous businesses and inadequate understanding of trade laws as some of the challenges constraining their growth.
Mr Kakra Osei-Barnieh, Managing Director of Chemsolv, said entry into new markets had helped businesses navigate the sector’s downturn.
He welcomed efforts by the Petroleum Commission to make the industry more attractive to foreign investors, which could create additional opportunities for local companies.
Mr Ennin, Chief Executive Officer of Zeal Environmental, said the downturn had resulted in the loss of investments in skilled labour as professionals moved to other oil-producing countries in search of opportunities.
He, however, commended the Commission’s annual audits, saying they had helped improve the company’s performance and compliance with industry standards.
Madam Victoria Emeafa Hardcastle, Chief Executive Officer of the Petroleum Commission, said reforms to industry regulations and the signing of new agreements with international oil companies were helping to make Ghana’s petroleum sector more attractive.
She commended indigenous companies for their resilience and commitment to regulatory and operational standards despite the challenges confronting the industry.
Madam Hardcastle proposed a multisectoral engagement involving key stakeholders across the petroleum value chain to develop solutions to the financing, competitiveness and operational challenges facing local businesses.
She also announced a petroleum fund intended to address the gap in access to long-term capital, a challenge the companies identified as a major constraint on expansion and sustainability.
