Petroleum C'ssion orders operators to declare local content plan

Dr Kwabena Donkor

THE Petroleum Commission (PC) has ordered operators in the petroleum sector to submit their local content plan to the commission for scrutiny.

That, officials said, was to ensure that Ghanaians became key players in all operations in the industry, in line with the government’s policy of promoting local participation in the sector.

In an interview with the Daily Graphic in Accra last Friday, the Chief Executive Officer (CEO) of the PC, Dr Kwabena Donkor, said a Legislative Instrument (LI) to further strengthen the local content regime and also replace existing regulations formulated in 1984 was being worked on by the Attorney-General’s (A-G) Department for onward submission to Parliament for consideration and passage.

The LI, he said, would enforce existing provisions on local content and participation, as well as the development of national capabilities in all aspects of petroleum operations.

The PC, he noted, was also spearheading the formulation of a new Petroleum Exploration Law to replace the Ghana National Petroleum Corporation (GNPC) Exploration and Production Law, PNDC Law 84 of 1983.

Dr Donkor explained that considering the fact that laws pertaining to the industry ought to be updated, the new law was expected to take cognizance of current production activities. 

“At the time PNDCL 84 was passed, Ghana was not into production, hence the need to restructure the provision in conformity with current trends,” he said.

“The commission, as managers of the country’s oil resources, must ensure that they inure to the benefit of the larger society, hence our resolve to soon lay the draft LIs before Parliament,” he said.

He said framers of the petroleum law in 1984 envisaged the need for local content, with specific reference to training Ghanaians on job specifications and in all aspects of the petroleum sector. 

“The commission is already enforcing the administrative measures and the introduction of the LI will go further to enhance existing frameworks in place,” he added.  

“It is critical that we clear the erroneous impression that there are no laws governing local content participation and development. Therefore, when people say there is no local content, they are displaying ignorance,” he added.

He said the Petroleum Commission Act of 2011 also made adequate provision for the promotion of local content and local participation in petroleum activities, as described in the Petroleum Exploration Act of 1984, and wondered why officials would not want to adhere to laid down regulations in respect of the act.

SOURCE: Della Russel Ocloo, Daily Graphic, Mon July 23, 2012