Local content refers to the quantum or percentage of locally produced materials, personnel, financing, goods and services rendered to the oil and gas industry and which can be measured in monetary terms.
local content participation refers to the level of Ghanaian equity ownership in the oil and gas industry.
WHY LOCAL CONTENT PARTICIPATION?
The purpose of the local content policy is to:
a) Maximize the use of local expertise, goods and services, job creation, businesses and financing in the oil and gas industry value chain.
b) Develop local capacity in all aspects of the oil and gas value chain through education, skills, and expertise development, transfer of technology and know-how and an active research and development portfolio;
c) Achieve a degree of influence or control over development initiatives for local/domestic stakeholders
d) Achieve at 90% local employment and in-country spend in the oil and gas industry value chain within a decade of the start of every petroleum license or contract;
e) create oil and gas and related supportive industries that will sustain economic development
Ghanaians need to increase their participation in the oil and gas industry which is a new sector to promote employment and economic growth to avoid the repatriation of huge profits by foreign companies.
By: DAVID ADUHENE TANOH-www.reportingoilandgas.com