Tullow Ghana Limited can now undertake project works at the PSC Tema Shipyard, including plans to manufacture certain components of the company’s Floating Production Storage and Offloading Vessel (FPSO) for the country’s oil industry.
A joint communique signed by representatives of the Ministry of Transport, Tullow Ghana Limited, Management of the Tema Shipyard, and the Maritime and Dockworkers Union (MDU) said all four parties have resolved all outstanding disputes over Tullow’s use of the shipyard.
The upgrade of the shipyard—aside the FPSO installation—will include physical works, system upgrades, training of staff and the developing of the right processes and procedures required for the anticipated works.
According to the communique, Tullow and its partners will pre-finance the refurbishment of the shipyard so it can be used for the fabrication requirements of the oil and gas industry. The communique emphasised however that “at no point in the process will Tullow assume responsibility for managing the shipyard or take equity”.
It also said Tullow will work with the management of the shipyard and assist with systems,
Processes and tools that will enhance efficiency and make the shipyard the best-in-class for oil and gas fabrication requirements.
“The Management and workers of the Tema Shipyard do not oppose the refurbishment of the shipyard as expressed in the memorandum of understanding between Tullow and the Ministry of Transport.
“The Ministry of Transport, Tullow, Management and MDU of the Tema Shipyard will develop a regular consultation process to enhance transparency of the relationship.
The Ministry will collaborate with executives of the MDU and its membership to deepen understanding of the MOU and the opportunities it offers, and provide the required environment in the shipyard for the refurbishment works and other upgrades to be undertaken.
“The MDU will work with the management of the Shipyard and Tullow to deliver the work packages that Tullow’s contractors will require from the shipyard,” the communique stated.
The communique said Tullow’s interest in refurbishing the shipyard is anchored on the company’s commitment to local content, and to ensure that its operations give value to Ghanaians by way of job creation as well as skills and knowledge transfer.
“Tullow remains committed to enhance Ghanaian participationin the value-chain of the developing oil and gas industry and will support the shipyard to develop its potential in this regard.
“Local content and developing in-country capability are key to Tullow and its partners as they work to deliver the TEN Project. The Tema Shipyard offers opportunity for local fabrication of components of the required infrastructure for oil production.”
The agreement to upgrade the shipyard was entered into between Tullow and the Ministries of Transport and Energy.
Both parties have indicated that the sole objective of the project is to ensure a refitting of PSC Tema Shipyard to enable components of Tullow’s FPSO to be built in the country in compliance with new local content requirements. It is expected that the investments and improvements in the shipyard as a result of this project will create some 600 local jobs.
The works will be jointly supervised by the Ministry of Transport and Tullow under an open-book accounting system to ensure competitiveness and transparency of associated costs.
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