Business News of 2014-06-25

Oil Company implements local content policy

Management of Tullow Ghana Limited (TGL), major operators at the Jubilee Oil Field in the Western Region, has said it would implement the local content policy in the oil and gas sector to the letter.

Mr Charles Darko, Country Director of the TGL gave the assurance at a meeting with the Western Regional House of Chiefs in Sekondi and said already companies owned by Ghanaians working for the industry have begun employing citizens.

The meeting aimed at introducing himself to the chiefs as the new Director for Tullow and also to brief the House on their operation since they went into oil production. He said Seaweld Engineering and Orsam, both fabrication companies producing components for a second Floating Production Storage and Offloading (FPSO), have employed many Ghanaians.

Mr Darko said TGL had produced its 100th million barrel of crude oil from the Jubilee field this May and this had been achieved with minimal environmental damage. He said the Environmental Protection Agency has approved of Tullow’s request to flare some limited amount of gas up to October to enable the company meet its production target.

The General Manager enumerated appealed to the traditional rulers to support his administration with suggestions to manage the nation’s natural resources judiciously for the benefit of all.

The chiefs said information reaching them was that Ghanaians employed in the industry were being laid off and warned that they would not tolerate indiscriminate dismissals.

They renewed their call to the government to let the region benefit greatly from oil/gas industry and said they were not happy with those who criticized them when they demanded some percentage of the revenue from oil.

Osagyefo Dr Kwamena Enimil, the President of the House, appealed to the government to develop a natural investment management plan to guide the investment of public resources including petroleum revenue.

On the Petroleum Exploration and Production bill, Osagyefo Enimil said when passed into law the bill must adequately address the concerns and aspirations of the people of the Western Region and other future oil communities.

Touching on the local content policy, the president urged the government and regulatory agencies to ensure that the regulations are effectively implemented and that oil companies that violate them must be penalized.