Tullow Ghana holds seminar on joint venture for indigenous companies

Tullow Ghana Limited has held a day’s seminar for indigenous Ghanaian companies aimed at grooming and growing their companies to provide goods and services that would meet international standards in the oil sector.

It was also to enable them to compete well in the development of the sector.

The seminar, held in Accra, focused on joint venture formation, Petroleum Commission expectations and procurement opportunities, to help the local companies gain a better understanding in joint venturing with international companies.

Madam Jennifer Bruce-Konuah, Local Content Manager of Tullow Ghana Limited, in an interview with the Ghana News Agency said the seminar was based on the feedback Tullow Ghana received from the indigenous companies, which was very important and in the right direction.

“We had feedback from the indigenous companies, and it was important that we came through with this seminar to position them to be very competitive in the oil sector, where they can compete internationally,” she said.

Madam Bruce-Konuah said: “Tullow Ghana Limited is committed to generating the in-country capacity to support the long term development of the oil and gas industry and our focus is on the use of local goods, services and skills for the industry.

“For the past seven years, our focus on the supply development has been based on pre-tender arrangement, where these local companies would be aware of the opportunities coming up, what it takes to do business in the oil and gas industry, what are the scope of works and the opportunity available for them as well as taking them through compliance requirements of the regulations of the land.”

She said Tullow had had seminars on pre-tender and post-tender seminars and that the current one which bothered on joint venture and permitting was important for the indigenous companies to enable them to work in the oil and gas industry, and be able to take advantage of the technical scopes of work for them to deliver.

“One of the key areas is that the local companies wanted more knowledge and a better understanding of what it takes to do business in terms of having a joint venture, what the permit requires or what the regulator wants.

“So we put this together to be able to really give them a better understanding of the scope of work in the joint venture and what the regulators want, and we are privileged to have the regulator of the upstream sector, the Petroleum Commission, to be with us here as well as industry experts and legal firms who understand the oil sector, who have taken them through the legal aspects of joint venture,” Madam Bruce-Konuah said.

“We would like to see more indigenous companies joint venturing with experienced international companies, creating real and effective joint ventures with international companies who can help them with the finance they need, and also help them with technology, knowledge and skill transfer,” she said.

Madam Nana Akua Agyei, Legal Affairs Manager at Petroleum Commission, who took participants through the requirements, said the Commission always looked at local participants and local contents when it comes to joint venturing.

She said this was to promote local participation, which would help the indigenous companies benefit from the sector through technology transfer and thereby increasing competition internationally.

“For a local company to venture into joint venturing, it must be incorporated under the Company Act, have a joint control and net asset, be prepared to share profit and losses and execute joint venture agreement,” Madam Agyei said.

Madam Roselyn Addai, Compliance Manager of the Petroleum Commission said for a company to get through joint venture it should comply with the rules and regulations and directives relating to the upstream industry to avert punishment and penalties.