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A STUDY OF GHANA’S OIL AND GAS INDUSTRY LOCAL
(GHANAIAN) CONTENT POLICY PROCESS
THIS STUDY IS A SUB-PROJECT OF
“NKOSOO 2015: SUSTAINABLE GROWTH OF OIL SUPPLY INDUSTRY IN GHANA” PROJECT
FUNDED BY:
Norwegian Agency for Development Cooperation (NORAD)
EXECUTING INSTITUTIONS:
SINTEF Technology and Society (Norway)
STEPRI/CSIR - Science and Technology Policy Research Institute (Ghana)
GNPC - Ghana National Petroleum Corporation (Ghana)
NKOSOO 2015 PROJECT MANAGER: Håkon Hynne (SINTEF)
Author:
JOHN KWADWO OSEI-TUTU
DEPARTMENT OF HISTORICAL STUDIES
NORWEGIAN UNIVERSITY OF SCIENCE AND TECHNOLOGY (NTNU)
©2013
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CONTENTS
Page
Acknowledgements 3
List of Abbreviations and Acronyms 4
Summary 6
Chapter 1: Introduction 7
Chapter 2: Stakeholders, actors: petroleum-Ghanaian Content mandates 12
Chapter 3: The Ghanaian Content Policy Process 28
Chapter 4: Review of the Petroleum Regulations, 2012 36
Chapter 5: Conclusion and Recommendations 43
Appendix 1: Table 2: showing list tangible outcomes of post-oil find policy (since 2010) 46
Appendix 2: List if Interviewees (Institutional Representatives) 46
References 48
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Acknowledgements
This report is part of ongoing policy process analysis study for the petroleum sector being
carried out by researchers from SINTEF (Norway) and STEPRI/CSIR (Ghana). The report has
benefitted from some sections written for the main PPA by George O. Essegbey (Director of
STEPRI), as well as comments and suggestions by Sigrid Damman (SINTEF) and Nelson Obirih-
Opareh (STEPRI). Nelson Obirih-Opareh has reviewed the final text, and his comments and
suggestions for correction have helped to improve the quality of the final product. The
fieldwork (interviews) team comprised of George O. Essegbey, Nelson Obirih-Opareh,
Masahudu Fuseini (STEPRI), Sigrid Damman and John Kwadwo Osei-Tutu.
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Abbreviations
AC - Abidjan Convention
AC - African Charter
AGD Attorney General’s Department
AGI - Association of Ghana Industries
AOMC - Association of Oil Marketing Companies
BOG - Bank of Ghana
BA Business Associations
CBO Community Based Organizations
CEPA - Centre for Economic Policy Analysis
CO Council of State
CSR - Corporate Social Responsibility
CSIR - Council for Scientific and Industrial Research
CSO Civil Society Organizations
CSPOG - Civil Society Platform on Oil and Gas in Ghana
CQS - Common Qualification System
DSW - Department of Social Welfare
DFID – United Kingdom Department for International Development
EC - Energy Commission
ECOWAS - Economic Community for West African States
EMC - Economic Management Committee
EITI - Ghana Extractive Industries Transparency Initiative
EPA Environmental Protection Agency
FAGE - Federation of Ghanaian Exporters
GAB - Ghana Association of Bankers
GCM - Ghana Chamber of Mines
GCOG - Ghana Chamber of Oil & Gas
GIJ - Ghana Journalist Association
GEA - Ghana Employers Association
GMA - Ghana Maritime Authority
GNCCI - Ghana National Chamber of Commerce and Industry
GIPAGhana Investment Promotion Authority
GMA Ghana Maritime Authority
GNPC - Ghana National Petroleum Corporation
GIZ - Deutsche Gesellschaft für Internationale Zusammenarbeit (German Society for
International Co-operation)
GOG Government of Ghana
GRA Ghana Revenue Authority
GSGDA - Ghana Shared Growth and Development Agenda
GSS Ghana Statistical Services
ICOPRC - International Convention of Oil Preparedness, Response and Co-operation
IEA - Institute of Economic Affairs
IMF International Monetary Fund
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IMO - International Maritime Organization
IOC International Oil Company
ISODEC - Integrated Social Development Centre
KITE - Kumasi Institute for Technology and Energy
LC - Local Content
LCC - Local Content Committee
LCLPPA - Local Content and Local Participation in Petroleum Activities Policy Framework
MARPOL - International Convention for the Prevention of Pollution from Ships
MDA Ministries, Departments and Agencies
MOEn - Ministry of Energy
MOFEP - Ministry of Finance and Economic Planning
MOJ Ministry of Justice
M&E - monitoring and evaluation
MEST - Ministry of Environment, Science and Technology
MDGs Millennium Development Goals
NDPC National Development Planning Commission
NEP - National Energy Policy
NFOGD - National Forum on Oil and Gas Development
NGO - Non-Governmental Organizations
NOD Norwegian Oil Directorate
OA - Oxfam America
PA - Petroleum (Exploration and Production) Act
PC Petroleum Commission
PD-MFP - Petroleum Department of the Ministry of Fuel and Power
PD - Petroleum Directorate (PD)
PIAC - Public Interest and Accountability Committee
PNDC Provisional National Defense Council
PPA Policy Process Analysis
PRMA - Petroleum Revenue Management Act
PSCME - Parliamentary Select Committee on Mines and Energy
PEF - Private Enterprise Foundation
PR - Petroleum (Local Content and Local Participation in Petroleum Activities) Regulations
RSD - Real Sector Division
RWI - Revenue Watch Institute
SCP - Standing Committees of Parliament
TCPD - Town and Country Planning Department
UNCLOS - United Nations Conventions on the Law of the Sea
UNDP - United Nations Development Program
USAID - United States Agency for International Development
WACAM - West Africa Coalition Against Mining
WAPCo - West African Gas Pipeline Company
WAPGA - West Africa Gas Pipeline Authority
WB World Bank
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SUMMARY
Since the discovery of oil and gas in commercial quantities in 2007, the GOG has stepped up its
effort to design policy and legislative frameworks to govern and manage the exploitation and
use of the resources in a sustainable way. The overarching expectations of all Ghanaians are to
see that the revenue accruing to Ghana will be used in projects that improve their lives. It is
also expected that the petroleum resources will have a multiplier effect on the national
economy through the nurturing and participation of the Ghanaian private business sector in
both upstream and downstream petroleum activity; and stimulation ancillary industries.
A key measure for achieving the above goals is the development of local/Ghanaian content.
This involves the imposition of obligations on licensees, contractors and sub-contractors in the
oil and gas business to give preference to Ghanaians when employing staff (at all levels); and
when purchasing goods and services.
To enforce this obligation, a local or Ghanaian content has been developed. The latest and most
comprehensive version is the “Petroleum (Local Content and Local Participation in Petroleum
Activities) Regulations (PR 2012)”.
The main finding is that though the MOEn is the main driver for the development of the
Ghanaian content and Ghanaian participation policy, other stakeholders from both the public
and private/civil society sectors have made valuable imputes in the policy process. However,
the stakeholders (interviewed) have described the policy process as relatively transparent and
inclusive, though they anticipate challenges in the areas of implementation, monitoring, and
review.
An observation to be made about the development of Ghanaian content is that the burden is
largely placed upon private stakeholders, particularly the international oil companies (IOCs).
Also, Development partners are heavily relied on not only in policy-making, but also in initiation
of Ghanaian content programs and projects. The GOG’s role as it appears in the policy
documents like PR 2012 is as a sort of ‘enforcer’, a policing agent. The policy documents appear
not to impose obligations on GOG to provide enabling environment for Ghanaians to develop
the high skill and know-how needed in the technology-intensive field of Petroleum. We do not
see any marked effort to nurture a robust Ghanaian private business sector that has easy access
to capital to invest; and the management skills that satisfy international standards needed in a
highly competitive oil and gas business.
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INTRODUCTION
It took almost 120 years of intensive search for petroleum resources, substantial investment
from both public and private sources, as well as concerted efforts by successive governments to
discover oil and gas in commercial quantities in 2007. Exploration for hydrocarbons in Ghana
dates back to 1896 (GNPC, 2012). From 1898 to 1990s a number of (German, Rumanian,
American, and British) contractors drilled more than one hundred exploration wells in the Tano
and Keta fields, as well as the Volta/Accra basins, with no significant discovery except for the
Saltpond oil find in 1970. Though the yield from the Saltpond was disappointing starting with
a maximum oil yield of 4,800 barrels a day in 1978 and dwindling to 580 barrels per day when
operation stopped in 1985 seismic surveys and other exploratory activities showed that
Ghana potentially had enormous onshore and offshore hydrocarbon resources that was waiting
to be taken out with more advanced technology.
Despite this awareness, and notwithstanding the sustained efforts of successive governments
since 1890s to exploit the hydrocarbon resources, no serious efforts were made to devise long-
term comprehensive institutional, policy and legislative frameworks to manage and regulate an
industry that was just waiting to spring up with time. In fact, even the drafting of exploratory
contracts with IOCs was on ad hoc basis, with the GoG copying and modifying aspects of the
master contracts of the IOCs to suit the Ghana situation. Institutionally, supervision of
exploratory and production activity was, until 1983, managed by the Petroleum Department of
the Ministry of Fuel and Power (PD-MFP).
However, the passage of PNDC Laws 64 and 84 in 1983 marked the beginning of comprehensive
efforts to develop legislative frameworks for the exploration of the petroleum resources.
Institutionally, the PNDC Law 64 established and gave statutory backing for the Ghana National
Petroleum Company (GNPC), a state-owned company, which replaced the Petroleum
Department which was an agency under the Ministry of Fuel and Power. Importantly, PNDC
laws 64 and 84 as well as associated instruments from the 1980s are the bedrock of subsequent
oil and gas policy- making and legislation. The discovery of oil in commercial quantities in 2007,
and the subsequent rush to exploit the reserves prior to the development of sophisticated
policy and legislative frameworks has exposed the inadequacy of the country’s preparedness to
be a robust oil and gas economy - an economy that makes the wealth accruing from petroleum
beneficial to Ghanaians in general through private sector development, employment
generation, and investments in social services. Consequently, Ghanaians are apprehensive
about the specter of the resource curse” (also, “Paradox of Plenty”)1 or the Dutch disease”.2
1 'The Resource Curse': Why Africa's Oil Riches Don't Trickle Down to Africans: Knowledge@Wharton. See
http://knowledge.wharton.upenn.edu/article.cfm?articleid=1830 (Accessed 12.11.2012)
2 Defined as the negative consequences arising from large increases in a country's income. Dutch disease is
primarily associated with a natural resource discovery, but it can result from any large increase in foreign currency,
including foreign direct investment, foreign aid or a substantial increase in natural resource prices.
Dutch disease has two main effects: 1. A decrease in the price competitiveness, and thus the export, of the
affected country's manufactured goods. 2. An increase in imports.
Read more: http://www.investopedia.com/terms/d/dutchdisease.asp#ixzz20rwGGWtD
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Indeed Ghanaians have good reasons to be anxious because even though the rebasing exercise
in 2010 transformed Ghana into a middle-income country with a per capita income of $1,300
(GSS) there are still serious developmental challenges, the most crucial being how to reduce
poverty. It is against this background that the GoG has placed high premium on oil and gas
proceeds to ameliorate the situation. In this respect the national development framework the
Ghana Shared Growth and Development Agenda (GSGDA) has adopted the vision of a
“modern economy based on science and technology” (NDPC, 2010).
Without doubt, the development challenges of the country can be partly solved through the formulation
of petroleum sector policies and programs that maximize the gains from the petroleum industry and
also distribute such gains fairly. From 2007 the oil and gas policy framework has stressed
economy-wide impact; new socio-economic demands; local content development; and
environmental efficacy. In many cases, particularly the environmental, the oil and gas policy has
been calibrated with existing policies.
While the policies and programs do not guarantee effective allocation of petroleum incomes to
the economic sectors and equitable distribution of the petroleum wealth, they outline the
goals, objectives and the consequential steps that ensure that the returns on investment are
justified and practical. More importantly, national policies are vehicles for achieving
transparency and accountability which, with the coming of petroleum wealth, become crucial
for sustaining national cohesion, peace and stability. Policies are important, but the processes by
which the policies are made are crucial.
To ensure public confidence as well as a buy-in by various stakeholders in a policy the process
associated with policy-making must be participatory and open to include large segments of the
population. Simply put, policies for regulating the Ghana’s petroleum industry are not ends in
themselves, but they are, above all, a means to avoiding the resource curse. Thus, the
development of an effective local content (LC) in the petroleum sector has been identified as
one of the surest ways of making the oil and gas finds beneficial to Ghana and Ghanaians.
However, the best way to ensure effective local participation in the oil and gas economy is to
develop a comprehensive local content policy, and eventually legislation.
Nkosoo 2015 Project
The NKOSOO 2015 is a collaborative project between SINTEF of Norway and the Science and
Technology Policy Research Institute (STEPRI) of the Council for Scientific and Industrial
Research (CSIR) in partnership with the Ghana National Petroleum Corporation GNPC). NKOSOO
2015 is an integral part of Norwegian Government’s development assistance system, within the
Norwegian Petroleum Directorate’s “Oil for Development (OfD)” program. The Norwegian
agency for development cooperation, NORAD, funds the project, which primarily aims at
enhancing local content in the oil and gas sector. The project achieves the goal through
enterprise development, building institutional relations and clustering. An important factor in
http://www.investopedia.com/terms/d/dutchdisease.asp#ixzz20rwPruSj
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the achievement of the goal is contributing to appropriate policy formulation and
implementation. Such contribution can only be effectively done with a good understanding of
the policy process in question.
Policy Process Analysis (PPA)
Policy-making is the process by which by which governments translate their political vision into
programs and actions to deliver 'outcomes' within a given timeframe. Our study of the policy process
(Policy Process Analysis, PPA) in oil and gas in Ghana is an integral part of Nkosoo 2015 project.
Nkosoo 2015 takes a bottom-up approach in its studies and has already carried out a
Knowledge, Attitudes, and Practices (KAP)survey among Ghanaian-owned service companies
to the oil and gas industry (Damman et al, 2011). We have also been in touch with many
individual companies, training institutions, industry and government representatives in the
course of other project activities and network meetings. Many people see policy making as a
linear process, where rational decisions are made by government authorities and embodied in
public policies. Often government is seen as the sole player in determining the policy content.
Relevant MDAs are considered to be invariably operating from the top of the hierarchy of
stakeholders: making the critical decisions and carrying out the vital actions which allocate
national resources to particular activities according to national goals and priorities. However, in
accord with the mainstream literature on the policy processes, Nkosoo 2015’s studies highlight
the fact that policy making is a non-linear, complex and multi-layered process, involving a
multitude of actors and interests.
The aim of this PPA is to examine the processes through which the petroleum policies and
related institutional regulations and plans are formulated. The findings are expected to
enhance policy making and implementation in the economy in general. The specific objectives
are:
- Identify the drivers and inhibitors of policies in the oil and gas sector generally;
- Analyze the policy triggers in the oil and gas sector;
- Assess the policy environment for local content in the oil and gas sector;
- Generate options for facilitating the implementation of the local content policy.
Local Content Policy Process study (LCPPS)
This Local Content Policy Process study (LCPPS) report is part of an ongoing policy process
analysis. One of the many national goals in the petroleum sector is the achievement of
significant local content and participation, defined by the Ministry of Energy as the level of
use of Ghanaian local expertise, goods and services, people, businesses and financing in oil and
gas activities”.3 Consequently, a local content policy is being fashioned to facilitate the
achievement of this goal. The aim of this LLCP research is to examine the local content policy
environment: that is, the processes through which the local content policies and related
institutional regulations and plans are formulated. The specific objective is to identify and
assess the roles of the drivers and inhibitors of local content policy.
3 Petroleum Activities Policy Framework, 2010: p. 2
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Methodology
Every stakeholder is quite unique and needs an appropriate methodology for analysis. Thus the
study is primarily done qualitatively, via interviews and desk research. Though each of the
objectives has its nuanced method of data collection and analysis, there are broad steps
involved with regard to sampling and the area of study. Generally, the study is based on semi-
structured interviews with representatives of key stakeholders, particularly relevant
government MDAs responsible for the development of local content. The interviews also bring
into discussion the needs and expectations from the private sector stakeholders, thereby
bringing viewpoints from the bottom up. Private sector stakeholders interviewed include
traditional authorities, particularly the leadership of the Western Region of Ghana, which so far
has been the geographical locus in Ghana’s oil development. Civil society may be of
considerable influence, by way of how development and ‘watch’ organizations contribute to
the arguments and framing of the local content debate. The mass media’s communication on
activities and pronouncements on issues concerning the oil and gas resource are also important
players in shaping national actions in the sector. The key business associations represent the
private sector and have to be consulted, both by the decision makers and those researching
local content. Parliament as the final decision-maker in legislation in the country plays a critical
role in enshrining policy intents into legislative acts. The Parliamentary Select Committee on
Energy (Oil and Gas) was consulted. International development partners who assist with funds
and expertise do also play important roles in the policy process.
Sampling: The sampling demands interactions with persons involved in policy making and
implementation at high levels. See the list of persons interviewed and the organizations
covered in the annex. Given the emphasis on public policy, the positions of the respondents
were normally not below the rank of a Director or its equivalent in an organization.
Data Collection Instrument: Secondary data was collected through desk research and primary
data was collected mainly through interviews. The desk research involved assembling policy
and legislative documents on oil and gas as well as all relevant available publications. An
interview guide was prepared for the primary data collection. The thrust of the interviews was
to address the objectives of the study of identifying the drivers and inhibitors of existing and
expected policies in the oil and gas sector, the policy triggers and the range of options for policy
formulation and implementation.
Data Analysis: Since data collection was primarily qualitative, the analysis is centered on
juxtaposing the actual views expressed by the stakeholders during the interviews, as well as in
official documents, media engagements, and other public statements. The objective of
generating options for facilitating the implementation of the local content policy is met by
summarizing the above-mentioned analysis in a report highlighting policy implications and
recommendations for improving the policy process.
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Study Area: The study area was mainly Accra. The government ministries and all the head
offices of the relevant organizations that have to do with policy making and implementation are
located in the Accra-Tema metropolis. However, some interviews (most notably with the
leadership of the Western Region) were done in Sekondi-Takoradi.
Deliverables: There are tangible and intangible deliverables in this study. The tangible outputs
are the report and related publications. Beyond this, the study creates a bridge between the
policy makers, private sector, and other stakeholders through
- recommendations and prospective outcomes at different levels;
- rules and regulations;
- relationships;
- forums and invitations;
- information and advice services;
- documentation efforts and experimenting; and
- possibilities for further engagement of the actors.
Organization of the report:
The study is organized in five (5) chapters. After this introductory chapter there is Chapter 2,
which focuses on stakeholders and their mandates in Ghana’s petroleum sector as well as the
actors in oil and gas/local (Ghanaian) content policy process. The empirical chapters are 3 and
4. Chapter 3 focuses on the views of interviewees on the local/Ghanaian content policy process
within the context of the overall oil and gas policy making. Chapter 4 reviews the current
“Petroleum (Local Content and Local Participation) Regulations of 2012. Chapter 5 concludes
and makes recommendations.
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CHAPTER 2
STAKEHOLDERS AND PETROLEUM POLICY MANDATES
This chapter presents an overview of the main ‘stakeholders’ and outlines their interests as well
as mandates in Ghana’s petroleum industry.
Emphasis is placed on the roles of public institutions as well as private sector organizations in
policy making for the oil and gas sector in general, and in the local content policy process in
particular.4
Stakeholder’ concept
Generally, the term ‘stakeholders’ refers to entities (institutions, organizations, groups of
people, and individuals) that have a stakeor interestin a particular resource, project or
issue.5 Depending on nature of the ‘stake’ held, ‘stake holding’ can be further disaggregated
into ‘primary’ and ‘secondary’ categories. When applied to the oil and gas sector in Ghana,
‘stakeholders’ include entities (groups and institutions) that have a general interest in the oil
and gas industry, whether as owners of the resource; or as investors in its exploitation; or as
having general interest in assisting in making the resource beneficial to a majority of the
Ghanaians. The term also refers to those who are affected by the policies, decisions and actions
governing the exploitation and utilization of the proceeds from petroleum resources. However,
the notion of ‘stakeholder’ does not necessarily delineate mandates or roles of each
stakeholder in the policy making process. The term that best captures policy roles is ‘actors’ - a
notion which, apart from indicating the fact of having a ‘stake’ in something, also suggests
active interaction between different groups of stakeholders who either have decision making
power and/or are in a position to influence a policy process through several channels. Thus in
discussing the petroleum and local content policy processes, we may identify ‘key actors’ as
individual and institutions that have the power to make policy decisions or control the policy
making process. ‘Influential actors’ are individuals and organizations who seek proactively to
influence the policy and decision making processes.
Stakeholders in Ghana’s oil and gas sector
Corporate Ghana is the ‘owner’ and a primarystakeholder in the oil and gas finds. By
corporate Ghana we mean the individuals, communities, public institutions, private businesses
or entrepreneurs, business associations, and civil society groups. Collectively, their ‘stake’ in the
oil and gas resources is established through international principles of sovereignty which
assigns ‘ownership’ of resources discovered in a country’s territory exclusively to its people.
While Ghanaians in general own the oil and gas resources, a majority of them have limited
opportunity to influence the exploitation (discovery, production, and marketing) and
4 ‘Mandates’ refers to the institutional roles as stipulated by law (especially for public institutions) as well as to
self-imposed roles of private interests based on operational aims, public interest responsibilities, and best practice
requirements.
5 http://www.businessdictionary.com/definition/stakeholder.html; Also see ICRA Learning Materials
Stakeholders Key Concepts;
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management of the resources. Thus the majority of Ghanaians can only ‘expect’ or ‘hope’ that
the revenue accruing from oil and gas will be used to improve their standards of living. To
ensure that this goal is met government institutions are mandated (under the Ghanaian
Constitution, legislative instruments, as well as associated policy directions) to manage the
resources and ensure that the revenue is used to improve both the economy and living
standards of Ghanaians.
An important ‘primary stakeholdergroup in Ghana’s petroleum industry is the international oil
companies (IOCs)6, who are operating in Ghana by agreement with the Ghanaian Government
and under the protection of the international laws of contract. The IOC’s have a primary stake
in Ghana’s oil and gas industry because they have invested huge financial resources as well as
technical expertise in the exploration, development and production of the oil and gas and
therefore expect not only to recoup their investment but also to make substantial profits on
their investments. Though the two groups of primary stakeholders may have different interests
and goals, their economic and social expectations converge: Ghanaians expect the economic
windfall from the oil to change their livelihoods in the broadest sense, while the IOCs want to
make substantial profits on their investments.
Local as well as international organizations (civil society groups, global governance and financial
institutions) that have taken an interest in Ghana’s oil find may be referred to as ‘secondary
stakeholder’. The ‘stakes’ held by secondary stakeholders in Ghana’s oil and gas range from
securing the interest of the general public (particularly, equity and best practice issues) to
securing the interests of the members in specialized private interest associations. For instance
private business associations are interested in getting Ghanaian businesses to take part in the
oil industry, while civil society organizations that (by their own initiative and according to
‘transparency’ and ‘best practice’ requirements) develop an interest in protecting the interest
of Ghanaians as well as ensuring that the oil find has multiplier effect on the economy, become
socially uplifting, and devoid of negative environmental consequences.
Mandates of Stakeholders in petroleum issues
Mandates and roles of stakeholders are defined either by law (in the case of public institutions)
or by associational and organizational principles and requirements (generally in the case of
private sector groups, non-profit organizations.
‘Stakeholders’ that are discussed here are categorized as follows:
- Public sector institutions: mainly Presidency, Parliament, Courts, and MDAs;
- Private business sector: international oil companies; Ghanaian business associations;
- Media: print, audio, electronic;
- Civil society organizations: non-profit bodies beyond the ambit of state and private
business.
6 IOCs operating in Ghana are: Tullow Ghana Limited; Kosmos Energy; Anadarko; Sabre oil of Ireland, Saltpond
Offshore Company Ltd.; Vitol Upstream Ghana Ltd.; Gasop Oil Ghana Ltd.; Oranto Petroleum Int. Ltd.; Hess Ghana
Exploration Ltd.; Aker Asa; Afren PLC Ghana Ltd.; Vanco Ghana Ltd.; LukOil Overseas Ghana Ltd.
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- International organizations: (bilateral) development partners; and (multilateral) global
political and financial institutions
State or Public institutions
The interests of Ghanaians are catered for by network of key public institutions (government,
legislature, judiciary and MDAs), who play strategic and interconnected roles in petroleum
related issues like policy, resource management, revenue management, environmental
protection and management, and local content development. The public institutions ultimately
derive their mandates and roles from constitutional provisions and associated regulations.
The most important public institutions that play a decisive role in the energy and petroleum
sector policy and legislation processes are the Executive/Presidency or Government of Ghana
(GoG), Parliament, and the Judiciary. However, the key policy roles are delegated to MDAs,
particularly the Ministry of Energy (MOEn), Ghana National Petroleum Corporation (GNPC),
National Petroleum Authority (NPA); Ministry of Finance and Economic Planning (MOFEP), and
Bank of Ghana (BoG). Important inputs are also made by the Volta River Authority (VRA), and
Tema Oil Refinery (TOR). In addition to the MDAs, advisory bodies set up to advice the
President make an impact.
The Executive (President and Cabinet)
The executive authority is vested in the Executive/President under the provisions of the
Constitution.7 However, the Constitution also obliges the President to consult the Council of
State (CO), an advisory body to the Presidency, on important matters of state. Through its
advisory functions the CO is able to influence the direction of state policy on oil and gas. Other
constitutionally mandated bodies that make more direct inputs in the oil and gas decision-
making process at the Presidency are the Economic Management Committee (EMC) and the
National Development Planning Commission (NDPC).8 The NDPC’s role is to advise the
President on development planning policy and strategy.
NDPC identifies and highlights the petroleum as a critical sector, with potential to impact
significantly on Ghana’s socio-economic development. The petroleum sector policy objectives
that are elaborated in the Ghana Shared Growth and Development Agenda (GSGDA)9 are:
- ensuring the development of oil and gas industry and its effective linkage to the rest of
the economy;
- converting the opportunities offered by the oil and gas industry to create decent jobs;
7 Constitution of the Republic of Ghana (1992) Chapter Eight The Executive, Article 58 (1)
8 Ibid, Article 86 (vi)
9 NDPC (2010) Implementation of the Ghana Shared Growth and Development Agenda (GSGDA), 2010 2013,
2010 Annual Progress Report, NDPC, Accra, pp.93-98
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- ensuring that the practices of the oil and gas industry are consistent with international
standards of environmental sustainability; effectively and transparently managing
potential revenues from oil and gas production;
- diversifying the economy with emphasis on the processing of raw materials;
- sustaining and optimizing the exploration, exploitation and utilization of oil and gas
endowments;
- strengthening institutional capacity.
In addition, the NDPC also works with the relevant ministries in implementing the policies and
programs for the petroleum industry. NDPC’s core function of monitoring and evaluating (M&E)
the implementation of national policy offers important directions to policy reviews. Such M&E
activities are carried out with the Ministries, Departments and Agencies (MDAs) grouped in the
respective categories for the purposes of the M&Es.
Parliament
Ghana’s constitution provides for a Parliament in which the legislative power of the nation is
vested.10 Apart from its function as the legislative body, parliament also has oversight over the
operations of MDAs through a number of Standing Committees of Parliament (SCP), each of
which performs specific functions. Importantly, the findings of inquiries conducted by SCPs into
the affairs of MDAs often lead to proposals for legislation.11 In line with its oversight role over
natural resources, the mandate of parliament is to scrutinize and approve all petroleum
agreements, including petroleum commission bill; petroleum revenue management bill/act;
and exploration and production bill, among others. Parliament also approves of annual budget
of the country, which since 2011 captured receipts from crude sales. Oil and Gas related
matters fall within the domain of the Standing Committee on Mines and Energy (SCME).12 It’s
deliberations on oil and gas issues often end up as bills which are eventually passed into laws by
the full House of Parliament and given Presidential assent.13 Clearly, therefore, the role of
Parliament is crucial to the enforcement of the national interests in the exploration,
exploitation and export of the country’s oil and gas resources. However, this role is played by
Parliament in accordance with its powers and working in concert with the relevant ministries
and stakeholders.
Ministry of Energy
10 Constitution of the Republic of Ghana (1992) Chapter Ten The Legislature, Article 93. Following the
Parliamentary elections in December 2012, Ghana’s Parliament from 2013 consists of 275 elected representatives.
11 Ibid, Article 103 (3)
12 Interviewed (Parliament-I)
13 Ibid, Article 106 (1)
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A number of Ministries, Departments and Agencies (MDAs) are mandated to enact as well as to
ensure that petroleum policies are implemented. The most important one is the Ministry of
Energy (MOEn). MOEn’s general mandate is to ensure efficient and sustainable generation and
provision of sufficient, “secure and reliable energy for domestic use and for export by 2012”14
and also “to make Ghana a net exporter of energy, use gas to generate power for domestic
market, and to use the by-products of oil and gas for industry”.15 It carries out this overall
mandate by formulating, monitoring, and evaluating policies, programs and projects in the
energy sector, including the petroleum sector. However, its policy-making role is subject to
Cabinet scrutiny and Presidential assent.
MOEn’s petroleum sector objectives are outlined in the National Energy Policy (NEP) of 2010,
which defines the framework for the formulation of policies and strategies for the oil and gas
exploration and marketing. It emphasizes that the overall goal is to sustain and optimize the
exploitation and utilization of Ghana’s oil and gas resources for the benefit and welfare of all
Ghanaians, present and future. Besides, it identifies specific challenges which constrain the
attainment of the goal. These include (a) sustaining interest in exploration activities; (b)
ensuring the security of the oil and gas installations; (c) ensuring environmental sustainability;
(d) maximizing local content and participation in petroleum industry; and (e) ensuring prudent
management of revenue accruing from oil and gas activities (MOEn, 2010).16
Above all, the NEP outlines several policy actions to address the challenges. Top among these
policy actions is local content (LC) development a theme we shall come back to in the next
chapter. The NEP also addresses ancillary issues like hydrocarbon resources development and
management, regulation, investment and oil revenue management. The enormity of the tasks
outlined in the NEP makes it incumbent on the MOEn to engage the respective stakeholders in
the formulation, implementation and review of energy policy. The implementation of specific
aspects of the NEP is done by Petroleum Directorate (PD), the technical division of MOEn. Other
agencies also facilitate MOEns work in the petroleum sector. Among these is the Petroleum
Commission (PC) which was set up by law in 2011.
Petroleum Commission
The Petroleum Commission (PC) was set up by law Petroleum Commission Act, 2011 Act 821
to regulate and manage the utilization of petroleum resources, as well as to co-ordinate the
policies relating to them. These policy and regulatory functions were hitherto performed by the
Ghana National Petroleum Corporation (GNPC). The Petroleum Act therefore separated the
14 http://www.energymin.gov.gh/ (accessed 10th August 2012) See also the National Energy Policy
15 Interviewed (MOEn)
16 Ministry of Energy (2010) National Energy Policy, Ministry of Energy, Accra, p.16-17
17
regulatory functions of the GNPC from its commercial roles. The Commission is fully operational
and officers include former staffs of the GNPC, who have experience in key disciplines such as
geology and geophysics, even though it is yet to come to grips with the totality of its functions.
Nevertheless, the establishment of the PC represents an important milestone in the petroleum
policy formulation and implementation process.
The PC’s policy roles include promotion of local content and local participation in petroleum
activities; recommend to the Minister national policies related to petroleum activities; and
monitoring and ensuring compliance with national petroleum related policies, laws, regulation
and agreements. Other functions of the Commission are promotion of planned, well executed,
sustainable and cost efficient petroleum activities to achieve optimal levels of resource
exploitation for the overall benefit and welfare of citizens; compliance with health, safety and
environmental standards in petroleum activities, optimal utilization of existing and planned
petroleum infrastructure; and receipt and storage of petroleum data, and management of a
national petroleum repository.
The Ghana National Petroleum Corporation
Perhaps the most important public institution whose activities are entirely related to oil and gas
is the Ghana National Petroleum Corporation (GNPC) which was established as a body
Corporate under PNDC Law 64 of 1983. PNDC Law 84 outlines the legal framework that defines
“the contractual relationship between the State, GNPC and the prospective investor in
upstream petroleum operations”.17 It began operations in 1985. Its main mandate is ‘’to
undertake the exploration, development, production and disposal of petroleum’’.
GNPC plays policy roles by providing technical advice to the Ministry of Energy and other oil and
gas national institutions for policy making, implementation, monitoring and review.18 The
ultimate goal of the Corporation is to “become a world class company that partners with the
international petroleum industry to enable Ghana find and develop oil and gas resources for
the benefit of the people of Ghana as well as our partners”.19 Significantly, until the
establishment of the PC the GNPC played a double role as both a major player with a purely
commercial interest and regulator in the O&G industry. However, the regulatory role of GNPC
has been ceded to the Petroleum Commission (PC). The National Petroleum Authority (NPA)
has established under the National Petroleum Authority Act of 2005. It is mandated to oversee,
regulate and monitor activities in the petroleum downstream industry20 as well as to establish a
Unified Petroleum Price Fund (UPPF) and related activities.21
17 http://www.gnpcghana.com/home/ (29.03.2012; 00:23)
18 Interview response.
19 http://www.gnpcghana.com/home/ (29.03.2012; 00:12)
20 Ghana's downstream petroleum sector included 45 oil trading companies, nine bulk distributing companies, 59
oil marketing companies, 19 liquid petroleum gas (LPG) marketing companies, one refinery, and 1,750 petroleum
products outlets.
21 http://www.npa.gov.gh/npa_new/index.php and National Petroleum Authority" (29.03.2012; 00:51)
18
Ministry of Finance and Economic Planning (MOFEP)
The financial aspect of petroleum activities are under the purview of the Ministry of Finance
and Economic Planning (MOFEP). The general mandate of the Ministry of Finance and Economic
Planning (MOFEP) is to ensure macro-economic stability for promotion of sustainable economic
growth and development of Ghana and her people. This mandate is to be carried out through
formulation and implementation of sound fiscal and financial policies, ensure effective mobilization and
efficient allocation of resources and improve public financial management.22 To carry out its mission
and mandate effectively, MOFEP has set up 12 divisions. These include Economic Research and
Forecasting Division (ERFD), External Economic Relations Division (EERD), Financial Sector
Division (FSD), Legal Division (LD), and Public Investment Division (PID). In addition, other public
agencies that work closely with MOFEP include the Ghana Revenue Authority (GRA), the Real
Sector Division (RSA) of the Controller and Accountant General (CAGD), and the Bank of Ghana
(BOG).23 The operations of these divisions and public agencies are crucial for the prudential
management of the oil and gas resources, as well as for the effective mobilization of the
resources for national development. An important manifestation of the implementation of
policy as per mandate is the publication of the oil revenue accruing to Ghana in line with the
transparency and accountability provisions of the Petroleum Revenue Management Act (PRMA)
2011 (Act 815) every quarter of the year. For example, MOFEP announced that Ghana earned
gross revenue of almost $60 million in the first quarter of 2012.24
MOFEP’s petroleum sector mandate, as stipulated under the Petroleum Revenue Management
Act (PRM, Act 815) of 2011, is to collect, manage and disburse the revenue accruing from oil
and gas production.25 In this respect, BoG has responsibility for the day-to-day operational
management of the Petroleum Reserve Account (PRA) under the terms of the Operations
Management Agreement (OMA). Funds accruing from O&A are allocated and disbursed
through the Petroleum Holding Fund (PHF), which includes the Ghana Stabilization Fund (GSF)
and Ghana Heritage Fund (GHF). In carrying out this mandate BoG works closely with MOFEP
and Parliament (Legislature), to which it submits quarterly accounts reports.26
Ministry of Environment, Science and Technology (MEST)
The mission of the Ministry of Environment, Science and Technology (MEST) is to establish a
strong national scientific and technological base for accelerated sustainable development of the
country to enhance the quality of life for all. This objective is to be achieved through the
formulation of sound policies and a regulatory framework to promote the use of appropriate
22 http://www.mofep.gov.gh/ (accessed 10th August 2012)
23 Interviewed (MOFEP)
24 http://www.mofep.gov.gh/?q=reports (accessed 10th August 2012)
25 http://www.mofep.gov.gh/sites/default/files/reports/Petroleum_Revenue_Management_Act%20_2010.pdf and
http://politicsofpoverty.oxfamamerica.org/wp-content/uploads/2011/05/Petroluem-Revenue-Management-
Act815-2011-.pdf (23.03.2012; 12:23) Click to download: Petroleum_Revenue_Management_Act 2010.pdf. Also
see Act 615 of 2010
26 Interviewed (MOFEP)
19
environmentally friend, scientific and technological practices and techniques. Specific medium-
term objectives of MEST are:
- The intensification of the application of safe and sound environmental practices;
- The development and promotion of a science and technology culture at all levels of
society;
- The development of the sector’s institutionalized delivery capacities in human resource
management, infrastructure and plant/equipment through appropriate policies
and legislation;
- The promotion of public demand for science and technology products and services;
- The encouragement and strengthening of compliance of human settlements standards
in communities;
- The strengthening of linkages with local and international collaborating agencies;
- The promotion, co-ordination and evaluation of research and development activities27.
Three agencies under MEST play key roles in ensuring sustainable exploitation and use of the oil
and gas resources to enhance national development. These are the Town and Country Planning
Department (TCPD), the Council for Scientific and Industrial Research (CSIR) and the
Environmental Protection Agency (EPA). EPA’s role is particularly important given that the
exploitation of oil and gas resources is often fraught with environmental challenges.
Environmental Protection Agency (EPA)
The legal framework for petroleum environmental management are the Ghana National
Petroleum Corporation Law, 1983 (PNDC Law 64: Section 2, 1e); the Petroleum (Exploration and
Production) Law 1984 (PNDC Law 84, section 3); the Environmental Protection Agency Act (EPA
Act 490) of 1994, and the Environmental Assessment Regulation (LI 1652) of 1999 (Marful-Sau,
2009). These laws assign roles in the petroleum sector to specialized agencies like the
Environmental Protection Agency (EPA), the Ghana Maritime Authority (GMA), and the Security
Services. Cumulatively, this set of legislations assigns oversight as well as regulatory
responsibility over the environmental impact of oil and gas to the GNPC and the EPA to ensure
that the exploration and development of oil is undertaken in an environmentally friendly
manner. Specifically, PNDC Law 64 enjoins GNPC to ensure environmental viability in petroleum
operations and PNDC Law 84 obliges oil companies to operate according to best international
environmental standards. Both EPA Act 490 and LI 1652 spell out EPA's policy direction
empower the EPA not only to register give authorization to companies whose operations
impacts on the environment. However, as Osei Bonsu Dickson (2011) pointed out, the
environmental impact of particularly offshore petroleum activity is also subject to both
international and regional regulatory agreements. These include the International Maritime
Organization (IMO)'s International Convention for the Prevention of Pollution from Ships
27 http://www.ghana.gov.gh/index.php/governance/ministries/329-ministry-of-environment-science-a-technology
(accessed 10th August 2012)
20
(MARPOL 73/78); the United Nations Conventions on the Law of the Sea (UNCLOS); the
International Convention of Oil Preparedness; Response and Co-operation (OPRC) of 1990. Two
African regional instruments that are also relevant in this respect are: the African Charter and
the Abidjan Convention.28
Traditional institutions
Though it would appear that the generality of Ghanaians are ‘passive’ recipients of policy,
community leaders, particularly traditional institutions (chiefs, and national and regional
houses of Chiefs) have made it an obligation to ensure that the oil and gas find becomes a
blessing. This assumed role of traditional leaders is more evident in the oil and gas catchment
areas, where community leaders are demanding safety measures to protect the interests of
their peoples.
Private sector stakeholders
Whereas the public actors have near monopoly over the actual policy making in petroleum, a
number of Ghanaian and non-Ghanaian actors are influential. Non-public actors have
developed keen interest in the oil and gas sector and they influence the petroleum policy
process in general, and, particularly, local content policy through proactive inputs and
constructive engagements (workshops, papers, communiques) with policy makers. The
collective approaches adopted by these groups through networking platforms seem to enhance
their influence on policy making in general. This is not to say that non-public actors play roles
independent of the state agencies. Such unilateralism would be self-defeating. A close linkage
between the public and the non-public actors is actors are enhanced through the membership
of the non-public actors in the Public Interest and Accountability Committee (PIAC). PIAC’s roles
is to monitor compliance with provisions of the Petroleum Revenue Management Bill (PRMB);
provide “formal active voice” (through public debate) in the use and management of petroleum
revenue; put pressure on Parliament and the Executive to be alive to their responsibilities in
O&A; and “to ensure that petroleum revenue is used for the benefit of current and future
generations”.29Three of the important non-public actors interviewed can be categorized as:
- Private business associations (PBA) and media associations
- Non-governmental organizations (NGOs, CSOs, CBOs)
- International Oil Companies (IOC)
- Development (bilateral and multilateral) partners
Private sector actors: business associations
28 For a discussion of these legislations see Osei Bonsu Dickson (2011): “The legal and Institutional Framework for
Offshore Petroleum on Ghana”.
29 Petroleum_Revenue_Management_Act 2010.pdf: page 23 Section 53-63. Membership of PIAC is by Presidential
appointment and is made up of representatives of Independent policy research Think-Tanks, CSO and CBOs, Trade
Union Congress, national House of Chiefs, Association of Queen Mothers, AGI and Chamber of Commerce, GJA,
GBA, Institute of Chartered Accountants, Ghana Extractive Industries Transparency Initiative, and Academia (See
section 56).
21
Representatives of the Ghanaian private business sector are positioned to play important roles
in the oil and gas sector. Private sector effort is organized under various business associations
that promote the interests of their respective members in industry, mining, petroleum,
financial and insurance service sectors (banks and creditors, insurance companies, etc).
Currently, they are poised to influence the policy process in petroleum sector for the benefit of
their members.
The Private Enterprise Foundation (PEF), which is a collective platform for various business
associations representing different sectors private business and industry. Its membership
includes Association of Ghana Industries (AGI), Federation of Association of Ghanaian Exporters
(FAGE), Ghana National Chamber of Commerce and Industry (GNCCI), Ghana Association of
Bankers (GAB), the Ghana Chamber of Mines (GCM) and the Ghana Employers Association
(GEA), and Ghana Journalist Association (GJA). Significantly some PEF member organizations,
particularly AGI and GJA, have taken an active interest in the LC policy process. Its general
mandate is to help develop a robust and efficient private business sector that would be a main
driver for Ghana’s economic growth and development. PEF functions as a forum for the other
business organizations, where they come together to discuss and promote common interests.
They also do advocacy across and for specific sectors, such as on behalf of the mining
industry.30 PEF seeks to influence government policies and regulations through the following
interventional mechanisms: Policy Research/Advocacy, Contract Management Services,
Institutional Capacity Development and Training and Promotion of Technology Based
Industries.31 PEF’s general profile and operational methodologies make it an important
advocate for enabling environment to enhance its members’ participation in the O&G industry.
The Association of Ghana Industries (AGI) is a voluntary business association of over 1200
members, made up of small, medium and large scale manufacturing and services industries in
agro-processing (food and beverages), agri-business, pharmaceuticals, electronics and
electrical, telecommunications, information technology, utilities, service industries, transport,
construction, textiles, garments and leather, banking and advertising (AGI). Though AGI has no
explicitly stated mandate on the oil and gas sector its proactive role in business and industry
positions it to champion the cause of its members to benefit from the oil and gas find in
Ghana.32
The Ghana Chamber of Oil & Gas (GCOG) was incorporated in 2009 with the aim to help
develop the nascent industry in an “environmentally responsible, transparent and safe manner
for the mutual benefit of members and the people of Ghana”. GCOG describes itself as “a
voluntary, non-profit, private sector association whose member companies are engaged in
various sectors of the oil and gas industry in Ghana. COG has 4 levels of membership: Major
Member comprises of “licensed operators upstream and mid-stream”; Associate Members
30 Interview (PEF rep)
31 http://www.pefghana.org
32 Interviewed (AGI):
22
include “technical and consulting service providers”; Buy-Side members comprise “Offtakers”,
and Affiliate Members include “other service providers with a demonstrated relationship to the
industry (Banks, Insurance companies, etc.” Like other business associations in Ghana, GCOG
represents the interests of its member and to facilitate the resolution of industry issues in ways
that will lead to the industry's growth while addressing government requirements and the
needs of communities. It sees its role as a mediator of engagement between its members and
other stakeholders in O&G (government, local communities, and the Ghanaian in general).33
The Association of Oil Marketing Companies (AOMCs) is membership association of marketers of
petroleum products and it was established to promote the interests its members.34 AOMC’s mandate
includes the coordination of the relationship between Oil Marketing Companies (OMCs) and “all the
major Stakeholders in the Oil Industry, the Ministries and other Government Agencies.” Its stated
objective is “To provide for the Petroleum Industry the means of advising, informing, influencing and
executing policy with regard to economic, fiscal, legal, industrial, technical and other matters relating to
the Industry.”35
The Ghana Journalist Association (GJA) is a member of PEF its membership includes both
publicly- and private-owned media houses (print, voice and electronic). The media in general
play a watchdog role in the oil and gas sector reporting and providing information of both
positive and negative nature in the industry that impact on national development and the
interest of Ghanaians. They are keen on highlighting issues relating to the legal-policy
frameworks, corporate responsibility, production of oil and gas, revenue management, local
participation in the industry, and environmental and labor issues. They also provide a forum for
the Ghanaian public to express their views and standpoints on the petroleum sector in general
and the local content policy process in particular.
Civil Society or Voluntary) organizations36
Key CSOs are Kumasi Institute for Technology and Energy (KITE), Centre for Economic Policy
Analysis (CEPA), Ghana Extractive Industries Transparency Initiative (EITI) and ABANTU Ghana.
ABANTU Ghana focuses mainly on gender (women) issues. There are international NGOs which
also play important roles in the civil society initiatives in the policy process. Oxfam America and
33 http://www.ghanacog.com/ (29.03.12; 10:16). Also interview with Johnny Blukoo-Allotey (29.03.2012; 10:45)
34 AOMC currently has 51 Licensed Oil Marketing Companies as its members. See http://aomcs.org/admission-of-
members/members-fees-and-subscription/ (30.03.2012; 09:34)
35 http://aomcs.org/ (30.03.2012; 09:34). The stakeholders AOMCs works with include: These include: Ministry of
Energy, Ministry of Finance & Economic Planning, Bank of Ghana, National Petroleum Authority (NPA), The Energy
Commission, Environmental Protection Agency (EPA), Tema Oil Refinery (TOR), Revenue Agencies Governing Board
(RAGB), Ghana Standard Board, Ghana Fire Service, Customs Exercise and Preventive Service (CEPS), Internal
Revenue Service (IRS), Bulk Oil Storage and Transportation Co. Ltd (BOST)
36 The term “civil society” is believed to have been first used in 1767 by Adam Ferguson in his book “An Essay on
the History of Civil Society”. In current usage it encompasses the realm of society outside of government and of
business.
23
Revenue Watch Institute have collaborated with some agencies to support civil society
consultations to make inputs into the policy discussions.37
Civil society organizations (CSOs) and non-governmental organizations (NGOs)38 are also
proactive when it comes to petroleum policy and legislation. The constituent groups of the civil
society will be discussed especially in relation to the pertinent issues of advocacy for equitable
exploitation of natural resources (oil and gas), safeguarding of rights of local communities,
protection of the environmental, accountability and responsible governance. According to data
(2009) from the Department of Social Welfare (DSW) there are about 4500 NGOs registered in
Ghana.39 Since the discovery and exploitation oil and gas resources in Ghana several of the
established CSOs and NGOs have added oil and gas issues to their agendas, whilst new ones
with specific specialization on oil and gas matters have emerged. The common aim of CSOs and
NGOs is to make relevant interventions that will make the oil find beneficial to Ghanaians in
general. Based on their roles and specializations (especially in the oil and gas sector) these
voluntary groups can be categorized as follows: research and advocacy, rights-based,
environmental protection, governance (participatory, transparency and accountability). It must
be noted that this categorization is not mutually exclusive: in fact many of the groups play
multiple, and overlapping roles.
To enhance their engagement with, as well as direct access to government on issues relating to
the extractive industries in general, some organizations,40 academic and research institutions
and individuals, 20th of March, 2010, pooled their efforts under the banner of the Civil Society
Platform on Oil and Gas in Ghana (CSPOG).41The purpose of the Platform “is to interface with
policy, legislative and regulatory processes in the emerging oil and gas industries in Ghana”, by
coordinating and facilitating common positions among different CSOs engaged in the oil and
gas sector.42 Their major tools for engagement with policy-makers are workshops, which are
also avenues for internal capacity building and information dissemination.43 The Platform has
since its formation made significant impact on the oil and gas policy process. They successfully
agitated for more consultation by the MOEn in the formulation of the NPRMB. It has also
37 The “Oil for Development Forum” held from 25th to 26th February 2008 to discuss how Ghana could avoid the
resource curse was attended by some civil society organizations who presented a communiqué for adoption at the
Forum.
38 The two terms are often used synonymously due to their ‘non-state’ (civil) and ‘voluntary’ nature.
39 http://www.usaid.gov/our_work/democracy_and_governance/technical_areas/civil_society/angos...
(29.03.2012; 09:34)
40 The O&G Platform is coalition forged by the Research and Advocacy Organizations (RAO) network, the Kasa
fraternity (KF), Publish What You Pay-Ghana (PWYP-G), the Coalition on Human Rights Oil and Gas (CHROG), and
the Regional Extractive Industries Knowledge Hub (REIKHUB).
The Platform has about 115 members, including civil society organizations, academic and research institutions and
individuals.
42 http://www.publishwhatyoupay.org/where/coalitions/ghana (30.03.2012; 12:10)
43 USAID: The 2009 NGO Sustainability
24
criticized the splitting up of regulatory responsibilities between several government agencies44
under the National Petroleum Regulatory Authority Bill (NPRAB). The Platform’s critique of
NPRAB was that the overlapping of functions could lead to duplication of roles and
responsibilities, lack of clarity, and departmental conflicts of interest. PWYP was particularly
worried about the concentration of both regulatory and commercial functions in GNPC, arguing
that this was contrary to international best practice.45
Three CSPOG member organizations that have dedicated a lot of effort specifically to Ghanaian
participation in the oil and gas industry in general, and to LCP process in particular are
Integrated Social Development Centre (ISODEC), IBIS Ghana and WACAM. ISODEC is a Right
Based Organization with extensive local and regional (West African) reach. It was formed in
1987 to foster “solidarity with those striving for social justice towards a life of dignity by
promoting rights and accountability”.46 It plays a significant role in highlighting and facilitating
accountability and transparency in the management of the extractive sector in general.
ISODEC’s engagement in oil and gas industry policy-making issues is pursued under the domain
of the Economic Justice Unit. The unit was set up in 2009 after series of National Consultative
meetings.47 IBIS Ghana is the local chapter of IBIS international, a Danish NGO that advocates
for gender equality in “access to education, influence and resources” in Africa and Latin
America.48 Its overall mandate is to give financial support at both national and International
levels to organizations and individuals that work to bring about social justice through structural
reforms.49 IBIS has been in Ghana since 2001. IBIS Ghana promotes good governance through
its public participation in local governance (PPLG) program, and quality education for both boys
and girls through its education empowerment (EE) program. Furthermore, IBIS Ghana supports
nationally-oriented civil voluntary organization, networks and platforms “in shaping and
influencing Education policy, Good Governance and policy on Extractive Industries”.50 Its most
important allies in this work are state institutions, civil and non-governmental organization and
Networks.51 In the extractives and energy sector, including oil and gas, Ibis supports civil society
networks and platforms as well as the parliamentary committees to enhance their technical
capacities. Also, financial support is given to local partners for advocacy that leads to policy
formulation. It encourages the formation of a common platform for discourse. An example is
the platform that discussed Revenue Management Law, Petroleum Commission Law, etc.52
44 The Ministry of Energy, Ghana National Petroleum Company, National Petroleum Authority, and Energy
Commission
45 http://www.publishwhatyoupay.org/where/coalitions/ghana (30.03.2012; 12:10)
46 http://www.isodec.org.gh/aboutus.php (30.03.2012; 11:15)
47 Interview (ISODEC)
48 http://www.ibiswestafrica.com/index.php? (02.04.12: 13:43)
49 Interviewed (IBIS)
50 http://www.ibiswestafrica.com/index.php?option=com_content&view=article&id=62&Itemid=15&lang=es
(02.04.12: 13:55)
51 Interviewed (IBIS)
52 Interviewed (Ibis)
25
WACAM, an environmental CSO which is dedicated to safe mining practices in Ghana, has
applied lesson learnt from the mining to the oil and gas sector, and is pushing for safety
guarantees from government and the Jubilee partners. Its major concern is that there appears
to be no specific public institution mandated to control a major oil spillage. This task seems to
be spread across several agencies with little coordination between them. WACAM is currently
pressing on the government up its preparedness to curtail major accidents.53
International (Upstream) Oil Companies
IOCs54 that have made huge investments in exploration and production of oil and gas in the
Tano and Cape Three Points basins are driven ultimately by profit motives and therefore their
interests cannot coincide with those of the state and other stakeholders. However, the oil and
gas industry experience in other parts of the world and especially in neighboring Nigeria has
underscored the importance of political and social stability in the region of operation for
investments to be recouped and profits to be made. Hence, the involvement of IOCs in the oil
and gas policy process is motivated both by the intention to protect their profits as well as the
need to ensure the desired stability. This also explains the involvement IOCs in LC development
through their commitment to invest some of their profits in local communities and local
content programs in line with corporate social responsibility (CSR) and ethical obligation.
Development partners
The role of development partners (international organizations and bilateral agencies of friendly
countries) in socio-economic development in the developing countries is well-known.
Development partners feature prominently on Ghana’s institutional landscape especially for
their important funding roles for development projects. Some of the crucial funding for the oil
and gas sector has been sourced from the development partners, particularly the UNDP, the
World Bank (WB); Britain, US, China and Norway. Others are GIZ55; the USAID; and DFID. These
international partners have an interest to help Ghana to develop a robust industry that is
beneficial to Ghanaians. These international partners give support for capacity building
programmes and technical assistance in areas as revenue forecasting, revenue management,
resource management, oil and gas tax administration, local content, EITI, and environmental
governance. UNDP particularly has made inputs on local content process through a paper to the
Vice President on how Ghana can avoid the so-called Dutch disease. The UNDP, through its
regional service centers (i.e. in-house institutions), makes policy inputs on the long-term
prospects of Ghana’s Oil and Gas as a contributor to achieving the MDGs.56 Also Ghana’s
53 http://business.myjoyonline.com/pages/news/201204/84598.php (2012-04-09 13:50:51)
54 IOCs operating in Ghana are: Tullow Ghana Limited; Kosmos Energy; Anadarko; Sabre oil of Ireland, Saltpond
Offshore Company Ltd.; Vitol Upstream Ghana Ltd.; Gasop Oil Ghana Ltd.; Oranto Petroleum Int. Ltd.; Hess Ghana
Exploration Ltd.; Aker Asa; Afren PLC Ghana Ltd.; Vanco Ghana Ltd.; LukOil Overseas Ghana Ltd.
55 German Society for International Cooperation
56 Interviewed (UNDP)
26
neighbors have an interest in the gas resource through The West African Gas Pipeline Company
(WAPCo) Ghana’s gas project is intrinsically linked to the regional gas pipeline project.57
The Norwegian connection: OfD
Development partners like Norway, and Trinidad and Tobago offer significant support for the oil
and gas sector. In the case of Norway, the support is under the Norwegian Petroleum
Department’s “Oil for Development (OfD)” program that has, since 2005, become an integral
part of Norwegian Government’s development assistance system. The cooperation was started
in 2007 on the initiative of GNPC’s application for assistance to develop Ghana’s petroleum
policy. Ghana was included as a core country in OfD in 2010, and the cooperation is projected
to end in 2014.58 The short-term goal of OfD-Ghana program is to provide assistance to ongoing
governance activities related to the Jubilee oil field development. The long term objective is to
provide advice and assistance on Ghanaian content development: competence and capacity
building within resource, revenue and environ-mental governance institutions.59
Tangible results of this cooperation have been achieved in the areas of
- Environmental management: environmental and Social Impact Assessment of the
Jubilee field; and marine environmental survey of bottom sediments, the water column
and shoreline
- Resource Management: drafting of the drafting the Petroleum (Exploration and
Production) Bill (2011) and the Petroleum Commission Bill (2011); data management;
petroleum management and technical training;
- Norad funded research and training: SINTEF cooperation with several Ghanaian
institutions to develop governmental framework and training of Ghanaian companies
for delivery of goods and services to the petroleum industry through the “Nkosoo 2015
project”60;
- Other cooperative activities are: annual joint meetings on environmental and resource
management issues61; and exchange of visiting delegations62.
57 WAPCo is a regional gas pipeline partnership project between Nigeria, Benin, Togo, and facilitated by the West
Africa Gas Pipeline Authority (WAGPA) under the auspices of Economic Community for West African States
(ECOWAS).
58 The cooperating institution are Ministry of Energy (MOEn); Ministry of Environment, Science and Technology
(MEST); Ghana National Petroleum Corporation (GNPC); Environmental Protection Agency (EPA); and Town and
Country Planning Department (TCPD) in Ghana; and Ministry of Petroleum and Energy (MPE); Ministry of
Environment (MOEn); Norwegian Petroleum Directorate (NPD): Norwegian Climate and Pollution Agency (Klif);
Norwegian Directorate for Nature Management (DN); The Institute for Marine Research; Petrad; and Petroleum
Safety Authority Norway (PSA) in Norway.
59 http://www.npd.no/en/publications/reports/oil-for-development-2010/ofd-projects-core-countries/ghana/
(Accessed: 10.01.2013 12:19). Also see, http://www.ntnu.no/gemini/2012-04/26-29.htm (Accessed: 10.01.2013)
60 http://www.npd.no/en/publications/reports/oil-for-development-2010/ofd-projects-core-countries/ghana/
61 “Ghana, Norway discuss oil, gas management”, The Ghanaian Times, 27th March, 2012. Cited at
http://www.energymin.gov.gh/ (28.03.12; 10:50 A.M.)
62 http://www.npd.no/en/publications/reports/oil-for-development-2010/ofd-projects-core-countries/ghana/
27
Also it needs to be mentioned that the Norwegian involvement is not only on the ‘assistance’
side. Indeed, profit seeking Norwegian oil and supply companies are very much involved in
petroleum activities in Ghana. These include Statoil; Aker Solutions; Electromagnetic Geo-
services ASA (EMGS); Seadrill; Oceaneering; CM Offshore; and FMC Supplies.
28
CHAPTER 3
LOCAL (GHANAIAN) CONTENT POLICY PROCESS
As a reflection of the heightened determination among Ghanaians to keep a large share of the
oil and gas windfall in Ghana, ‘local content’ has become a buzz word in oil and gas discourse. In
fact, local or Ghanaian content is seen as a major ingredient in the effort to make oil and gas an
economy-, and society-wide transformative force. The nurturing of local (Ghanaian) content is
seen as one of the surest mechanisms for keeping a large chunk of the oil wealth in Ghana is to
get Ghanaians (individuals, private entrepreneurs/companies) actively involved in both the
upstream and the downstream petroleum businesses. Yet it was not until 2010 that sustained
efforts were devoted to the development of a Ghanaian content policy and legislative
frameworks, through consultative mechanism that included major stakeholders in petroleum.
Hitherto, references to local content appeared to be off-the head notations by bureaucrats and
technocrats in the context of larger petroleum sector policy documents and legislation. Thus
references local content and local participation as a strategic national objective appeared in
PNDCL 64 (1983; Section 2.2.b-d) and PNDCL 84 (1984: Section 23.10, 11, 12, 13, 14), contain
rudimentary LC requirements. The discovery of oil and gas in commercial quantities in 2007
gave urgency to the development of effective local content as illustrated by copious references
to the issue in long-term national policy documents: the National Energy Policy (NEP), (2010:
16-17); Ghana Shared Growth and Development Agenda (GSGDA, 2010-2011 Section 2.5 and
GSGDA 2010-2016 Section 3.2.3 and 4.4.1); “Petroleum (Exploration and Production) Act” (PA,
2010, Section 33-34)63; the Petroleum Commission Act (Act 821, 2011 Section 3, f).
Based exclusively on the views solicited from the stakeholders through open-ended interviews
during the early part of 2012, this chapter examines Ghana’s local content and local
participation policy making processes, with specific attention being paid to the inputs of both
public and private sector. The interviews covered all the levels of the policy cycle: formulation;
implementation; monitoring; and reviewing. It is important to note that most of the views
expressed on local/Ghanaian content process also hold true for stakeholder engagements in
general petroleum policy/legislation processes, which has produced many tangible outcomes.64
Policy Cycle: formulation
In general the Government of Ghana - through its responsible MDAs is responsible for
providing policy direction and legislation for the petroleum industry. Ultimately, however, the
Ministry of Energy (MOEn) and its assignees are the drivers for petroleum policy in general and
local/Ghanaian content policy in particular. In fact, the MOEn is overseer of all the stages of the
policy cycle: formulating, reviewing and finalizing for submission to Cabinet approval (after
scrutiny by AGD and MOJ), and presentation to Parliament for passage into law. However,
because local content involves wider aspects that fall within the ambit of other MDAs, MOEn
63 Replaced PNDCL 84
64 See Appendix 1
29
relies on technical/expert advice from other government ministries such as MOTI and MOFEP;
as well as agencies like GNPC, PC, NDPC, GIPC GMA, and EPA. For instance, MOTI’s input is
important for oil and gas policy development because its role in developing a more
internationally competitive industrial sub-sector is relevant when it comes to the development
of competitive sub-sectors and service industries for the domestic and international
hydrocarbons market.65
Inputs by private sector and non-government
Besides the public institutions, interviewees (representatives of Business Associations, civil
society organizations, the media and international institutions) assert that they impact on the
oil and gas policy cycle to some degree. Their inputs are towards the assurance of greater
efficiency, transparency and accountability. The international partners have been identified as
one of the stakeholders to consult before the final drafts of petroleum the policies and
regulations become law. Since 2008, there has been a high degree of public
consultation/stakeholder involvement in the policy process through seminars, conferences, and
forums. For instance, the preparation of policy and legal framework for the industry was
heralded in 2008 with a National Forum on Oil and Gas Development (NFOGD), which led to the
establishment of six technical committees that were assigned specific task to develop: the legal
framework, fiscal regimes, natural gas utilization, environmental management and community
issues.
The Business Associations are consulted by the MOEn and the GNPC for inputs when
developing of policies and regulations for the petroleum sector. According to PEF, it seeks to
influence the policy sphere by making recommendations (through stakeholder analysis,
workshops, and reports) about measures that will ensure a robust role for the domestic private
sector (Interviewed: PEF). On its part, the AGI tries to influence policy-making at private sector
business development and the financial management levels. It makes these inputs through
stakeholder meetings and through scrutiny of drafts policy on local content development and
petroleum revenue managementby employing the services of member lawyers to determine
gray areas in the policy, which eventually was incorporated in to the draft policy66
(Interviewed: AGI).
Similarly, CSOs/NGOs perform a consultative function and have been at the forefront of the
dialogue on numerous policy issues, including local content. Civil society groups such as
ISODEC, CSPOG, and IMANI Think Tank contributed immensely in the formulation of the local
content policy and the local content and local participation regulations. Apart from seminars
and conferences, these non-state stakeholders play good advisory and advocacy roles on oil
and gas policy issues. For example CSPOG released a report card on the industry’s progress in
the first quarter of 2011. More recently, CSPOG have called for disclosure of all oil and gas
contracts and queried Ghana’s readiness to manage environmental challenges both of which
65 Interviewed: MOEn, GNPC, AGI, GJA, Parliament
66 Interviewed: AGI
30
are issues involving local content. ISODEC main activities is promoting the accountable use of
public resources in Ghana as it seeks to nurture an accountable government and widen the
social space for the voice of civil society in national and local policy making processes and the
consideration of national development alternatives. Additionally, the media has been included
in the policy development process by bringing the on-going policy dialogue to the public
domain.67
Transparency in LC policy formulation
The formulation of petroleum policies and laws in the 1980s and 1990s appeared to have been
done without prior active involvement of other stakeholders. However, all the interviewees are
of the opinion that the Ghana policy formulation process has been relatively opened and
transparent, though some believed that the transparency could be deepened. Several forums
have been organized nationally by both civil society and government agencies with the view to
collecting inputs towards an effective local content policy. With regards to transparency of the
process, the GJA representative (Interviewed) recounted his experience in some oil and gas
forums he attended. He noted that the “people were free to express their minds” which is a
testimony of the openness of the formulation process.
They have been satisfied with the level of impact so far, though they believe that their
involvement could be deepened further. According to interviewees, some BAs and CSOs have
been very active in facilitating local content by their involvements in local content stakeholder
meetings and contribution to enrich the document. AGI has been involved in drafting of the
local content policy of Ghana through stakeholder meetings and by subjecting the draft local
content policy to “thorough scrutiny by employing the services of member lawyers to
determine gray areas in the policy, which eventually was incorporated in to the draft policy”.
Also, a “sort of cooperation among civil society organizations in their effort to influence local
content policy, the implementation of which should bring direct benefits to Ghanaians in
general and the oil and gas area communities in particular”. IBIS (interviewed) noted that “the
government did the draft, published in national papers, and had regional fora for stakeholders”.
IBIS’ (interviewed) interventions has been generally “to build capacity of local partners to
impart on the legislative and policy processes of the country”, while ISODEC (interviewed)
builds its influence in the policy process through “a critical mass (platform) of stakeholders” to
push its recommendations to State actors. GJA (interviewed) held that the civil society platform
for oil and gas has been instrumental in the development of the local content law and bringing
to the public light issue that undermine Ghana’s interest for instance the use of deep-stick in
place meter. ISODEC was happy that a desk has been created at the Petroleum Commission to
help in communicating with the public, “although much could be done by avoiding the current
unnecessary holding of certain relevant documents away from the public”. AGI was also
satisfied with MOEn’s effort at transparency by providing information on its website.
67 Interviewed: ISODEC, GNPC, AGI
31
Despite this general contentment with the policy formulation process in general, some
interviewees expressed reservations, pointed out limitations on the process and suggested
ways to enhance the transparency further. PEF was unhappy about the level of involvement of
the private sector and Business Associations in the process. The PEF interviewee maintained
that “they were not really involved. They had never even seen the draft local content policy. It
was never sent to them for comments”. The interviewee further described the government's
strategy for local content development as “Myopic, Non-consultative”. Nevertheless PEF
proactively wrote a report with recommendations to the government.68 The UNDP also stated
that “the local content policy formulation process has not been open and transparent.
Agreements are signed without any openness.”69
A major difficulty affecting the openness of the policy process related to secrecy resulting in the
lack of access to relevant documents that will deepen their insight into the contents of the
policy documents. Thus the non-public stakeholders have offered suggestions for the
improvement of the local content policy process.70 These include:
(a) Removal of the “confidentiality clause” in petroleum policy/law documents to make
them accessible to public scrutiny;
(b) Building the capacity through training programs of stakeholders to make meaningful
impact on policy. The media representative was emphatic that the “Media don’t know
much about local content but could be a good source of information”;71
(c) Consultation of other stakeholders through their member business organizations,
particularly PEF.72 PEF particularly wanted the GoG to “make a level playing field” for
stakeholders in both the private sector and academia to “be closely involved, with civil
society as watchdog”. PEF is not satisfied with being invited to stakeholders to
workshops, which are only “cosmetic” forums. It thought the “whole process should be
private-sector driven” and also the “big gap between the private and the public sectors
to be bridged;73
(d) Inclusion of other stakeholders that are not involved in the process (e. g. chiefs,
academia and civil society groups in the Western Region);
(e) De-politicization of national policy process.
It is significant that when interviewees were asked to make general comments towards the end
of the interviews, many of them stressed the issue of openness and transparency. As the
interviewee for Parliament noted, the process has now gone beyond rhetoric to concrete action
where the onus now was on Cabinet to approve the policy and pass it on to Parliament to enact
68 Interviewed: PEF
69 Interviewed: UNDP
70 Interviewed: ISODEC, PEF
71 Interviewed: GIJ
72 Interviewed: Abeasi
73 Interviewed: PEF
32
it into legislation. The delay in passing the Local Content Regulations into law is a source of
concern among stakeholders.74
Constraints on the capacity of actors to influence petroleum policy
There are some issues that limit the extent to which both public and private stakeholders affect
the policy process in the oil and gas sector in general and LC process in particular. The
difficulties are interlinked, but all boils down to the lack of capacity.
Contrary to expectation, there appears to be no cohesion among relevant public institutions on
oil and gas and local content issues. This has led to limitations on the role of some important
public institutions. Parliament, for instance, finds information on the model of the petroleum
agreements to be unclear. For instance, the people’s representatives “have no oversight control
subsidiary as well as sub-contracting agreements, which currently fall within the purview of the
Ghana National Petroleum Commission. This could be corrected”. In any case, not all members
of parliament have the requisite understanding of the legal and technical issues of the oil and
gas industry to make an impact.75 Above all, the role of the key actor and policy maker in oil
and gas sector, MOEn, “may be hampered by a lack of clear policy direction”.76 Current
deliberations on use of the gas are normally on partisan lines. It is believed that “a more bi-
partisan approach through dispassionate discussions in Parliament will produce a truly national
policy document that will be in tune with the national development agenda under the NDPC,
and survive political regime shifts. Also, the absence of a national debate on the future outlook
of GNPC, a key player in the oil and gas sector, is worrisome.”77
The roles of various non-public actors are also limited despite their proactive efforts. IBIS
(Ghana) identifies four limitations on the capacities of civil organizations to make indelible
impact on oil and gas issues in general and local content in particular. These are: lack of
technical knowledge which leads to low understanding of local content; poor governance
routines; duplication of funding opportunities leading to the lack of cohesion and evaluation of
the impact of interventions; and the difficult access to public sector officialdom. First, CSOs and
NGOs lack the requisite specialized knowledge to understand and make meaningful impact on
Oil and gas issues because of the technical nature of the field. This problem could be solved by
increasing capacity building activities to up-scale their knowledge in local content. The solution
to the problem of governance would be to offer training on simple routines like report writing
and financial reports preparation. The problem of cohesion and evaluating of impact of
interventions that is associated with duplicate funding sources can be addressed if donors or
sponsors pool resource to ensure unison in interventions. The problem of accessibility and
communication with public sector officialdom can be addressed through the opening up of the
74 Nana Kobina Nketsiah V, Omanhene of Essakido Traditional Area expressed dissatisfaction at the Sekondi
Takoradi Chamber of Commerce and Industry (STCCI) forum:
http://www.ghanaweb.com/GhanaHomePage/business/artikel.php?ID=244096, 7 July 2012: 17:25
75 Interviewed (Parliament-I)
76 Interviewed (MOEn)
77 Interviewed (MOEn)
33
space between the government and other stakeholders.78 If government officials dropped their
historical suspicion that civil society is intrinsically oppositional to government, a mutually
beneficial relationship could be built to make communication easier. It would also limit the
phenomenon of ‘gate-keepership’ (reliance on informal relationship) and its attendant
potential to engender corruption. ISODEC, an important partner in the IBIS network,
corroborates IBIS’s position. ISODEC notes that its input on local content development is
hampered by two inter-linked capacity problems. These are the lack of expertise on the oil and
gas issues on the one hand and the problem of limited funding. Their reliance on specialists
outside the organization is a drain on their scant financial resources. The twin capacity
problems could be solved through a regular source of income to the organizations so they can
operate successfully and also to enhance the expertise of their own staff in oil and gas matters
so they can facilitate local content development.79
According to PEF, the collective voice for private business associations and actors, the main
challenge is how to enhance its capacity to engage oil and gas policy makers: little connection
with government. Another challenge is how to change the mindset of private companies to be
market-oriented and efficient suppliers. Currently, PEF rues the over-reliance of its member
companies on government intervention, local sub-contractors’ limited capacity to meet
international standards (quality, timeliness, sustainability); and the use of political connections
to gain contracts but fail to deliver and thereby damaging the reputation of local companies.80
Similarly, both the AGI and the GJA, member of PEF, identifies capacity deficiency as a major
hindrance to their work in the emerging oil and gas sector. This affects effective advocacy work
in local content development process. The AGI’s capacity problem involves the lack of in-house
expertise on oil and gas issue;81 and GJA cites a lack of expert knowledge on oil and gas in
general and limited understanding about local content in particular.82 AGI has in the past tried
to solve these lack of in-house expertise either by developing the capacity of its members in
certain areas of operation or by hiring the services of experts and consultants at very high costs
to itself. However, the emerging oil and gas sector is a relatively complex and expensive terrain
but the AGI does not have the financial resources to train specialized staff on oil and gas within
the short- and medium-terms. The solution could be a partnership with, and financial support
from the government to build its own technical capacity as well as to help its member
companies to understand local content development better and to facilitate full (Ghanaian)
private sector participation in the industry.83 The GJA, on its part, sees the need for journalists
to be educated on oil and gas and related issues to boost their performance as watchdogs.84
78 Interviewed: IBIS
79 Interviewed: ISODEC
80 Interviewed: PEF
81 Interviewed: AGI
82 Interviewed: GJA
83 Interviewed: AGI
84 Interviewed: GJA
34
Interaction/networks
Both public and private sector actors have sought to increase their clout in the policy sphere as
well as push their mutual interests by fostering of cross-cutting networks between groups of
similarly-minded groups, government institutions, and international partners. These intra-
groups partnerships and cross-organizational networks provide opportunity to share ideas and
experiences as well as to limit some of the capacity problems facing some actors.
Civil society organizations have also deepened their local intra-group interaction and also
broadened their network by linking to international partners and government institutions. For
instance, IBIS Ghana has established links with local CSO like ISODEC; SEND GHANA; WACAM;
CSPOG; and Centre for Public Interest Law (CPIL). Its regional allies include Publish What You
Pay Africa (PWYPA) and Tax Justice Network Africa (TJNA). IBIS also collaborates with
international partners, particularly Oxfam America (OA) and Christian Aid (CA), to raise funds to
support their local partners by providing funds, information and training. Furthermore IBIS
supports the Parliamentary Committee on Mines and Energy (PCME) by offering training with
respect to oil and gas. It also provides funding to partners that want to organize and/or
participate in international forums.85 ISODEC is one of the key partners in the IBIS Ghana
network. Though ISODEC works mainly with other advocacy CSO, its contacts in the voluntary
associations sector cut across the board. Its national partners in the O&G platform include
WACAM, Ghana Integrity Initiative (GII), PWYP coalition, KITE, and TUC (a collective of labor
union). ISODEC has also links with international partners like OSIWA, IBIS International/Ghana,
World Bank, and Oxfam America.86 The gains are mutual because by enhancing the work of its
local partners IBIS is seen to be executing its mandate.
As noted above, the Parliament of Ghana lacks capacity problems in terms of expertise in oil
and gas. This capacity shortfall is corrected through partnerships with civil society groups who
provide capacity building training apparently to gain leverage for their lobbying work in
Parliament. Also, Parliament works closely with ENP-exploration companies, particularly PWC,
GRA, MOFEP, MOEn, the Environmental Protection Authority, and private sector actors.87
Similarly, private sector actors rely on partnerships with other sectors. PEF’s approach is to
foster teamwork with GCOG, GOGSPA, Energy Foundation, and Energy Commission.88 AGI on its
part has worked closely with many public and private sector organizations to push its oil and
gas agenda through the development of concepts and ideas of annual conferences, and local
content stakeholder meetings, etc. Its network of allies includes GNPC, MOEn, MOTI, and IOCs
(Tullow, Modec, Technip, and Schlumberger).89 On its part, the GJA works closely with allies in
the Oil and Gas industry, government institutions, civil society organizations, and IOCs (jubilee
85 Interviewed: IBIS Ghana
86 Interviewed: ISODEC
87 Interviewed: Parliament
88 Interviewed: PEF
89 Interviewed: AGI
35
partners) to upgrade the expertise and capacity of journalists through information
dissemination and training.90
Challenges: implementation, monitoring and review
Interviewees are of the view that there are enormous challenges facing the other levels of the
general petroleum and local content policy cycle: implementation, monitoring and review. In
general, implementation of petroleum policy falls under the ambit of five public bodies: MOEn
(energy and petroleum); PC (Ghanaian content); GNPC; GMA (maritime issues); and EPA
(environmental regulator).91 ISODEC believes that being the originator of oil and gas policy the
MOEn is “capable of implementing the right policies”. Other, however, believe that the
performance of these organizations when it comes to the implementation “cannot be
effectively measured because they are new and will need time”.92 But IBIS believes that the
right implementing agency is the PC, which has not started its monitoring role fully. The
structures are new and do not take effect on the previous contracts. What was in force in the
past was the stabilization agreement and confidentiality agreement. Local content was not
anticipated.
When it comes to monitoring UNDP believes that the main challenges towards making the
policies operational and effective relates to monitoring. The institutions responsible for
monitoring include the GNPC which is also mandated to monitor and ensure that the contractor
satisfies its obligations as stipulated in PA and other policies.93 It must be noted however that
the monitoring role has been taken over the PC.
The last component in the policy cycle is policy review. There are intentions of the government
to review and ultimately revise some of the existing policies and laws in the face of new
realities imposed by the production of oil in commercial quantities. So far CSO platform has
provided a robust platform for the critique of and recommendations for the review of outdated
oil and gas policies. ISODEC has initiated reviews of the local content to make it conform to the
WTO requirements. But again the problem of making meaningful and effective impact in the
review process is hampered by the difficulty of “laying hands on relevant documents. [This lack
of information] has the ability of stifling the growth of the sector”.94
90 Interviewed (GJA)
91 Osei Bonsu Dickson, unPublish.info (13.04.2012)
92 Interviewed: Parliament
93 Interviewed: UNDP
94 Interviewed: ISODEC
36
CHAPTER 4
LOCAL CONTENT AND LOCAL PARTICIPATION POLICY FRAMEWORK
One of the major tangible outcomes of the policy process outline in in the previous chapters are
the “Local Content and Local Participation in Petroleum Activities Policy Framework, 2010
(LCLPPA 2010), and “Petroleum (Local Content and Local Participation in Petroleum Activities)
Regulations, 2012” (PR 2012). The 2010 document was the first draft, which after several
revisions through stakeholder inputs has yielded the ‘finished’ PR of 2012 a relatively
comprehensive policy effort that is undergoing the processes that will turn it into law. Apart
from bringing together the scattered references to local content issues in earlier petroleum
policy and legislative frameworks (notably, PA 2011; and PNDCL84), PR 2012 has also taken
account of stakeholder concerns and suggestions acquired through countless consultative
channels and platforms.
This chapter gives an overview of contents of current local content policy documents LCLPPA
(2010) and PR (2012). It begins with definitions of LC, emphasizing the aspects that the various
interviewed stakeholders lay emphasis on); then goes on to present the challenges and
solutions to LC development from the perspective of stakeholders; and finally presents the
highlights of PR (2012).
Definition of Local Content
Though stakeholders lay emphasis on different aspects that they consider to be most important
for the realization of local content, the core issues in the definitions are ‘Ghanaian content’ or
‘indigenization’; quantum of ownership; and value additionin oil and gas activity. Public
institutions and agencies tend to give a broader definition to LC. According to the GNPC, LC is
the quantum/percentage of locally produced materials, personnel, financing, goods and
services rendered to the oil industry and which can be measured in monetary terms”.95 GNPC’s
definition is not that different from the MOEn’s: the level of use of Ghanaian local expertise,
goods and services, people, businesses and financing in oil and gas activities”.96 However,
MOFEP which is the sector ministry for job creation sees local content as job creation
mechanism.97 For the BoG “Local content is about enabling Ghana SMEs to participate in oil and
gas ventures”.98 The voice representing Parliament notes that the definition of LC “depends on
the stance of an individual. For him it includes the involvement of Ghanaians in all the sectors,
up and down stream”.
95 Interviewed
96 Petroleum Activities Policy Framework, 2010: p. 2, note
97 Interviewed
98 Interviewed
37
Private and voluntary sector stakeholders also emphasize ‘quantum/percentage of ownership’
as most important. For instance UNDP maintains that “all artisanal jobs should go to the local
content; everything that has to do with artisanal work should have 60% local content;
Government share in the oil should be more that the current 10% because GNPC has done a lot
of work and mapped the area before the current oil explorers came. The 10% is woefully
inadequate.” PEF’s stresses that “local Ghanaian indigenous ownership at a level of 40%” and
“availability of skillsis important for realization of local content. If skills are available, then
there is local participation”. And, while CSPOG considers ownership as important, it identifies
Ghanaian involvement in “decision making” on oil and gas matters equally crucial.99 The GJA
also stressesthe involvement of the local people not necessarily in the production upstream
but more importantly the supply of goods and services, food items, etc.”
However IBIS (Ghana) is critical of the view that stresses only on the quantum aspect of supply
side of Ghanaian content to the negligence of the value addition aspect (use of oil and gas to
develop Ghanaian goods and services). As the interviewee (IBIS) put it, Unfortunately the local
content is limited what should be supplied to the industry and not what the industry supplies.
Example, gas can be used to develop the energy sector and 50% of pipes and parts of the FPSO
can be fabricated in Ghana.”
In sum, the interviewees and, as we shall see below, the policy documents distinguish local
content from local participation. Local content refers to the increasing use of Ghanaian
produced materials, personnel, financing, goods and services; and local participation on the
other hand refers to the level of Ghanaian Equity Ownership.
Local content and participation challenges and solutions
There is unanimity among all interviewees that the quest for LC and local participation cannot
be achieved if certain challenges are not addressed. These challenges include:
- lack of finance due to the low capacity of the local financial institutions to provide the
huge financial outlays required by Ghanaian entrepreneurs to become competitive in
the highly specialized and technology intensive business of oil and gas;
- inadequate human resource capacity due to a weak educational infrastructure; and
- inadequate technological know-how and infrastructure base.100
Other challenges identified by interviewees are “lack of legislative and institutional framework
to enforce local content and participation requirements (ISODEC); monitoring to gauge what is
implemented; low capacity of local companies and the difficulty of the local companies to meet
99 Interviewed
100 MOEn, LCLPP 2010: p. 3
38
international standards; mismanagement and corruption101; and the ‘natural’ adversity of
Ghanaians “to invest so much in to areas of high risk102.
The interviewees do not only identify the constraints, they also offer solution. ISODEC insists on
the setting up of effective institutional frameworks, including the Petroleum Commission, to
drive the process. IBIS (Ghana) on its part suggests that solutions proposed should reflect in
policies and a law to give it a legal backing in the implementation of policy. Also Ghanaians
must be vigilant against corrupt practices to avoid ‘regulatory capture’ by politicians. The
interviewee reiterated that the issue of local content goes beyond figure but more importantly,
making conscious efforts to train and build capacity;103 through knowledge transfer; hands-on
training (not necessary classroom training); on-hand training;104 and artisanal training.105
Highlights of the “Petroleum Regulations” (2012)
The “Petroleum (Local Content and Local Participation in Petroleum Activities) Regulations”
(2012) which is currently awaiting Parliamentary approval is in several section covering specific
issues in local content.
- Section 1-4): purpose and scope
o Elaborates the general provisions, covering: purpose and scope of the policy,
Ghanaian content obligation on companies carrying out petroleum activity,
prioritization of interest of Ghanaians.
- Sections 6 and 17-34: local content plans
o Requires entities operating in petroleum activity to submit both long-term and
annual local content plans as well as sup-plans detailing how they intend to
achieve local content goals in employment and training; research and
development; technology transfer in oil and gas106; local insurance services; local
legal services; and local financial services.
- Sections 35 and 37: performance report
o Requires all entities active in oil and gas area to submit Ghanaian content
performance report for evaluation.
- Section 5 and sections 36-47: institutional framework for overseeing LC implementation
and monitoring; and evaluation of the PR (2012); reviewing, assessing and making
101 Interviewed: IBIS
102 Interviewed: Parliament
103 Interviewed: Parliament
104 Interviewed: PEF
105 Interviewed: UNDP
106 Here PC defines oil and gas technology transfer accordance with the National plan for technology transfer
standards and in consultation with National Development Planning Commission, the Ghana Investment Promotion
Centre, Ministry of Trade and Industry and Ministry of Environment Science and Technology. (See PR, section 23)
39
recommendations on submitted LC plans. Here, the role of the Petroleum Commission
(PC) and its appointed Local Content Committee (LCC) are important.
o Specifically, LCC shall
oversee, coordinate, and manage the development of Ghanaian content;
prepare guidelines, including targets and formats for local content plans
and reporting;
make appropriate recommendations for the smooth implementation of
these Regulations;
set minimum Ghanaian content in local content plans where applicable;
undertake public education;
undertake Local Content monitoring and audit;
establish a Common Qualification System (CQS) an industry data bank
of available capabilities.
o The PC’s role is to
Assess and verify LC performance reports;
Ensure transparency in its operations through making data and
information available to the public as well as licensees and contractors;
and carrying out public/mass education on Ghanaian content policy;
Issue guidelines and procedures regarding monitoring, compliance and
guidance.
Review of PR 2012
Compared to LCLPPA (2010), PR (2012) appears to be a product of a long process of patient,
thoughtful and inclusive consultation among all stakeholders, as it answers most of the
challenges identified by the stakeholders (interviewed) about local content development. It
incorporates local content issues addressed in sections of existing policies and laws. It also
takes account of LC best practices of countries that have set up successful LC frameworks which
had an impact.
Inclusiveness
A comparison of local content objectives in LCLPPA (2010) and PR (2012) show the improvements
that resulted from the inclusive policy making process.
Table 1: Objectives /Goals of Local Content policy
LCLPPA Policy Objectives, 2010107
LC vision in NEP, 2010
108
Purpose, PR, 2012109
Maximize the benefits of oil and gas
wealth generation on a comprehensive
Promotion of maximization of value-addition and job creation,
through the use of local expertise, goods and services, businesses
107 Page 5
108 Ministry of Energy (2010) National Energy Policy, Ministry of Energy, Accra, p.16-17
109 Page 4-5
40
local content platform by maximizing
the use of local
expertise, goods and
services, job creation for people,
businesses and financing in all aspects
of the oil and gas industry value chain
and retention of the benefit within
Ghana
Develop local capability 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
Create oil and gas and related
supportive industries that will sustain
economic development
Achieve a degree of influence or control
over development initiatives for
local/domestic stakeholders
Achieve at least 90 percent local
content and local participation in all
aspects of oil and gas industry value
chain within a decade
Increase capabilities and international
competitiveness of domestic businesses
and industrial sectors
and financing in the petroleum industry value chain and the
retention of benefits within Ghana
Development of local capability in all aspects of the petroleum
value chain through education, skills and expertise development,
transfer of technology and know-how and an active research and
development program
Achievement of the minimum local employment and in-country
spend in the petroleum industry value chain within a decade of the
start of every petroleum license or contract, in the provision of
such supplies and services specified in these Regulations
Creation of petroleum and related supportive industries that will
sustain economic development
Achievement and maintenance of a degree of influence or control
by Ghanaians over development initiatives for local stakeholders,
and
A rigorous and transparent monitoring and reporting system to
ensure delivery of Ghanaian content policy objectives
Submission of the Ghanaian Content Plan and related sub-plans by
licensees, contractors, sub-
contractors and any other entities
involved in the petroleum industry with respect to but not limited
to
- provision of goods and services;
-
transfer to the Corporation or the Commission and
Ghanaians of advanced technology
and skills related to
petroleum activities while carrying out petroleum
activities
- a recruitment and training program
Supervision, coordination, implementation and monitoring of local
content
Citing the standard ingredients of local content, both LCLPPA and PR emphasize ‘Ghanaian
content’ in employment and training; transfer of employment and training; research and
development; technology transfer in oil and gas110; local insurance services; legal services; and
local financial services (to the GNPC); insurance services; legal services; and financial services.
Many of the elements of Ghanaian content are carry overs from existing general petroleum
policy/legislation, particularly PNDCL 84 and its replacement, PA (2011). For instance,
110 Here PC defines oil and gas technology transfer accordance with the National plan for technology transfer
standards and in consultation with National Development Planning Commission, the Ghana Investment Promotion
Centre, Ministry of Trade and Industry and Ministry of Environment Science and Technology. (See PR, section 23)
41
- employment and training of Ghanaians (see PA 2011, section 51 and 59; PNDCL 84
section 23, sub-sections 10, 11, and 12)
- use of Ghanaian goods and services (see PA 2011, section 60; and PNDCL 82, section 23)
- Technology transfer (see PA 2011, section 61; PNDCL 84, section 23)
Multiplier effect
Both versions stress the need for oil and gas activity to have a multiplier effect in the Ghanaian
economy and in individual lives through wealth generation, in-country spend, and value
addition through development of supportive industries.
Quantum/percentage of participation and ownership
The PR (2012) is more nuanced when it comes to the issue of Ghanaian content targets for all
aspects of petroleum activity. Whereas LCLPPA (2010) states a blanket determination to
achieve “at least 90 percent local content and local participation within a decade”, PR (2012,
First Schedule) outlines graduated and varied targets (different levels of Ghanaian participation)
for all aspects of activity in the petroleum value chain. For instance, the targets for
- Goods and services: 10% (start), 50% (5 years), and 90% (10years)
- Recruitment and training:
o Management staff 50% (start),80% (5 years), and 100% (10years)
o Technical core staff 30% (start), 80% (5 years), and 90% (10years)
o Other staff 100% (start), 100% (5 years), and 100% (10years)
Ghanaian content targets vary according to the level of technology, capital and expertise
required to perform a service. Accordingly, targets are generally relatively high for aspects that
are less technologically and capital intensive: goods and services; staff recruitment; materials
and procurement; research and development services; exploration and seismic services;
transportation, supply and disposal services; health, safety and environment services; and
information systems, information technology and communication services.
Conversely, starting point targets are generally low for technological and capital intensive
aspects; and end point (10 years): feed and engineering services marine operations and logistic
services; fabrication and construction; well drilling services. Here too end point targets are still
modest for sectors that Ghanaians are considered not to have achieved competiveness.
Realization of Ghanaian content
Stating goals without elaborating a plan to achieve targets set can at best be described as a
futile effort. For instance, the issue of Ghanaian influence or control in petroleum matters,
which was raised by IBIS (Ghana) as one of the challenges facing petroleum decision-making in
general is also addressed in both, but how to achieve or enforce this is not addressed in
42
LCLPPA. One of the strengths of PR (2012) is that it elaborates a plan for ensuring the delivery
of Ghanaian content requirements. These include:
- Requirement that licensees, contractors and sub-contractors should submit elaborate
Ghanaian content plans and sub-plans on all aspects of Ghanaian content; and
- The setting up of an institutional framework (PC and LCC) ensure that GC requirements
are adhered to (supervision, coordination, implementation, and monitoring);
- Insistence on transparency (data and information);
- The high cost of doing business in Ghana (excessive lending rates, unpredictable
electrical power supplies, etc.
Importantly, the PR (and its predecessors) seems to be concerned exclusively with impositions
of Ghanaian content obligations on operators (licensees, contractors, and sub-contractors) in
petroleum activity. Indeed, Ghana’s local content policy does not seem to impose any
obligations on Ghanaians and GOG beyond the determination to ensure operator compliance.
What obligation should Ghana have to develop the necessary ‘capitals’ (human, financial,
political, etc.) to facilitate the achievement of ‘ownership’ and ‘participation’ criteria? How is
Ghana equipped to ensure that its private sector operates according to international standards
in oil and gas? It does not elaborate on the structural weaknesses within the Ghanaian
(political, economic and social) system that hampers the realization of Ghanaian content:
inadequate educational system which affects skills development); weak financial infrastructure
which affects the development of robust Ghanaian private sector participation; weak
transportation systems affects delivery schedules; political red-tapism and corruption; inhibitive
cultural attitudes which affects joint ventures; etc.). The list is long.
Ghanaian Equity Ownership
Importantly, local content development is linked intrinsically to the nurturing of a robust
Ghanaian private sector, as well as the promotion of foreign-Ghanaian partnerships in the
emerging oil and gas industry. This is attested to by requirement that obliges licensees,
contractors and subcontractors in oil and gas sector to incorporate a company in Ghana (PA,
2011, section 69; PNDCL 84, section 25). Not only is incorporation required, but foreign
operators at all levels are also required to support Ghanaian content by providing for the
equity participation of a citizen of Ghana with an interest of at least 5% in a petroleum
agreement or a petroleum license. Also, foreigners intending to establish goods and services
supply companies are obliged to enter into joint ventures “with an indigenous Ghanaian
company and afford such indigenous Ghanaian company an equity participation of at least
10%”.111
111 PR 2012, Section 4
43
CHAPTER 5
SUMMARY OF FINDINGS AND RECOMMENDATIONS
Ghanaian content is identified as an important mechanism for making the petroleum resources
both economically and socially liberating for Ghanaians. Since 2007 GoG has put high premium
on the petroleum industry in its medium- and long term national development imperatives
prepared under the aegis of the National Development Planning Commission (NDPC).112
Particularly, the GSGDA (2010-2016: sections 2.4.1; 3.2.3; 4.4.1) as well as GSGDA: Costing
Framework (2010-2013: section 2.5) emphasize the economy-wide impact of the discovery of
oil and gas, as well as the crucial role of the associated industry in transforming Ghana into an
industrial economy with quality jobs and increased incomes” for all Ghanaians (GSGDA 3.2.3).
Other expected impacts are protection of the environment, ensuring transparent and equitable
revenue management, diversification of the economy, capacity development, the increased
access to petroleum products, the strengthening of the capacity of domestic financial
institutions, and the maximization of the use of local goods as well as associated resources in
the oil and gas value chain in order to retain the benefits within Ghana and for Ghanaians.
The institutional landscape for petroleum sector includes a broad array of public and private
sector stakeholders working together. The most important public sector stakeholders/actors
are sector ministries like MOEn; MOFEP; MEST; and agencies like GNPC; EPA; and PC.
Private/civil sector stakeholders include private business associations; international and
national oil companies; civil society organizations; and development partners. Though the oil
and gas mandates of the stakeholders vary, they have a common interest, which is to avoid the
so-called ‘resource curse’ in Ghana. Thus Corporate Ghana’s ‘stake’ in oil and gas find lies in its
developmental value that is, the desire to use the accruing financial windfall to improve the
economy (multiplier effect) in particular and to enhance the living standards of the people in
general. The IOCs have a primary stake because they have made huge investments in the
industry, and their interest is not only to recoup the investments (capital, technology, etc.), but
also to make profits. However, IOCs are also obliged (by policy, ethically and the principles of
corporate responsibility) to ensure substantial Ghanaian content in their operations as well as
to invest some of their profits in developmental projects in deprived communities. Thus,
though the economic motivations of both the state and the IOCs differ, their interests coincide
at several important areas.
When it comes to policy making for the industry, though all the stakeholders play a role the
MOEn and its agents are the principal drivers of petroleum policy and key ‘actor’ in the oil and
gas policy process, and particularly in Local Content policy. Business Associations are concerned
with getting their member businesses to enter the petroleum business; civil society groups paly
a sort of ‘watch-dog’ role to ensure transparency and equity in the management and utilization
112 The National Development Planning Commission is a body created by articles 86 and 87 of the 1992
Constitution of the Republic of Ghana and established by Acts 479 and 480 (1994) of Parliament with the mandate
to advise the President on development planning policy and strategy. See
http://www.ndpc.gov.gh/The%20NDPC.html
44
of oil and gas revenue as well as environmental sustainability of the petroleum business.
Development partners, on their part, are engaged in helping Ghana to develop policy and skills
required for the effective management of the petroleum resources and industry; as well as in
development of Ghanaian content through skills training and enterprise development
programs.
Effective policies and legislation are important for governing the petroleum sector in general,
and for ensuring the development of Ghanaian content in particular. Ultimately, Ghanaian/local
content and local participation policy are the handiwork of the MOEn, which is the sector
ministry with responsibility for energy and including petroleum issues. However, other
stakeholders were consulted. In fact, all stakeholders testify that petroleum policy making in
general was through a consultative and inclusive process, though there is room for more
openness when it comes to disclosure of contents in petroleum agreements. On Ghanaian
content, in particular, the private and civil society sector stakeholders were generally satisfied
with consultative platforms that allowed interaction between them and the (MOEn). However,
challenges were identified when it comes to implementation, monitoring, and review aspects of
the policy cycle. Irrespective of the limitations and challenges, comparatively the Petroleum
(Local Content and Local Participation in Petroleum Activities) Regulations, 2012(PR 2012) is a
better policy document due to the transparent and inclusive nature of the process associated
with making it.
Clearly, PR 2012 is a robust document which can enhance the realization of Ghanaian content if
it is properly implemented (supervised, coordinated, and monitored). PR 2012 emphasizes
three levels or aspects. First, the supply aspect concerns employment of staff (all levels);
training of Ghanaians in all aspects of petroleum activity; transfer of technology and know-how;
and use goods and services. The second level is on participation of Ghanaians. Here it is
importantly to note that local content is linked intrinsically to the nurturing of a robust
Ghanaian private sector as well as the promotion of private-public partnerships in the emerging
oil and gas industry. Thus the issue on the ownership side of Ghanaian content relates to the
extent or level of Ghanaian private participation in contracting and sub-contracting. Compared
to LCLPPA (2010) which envisages 90% Ghanaian ownership in all activity over a period of 10
years; the PR (2012) more realistically outlines a graduated plan of Ghanaian participation
depending on anticipated capacities of companies at the start period, and in 5 years and 10
years ahead. Ownership and participation is also to be ensured through equity requirements.
Thirdly, emphasis is place on the multiplier effect of oil and gas activity on the economy and
industry through in-country spend; value addition; development of ancillary industries.
Recommendations
- As some informants noted, the PR (2010) must move quickly from the policy stage to
the legislative stage to give the Ghanaian content effort the needed legal force
- The PR (2012) and the eventually Bill should be constantly reviewed, with active
involvement of all stakeholders) to incorporate new realities on the capacities side
45
- The tendency to envisage Ghanaian content as an obligation on IOCs appears to be
shortsighted. GoG and Ghanaians must be seen to be actively providing the institutional,
social, economic and political environment that enhances capacities (financial,
knowledge base, etc.) that can equip Ghanaian’s to meet international standards and to
become competitive in the industry in general.
- Though development partners have played significant positive roles, the continued
reliance on them in developing local/Ghanaian content will only have short-term impact
if the GoG and Ghanaians do not address the structural (institutional, economic,
political, and cultural) weaknesses that inhibit the maximum participation of Ghanaians
in the oil and gas industry.
46
APPENDIX
Appendix 1:
Tangible outcomes of post-oil find policy (since 2010). The table also shows the
stakeholders/actors involved and the action stage of the policy.
Table 2: Policy Documents and Legislation Since 2010
Year
Key Policy Outcome
Key Stakeholders
2010
Petroleum (Exploration and Production) Bill
Cabinet approval
2010
Petroleum Revenue Management Bill
Cabinet approval
2010
Petroleum Commission Bill
Cabinet approval
2010
Local Content and Participatory Policy
MOEn, Cabinet approval
2010
Maritime Pollution Bill
Cabinet approval
2010
Maritime Security Bill
Cabinet approval
2011
Petroleum Commission Act, Act 821
MOEn, Parliament
2011
Petroleum Revenue Management Act, Act 851
Parliament, MOEn
2011
Stabilisation Fund established (16% of oil receipts)
MOFEP
2011
Heritage Fund established (4% of oil receipts)
MOFEP
2011
Ghana National Gas Company established
MOEn
2011
GNGC’s Project Implementation Agreement signed
with the Chinese for a Gas Processing Plant
MOEn, GNGC, the Chinese
Company113
, Chinese
Development Bank
2012
Petroleum (Local Content and Local Participation in
Petroleum Activities) Regulations
MOEn, Petroleum
Commission (yet to be
passed)
What needs to be emphasized is the point that although these outcomes were realized in the
stated year, there had been some years of preparation with these policy outcomes moving
through the identifiable stages in the policy process (e.g. policy need identification and the
generation of policy options).
Appendix 2:
Representatives of the following institutions and Individuals were interviewed
- Abeasi (Mr)
- Association of Ghana Industries
- Bank of Ghana
- Ghana Journalist Association
- Ghana National Petroleum Corporation
- IBIS Ghana
- Integrated Social Development Centre
113 Sinopec International Petroleum Service Corporation of China. The PIA is for the engineering, procurement,
construction and commissioning of the Gas Processing Plant.
47
- Ministry of Finance and Economic Planning
- Ministry of Energy
- Ministry of Environment, Science and Technology
- Parliament
- Private Enterprise Foundation
- United Nations Development Program
Appendix 3: Interview Guide (see attached)
48
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Article
Full-text available
This article conceptualizes power in the context of long-term process of structural change. First, it discusses the field of transition studies, which deals with processes of structural change in societal systems on the basis of certain presumptions about power relations, but still lacks an explicit conceptualization of power. Then the article discusses some prevailing points of contestation in debates on power. It is argued that for the context of transition studies, it is necessary to develop an interdisciplinary framework in which power is explicitly conceptualized in relation to change. Subsequently, such a framework is presented, with reference to existing literature on power. Starting with a philosophical and operational definition of power, a typology is developed of the different ways in which power can be exercised, explicitly including innovative power and transformative power. Finally, the presented power framework is applied to transition studies, redefining pivotal transition concepts in terms of power and formulating hypotheses on the role of power in transitions. By doing so, the article not only offers an interdisciplinary framework to study power in the context of transition studies, but also contributes to power debates more generally by including innovation and transformation as acts of power, and thereby proposes a re-conceptualization of the relation between power and structural change.
Chapter Eight The Executive
Constitution of the Republic of Ghana (1992) Chapter Eight The Executive, Article 58 (1) 8
Consolidated Report on the Proposed Petroleum Bills and Local Content Policy for the Private Sector
  • Dominic Ayine
Ayine, Dominic (2010) "Consolidated Report on the Proposed Petroleum Bills and Local Content Policy for the Private Sector.
Ghana Living Standards Survey Round 5, Ghana Statistical Service Understanding Policy Processes, Knowledge, Technology and Society Team,-NDPC (2010) Ghana Shared Growth and Development Agenda
  • Ghana Statistical
Ghana Statistical Service (2008) Ghana Living Standards Survey Round 5, Ghana Statistical Service, Accra-IDS (2006) Understanding Policy Processes, Knowledge, Technology and Society Team,-NDPC (2010) Ghana Shared Growth and Development Agenda, National Development Planning Commission (NDPC), Accra-NDPC (2011) Implementation of the Ghana Shared Growth and Development Agenda (GSGDA), 2010-2013-2010 Annual Progress Report, NDPC, Accra.-Constitution of the Republic of Ghana (1992)-Implementation of the Ghana Shared Growth and Development Agenda (GSGDA), 2010-2013, 2010 Annual Progress Report, NDPC, Accra.