Key stakeholders have expressed concern about some critical issues that have revealed grey areas in the local content policy for the emerging oil and gas industry. The President of the Association of Ghana Industries (AGI) Nana Owusu-Afari, addressing the closing session of the First Domestic Content and Matchmaking Exhibition/ Conference in the Oil and Gas Industry, in Accra, said there was urgent need for clear definition of local content and its scope. Government sources have hinted that a concluded draft local content policy, expected to be passed into law by Parliament soon, provides for an initial 50 percent participation by Ghanaians c in terms of staffing of companies servicing the sector as well as in the deliveries of goods and services. The extent of local participation is subsequently expected to increase to well over 80 percent within a decade. Nana Owusu-Afari emphasized that the AGI and other stakeholders expect to be included in the process leading to the development of final regulation for the policy while calling for the fine details of the Local Content Policy. Other critical issues of concern highlighted by the conference participants include the need to have structures to monitor compliance in order to avoid Ghanaians playing only nominal roles in the oil and gas industry. ''We must prevent the usual practice of Ghanaians fronting for foreigners for a pittance as commissions, without necessarily participating in the enterprise over the long-term to reap maximum benefits," the AGI president said. There is also need for clear criteria as to which entities must register with the Ghana National Petroleum Corporation (GNPC), while assuring the transparency of the registration process. Local companies interested in servicing the upstream international oil companies operating in the country are expected to first register with the national oil company, GNPC, which currently has registered over 120 companies. The registered companies however say they are at a loss as to what to do next, since the GNPC has not given them any orientation or training with regard to engaging the oil companies for contracts. Conference participants are also demanding timelines for the commencement of the local content policy and when the proposed oil and gas upstream sector regulator will be in place. They also noted that some foreign companies require suppliers to meet further certification criteria. Some of the criteria, they observed, are stringent and government therefore should help build local capacity to meet such criteria. Meanwhile, Ghanaian companies also asked to endeavour to adopt best practices and improve their service standards in order to remain competitive by industry standards. Nana Owusu-Afari said a communiqué of the proceedings of the conference will be issued soon and disclosed that a paper will be presented to government within a couple of weeks about the key issues raised. The key collaborators in the conference will additionally organise training programmes as part of capacity development of local enterprises, beginning next month with MODEC - the company that owns the FPSO Kwame Nkrumah leased to the Jubilee partners for the production oil and gas, which is expected to turn the country into an oil exporter by the end of the year. Source: B&FT