The lead operator of the Jubilee and TEN oil fields, Tullow Ghana, has assured that it will continue to work with local companies in the industry and ensure more contracts are awarded to boost their capacities.
In a statement issued on Friday, September 9, the company affirmed its commitment to indigenous Ghanaian participation in all of its contracts awarded, adding that it has no desire to replace local companies with foreign ones.
“From inception of its operations, Tullow Ghana always recognised the need to support and build local expertise and has undertaken several skills development programmes to support the growth of local participation and pursued targeted Supplier Development initiatives aimed at enabling participation in the oil and gas industry in Ghana,” part of the statement said.
This is in a reaction to a writ of summons issued against it by the Ghana Oil and Gas Service Providers Association (GOGSPA) over complaints that services reserved for indigenous companies were being taken away and awarded to foreign venture companies.
GOGSPA, among other reliefs, is seeking an order from the Accra High Court to restrain Tullow Ghana, its agents, assigns and persons working under its instructions from violating the Local Content and Local Participation (Amendment) Regulations 2021 (LI 2435) in the award of petroleum contracts, pending the determination of the suit.
But in a reaction, Tullow Ghana says it has awarded more than 4,000 contracts to indigenous companies, with almost 3,000 contracts awarded to joint venture companies, which included indigenous participation.
“Out of the total contracts awarded valued at $16.83 billion between 2010 and 2021, $11.24 billion worth of those contracts were awarded with local Ghanaian participation.
“Over the years, Tullow Ghana has been consistent in steadily increasing contracts awarded to indigenous companies and has no desire to replace to indigenous Ghanaian companies with foreign companies. On the contrary, between 2014 to 2021 when LI 2204 was passed, Tullow Ghana tripled its indigenous contract award spend to up $1.47bn compared to $500m in 2014,” the statement added.
The company has, therefore, declared its intention to continue boosting the capacity of local companies to participate in the oil and gas industry, “consistent with our contractual obligations and applicable law.”
Meanwhile, the Accra High Court has adjourned the hearing of the motion by the GOGSPA to October 10, 2022.
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