The size of contracts awarded to Ghanaians in the Petroleum and Gas Industry for the first half of the year has hit US$221 million.
The volume of the contracts has doubled compared to the same period last year. Emmanuel Armah Kofi Buah, the Minister of Petroleum, attributed the feat to the passage of the Legislative Instrument (LI) aimed at strengthening the Local Content Law.
“The Petroleum Commission has been tracking Ghanaian participation and the progress for Ghanaians between January this year and June was that, 221 million dollars of contract have gone to Ghanaians because of the local content LI,” he said.
He added that the LI has also enabled the commission to assess the volume of transactions awarded to indigenous companies in the Tweneboa Enyenre Ntomme(TEN) project .
“We now can track that almost one billion dollars of the contract that went to TEN went to Ghanaians and that is a huge achievement,” he said.
Touching on other areas in the upstream sub-sector that could be improved, Mr. Buah maintained that it is pertinent to strengthen the capacity of Ghanaian companies to help them compete favourably.
Although there seem to be an improvement, figures released by the Petroleum Commission earlier this year indicated that the value of activities yielded to indigenous companies in the Petroleum Upstream sector between 2010 and 2015 was only one billion dollars.
However, total value of activities in the Petroleum Upstream sector between the period was 6.3 billion dollars.
Foreign companies have access to 5.3 billion dollars of the transactions while local companies have access to one billion dollars.
Currently there are 300 indigenous companies registered with the Petroleum Commission to work in the sector, while only 150 foreign companies do business in Ghana’s Petroleum Upstream Sector.