ANNOUNCEMENT 20 Nov 2013

In November 2013, the government of Ghana announced a change in local-hiring incentives and a change in the required local operations to serve domestic customers and a change in the required local inputs to serve domestic customers.

NUMBER OF INTERVENTIONS

3

  • 3 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Petroleum (Local Content and Local Participation in Petroleum Activities) Regulations, 2013: http://www.energymin.gov.gh/wp-content/upLoads/Local-Content-LI-21.pdf Ghana Business News, November 20, 2013, 'Ghana's Parliament adopts local content regulations for oil industry': http://www.ghanabusinessnews.com/2013/11/20/ghanas-parliament-adopts-local-content-regulations-for-oil-industry/
http://www.pwc.com/en_TZ/tz/pdf/pwc-oil-and-gas-tax-guide-for-africa-2013.pdf


Inception date: 20 Nov 2013 | Removal date: open ended
Still in force

Local sourcing

On November 20, 2013, the Parliament of Ghana adopted Legislative Instrument L.I. 2204 entitled 'Petroleum (Local Content and Local Participation in Petroleum Activities) Regulations, 2013'. Under the regulations, anyone 'carrying out a petroleum activity shall ensure that local content is a component of the petroleum activities engaged in'. The main points are:

  • Ghanaian companies have to be given first preference in the grant of petroleum agreements and licences
  • A minimum equity participation of 5% by Ghanaian companies is required
  • Non-Ghanaian companies wanting to provide goods or services to enterprises in the petroleum sector must set up a joint venture with a Ghanaian counterpart, granting that counterpart at least 10% of equity participation
  • Goods and services require 10% local content from the entry into force of the regulations, set to increase to 60-90% in ten years time; likewise, the regulations provide for local staff quotas to increase to 70-100% in ten years time depending on the type of employees (management, technical etc.)

A Local Content Committee will be set up to monitor and supervise compliance with the regulations. To identify the affected trading partners, the list of major companies active in Ghana on Africa Oil and Gas was used.
This measure follows the introduction of Petroleum (Local Content and Local Participation in Petroleum Activities) Regulations in 2012 (see PWC source below).

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A
Inception date: 20 Nov 2013 | Removal date: open ended
Still in force

Local labour

On November 20, 2013, the Parliament of Ghana adopted Legislative Instrument L.I. 2204 entitled 'Petroleum (Local Content and Local Participation in Petroleum Activities) Regulations, 2013'. Under the regulations, anyone 'carrying out a petroleum activity shall ensure that local content is a component of the petroleum activities engaged in'. The main points are:

  • Ghanaian companies have to be given first preference in the grant of petroleum agreements and licences
  • A minimum equity participation of 5% by Ghanaian companies is required
  • Non-Ghanaian companies wanting to provide goods or services to enterprises in the petroleum sector must set up a joint venture with a Ghanaian counterpart, granting that counterpart at least 10% of equity participation
  • Goods and services require 10% local content from the entry into force of the regulations, set to increase to 60-90% in ten years time; likewise, the regulations provide for local staff quotas to increase to 70-100% in ten years time depending on the type of employees (management, technical etc.)

A Local Content Committee will be set up to monitor and supervise compliance with the regulations. To identify the affected trading partners, the list of major companies active in Ghana on Africa Oil and Gas was used.
This measure follows the introduction of Petroleum (Local Content and Local Participation in Petroleum Activities) Regulations in 2012 (see PWC source below).

 
N/A
 
N/A
Inception date: 20 Nov 2013 | Removal date: open ended
Still in force

Local operations

On November 20, 2013, the Parliament of Ghana adopted Legislative Instrument L.I. 2204 entitled 'Petroleum (Local Content and Local Participation in Petroleum Activities) Regulations, 2013'. Under the regulations, anyone 'carrying out a petroleum activity shall ensure that local content is a component of the petroleum activities engaged in'. The main points are:

  • Ghanaian companies have to be given first preference in the grant of petroleum agreements and licences
  • A minimum equity participation of 5% by Ghanaian companies is required
  • Non-Ghanaian companies wanting to provide goods or services to enterprises in the petroleum sector must set up a joint venture with a Ghanaian counterpart, granting that counterpart at least 10% of equity participation
  • Goods and services require 10% local content from the entry into force of the regulations, set to increase to 60-90% in ten years time; likewise, the regulations provide for local staff quotas to increase to 70-100% in ten years time depending on the type of employees (management, technical etc.)

A Local Content Committee will be set up to monitor and supervise compliance with the regulations. To identify the affected trading partners, the list of major companies active in Ghana on Africa Oil and Gas was used.
This measure follows the introduction of Petroleum (Local Content and Local Participation in Petroleum Activities) Regulations in 2012 (see PWC source below).

 
N/A
 
N/A