Local Content Implementation Enhancement through Infrastructure Development in Ghana’s Oil and Gas Industry
Journal of Energy Research and Reviews,
Since the discovery of oil and gas (O&G) in commercial quantities in 2007, Ghana has made some progress in passing several policies such as Local Content and Participation Framework, ostensibly to stem the effects of resource curse – connotes countries with more natural resources turned to be undeveloped than countries without natural resources. Put it differently, the country’s local content is meant to stimulate industry development by indigenizing the needs of the petroleum industry. However, the above aim is constrained by the country’s infrastructure deficit of about US$ 2.5 billion annually needed to provide the enabling environment for the growth of indigenous companies. The study, therefore, is to propose policy options for enhancing local content implementation through infrastructure development. To that end, the policy implementation in Angola, Brazil and Norway is reviewed, and the research participants are purposively sampled and interviewed. Consequently, the study found that the regulatory institutions and legal framework should be strengthened to attract private investment in infrastructure development. In addition, a special provision should be inserted in future petroleum contracts to support the Infrastructure Fund; through infrastructure-for-oil trade; and encouraging voluntary contribution from oil companies in exchange for reduced taxes into the Infrastructure Fund. The findings contribute to the existing literature in local content development by moving the discussion from training, local employment and goods and services targets to developing host country’s local infrastructure for sustainable development of indigenous and foreign businesses.
- Local content
- oil and gas.
How to Cite
Kalyuzhnova Y, Nygaard A, Omarov ES. and Saparbayev A. Local content policies in resource-rich countries. Palgrave Macmillan; 2016.
World bank . Local Content in oil, Gas and Mining; 2016.
Tordo S, Warner M, Manzano O, Anouti Y. Local content policies in the oil and gas sector. World Bank Publications; 2013.
Petroleum Commission of Ghana (PCG) (2015a). Local Content and Participation; 2013. Available:
Ablo AD. Local content and participation in Ghana’s oil and gas industry: Can enterprise development make a difference? The Extractive Industries and Society. 2015;2(2):320-327.
Senoo JE, Armah SE. Assessing the Effectiveness of Ghana’s Local Content Policy in the Oil and Gas Industry. J. Energy Econ. Dev. 2015;1(1):22-61.
ACEP (Africa Centre for Energy Policy). The Implementation of Ghana’s Local Content regulations in the upstream sector; 2017.
Available:https://s3.amazonaws.com/newacepstatic/reports/LOCAL+CONTENT+PAPER.pdf [Accessed 14/05/2018]
Sigam C, Garcia L. Extractive industries: Optimizing value retention in host countries. Geneva: UNCTAD; 2012.
Ovadia JS. The dual nature of local content in Angola's oil and gas industry: Development vs. elite accumulation. Journal of Contemporary African Studies. 2012;30(3):395-417.
Acheampong T, Ashong M, Svanikier VC. An assessment of local-content policies in oil and gas producing countries. The Journal of World Energy Law & Business. 2015;9(4):282-302.
Heum P, Kasande R, Ekern OF, Nyombi A. Policy and regulatory framework to enhance local content. Kampala, Uganda; 2011.
Kazzazi A, Nouri B. A conceptual model for local content development in petroleum industry. Management Science Letters. 2012;2(6):2165-2174.
INTSOK Enhancing of Local Content in the Upstream Oil and Gas Industry in Nigeria. Norwegian Oil and Gas Partners; 2003.
MoE (Ministry of Energy, Ghana), Ghana (2010). Local Content and Local Participation Policy Framework; 2010.
Ovadia JS. Local content and natural resource governance: The cases of Angola and Nigeria. The Extractive Industries and Society, 2014;1(2):137-146.
Ovadia JS. Local content policies and petro-development in Sub-Saharan Africa: A comparative analysis. Resources Policy. 2016;49:20-30.
Ghana Web $90 billion needed to tackle infrastructure deficit; 2018.
Forster V, Pushak N. Ghana’s infrastructure: A continental perspective; 2011.
Ofosu-Peasah G. Mapping Ghana’s Oil and gas revenue to expenditure: The case of the heritage fund; 2017.
Petroleum Commission of Ghana (PCGb) Petroleum Revenue Management; 2015.
ACEP (Africa Centre for Energy Policy). Rolling back the gains of upstream open contracting; the case of revenue mismanagement; 2017b.
World Bank. Ghana’s Infrastructure: A Continental Perspective; 2010.
Oliveira RS. Business Success,Angola-Style: Postcolonial Politics and the Rise and Rise of Sonangol. Oxford: Cambridge University Press; 2007.
Tordo S, Anouti Y. Local content in the oil and gas sector: Case studies. The World Bank, Washington, DC; 2013.
PWC (Price Walterhouse Coopers) Future prospects in Africa for the transportation and logistics industry; 2013.
AfDB/OECD (African Development Bank and Organisation of Economic Cooperation and Development) Angola; 2016.
Cihlar J. Policy of the IMF and WB in Angola. Implementation of the Strategic Poverty Reduction Plan and the Influence of Foreign Powers on the Development of the Country after the End of Civil War in 2002. Czech Republic: Brono Jostova, Department of International Relations and Europeans Studies; 2010.
World Bank. Overview of Angola; 2018.
UN (United Nations). Trade in Africa: Unfinished business; 2014.
EIA (U.S. Energy Information Administration)
Korinek J, Ramdoo I. Local content policies in mineral-exporting countries; 2017.
ANP (National Petroleum Agency) Local Content: Goals and Brief History. Rio de Janeiro: ANP; 2009.
Available:http://www.anp.gov.br/brasilroudns/round10/ingles/conteudo_local_obj_e.asp [Accessed 09/06/2018]
Klueh UH, Pastor G, Segura A. Policies to improve the local impact from hydrocarbon extraction: Observations on West Africa and possible lessons for Central Asia. Energy Policy. 2009;37(3):1128-1144.
Filho IS. Concession Agreement. Rio De Janeiro: ANP; 2000.
UNCTAD (United Nations Conference on Trade and Development. Domestic Requirements and Support Measures in Green Sectors: Economic and Environmental Effectiveness and Implications for Trade; 2013.
Available:http://unctad.org/meetings/en/Contribution/DITC_TED_13062013_Study_WTI.pdf [Accessed 9/12/2017]
Heum P. Local Content Development: Experiences from oil and Gas Activities in Norway. Bergen: Institute for Research in Economics and Business Administration; 2008.
Spencer L, Dillon L, Lewis J, Ritchie J. Quality in qualitative evaluation: A framework for assessing research evidence; 2003.
Gill P, Stewart K, Treasure E, Chadwick B. Methods of data collection in qualitative research: Interviews and focus groups. British Dental Journal. 2008;204(6):291.
Britten N. Qualitative interviews in healthcare. In Pope C, Mays N eds) Qualitative research in health care. 2nd ed. London: BMJ Books. 1999;11-99.
Abstract View: 1849 times
PDF Download: 730 times