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Local content rules in Ghana's petroleum sector

What L.I. 2204 requires of companies that want to work in upstream oil and gas.

· 1 min read

The Petroleum (Local Content and Local Participation) Regulations, 2013 (L.I. 2204) set out how Ghanaian businesses and workers must share in upstream petroleum activities.

Indigenous participation

An indigenous Ghanaian company must hold at least 5% equity interest in a petroleum agreement or licence, other than those held by the national oil company.

Registration and plans

Contractors, subcontractors and licensees must register with the Petroleum Commission and submit local content plans covering employment, training, technology transfer and procurement.

Preference for Ghanaian goods and services

Where they meet the required standards, Ghanaian goods and services should be given first consideration in procurement.

Penalties

Breaches can lead to fines and, in serious cases, affect the right to operate.

Sources

  1. Petroleum (Local Content and Local Participation) Regulations, 2013 (L.I. 2204)
  2. Petroleum (Exploration and Production) Act, 2016 (Act 919)
  3. Petroleum Commission

This article is general information about Ghanaian law, not legal advice. Speak to a lawyer about your own situation.

This article is general information, not legal advice. Please contact us about your own situation.

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