THE ROLE OF GNPC IN LOCAL CONTENT DEVELOPMENT IN GHANA'S OIL AND GAS INDUSTRY, AT THE 5 TH GHANA SUMMIT CONFERENCE AND EXHIBITION

Transcription

1 THE ROLE OF GNPC IN LOCAL CONTENT DEVELOPMENT IN GHANA'S OIL AND GAS INDUSTRY, AT THE 5 TH GHANA SUMMIT CONFERENCE AND EXHIBITION Presented by: Benjamin Owusu-Ansah Senior Officer EEMU GNPC

2 Presentation Outline GNPC Strategy and Local Content GNPC Subsidiaries and Local Content Procurement Initiatives Capacity Building Initiatives Voltaian Basin Project and Local Content 2

3 GNPC Strategy and Local Content Accelerated Growth Strategy of GNPC: Ultimate goal is that GNPC will become a stand-alone operator in 7 years World-class operator in 15 years 3

4 Strategic Pillars Strategy has 4 key pillars, including: Building capacity and expanding activities, and Catalyzing local content development. 4

5 Building Capacity and Expanding Activities The pillar Building Capacity and Expanding Activities entails: Building institutional capacity of the Corporation to drive GNPC s bid to become an efficient operator Development of enabling industry infrastructure critical for holistic development of the industry in Ghana, e.g. Hub concept Development of appropriate technology that enhances GNPC s competitiveness through JV arrangements 5

6 Catalyzing Local Content Development Catalysing Local Content Development will ensure that: GNPC develops local industry allies for future expansion and international campaigns; GNPC leads in the national effort to bridge the national skills gap in the oil and gas industry and ensure greater employment of Ghanaians in the sector; Ghanaian goods and services are deployed across the entire value chain of the industry, towards the development of robust indigenous oil and gas industry which would outlive the depletion of Ghana s finite hydrocarbon resources 6

7 GNPC Subsidiary and Local Content Development Establishment of subsidiaries with commercial objective through models like joint operating companies and joint ventures. E.g. Explorco As part of its Strategy, the GNPC-Explorco subsidiary will acquire commercial interests in selected upstream assets E.g. 24% in SDWT (AGM) and 25% in ESWT (CAMAC) 7

8 GNPC Subsidiary and Local Content Development Ghana s stake in daily oil and gas production will increase significantly, increasing revenue and energy security Explorco will benefit from technology and skills transfer to help bridge national skills gaps and foster the development of a strong local industry Greater control and participation of Ghanaians: catalyse the creation of a vibrant and globally competitive industry, with well developed service providers to support GNPC s expansion and eventual internationalisation. 8

9 Procurement Initiatives GNPC seeks to prioritize local goods and services in all the activities it undertakes by: Using local contractors from within the project area; Sourcing materials from within the project area. The Challenge: Local contractors do not progress in the bidding process because of deficiencies in tender presentations The Solution: GNPC identifies contractors with potential to win tenders and helps them build capacity to present tenders

10 E.g. I: School Building Project GNPC 2013 school projects in 6 districts valued at 1 million US dollars. Selection Criteria: - About 80% of all building materials sourced locally from the communities within the districts - Appointment of local artisans

11 E.g. II - Data Centre Project Centre to hold Corporation s geological data and manage other oil information Highly technical project with limited number of local competent contractors available Evaluated local contractors who have built and project managed other Data Centers in Ghana Selected a competent local contractor Specified that materials be locally sourced materials Supplier development: Helped the contractor to build further technical capacity in order to meet required standards by sending him on training with a Norwegian company

12 CAPACITY BUILDING INITIATIVES 12

13 Capacity Building The GNPC Oil and Gas Learning Foundation Setting up of a foundation to provide scholarship to individuals in oil and gas and related fields of study Support and develop the capacity of institutions. Seed capital of $3m, 16 beneficiaries in year 1. Jubilee Technical Training Centre, JTTC A public private initiative (PPI) between Takoradi Polytechnic and the Jubilee Partners. Centre funded, built, and operated by the Jubilee Partners to provide technical skills training to industries. The Centre offers 26 week internationally accredited NVQ level 2 programmes in 4 main areas: Mechanical / Electrical / Instrumentation and /Process engineering and short courses on health and safety.

14 Capacity Building II Enterprise Development Centre (EDC) A PPI, set up by Ministry of Energy & Petroleum, Ministry of Industry and funded by the Jubilee Partners. Centre to provide business support to SMEs to enable them gain the requisite skills to participate in the oil and gas industry. Hess-GNPC Scholars Programme Provision of scholarships in the 3 districts, Ellembelle, Jomoro and Nzema East for brilliant but needy JHS students entering SHS and nursing training at Eikwe Hospital. The scholarship covers tuition, books and feeding cost. Beneficiaries: ,

15 GNPC-Technip Engineering Services Joint-Venture with Technip (G-TES) to provide Engineering Services Ownership: GNPC - 30% and Technip 70%. Progressively, GNPC s interest may increase to a maximum of 51%. 15

16 G-TES G-TES has so far achieved 85% local content G-TES will place emphasis on local sourcing and capacity building A number of personnel have been sent to the Technip office in Paris recently for various capacity building programmes; 3-12 months 16

17 Local participation Petroleum (Local Content and Local Participation) Regulation, 2013 (L.I. 2204) stipulates a minimum of 5% local participation for all block applications So far we have up to 15% Local participation is critical during evaluation and negotiation Caveat fronting 17

18 Voltaian Basin Project Board s decision to execute project with local resources Team of local personnel constituted Much progress made so far Challenging work program in three phases Phase I: 6 slim holes, FTG, 2-D seismic Engage a consultant 18

19 Conclusion GNPC is very committed to the development of local content and local participation in Ghana. With the strong collaboration between GNPC and PC, we will achieve a lot for Ghana No Fronting 19

20 THANK YOU 20