…Sets New Guidelines To Boost, Secure Their Jobs & Maximize Local Content
The National Petroleum Commission (NPC) is embarking on diverse strategies to ensure the maximization of Local Content in all aspects of the upstream petroleum industry in the country.
In view of this, the Petroleum Commission has set out new employment guidelines for the oil and gas sector which will increase transparency in the recruitment process for companies operating in the country’s oil and gas sector.
These Guidelines on Employment and Training of Ghanaians, and Succession Plans for Expatriate Positions in the Upstream Petroleum Industry, are to take effect from June this year.
Speaking at a Localization Workshop organised by the Commission for industry players, the Chief Executive of the Commission, Egbert Faibille said the new guidelines will enhance the capacity of local players in the industry, believing that Ghanaian equity participation is very important for long-term survival of the industry especially in times of crisis.
According to Mr. Faibille, the commission recognises the need to vigorously promote Ghanaian interests in petroleum activities hence, “The commission acknowledges the fact that expatriate employment is a global phenomenon and there is an imperative justification to align benefits and remuneration to Ghana’s laws,” he said.
Mr. Faibille also enumerated that the Commission criticize the situation where a Ghanaian doing the same job role as an expatriate does in some, if not all companies in the upstream sector but he or she is paid far lesser than an expatriate in Ghana.
Making reference to Article 24(1) of the 1992 Constitution which provides that “Every person has the right to work under satisfactory, safe and healthy conditions, and shall receive equal pay for equal work without distinction of any kind,” Mr. Egbert Faibille averred that the country needs more Ghanaians to work on oil rigs, FPSOs and other such upstream infrastructure for reasons that cannot be lost on all, adding that “We will in the coming days invite representatives of selected companies to a meeting to discuss these draft Guidelines so as to make them workable when rolled out.”
He said: “This marks a giant step in moving from rhetoric to action. The Guidelines which was launched at the workshop are not figment of the commission’s imagination but rather provisions of various laws, including section 60 (4) of the Petroleum (Exploration & Production) Act 2016; Act 919 Regulations 17 (5) and 19 as well as 44 of Legislative instrument (L.I 2204).”
The NPC Boss also mentioned that “Our approach at the commission to local content is very simple. We believe that we best serve the nation when we translate the exploitation of resources not only into profit but also into jobs and opportunities. As far as possible, we expect all contractors to make use of local companies, service suppliers and work force, as a deliberate business strategy.”
According to the Petroleum Commission, over 12,000 Ghanaians have been engaged in about 332 companies in the upstream petroleum sector since the country started oil production in commercial quantities.
The figure, according to Mr. Faibille is expected to increase with the implementation of the new guidelines which is targeting special areas of employment for indigenous individuals and businesses.
Mr. Faibille, however, objected to claims that the move could be a disincentive for potential foreign companies who might want to invest in the sector.
He said the Commission will continue to ensure that qualified and competent Ghanaians are given preference in hiring for roles in the upstream petroleum sector, adding that there is a justification to pay expatriate “premiums” but as far as all such payment end up as “petroleum costs” which are expected to be passed on to Ghana to pay in future, they ought to have that regime properly defined for the mutual benefits of all stakeholders.
Also addressing the issue of payment of services, Mr. Faibille indicated that a directive has been issued to all companies involved in the upstream sector to provide evidence of receipt for purchases made and payments for services within Ghana starting from January, 2018.
This, he said is against the backdrop of claims by companies to have spent several thousands and in some cases, millions of US Dollars in their annual local content reports to the Commission.
Mr. Faibille Stated that the Commission has set up a Local Content Audit Unit whose function is to vet and validate all receipts or claims of payments for goods and services within Ghana on a monthly basis in order to be able to measure accurately any claims by companies.
He said the commission is moving local content from subjective claims to verifiable of quantifiable levels for the benefit of the economy.
“I want to assure you that the commission will continue to work with institutions, major operators and contractors to develop strategies to maximize local content in all aspects of the upstream petroleum value chain” he indicated.
Egbert Faibille further pointed out that there are more guidelines soon to be rolled out regarding localization of roles, Salaries and Remuneration and Guidelines on Positions Reserved for Ghanaian in the upstream oil and Gas industry.
According to him the Guidelines on reserved positions for Ghanaians in the upstream sector will also seek to ensure that Ghanaians with the requisite training and qualifications are employed in the industry.
Mr. Faibille assured Ghanaians that the Commission would never fail on its mandate of promoting local content and ensures effective implementation of the local content regulations.
On his part, Deputy Minister of Energy, Amin Adams disclosed that the rules in the guidelines are expected to help a large number of local skilled entrepreneurs to get employment from the oil and gas sector thereby safeguarding investment in the sector.
He believes that the Commission will through the introduction of the new Guidelines ensure strict compliance in petroleum local content participation regulations in the country.
The Guidelines:
Per the new twenty (20) points guidelines, a contractor, subcontractor, licensee or other allied entity engaged in petroleum activities shall give employment opportunities to Ghanaians with the requisite expertise, skills and experience, employ only Ghanaians in junior level or middle level positions, submit each vacant position with job description, qualifications and certification requirements of the position to the Petroleum Commission at least three clear months before the intended start date of the recruitment process, submit each application for employment/engagement of a non-Ghanaian citizen to work in the upstream petroleum sector in Ghana in writing to the Commission at least three clear months before the assumption of duty of the non-Ghanaian citizen, and submit succession plan or plans including the training programmes for the duration of the contract period to ensure that minimum local content levels specified in the First Schedule 1 of L.I 2204 are met, among others.
By PROSPER AGBENYEGA