• Latest
  • Trending
Fronting for Foreign Companies Undermining Local Content Policy

‘Fronting for Foreign Companies in Upstream Sector Undermining Local Content Policy’

November 25, 2019
Installation of Refrigeration and Air-cooling systems for Venetia Diamond Mine Underground Project Completed

Installation of Refrigeration and Air-cooling systems for Venetia Diamond Mine Underground Project Completed

August 12, 2022
Sandvik Launches AutoMine® Mapping Solution, Next Generation Automation Solution

Sandvik Launches AutoMine® Mapping Solution, Next Generation Automation Solution

August 12, 2022
Prisma Helps Change Narrative on Gender Bias in the Mining Sector

Prisma Helps Change Narrative on Gender Bias in the Mining Sector

August 11, 2022
Level 1 B-BBEE is Big Step in FLSmidth’s Transformation Journey

Level 1 B-BBEE is Big Step in FLSmidth’s Transformation Journey

August 11, 2022
Micromine Signs 3-Year Micromine Pitram Software Solution Agreement with AngloGold Ashanti

Micromine Signs 3-Year Micromine Pitram Software Solution Agreement with AngloGold Ashanti

August 10, 2022
The Economics of Workplace Safety

The Economics of Workplace Safety

August 10, 2022
Govt’s Energy Action Plan Sends a Strong Message to Industry and Investors

Govt’s Energy Action Plan Sends a Strong Message to Industry and Investors

August 8, 2022
Golden Age for Africa’s National and Regional Energy Transition

Cummins Offers Ideal Power Ecosystem for Independent Power Producers

August 5, 2022
Female Drill Rig Operators Pave Way at Kumba Iron Ore

Female Drill Rig Operators Pave Way at Kumba Iron Ore

August 5, 2022
SAIW Champions Africa School of Nuclear Power Excellence

SAIW Champions Africa School of Nuclear Power Excellence

August 4, 2022
Exxaro Welcomes New Partnership With YES Programme To Achieve Maximum Impact

Exxaro Welcomes New Partnership With YES Programme To Achieve Maximum Impact

August 4, 2022
The Green, The Bad and The Ugly: The Risks of Greenwashing

The Green, The Bad and The Ugly: The Risks of Greenwashing

August 3, 2022
Africa Mining Brief
No Result
View All Result
  • Login
  • Home
  • News
  • Events
  • Industry
  • People
  • Projects
  • Press Releases
MAGAZINE ARCHIVE
ADVERTISE
  • Home
  • News
  • Events
  • Industry
  • People
  • Projects
  • Press Releases
No Result
View All Result
Africa Mining Brief
No Result
View All Result
  • Home
  • News
  • Events
  • Industry
  • People
  • Projects
  • Press Releases
Home Ghana

‘Fronting for Foreign Companies in Upstream Sector Undermining Local Content Policy’

mining by mining
November 25, 2019
Reading Time: 3 mins read
0
Fronting for Foreign Companies Undermining Local Content Policy

The official flag of Ghana.

By Clement Adzei Boye

RELATED POSTS

Ghana to Pick Investor to Partner GIADEC for Bauxite Exploitation

Tema LNG Terminal Company secures floating regasification unit for its project

Research Scientist Finds Solution to Extracting Mercury From Contaminated Water Bodies

Takoradi — The acting Chief Executive of the Petroleum Commission, Egbert Faibille, says fronting by Ghanaian companies for foreigners is one critical challenge undermining the commission’s mandate to promote local content policy in the oil and gas sector.

He added: “We used to be at a stage where people thought that the commission was acting helpless in the face of fronting at almost brigandage levels. Through our Monitoring and Evaluation Department, Costs Audit Department as well as our Compliance Department, we have identified most, if not all of the strategies that have been used for fronting.”

Mr Faibille made these revelations on Wednesday, at the opening of the 2019 Local Content Conference and Exhibition (LCCE) organised by the Petroleum Commission in Takoradi on the theme, “Maximising in-country value addition, putting the spotlight on the role of Indigenous Ghanaian Companies (IGCs) in Joint Ventures (JVs) in the upstream petroleum sector.”

Also read: Angola: President João Lourenço to Host The First Mining Conference & Exhibition on 20 November

Since its inception, the LCCE has become the flagship of local content event of the oil and gas industry in Ghana, and gradually becoming the most vibrant and compelling event in Ghana.

Attending the conference are international delegates from Brazil, Nigeria, Trinidad and Tobago, Uganda and Mozambique, who would share experiences and expertise with Ghana.

Mr Faibille told the conference that some companies had undermined the efforts being made by government and the commission to create opportunities for Ghanaian businesses, and that about 50 per cent of joint venture arrangements in the upstream services sector, were not suitably matched in terms of business objects and capabilities.

He said there were countless cases relating to ‘misaligned’ services, creating imbalances in most of the existing JV arrangements and “thus becoming convenient grounds for what can simply be referred to as fronting”.

“This situation is regrettable, since it strongly restricts the opportunities for local capacity development and indigenous participation. It is inexcusable and an affront to the local content policy objectives and the work of the commission.

“Whilst we tirelessly break our backs to implement indigenous participation in the JVs to derive the optimal benefits local business, there are some indigenous companies who are undermining the process by conniving and abetting with some foreign companies to breach our very laws,” he noted.

Mr Faibille declared that: “The era of fronting is about to end. Beginning next year, the commission, working with other state actors, including the Registrar General’s Department and the Ghana Revenue Authority will begin enforcement of the relevant laws, including tax assessments on the basis of one’s equity participation and hence profit sharing.

“There will also be a revocation of operating permits and non-issuance of permits to IGCs and their partners proven after thorough investigations to have been engaged in fronting. Let me therefore use this opportunity to advise all those engaged in fronting to put a stop to it immediately.”

Ghana, Mr Faibille said, needed an indigenous pool of experience and highly skilled upstream service companies willing to prioritise, adapt and compete prudently in the industry.

He said the commission continued to monitor closely the procurement and bidding processes of the major operators in line with the requirements of L.I. 2204, to scrutinise all local content documents (local content plans, procurement plans, invitations to tender, requests for proposals, among others) submitted to it.

A number of these plans were queried, while some cases were rejected to ensure maximisation of local participation and in-country spending, he said.

Mr Faibille said that the commission would not rest on its oars to achieve a localisation ratio of more than 80 per cent.

The commission, Mr Faibille said, approved contracts valued at US$ 420 million and out of this, about US$77 million went to IGCs, explaining that, the figures excluded Jubilee and TEN Fields, operated by Tullow Ghana Limited.

Read the original article on Ghanaian Times.
ADVERTISEMENT
Tags: foreign companiesfrontingGhanalocal contentOil and gas
ShareTweetPin
mining

mining

Related Posts

Ghana

Ghana to Pick Investor to Partner GIADEC for Bauxite Exploitation

March 17, 2021
Energy

Tema LNG Terminal Company secures floating regasification unit for its project

March 3, 2021
Ghana

Research Scientist Finds Solution to Extracting Mercury From Contaminated Water Bodies

March 25, 2020
Ghana Gold Expo 2020 Advocates For Responsible Mining
Ghana

Ghana Gold Expo 2020 Advocates For Responsible Mining

March 14, 2020
Bauxite
Ghana

Ghana’s Government Faces Pushback in Bid to Mine Biodiversity Haven For Bauxite

February 6, 2020
Bauxite
Ghana

Ghana’s Government Faces Pushback in Bid to Mine Biodiversity Haven For Bauxite

February 6, 2020
Next Post
Exxaro’s Innovation Drive Takes the Plaque at the SA National Business Awards 2019

Exxaro’s Innovation Drive Takes the Plaque at the SA National Business Awards 2019

New Blades From Julia – ‘Cutting Edge’ At Its Best!

Triple The Value With Three New Blades From Julia – ‘Cutting Edge’ At Its Best!

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

April – June 2022 Magazine

Installation of Refrigeration and Air-cooling systems for Venetia Diamond Mine Underground Project Completed
Mining News

Installation of Refrigeration and Air-cooling systems for Venetia Diamond Mine Underground Project Completed

by Dennis Ayemba
August 12, 2022
Sandvik Launches AutoMine® Mapping Solution, Next Generation Automation Solution
Press Releases

Sandvik Launches AutoMine® Mapping Solution, Next Generation Automation Solution

by Dennis Ayemba
August 12, 2022
Prisma Helps Change Narrative on Gender Bias in the Mining Sector
Commentary

Prisma Helps Change Narrative on Gender Bias in the Mining Sector

by Dennis Ayemba
August 11, 2022
Level 1 B-BBEE is Big Step in FLSmidth’s Transformation Journey
Press Releases

Level 1 B-BBEE is Big Step in FLSmidth’s Transformation Journey

by Dennis Ayemba
August 11, 2022
Micromine Signs 3-Year Micromine Pitram Software Solution Agreement with AngloGold Ashanti
Mining News

Micromine Signs 3-Year Micromine Pitram Software Solution Agreement with AngloGold Ashanti

by Dennis Ayemba
August 10, 2022
Africa Mining Brief

© 2021 African Mining Brief - Powered By Clivo.

Navigate

  • About AMB
  • Advertise
  • Announcement
  • Media Kit
  • Contact Us

Follow Us

No Result
View All Result
  • Home
  • News
  • Events
  • Industry
  • People
  • Projects
  • Press Releases

© 2021 African Mining Brief - Powered By Clivo.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In