Local service companies in the oil and gas sector have been advised to conduct feasibility studies into areas where they want to operate to avoid loss of investment.
Mr. Theophilus Ahwireng, Acting Chief Executive Officer of the Petroleum Commission, gave the advice at the opening of the 2016 Local Content Conference and Exhibition in Takoradi.
It was on the theme “Increasing in-Country Value and Capabilities of Domestic Businesses”.
He urged the service companies to also consider extending their services to other sectors outside the upstream petroleum industry for the diversification of their portfolio such as fabrication and maintenance.
Mr Ahwireng pointed out that the Petroleum Commission was building the competence of these companies to ensure that they fit into the industry perfectly.
“What we have done is to see to it that these foreign companies work with the indigenous companies in the value chain. We have continually worked with a lot of stakeholders to build the capacity of our local-industries so as to make their significance known in the sector,” he said.
According to him, the Commission will continue with the promotion of human capital potential, as there was a wide gap between academic and the industry, adding: “There is a disconnection that we need to fix for the growth of the industry.”
Mr. Ahwireng said the small indigenous companies needed to merge for them to be efficient, stressing that the issue of finance was a barrier for the local company and that his outfit was in consultation with the Bank of Ghana to help address the situation.
“Oil will run over three decades; it is important we use the resource to launch sustainable development so our children’s children will benefit,” he said.
Mr. Emmanuel Armah Kofi-Buah, Minister of Petroleum, noted that protracted decline in the price of oil had changed the global dynamics and the way business was done in the industry.
He said dwindling crude oil prices were challenging to all stakeholders such as the super majors, local content drivers and ultimately government.
The Petroleum Minister said government appreciated the fact that oil companies had lost the cushion or resilient prices that gave the fiscal space to pursue multiple goals.
“Growing indigenous companies to participate in the upstream petroleum business is a prudent strategy and sure catalyst for economic growth.”
He said the government was committed to creating the appropriate environment and requisite measures to enable Ghanaians to benefit from upstream petroleum business.
Source: GNA/NewsGhana.com.gh
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