Tullow Ghana Limited has reiterated its commitment to promote local content and help develop local capacity in the country’s oil and gas sector.

The company, which currently operates the Jubilee and the Tweneboa Enyera Ntomme (TEN) fields together with the other partners, has subsequently made a deliberate effort to give indigenous companies the chance to provide services for it.

Speaking at the Local Content Suppliers Recognition Dinner on November 15, 2019 the Managing Director, Tullow Ghana and Executive Vice President, Tullow Oil PLC, Mr Kweku Awotwi, noted that the various initiatives by the company to promote local content were aimed at building capacity and equipping local companies to maximise benefits from the sector.

“Tullow Ghana’s commitment is to deliver local content and support indigenous companies to maximise value across the oil and gas value chain for long term,” he said.

He added that Tullow as a company was deliberately creating opportunities for local businesses in the areas of sanitation, transport and logistics, security, communications and marine gas oil supply.

“We continue to identify scopes of work that can be transitioned to indigenous companies to deepen our supplier development initiatives and achieve our local content targets for economic development and growth,” he said.

The awards

The company recognised 30 indigenous suppliers for supporting the company’s local content delivery since 2009.

It also presented five distinguished local content supply awards to some suppliers.

Mr Awotwi explained that Tullow’s story could not be told without recognising the participation of local suppliers who had partnered them to achieve local content.

Local contracts awarded 

Providing statistics on its local content achievements, Mr Awotwi said in the first three quarters of the year, contract commitment to indigenous and joint ventures that included Ghanaian participation amounted to US$669 million, contributing 83 per cent of total contract awards, which exceeds the full year target by three per cent.

He noted that of that amount, “total spend going to fully indigenous suppliers is US$240 million, made up of 31 per cent of a total spend of US$766 million, exceeding the base target of 25 per cent by six per cent.

He added that the company had made significant progress transitioning from an industry that had close to zero local content expenditure about a decade ago to awarding contracts in excess of US$10.6 billion to indigenous and joint venture companies with indigenous equity participation from 2010 to 2018.

Source: Graphic.com