Local suppliers contribute less than 10% of $6b spent on Ghana oil fields: GNPC

An amount of about $6 billion has been pumped into oil activities in the country over the last few years with local suppliers contributing less than 10% of the money, according to the Ghana National Petroleum Corporation (GNPC).

The expenditure was made on exploration, development and production activities at the Jubilee oilfields as well as others in Ghana, and the local companies supplied related goods and services to the oil industry.

“Over the last few years, about $6 billion has been spent on exploration, development and production activities in Ghana. Out of this, less than 10% was contributed by local suppliers of goods and services,” Chief Executive Officer (CEO) of GNPC, Mr Nana Boakye Asafu-Adjaye told participants of the just-ended 63rd Annual New Year School and Conference.

According to Mr Asafu-Adjaye, the provision in section 23(12) of the Petroleum (Exploration and Production) Law that goods and services produced or provided in Ghana be given preference as against the foreign ones by companies also gives a stimulus for local job creation and economic development.

The GNPC Boss estimates that expenditure for the same activities will be between $15-20 billion in the next ten years.

“In the next 10 years, we estimate that between about $15 – $20 billion would be spent on exploration development and production activities and the supporting midstream and downstream infrastructure,” he said.

The additional value that can be appropriated to the country for even an additional 10 – 20% increase in substitution of foreign suppliers by local suppliers is pretty obvious, Mr Asafu-Adjaye added.

By Ekow Quandzie

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