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Petroleum Hub Dev’t Corporation Act takes effect

Following parliamentary approval, the President, Nana Akufo-Addo has assented to the Petroleum Hub Development Corporation Act, 2019, a document available to the Goldstreet Business reveals.

The operationalisation of the Act aims to promote and develop a petroleum and petrochemicals hub and to provide for all related matters in the industry to maximise gains from the petroleum and petrochemical industry.

The Act indicates the establishment of a Corporation, purposely to plan and implement strategies for the development of a petroleum and petrochemicals hub; provide infrastructure for companies and service providers for the development of the petroleum and petrochemicals hub; develop and implement a Ghanaian Content and Ghanaian Participation Plan for the development of the industry, among other key functions.

This follows Cabinet’s approval and its subsequent works at establishing a petroleum hub in the Western Region to house all infrastructure projects in Ghana’s petroleum industry.

Importantly, the Corporation is mandated to enter into joint ventures with companies operating within the petroleum and petrochemicals hub and establish mechanisms to ensure the requisite transfer of skills and knowledge to Ghanaians engaged in various activities in the industry.

This is expected to broaden the horizon of Ghanaian participation with regards to local content which will result in the reduction of foreign technocrats and experts in the oil and gas industry who are brought into the country to perform some specific technical assignments that may not be readily available in the country.

The move by the government forms part of a major initiative to create more jobs in the oil and gas sectors of the economy and provide investment opportunities for interested companies within and outside Ghana.

Background

The policy document was designed by the Ministry of Energy as the industry policy formulator, in consultation with sector stakeholders including the Petroleum Commission and the National Petroleum Authority (NPA) being the upstream and downstream industry regulators respectively as well as some key bodies. The Corporation is expected to collaborate with all relevant public institutions to develop the petroleum and petrochemicals industries.

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