We have no desire to replace indigenous Ghanaian companies – Tullow Ghana

Tullow Ghana, an oil and gas exploration and production company, has affirmed its commitment to ensure indigenous Ghanaian participation in contracts awarded in accordance with the country’s local content and local participation regulations.

The company said it had no desire to replace indigenous Ghanaian companies with foreign companies.

In a official statement copied to the Ghana News Agency in Accra, on Friday, Tullow Ghana said from 2010 to date, it had awarded more than 4,000 contracts to indigenous companies.

Additionally, almost 3,000 contracts had been awarded to joint venture companies, which included indigenous participation.

“Out of the total contracts awarded valued at $16.83 billion between 2010 and 2021. Of this, $11.24 billion worth of those contracts were awarded with local Ghanaian participation,” it said.

The statement is in response to a writ of summons issued against it by the Ghana Oil and Gas Service Providers Association (GOGSPA).

An Accra High Court (Commercial Division) on September 8, 2022, adjourned the hearing of a motion on notice for an interlocutory injunction to restrain Tullow Ghana from re-awarding any petroleum contract being executed by indigenous Ghanaian companies to foreign joint venture companies.

The GOGSPA said the decision to sue followed many complaints that services reserved for indigenous Ghanaian companies under the laws in the upstream oil and gas sector were being taken away and awarded to foreign venture companies.

The case has been adjourned to October 10, 2022 for the hearing of the application.

While confirming the suit, Tullow Ghana said it had always recognised the need to support and build local expertise and had undertaken several skills development programmes to support the growth of local participation.

It said it had pursued targeted Supplier Development Initiatives aimed at enabling participation in the oil and gas industry in Ghana.

Those interventions, the company said, had impacted and benefitted more than 4,500 local entities.

“Over the years, Tullow Ghana has been consistent in steadily increasing contracts awarded to indigenous companies and has no desire to replace indigenous Ghanaian companies with foreign companies."

“On the contrary, between 2014 to 2021 when LI 2204 was passed, Tullow Ghana tripled its indigenous contract award spend to up to $1.47Bn compared to $500m in 2014,” it said.

The company assured all stakeholders of its commitment to work with and develop the capacity of local Ghanaians to participate in the oil and gas industry in accordance with its contractual obligations and the law.

“Tullow Ghana does not intend to prejudice the ongoing legal proceedings and, therefore, no further statements will be issued at this time,” it said.