The Regulator of Ghana’s upstream petroleum industry will sanitize the contracts award regime in the industry to optimize benefits for the country, Egbert Faibille Jr, Chief Executive Officer (CEO) of the Petroleum Commission, Ghana, pledged here on Monday.
He told the media during a day’s procurement stakeholder discussion on the upstream sector that International Oil Companies (IOCs) and local companies in the upstream sector had up to beginning of April to start submitting their contracts to the commission.
“Beginning April 1, anybody in the upstream sector who has contracts of a USD 100,000 and above to give out has to submit that contract to the petroleum commission at least two months before the award of contract so that we will get to know what is involved. The time for short-term kneejerk request for approval of contracts is over,” Faibille Jr stated.
He cautioned that any act of non-compliance would compel the commission to draw on its powers to review contracts where necessary.
“I must quickly draw attention of the IOCs to Regulation 16 of LI 2204 – Regulation 16.1 which reads – ‘the commission shall where it considers necessary review some contracts’. So if you go and award contracts which are inimical to the interest of Ghana, we will invoke Regulation 16 and review the contracts,” the CEO cautioned.
He cautioned companies, both local and IOCs, which were in the habit of varying contracts suo motu to cheat Ghana: “We will review the contracts because all those costs come back to Ghana eventually as petroleum cost and we deserve only what is good for Ghana. ”
Faibille Jr observed that though the Commission had done very well on local content regulation enforcement in the past, there was the need to expand the regulation before the end of the year to enhance enforcement of regulation of the Local Content policy.
Jeffery Asare, Contract and Procurement Manager for Springfield, a Ghanaian-owned Exploratory and Production company, said local companies needed to work hard to be able to match their foreign counterparts in the upstream industry.
“Though we are a local operator, we’ve been able to live up to expectation, living up to what our competitors – Tullow and ENI are doing. We have a vision to get there as a major operator in the industry and we are right on course to get it done, at the best cost and high value and high quality,” he told Xinhua in an interview.
Source: Justice Lee Adoboe || Xinhua
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