By Juliet Aguiar DUGBARTEY, Sekondi
Victoria Emeafa Hardcastle, acting Chief Executive Officer (CEO) of the Petroleum Commission (PC), is optimistic that the local content fund will be launched by third quarter of this year.
“The commission’s team has been working for a few years on launching the fund and having the guidelines approved. Hopefully when we get the board in the very near future, the guidelines can be approved and the fund can be launched by third quarter of this year,” she said.
She explained that the Local Content Fund, established under Act 919 – the Petroleum (Exploration and Production) Act – is managed and overseen by the Petroleum Commission.
According to her, the fund requires international oil companies (IOCs) and their subcontractors to contribute one percent of all contracts into the fund. These contributions are then invested to support local content companies in the upstream sector.
“Our hope is that when the fund is launched with its guidelines, banks will use their capacity to conduct risk assessments. We do not want the fund to become depleted and perceived as government money, leading to non-repayment. If we do not manage the fund properly, we will not be able to provide continued support,” the acting CEO clarified.
Hopefully, she said, the fund will be in place by third quarter of the year and be able to support the indigenous companies in getting bigger contracts.
Primarily, she noted that the challenge with local companies over the last few years has been financial capacity. “With the technical side, they have picked up a lot through the joint venture schemes and now we are atrying to build them up with regard to financial capacity.
“We intend to re-engage with banks to help them better understand the energy sector and its associated risks. This will enable them to assess risks more accurately when lending to the sector, rather than treating it like any other business,” she added.
The acting CEO was speaking at a meeting with the Western Regional House Chiefs to officially introduce herself to them as part of her four-day visit to the region.
“We need to grow and nurture our local companies. I want to pledge that during my tenure as CEO I will continue to strengthen the relationships my predecessors built with you over the years.
“My hope is to build the commission into an institution with a lasting legacy – one which, in a few years, we can proudly say we have attracted companies like Shell, Chevron, BP and ExxonMobil among others. At the same time, the people of Western Region should also be able to say they have truly benefitted from the oil discovery,” she said.
Nana Kobina Nketsia V, Omanhene of Essikado Traditional Area, congratulated the Acting CEO for her new position.
“The region has emotional attachment to the and gas sector and, with your dedication and hard work, we hope to see a big change at the end of your tenure,” he said.
He stated that over the years the chiefs have been at the forefront of advocating to ensure the region is not overlooked in terms of development.
“We appreciate the relationship we have built with you over the years and hope it continues. We also request that the chiefs be given an opportunity to visit the FPSO,” he said.
