Ministry of Natural Resources plagiarism targets of Ghana’s local content regulations
– Contrary to the advice of the local content panel
– Without independent gap analysis
– Copied some measures unsuitable for Guyana
By Kiana Wilburg
Plumber and Remote Operated Vehicle.
Kaieteur News – Research conducted by Kaieteur News has found that the targets contained in the draft local content policy were not based on data collected from independent gap analysis. The sliding scale targets used by the Ministry of Natural Resources were plagiarized in many parts of Ghana’s regulations. The plagiarism was so extensive that even a mistake in Ghana’s regulations was copied.
According to Guyana’s draft policy, the government proposes that oil companies should, over a period of three to 10 years, increase their Guyanese consumption in various aspects of their petroleum operations. In particular, the draft document states that in the initial years for Liquefied Natural gas collection facilities, and detailed engineered gas collecting machines, the End End Engineering Design (FEED) should see 20 percent, 10 percent, 10 percent percent, and 20 percent used. of Guyanese respectively. The Ghana regulations have exactly the same words and numbers.
Some of the unsuitable work categories and plagiarism by the Ministry of Natural Resources of the Ghana Regulations)
When it comes to supplying pipelines, Guyana’s draft document states that 10 percent of locals should be used on startup, 40 percent in three years, 55 percent in five years, 75 percent in seven years, and 100 percent in 10 years. With the exception of the proposed requirements in three and seven-year spheres, (the only new column features added to Guyana’s draft policy), Ghana’s regulations make the exact same demands. It leaves one to wonder if Guyana expects to have a pipe mill in 10 years, making oilfield pipelines.
In addition, the Ghana Regulations include an error under the category of Marine Operations and Logistics Services. The document states that Ghanaians should be able to supply “Driving” or ROV or underwater operations. Instead of “Driving” it’s supposed to be “Diving.” This was even copied and put into the draft policy. (ROV stands for remotely operated vehicle. This equipment is a type of underwater robot.)
In addition, some of the plagiarized areas of Ghana are unsuitable for Guyana as it is expected to be carried out over a 10 year period with high local content levels. One area that has already been highlighted in this during the first round of consultations is getting local people to supply 100 per cent of the steel pipes, plates, flat sheets, and ropes needed in the sector in 10 years time. Other unsuitable areas with high local content targets that are plagiarized and offered include Drill Logging (LWD), Production or drilling service, 3D Seismic data acquisition services, refurbishment or triggering services , crisis management services Well, and extended or early well testing Production services including the provision of a floating production unit or jack-up.
(At 10.3 in the Ghana Regulations which is the chart at the top, an error was made by inputting “Driving” for “Diving”, a ROV that would mean a plumber and a remotely operated vehicle for underwater exploration. The Ministry copied the error .)
Also listed are services relating to submarine package installation, reservoir services, mooring system services, circulation and commissioning of marine installation services, the provision of floating storage units, and the supply of Glass reinforced epoxy (GRE) pipe.
Although the Ministry of Natural Resources has copied all the categories of work from the Ghana regulations and increased some of the targets, it is essential to note that these specified targets were not part of the recommendations of the Local Content Panel. That body was appointed in August 2020 by President Irfaan Ali. The panel consisted of Guyana Border Councilor Carl Greenidge; Trinidadian expert, Anthony Paul; Businessman and Panel Chairman, Shyam Nokta; Certified Fraud Examiner, Floyd Haynes; former Chair of the Public Services Commission (PSC), Carvil Duncan; and former TT Energy Minister Kevin Ramnarine.
In the panel’s 35-page report, no specific targets were provided as it did not have data to work with from gap analysis. The panel’s report simply recognizes that employment targets and some levels of procurement would be in the national interest.
It is unclear why the Ministry of Natural Resources would produce a draft policy that does not accord with the recommendations of the President’s Advisory Panel. Equally upsetting is the fact that its reality is not informed by the reality on the ground.