Ghana’s oil JVs non-compliant: report

Ghana’s Petroleum Commission has found that many oil and gas joint ventures (JVs) in the country do not comply with the legal requirements for the partnerships, local media reported Wednesday.

A recent inspection of JV companies by the agency found Ghanian partner firms have not scaled up their skills or stakes and do not understand their obligations, Graphic Online reported. The local companies were also found not to be physically present at the JV premises.

“I must say the report from the field shows some glimpses of companies not complying with the set guidelines and they will not be allowed to go without sanction,” acting manager in charge of monitoring and evaluation Rodney Acquah said.

Ghanian law requires at least 10% Ghanian ownership in a JV with the expectation that the local partner’s stake will rise with its skills as project contracts are won and completed.

“The 10% is not a one-off thing. If the foreign partner wins contracts in areas they outlined in the partnership to help the indigenous company up its scale, then the Ghanaian firm must also be seen to be growing its equity. We expect companies to grow and not to stay glued to the equity percentage they have at the time of signing their joint venture agreements,” Acquah said.