Local Content Essay

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MINISTRY OF ENERGY Republic of Ghana Local Content and Local Participation in Petroleum Activities – Policy Framework FEBRUARY 26th, 2010 1 Table of Content 1.0 Policy Context....................................................................................... 2 2.0 Policy Goal............................................................................................. 4 3.0 Vision and Policy Framework................................................................ 4 4.0 Policy Objectives..................................................................................... 5 5.0 Policy Directions....................................................................................... 6 2 1.0 Policy Context Oil and Gas Development in Ghana In 2007 Ghana made discoveries of oil and gas in two deepwater blocks: Cape Three Points and Tano by Kosmos Energy and Tullow respectively. The two discoveries, referred to as the “Jubilee Field”, is operated by Tullow as a unitised field. Appraisals conducted indicate that the field contains expected recoverable reserves of about 800 million barrels of light crude oil, with an upside potential of about 3 billion barrels as well as significant quantities of associated natural gas. The discovery of commercial quantity of oil and gas provides Ghana an opportunity to effectively reduce foreign exchange requirements for the importation of oil as well as increase the country’s export earnings and to also develop gas-based industries. The expectation of Ghanaians as to the potential impact of the oil and gas find on the national economy and the individual Ghanaian has grown significantly. Government Development Agenda A key development objective of Government is to grow the economy to rapidly achieve accelerated development and industrialisation. The oil and gas industry is known to contribute significantly
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