Ghana: Tullow Ghana Reiterates Commitment to Local Participation in Contracts Awarded

Tullow Ghana has assured all stakeholders in the oil and gas industry of its commitment to indigenous Ghanaian participation in contracts awarded.

In a statement in reaction to a writ of summons issued against it by the Ghana Oil and Gas Service Providers Association (GOGSPA) it said from”inception of its operations, Tullow Ghana always recognised the need to support and build local expertise and has undertaken several skills development programmes to support the growth of local participation and pursued targeted Supplier Development Initiatives aimed at enabling participation in the oil and gas industry in Ghana.”

As a result of these interventions, it said over 4,500 local entities have been impacted and benefited from various development initiatives and training programmes.

“From 2010 to date, Tullow Ghana has awarded over 4,000 contracts to indigenous companies, in addition to almost 3,000 contracts awarded to joint venture companies which includes indigenous participation. Out of the total contracts awarded valued at $16.83bn between 2010 and 2021, $11.24bn worth of those contracts were awarded with local Ghanaian participation,” it said.

The statement said “Over the years, Tullow Ghana has been consistent in steadily increasing contracts awarded to indigenous companies and has no desire to replace indigenous Ghanaian companies with foreign companies. On the contrary, between 2014 to 2021 when LI 2204 was passed, Tullow Ghana tripled its indigenous contract award to up to $1.47Bn compared to $500m in 2014.”

Tullow Ghana in the statement assured all stakeholders of its commitment to work with and develop the capacity of local Ghanaians to participate in the oil and gas industry, consistent with our contractual obligations and applicable law.

“Tullow Ghana does not intend to prejudice the ongoing legal proceedings and therefore no further statements will be issued at this time,” the statement said.

Tullow Ghana confirms that it has entered conditional appearance to the writ of summons by GOGSPA. The matter is now before the High Court, Accra and has been adjourned to the 10th of October 2022 for the hearing of an application for interlocutory injunction filed by GOGSPA.

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