Ghana’s upstream petroleum regulator, Petroleum Commission, has served notice that it will next year begin enforcement of relevant laws to revoke operating permits of indigenous companies that front for foreign oil firms.
The Acting CEO of Petroleum Commission, Mr. Egbert Faibille Jnr revealed the commission’s plan in an address at the opening of the 6th Local Content Conference and Exhibition in Takoradi, in the western part of the West African nation.
According to myjoyonline.com which covered the event, Mr Faibille was hopeful that the era of indigenous companies fronting for foreign firms is about to end.
The enforcement will include tax assessments based on equity participation and profit-sharing, then revocation of operating permits and non-issuance of permits to indigenous companies and their partners if it is proven after a thorough investigation that they have engaged in fronting.
“Let me, therefore, use this opportunity to advise all those engaged in fronting to put a stop to it immediately. Ghana needs an indigenous pool of experienced and highly skilled upstream service companies willing to prioritize, adapt and compete prudently in the industry”, Mr Faibille said.
Deputy Energy Minister Mohammed Amin Adam officially opened the Conference and Exhibition.
Over 60 companies are participating in the exhibition.
It is also hosting international delegates from Brazil, Nigeria, Trinidad and Tobago, Uganda and Mozambique to share their experiences and expertise with Ghana.
Source: www.energynewsafrica.com