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Employment of locals in oil and gas sector will cut operational cost

By: Gifty Owusu Kwarteng
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Mr Federick Asamoah
Mr Federick Asamoah

THE Managing Director (MD) of DNV GL BMS Ghana JV Limited, Mr Frederick Asamoah, has said the inclusion of more locals in the oil and gas industry would help decrease operational cost.

He said if industry players would employ locals with capabilities and also use local resources, it is likely to save the industry extra funds spent on expatriates whose roles can be played effectively by local people.  

   “Basically, it means that it is going to cut down cost because if you employ locals to do the jobs and all the players in the oil and gas industry are using local resources, then we hope to see some reduction in operational cost,” he said at the launch of DNV GL BmS Ghana JV Limited on March 28 in Accra.

Mr Asamoah reiterated that using local manpower in the fledging sector would not only save cost but also create more employment considering the teeming unemployed youth in the country.

“With all the teeming youth unemployment, I think that local content is good for the oil and gas industry because it will make use of a lot of Ghanaians,” he stated.

Revenue
 Mr Asamoah indicated that the Joint Venture (JV) between DVN GL AS and Benmarine Offshore Services Limited (BOSL) would bring some form of leverage on returns of revenue because all jobs that would be done by foreigners would now be done by locals.

“The joint venture is important because when the JV is formed it means that you are going to have some leverage on return on revenues, we turn to use locals to do jobs that expatriates do, as well as local resources which would save the industry extra cost,” he said.

He added that in forming a JV, knowledge is being transferred to an entity unlike employing just one person where the knowledge rest with an individual.

“If you employ Ghanaians without forming firm joint ventures, you are actually transferring knowledge to an individual and if the individual dies, the knowledge is gone but when you form a JV you are transferring the knowledge to an entity which will be there for prosperity to come,” he said.


 He added that this JV would create an environment for local participation where locals could take care of their own, which was also best for the country’s economy.
 
Knowledge Transfer
The Deputy Managing Director of DVN GL BmS Ghana JV Limited, Mr Bernard Agbloe, said the JV was the beginning of a new era, an era that promises to bring endless opportunity in terms of knowledge transfer to Ghanaians. 

  He added that the JV would bring a lot of knowledge transfer to the locals, ensure local participation and input in the space of the oil and gas industry.

He stated that the JV was in compliance with the Petroleum Commission’s regulation and local content law, LI 2204 to provide technical classifications, technical assurance, software and independent advisory services to the Oil and Gas industry.

“The JV will make a difference in terms of compliance with the local content law and meeting the exceeding set requirements for JV companies,” he added.