Petroleum Commission trained 174 against 6000 oil and gas target

The Petroleum Commission (PC) trained 174 Ghanaians under its Accelerated Oil and Gas Capacity (AOGC) Programme against a target of 6,000 between 2019 and 2024, the Auditor-General has revealed. 

A performance audit showed the Commission achieved only 2.9 per cent of its training target, citing the inadequate rollout of training and capacity-building programmes. 

The findings are contained in the Auditor-General’s performance audit report on the implementation of local content and participation in the upstream oil and gas sector by the Petroleum Commission. 

The report said the Commission had planned to train 1,000 Ghanaians annually from 2019 to 2024 to acquire internationally recognised technical and vocational skills to replace expatriates in the upstream petroleum industry. 

It said the 174 beneficiaries received certified training in welding, fabrication, millwright and pipefitting through partnerships with the Northern Alberta Institute of Technology in Canada, Ngee Ann Polytechnic in Singapore and the Jubilee Technical Training Centre in Ghana. 

According to the audit, 24 beneficiaries were trained as instructors, while 150 were prepared for direct employment in the upstream oil and gas industry. 

Commission officials told the auditors that implementation of the programme depended largely on funding support from international oil companies, including a US$4.5 million pledge made by Aker Energy in 2018. 

The officials said Aker Energy did not fulfil the pledge, significantly affecting implementation of the programme and preventing the Commission from delivering the interventions outlined in its Corporate Strategic Plans. 

They said the 174 trainees were instead supported through the Commission’s Internally Generated Funds and a US$250,000 contribution from Baker Hughes Ghana Limited. 

“Management remains committed to the objectives of the AOGC Programme and is actively pursuing sustainable funding partnerships with industry operators and development partners to strengthen future capacity-building initiatives,” the Commission said in its response. 

The audit found that 85 of the 150 trainees prepared for direct employment had secured jobs with oil and gas companies operating in Ghana, while the remaining 65 were undertaking internships and job placement programmes. 

The Auditor-General, however, said the limited scale of the programme had constrained efforts to increase Ghanaian participation in the upstream petroleum industry. 

“As a result of the shortfall in the training of the estimated number of Ghanaian citizens, Ghana does not have many of its citizens taking up basic roles such as welding and pipefitting in the upstream oil and gas sector,” the report stated. 

The Auditor-General recommended that the Commission diversify its funding sources and strengthen partnerships with industry operators and development partners to expand training programmes and achieve its strategic targets. 

The Commission said it would intensify stakeholder engagements and explore diversified funding mechanisms to ensure effective implementation of its training mandate. 

In 2013, Parliament passed the Petroleum (Local Content and Local Participation) Regulations, (L.I. 2204) which aimed at increasing value addition/retention, promoting the use of Ghanaian labour (job creation), and transfer of technology to Ghanaian professionals and firms in the petroleum industry.

The operationalisation of the L.I. 2204 started in 2014 which also required International Oil Companies (IOCs) to collaborate with Ghanaian businesses and institutions to facilitate knowledge exchange and ensure compliance with local content provisions.

Source: GNA