Oil Employs Them Not?

In announcing the discovery of oil in commercial quantities in 2007 former President John Agyekum Kufour told the BBC quote “with oil as a short in the arm, we are going to fly” unquote. With this heightened expectation most unemployed youth were excited that oil will employ them as the dwindling industrial sector had failed to engage them. 

Seven years after the discovery, is the nation flying, or yet to take off?  Job creation in the oil and gas sector according to watchers of the sector is very slow. This trend is eroding the hopes of many Ghanaians who have the dream of working in the oil and gas related sector. 

Policymakers in 2013 enacted a Petroleum Local Content Policy to progressively give works in the oil and gas value chain to Ghanaians. What has happened since the Local Content Regulation was passed.  Are the locals getting the oil job- cheques?  Correspondent Dominic Hlordzi was at the Oil City Takoradi to find out whether Ghanaians are securing jobs in the oil and gas sector. 

Ghanaians continue to demand their place in the Petroleum sector as the level of employment in the sector is non-pacey, dashing some hopes and expectations. Local Employment and Training in the Petroleum Sector in Ghana is a key pillar in the Petroleum Local Content and participation Regulation L.I 2204 2013.

What is the level of local engagement in the black Gold Industry in the Gold Coast? With the heightened expectation of job creation in the sector when the oil reservoirs were discovered, Ghanaians have being walking the corridors of oil and gas related companies seeking the opportunities to be hired. Is oil employing the locals as anticipated? I met Theophilus Essar who has been prospecting for job in the sector in the Oil City Takoradi. His desperation is now being laced with despair. He cited lack of strong employment policy as the bane to job creation in the country. 

The Petroleum Local Content Regulation was passed by Parliament in November 2013. What has happed with implementation of the regulation with regard to engaging the locals in the sector? Regulation 17 which deals with the employment, training and succession plan in the sector says companies in petroleum related operations shall submit to the Petroleum Commission plans and forecasts for hiring and training of Ghanaians, the specific skills needed, the anticipated shortfalls in the Ghanaian workforce, the exact training requirements and projected expenditure that will be incurred in implementing the employment plan. 

The regulation specified the percentage of Ghanaians to be employed in each subsector of the petroleum value chain within particular periods. What is the level of compliance to this provision? And how many Ghanaians have been hired in the sector?

The level of unemployment is still unacceptably high in a middle income country that is rich in natural resources. The percent of the labor force without jobs is high. There is no national policy on employment. Recently the Ministry of employment hinted of submitting a Bill on employment to parliament for passage. 

Ghana has so far since the production of crude oil in 2010 bagged two billion dollars from oil proceeds and 8 thousand jobs were reportedly created. The downstream aspect of the nation’s oil and gas sector is yet to pick up. At which stage will the oil-related-job boom be experienced? As the unemployed Theophilus Esser says quote “We are growing…numerous youth of Ghana are highly frustrated and disappointed” unquote. Has the oil failed in employing them? A lot of Ghanaian youth are still waiting to have positive response to their oil job application letters.  Please download and listen to the full report.

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GBC