For several years, there have been proposals for the introduction of local content and participation regulations for the downstream oil and gas sector, which have continued to be discussed in 2022. This major shift in policy may see importation of refined petroleum products into Ghana and their distribution and sales within the country being exclusively reserved for Ghanaian businesses.

No specific timelines have yet been set for the passage of these regulations as consultations are ongoing. Amongst other things, the draft proposed regulations for local content in the downstream petroleum sector require all goods and services to be procured from indigenous Ghanaian companies where possible and limit the award of bulk supply contracts for petroleum products, goods and services to the power generation, upstream petroleum, construction, quarry, and mining industries to indigenous Ghanaian companies.

The current draft regulations do include a saving provision that appears to intend to allow the continued operation of pre-existing, foreign-owned petroleum service providers, provided that their ownership at the passing of the proposed regulations remains the same; however, the effectiveness of this provision remains uncertain.

For more insights on the Ghanaian Energy Sector, check out our chapter in the GLI Energy 2024 Guide here