An assessment of the effectiveness of local content in Ghana’s Oil and gas industry: a case study of Rigworld International Services Ltd
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Date
2016-08
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KNUST
Abstract
ABSTRACT
The discovery of any natural resource in every country often times comes with great
exhilaration and a sense of anticipated positive impact because of the expected opportunities
that are normally associated with the exploitation of these resources. The study seeks to assess
the effectiveness of Ghana's local content policies in Ghana’s oil and gas industry. Since the
researcher seeks to delve deeper into the topic, both quantitative and qualitative methods were
employed for this study. The totalsample size for the study involves 80 respondentsfrom IOCs
and staff of Rigworld International Services Ltd. The sampling technique used for this study
was purposive sampling with selected respondents from IOCs, civil societies and staff of
Rigworld International Services Ltd. The study found out that, majority of the respondents
stated that local content legislation is in line with its intended goals and objectives. Concerning
the practicality of the goals and objectives of the LC legislation, most of the respondents
indicated the impracticality of the goals and objectives of the LC legislation. The study further
revealed that there are a number of barriers impeding the activities of indigenous companies in
the industry, these include- inadequate financing, lack of requisite human capital, lack of
technological know-how. In addition, majority of the respondents held the view that the
implementation of LC policies have inured to the benefit of indigenous companies, to the extent
that one of the indigenous companies has had its management systems certified by International
Standards Organization (ISO). The study recommended that the government through the
ministries of Trade and Industry and Petroleum sho uld help universities and polytechnics
establish training courses in line with the oil and gas industry. Secondly, the study recommends
the revision of the LC policies to help address the impracticality and the abuse perpetrated by
some OICs. Lastly, there is a recommendation for government to set up Venture Capital Fund
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to assist indigenous companies finance their capital intensive projects and expand their
operations.
Description
A thesis submitted to the Department of Human Resources and Organizational Development, Kwame Nkrumah University of Science and Technology, in partial fulfillment of the
requirement for the degree of Master of Business Administration (Management and Organizational Development option, School of Business, College of Humanities and Social Sciences