Scale, local content and the challenges of Ghanaians employment in the oil and gas industry

Abstract

Local content laws are essential for promoting positive synergies between extractive industries and broader economies. This paper is a critical evaluation of the employment effects of Ghana's local content law. It draws on the relational geography concept of scale – a constructed arena of activities that are highly interrelated – to examine the dynamic roles and relations between actors and how that shapes employment opportunities and outcomes for Ghanaians in the oil and gas industry. The paper shows that Ghanaians dominate onshore administrative positions and low echelon (ratings)/low skill positions offshore. There is a significant salary disparity between Ghanaians and expatriates due to poor regulation by the petroleum commission, corruption and undercutting by local recruitment agencies. It is imperative that the petroleum commission stringently enforce the regulation on skill transfer, introduce guidelines on salary and conditions of service as well as effectively monitor and regulate the activities of local recruitment agencies to limit their ability to undercut Ghanaian workers.