Ghana’s efforts to build a skilled local workforce for the upstream oil and gas industry have been significantly constrained by funding challenges, with only 174 people trained under a programme originally designed to benefit 6,000 Ghanaians.
The Auditor-General’s performance audit report on local content and participation in Ghana’s upstream petroleum sector said the Petroleum Commission achieved just 2.9 percent of its training target under the Accelerated Oil and Gas Capacity (AOGC) Programme between 2019 and 2024.
The Commission had planned to train 1,000 Ghanaians annually during the six-year period in internationally recognised technical and vocational skills to help replace expatriates in the upstream petroleum industry.
However, the audit found that only 174 people received training in welding, fabrication, millwright and pipefitting.
The beneficiaries were trained through partnerships with the Northern Alberta Institute of Technology in Canada, Ngee Ann Polytechnic in Singapore and the Jubilee Technical Training Centre in Ghana.
Of the 174 trainees, 24 were trained as instructors, while 150 were prepared for direct employment in the upstream oil and gas sector.
The Auditor-General attributed the limited implementation of the programme largely to inadequate funding.
Officials of the Petroleum Commission told auditors that the programme depended significantly on financial support from international oil companies, including a US$4.5 million commitment made by Aker Energy in 2018.
However, the company did not fulfil the pledge, according to the Commission, significantly affecting the implementation of the programme and preventing the delivery of several interventions outlined in its Corporate Strategic Plans.
The Commission said it subsequently relied on its Internally Generated Funds and a US$250,000 contribution from Baker Hughes Ghana Limited to support the training of the 174 beneficiaries.
Despite the limited scale of the programme, the audit found that 85 of the 150 trainees prepared for direct employment had secured jobs with oil and gas companies operating in Ghana.
The remaining 65 were undergoing internships and job placement programmes.
The Auditor-General, however, warned that the shortfall in training had limited Ghana’s ability to increase local 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 audit recommended that the Petroleum Commission diversify its funding sources and strengthen partnerships with industry operators and development partners to expand its capacity-building programmes.
In response, the Commission said it remained committed to the objectives of the AOGC Programme and was pursuing sustainable funding partnerships to strengthen future training initiatives.
It also said it would intensify engagements with stakeholders and explore alternative funding mechanisms to ensure the effective implementation of its training mandate.
