Petroleum Commission issues reminder on succession planning

IMPACT – MEDIUM

What is the change? Ghana’s Petroleum Commission has issued a statement to companies in the upstream oil and gas industry reminding them that they must strictly comply with a regulation requiring them to develop a succession plan for any job held by a foreign national.

What does the change mean? Succession plans must explain how the company intends to replace foreign nationals with Ghanaians in order to meet required minimum local contract levels. Employers in the upstream oil and gas industry are reminded that they must provide succession plans when submitting work permit applications. Failure to do so could lead to unnecessary delays or rejection of applications.

• Implementation time frame: Immediate and ongoing.
• Visas/permits affected: Work permits for positions in Ghana’s upstream oil and gas industry.
• Who is affected: Employers in the upstream oil and gas industry.
• Business impact: The recent reminder is part of Ghana’s broader efforts in the oil and gas industry to ensure that companies are employing Ghanaians rather than foreign nationals when possible.

Background: The Petroleum Commission issued the statement in January, citing a regulation that states in part that “a contractor, subcontractor, licensee or other allied entity as part of the employment and training sub-plan, (must) submit to the Commission a succession plan for any employment position that is occupied by a non-Ghanaian” to meet specified minimum local content levels. Work permit requirements stipulate that the Commission will monitor applications to ensure that companies are providing succession plans and offering jobs to Ghanaians when possible.

BAL Analysis: The Commission’s reminder should be taken as a sign that it will step up compliance activity in the upstream oil and gas industry to make sure that companies are creating, and adhering to, succession plans for jobs held by foreign nationals.

This alert has been provided by the BAL Global Practice group and our network provider located in Ghana. For additional information, please contact africa@bal.com.

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