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Local Content… Ghana, Tanzania, Liberia place no restrictions on releasing data for ExxonMobil, other oil majors

Feb 24, 2020 News

– But Guyana aims to be the exception

By Kiana Wilburg
The real reason behind the use of confidentiality provisions in Guyana’s Local Content Policy remains a mystery when one considers the explanation provided last week by Energy Department Head, Dr. Mark Bynoe.
In response to queries from Kaieteur News, Dr. Bynoe had said that the provisions were used in Guyana’s policy so that it can be in line with Articles 18 and 19 of the nation’s legally binding Production Sharing Agreements (PSAs). Those two articles speak to the requirements to be honoured by companies when it comes to the use of local goods, skills and services for their operations. Dr. Bynoe was keen to note however that when those Articles are considered, there is no requirement for the disclosure of oil companies’ local content data or plans, hence the use of the confidentiality provisions in the policy.
By the same token, Articles 18 and 19 say nothing about embedding provisions for secrecy in the nation’s Local Content Policy. Aside from this, Kaieteur News checked several agreements and policies around the world and none of them could support what Dr. Bynoe explained.
In fact, Kaieteur’s research shows that ExxonMobil and other oil companies such as Tullow and Eco Atlantic operating offshore Guyana are working comfortably in other countries which call for citizens to have full access to their efforts on local content.
Take Liberia for example, where ExxonMobil is part of a Production Sharing Agreement with Canadian Overseas Petroleum (Bermuda) Limited, and the National Oil Company of Liberia for Block 13. (See link for PSA: https://resourcecontracts.org/contract/ocds-591adf-6713867467/view#/search/local%20content)
Similar to Guyana’s PSAs, the 2013 Liberian agreement has no clause, which says that the Contractor or the Government has to disclose any of the local content data or plans provided. As for Liberia’s local content policy, there are no confidentiality provisions regarding the disclosure of the local content plans. In fact, the policy states, “In accordance with the laws of Liberia, particularly the Freedom of Information Act of 2010 and international best practices, information pertaining to the petroleum sector, including legal policy, planning, commercial, seismic and scientific shall be made available to the public in a manner that facilitates maximum access.”
It goes on to state, “The government shall require international oil companies to issue regular reports on their contributions to local content development. These reports should contain the degree to which they are using Liberian contractors, identify the Liberian companies and the principal projects in which they are engaged and the composition of ownership. These reports shall also provide updates on the progress of training Liberians and nurturing local companies in line with national objectives.” (SEE LINK FOR LIBERIA’S POLICY: http://www.eisourcebook.org/cms/January%202016/Liberia%20National%20Petroleum%20Policy%202012.pdf)
In Tanzania where ExxonMobil also operates, there are no requirements for local content data to not be disclosed in full. The same principle obtains in Ghana’s policy despite their PSAs not explicitly stating that the data in question must be disclosed.

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