GOGSPA sues Tullow Ghana over alleged Local Content Violation
An Accra High Court (Commercial Division) on September 8, 2022, adjourned the hearing of a motion on notice for an interlocutory injunction to restrain Tullow Ghana Limited from re-awarding any petroleum contract being executed by indigenous Ghanaian companies to foreign joint venture companies.
The motion was brought by the Ghana Oil and Gas Service Providers Association (GOGSPA) pursuant to a writ of summons issued against Tullow Ghana Limited in suit number CM/BDC/0692/22.
GOGSPA said it was seeking the order of the court to restrain Tullow Ghana Limited, its agents, assigns and any person acting under their instructions from violating the Local Content and Local Participation, (Amendment) Regulations 2021 (LI 2435) in the award of petroleum contracts in Ghana pending the determination of the suit.
The plaintiff said the decision to sue followed many complaints that services reserved for indigenous Ghanaian companies under the laws in the upstream oil and gas sector were being taken away and awarded to foreign venture companies.
Plaintiff said it raised the concerns of the indigenous companies with Tullow in a petition in June 2022 highlighting that any award of contract reserved for indigenous Ghanaian companies to foreign joint venture companies after February 17, 2022, would be in violation of the existing laws regulating the award of petroleum contracts reserved for local businesses.
The plaintiff said the action of the defendant if not restrained by the court would lead to the mass unemployment of skilled Ghanaians in the upstream oil industry.
The plaintiff therefore, prayed for a declaration that the award of petroleum contracts for the provision of goods and services exclusively reserved for indigenous Ghanaian companies under Petroleum (Local Content and Local Participation Regulations) LI 2204 (as amended) by Petroleum (Local Content and Local Participation) (Amendment) Regulations 2021 (LI 2435) to Joint Venture Companies in Ghana by the defendant is Illegal.
They also wanted a declaration that the award of any petroleum contracts for provision of goods and services reserved exclusively for indigenous Ghanaian companies under Petroleum (Local Content and Local Participation Regulations) LI 2204 (as amended) by Petroleum (Local Content and Local Participation) (Amendment) Regulations 2021 (LI 2435) to joint venture companies in Ghana by the defendant is null and void.
The plaintiff seeks an order from the court directing the defendant to cancel every contract awarded for the provision of goods and services in contravention of the provisions of Petroleum (Local Content and Local Participation Regulations) LI 2204 (as amended) by Petroleum (Local Content and Local Participation) (Amendment) Regulations 2021 (LI 2435).
“Damages in favour of the plaintiff against the defendant,” the plaintiff said.
They are seeking a perpetual injunction restraining the defendant, whether personally, through their agents, servants or privies or any person acting under their express or implied instruction from awarding any Petroleum contract in contravention of Petroleum (Local Content and Local Participation Regulations) LI 2204 (as amended) by Petroleum (Local Content and Local Participation) (Amendment) Regulations 2021 (LI 2435) and other laws regulating the awards of petroleum contracts in Ghana.
At the hearing of the suit, the legal representative of Tullow Ghana requested more time to respond to the application filed by the plaintiff. The court also advised parties to seek an amicable resolution of the matter, the case was thereafter adjourned to the 10th of October, 2022 for hearing of the motion.
