We are committed to local sourcing of goods, services and expertise.
It is our intent to build up local capability where we can, through education, knowledge and skills transfer so that local people benefit from development of natural resources.
We aim to support local companies to grow and develop so they can secure business from other international companies. Under our contracting strategy, we require international suppliers to commit to sourcing goods and services from local companies within their supply chain.
International companies are also an important part of our supply chain. They bring further Foreign Direct Investment, know-how and skills, which can further stimulate business opportunities and the pace of capacity building in the economy.
As local companies gain experience and skills, we can then help the host country to promote its products internationally. One of the ways we support this is through working with Invest in Africa (IIA). IIA was set up by Tullow in 2012 to unite the international and local business community to work in partnership to address the cross-sector challenges of doing business in Africa.
Tullow is committed to regular engagement and communication with local suppliers to ensure they understand what we want, can easily navigate our contracting and procurement processes and be a part of our transparent supply chain.
Ghana Revenue Authority (GRA) Withdrawal of “Cascading Withholding Tax (WHT) Ruling” has resulted in a change to the applicable WHT regime for Subcontracting. This presentation intended for Tullow Suppliers provides an overview of the changes and its implication to doing business with Tullow Ghana Ltd.
In collaboration with the Ghana Upstream Petroleum Business Academy of the Petroleum Commission of Ghana Tullow held virtual workshops in April and May 2021 to equip current and future suppliers in the oil and gas industry with requisite knowledge in business ethics and compliance and supplier due diligence.
In July 2021, Tullow again collaborated with the Petroleum Commission of Ghana to hold a virtual workshop focused on Health, Safety and Environmental management policies and procedures. The workshop was delivered with the overall objective of equipping the Ghanaian supplier community with relevant knowledge, skills and systems to succeed in the oil and gas industry in Ghana and internationally.
In September 2021, Tullow partnered with Invest In Africa to implement an eight month finance-focused programme aimed at supporting suppliers whose business operations and finances have been adversely impacted by the COVID-19 pandemic. The roll-out of the programme themed “Access to Finance Programme for Suppliers” commenced with a workshop to equip suppliers with the knowledge, skills and support needed to effectively engage with financial institutions to refinance/restructure existing funding programmes and improve liquidity.
In October 2021, Tullow again collaborated with the Petroleum Commission’s Ghana Upstream Petroleum Business Academy to train current and future local industry suppliers on its end-to-end procurement process. The training covered Tullow’s procurement, invoicing and payment processes and provided participants with a deeper understanding of key procurement areas including category management, vendor registration and set up, and procurement sourcing tools.
In November 2021, Tullow Ghana collaborated with the Petroleum Commission to deliver a workshop to financial institutions and insurance companies as part of the Business Academy Partnership. The focus of the workshop was sharing industry expectations of financial institutions and insurance companies that provide services to our suppliers and the wider supplier community.
In 2022, Tullow continued its collaboration with the Petroleum Commision. In March, the first workshop of the year was held and was aimed at communicating the requirements and expectations for an upcoming tender for aviation services. In April, a pre-tender workshop was held on cleaning and janitorial services. Over 120 participants from the local supplier community participated in the event. In June, a pre-tender workshop was held on security and man guarding services with a total of 80 suppliers attending the session. In July, a training workshop was held on the application of reverse auctions in our competitive tendering process and the benefits to suppliers. Over 80 participants from the local supplier community participated in the event.
Local Content is a term used in the Oil and Gas industry to describe the commitment to build on the capacity and capability of local people and businesses to support the long-term development of the emerging sector.
We want to benefit the countries where we work by investing in local suppliers, investing in local skills and by creating real opportunities within the industry. For us, Local Content is not just about meeting legislative requirements or ticking a box, we do it because we have a responsibility; it creates a positive social and economic impact and makes good business sense. For example, working with local companies can reduce our project times and costs.
The goal of our Local Content strategy is to build local capacity and to develop successful suppliers who can deliver a wide range of goods, services and skills to international standards.
We aim to do this by:
- Developing an industry run by nationals through training, knowledge transfer and employment.
- Supporting local businesses to enter the industry's supply chain, either directly as suppliers to Tullow or through our international supplier relations.
- Creating a social enterprise funding and partnerships programme for education and enterprise development for our industry.
There are numerous and varied opportunities for local suppliers, from medical equipment and civil and mechanical engineering services, to transport services, security and freight forwarding.
As the oil and gas industry is very new in many of the countries where we operate, we recognise the need to support, train and build local expertise. The types of skills required in the industry are quite specialised and require a high level of vocational and technical skills. Therefore we want to help develop these skills and run skills development programmes and supplier forums in the countries where we operate, which include:
- Contract awareness events – this initiative organises a range of events and forums for local potential suppliers, including discussions on our procedures and standards.
- Training, development, mentoring and coaching – to meet any needs we have identified in our suppliers, Tullow may provide or commission training, and provide mentoring and coaching support, to help potential suppliers present professional bids.
- Vocational training schemes – these schemes focus mainly on developing trade skills, e.g. electrical, plumbing, welding and steel fabrication.
- Invest in Africa – we support Invest in Africa, find out more about Invest in Africa and register on the African Partner Pool.
We do not just award Local Content contracts to local business and leave them to work independently. Our in-country Local Content and C&P teams work with the companies, do audits and also monitor international suppliers to make sure they are maintaining their commitment to training. The teams also research the local market, build-up a database and identify training opportunities for our current suppliers. We run a programme called "Closing the Gap" which is aimed at helping local people and businesses enter the oil and gas industry supply chain. At the sessions we train suppliers to increase their skills in health and safety, book keeping, submitting invoices and how to tender for contracts. These workshops are well attended and appreciated by local businesses.
The amount of Local Content in a tender is one of the key criteria a potential supplier is marked against and our contracts are designed to ensure that our international suppliers take the same responsibility for developing Local Content as we do.
Specialise in what you do, bring up the standards of your core services and learn and deliver to the requirements of the industry. Don't try to do everything - concentrate on the service we require and make sure you work to best of your ability. That is the recipe for success.