Accra, 16 July 2024 – Tullow has reached an agreement with 12 financial institutions in the country to facilitate access to finance for its local supplier community in Ghana.
Given the high capital-intensive nature of the energy sector, access to capital opportunities is critical, especially for local companies operating in the industry. Over the years, financing channels have become difficult to navigate, especially in Ghana. Under a programme called “Tullow Supplier Access to Finance,” the energy company aims to bridge the gap between local banks and its local suppliers; with Tullow playing the role as key facilitator.
At a recent ceremony to unveil the programme, twelve (12) universal banks in Ghana, including Absa, Standard Chartered, UBA, Zenith and Ecobank, signed a Letter of Cooperation to commence the programme. Subsequently, the programme was launched with the local supplier base where more than 145 companies attended.
Ag. Managing Director of Tullow Ghana, John-Medard Madama said: “This is a significant step in our commitment to empower local suppliers operating in the sector to be competitive and build capacity. By enabling access to financial products, these companies will have the wherewithal to support our business operations. We are committed to building a better future for Ghana, and this is another avenue to project leadership in the industry.”
Over the years, Tullow has worked with a host of stakeholders, including the Petroleum Commission, to support the activities of indigenous suppliers and companies working in the oil and gas industry. This commitment has led to the empowerment of many local service companies in the country.
It has also strengthened the country’s supply chain activities, especially in the upstream sector, leading to job creation and training opportunities, which has contributed to overall economic growth. Since the beginning of this year, about 72% (US$26.6m) of Tullow’s total contracts awarded (US$37m), have been with indigenous companies.
