Abstract

Ghana and Ivory Coast have developed several localization strategies for their emerging oil and gas industry. Both nations envision to strengthen their local oil and gas industry, maximize profit from exploration and production activities, and develop a strong local mastery of technology and skills. This study analyzes the growth strategies of indigenous companies to gradually penetrate the upstream petroleum sector in Ghana and Ivory Coast. Two promising actors operating within the upstream oil and gas sector in Ghana and Ivory Coast were utilized as case studies: Springfield Energy and Pan-African Energy Services Group (PESG). Business frameworks such as VRIO and SWOT helped identify the resources and capabilities of each company that give them a sustained competitive advantage, as well as the strengths and weaknesses as they relate to the opportunities and threats present in the business environment. A survey conducted among industry stakeholders in the Ghana and Ivory Coast upstream oil and gas sector indicated that despite the local content requirements in both countries, upstream activities remain largely dominated by international companies, although Springfield in Ghana and PESG in Ivory Coast are increasing their footprint in the market. Access to finance and technical capability remain major challenges to a more effective participation of local companies in the upstream sector. The results of the primary and secondary data research confirmed the need for a stronger government commitment to create a more favorable business environment to increase the attractiveness for local companies. Specifically, tax incentives, easier access to financial investment, technical training for the upstream sector, and stricter compliance of IOCs to skill transfer local content requirements should be considered.