Local Content Law and Practice

2020 ◽  
pp. 139-160
Author(s):  
Charles Godfred Ackah ◽  
Asaah S. Mohammed
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Local Participation ◽  
Gas Industry ◽  
Oil Companies ◽  
Local Content ◽  
Essential Services ◽  
Exploration And Production ◽  
Regulatory Capacity ◽  
Local Firms

Local content and local participation policy and legislation have come to stay in Ghana’s oil and gas industry. The policy and legislation have been described largely as adequate, promising, and necessary to promote local content and local participation in the oil and gas industry. Implementation of the policy and legislation has, however, produced mixed results, according to industry stakeholders and researchers. Evidence suggests some level of compliance by international oil companies to implement the policy and legislation on local content. Some Ghanaian companies have been awarded contracts to provide essential services and goods to these international oil companies during exploration and production. Several factors, however, militate against effective implementation of the policy and legislation. Notable among these are the low capacity of local firms, discrimination against local firms by international oil companies through vertical integration, and the weak regulatory capacity of the Petroleum Commission to enforce local content implementation.

Entrepreneurial implications of Nigeria's oil industry local content policy

2011 ◽  
Vol 5 (3) ◽  
pp. 223-241 ◽  
Author(s):  
Ugwushi Bellema Ihua ◽  
Olatunde Abiodun Olabowale ◽  
Kamdi Nnanna Eloji ◽  
Chris Ajayi
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
General Level ◽  
Gas Industry ◽  
Content Type ◽  
Oil Companies ◽  
Local Content ◽  
National Oil Companies ◽  
Indigenous Entrepreneurs ◽  
Entrepreneurial Activities

PurposeThe purpose of this paper is to investigate the efficacy of Nigeria's oil and gas industry local content (LC) policy, with particular reference to how the policy has enhanced entrepreneurial activities and served as panacea to resolving some of the country's socio‐economic challenges within the oil‐producing Niger Delta region.Design/methodology/approachSurvey data were randomly obtained from a questionnaire sample of 120 indigenes in Bayelsa, Delta and Rivers states; and subjected to factor‐analysis using varimax rotation to identify the most crucial factors likely to influence the success of the policy. Cronbach's α was also applied to ascertain the reliability of the data and overall agreement amongst respondents.FindingsThe study reveals a general level of indifference amongst the respondents, and an insignificant level of entrepreneurial implication, regarding the LC policy. Notwithstanding, the need to create business prospects, jobs opportunities, and establish special quota arrangements to benefit indigenes of the oil producing host‐communities were found to be most crucial in their assessment of the policy's efficacy.Practical implicationsIt is expected that the policy should stimulate and open up more channels for budding entrepreneurial activities, job opportunities and wealth generation. These would mitigate situations of unwarranted militant activities, social disorder and disguised criminalities such as kidnapping and destruction of oil installations, resulting from perceived marginalisation, massive unemployment and poor living standards experienced within the region.Originality/valueThe study provides insights into how the LC policy, if properly harnessed and judiciously implemented, can generate win‐win outcomes for the nation, multi‐national oil companies, host communities and indigenous entrepreneurs.

scholarly journals Local content implementation and development in Ghana’s upstream oil and gas sector for sustainable development: contemporary issues on policy management

2021 ◽  
Vol 2 (1) ◽  
Author(s):  
Shafic Suleman ◽  
Joshua Jebuntie Zaato
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Social Benefits ◽  
Main Question ◽  
Gas Industry ◽  
Oil Companies ◽  
Local Content ◽  
Oil And Gas Operations ◽  
Laws And Policies ◽  
Backward Linkages

AbstractThe need to develop and boost the potentials of Ghana’s upstream oil and gas activities has been advocated by policymakers, academics, and financial institutions since the discovery of oil and gas in commercial quantities. It has been argued that if well implemented, upstream activities have a trickledown effect on the local content policy linkages that apart from taxes, can lead to improved financial and social benefits. In this study, how Ghana can use local content policy in upstream oil and gas operations to maximum economic and social benefits for the good of the Ghana government, citizens, and the Multinational Oil Companies, is the main question to be answered? To address this question, comprehensive analysis of local content laws and policies and stakeholder consultations are conducted. The paper argues that an effective local content policy towards achieving sustainability in the upstream oil and gas industry demands balancing the needs of policymakers, local communities, Multinational Oil Companies, and regulators to succeed. The study recommends a local content implementation master plan; active participation of key stakeholders (government, citizens and Multinational Oil Companies); and integration of forward and backward linkages in the implementation of Ghana’s upstream local content laws and policies.

Networks, trust and capital mobilisation: challenges of embedded local entrepreneurial strategies in Ghana's oil and gas industry

2015 ◽  
Vol 53 (3) ◽  
pp. 391-413 ◽  
Author(s):  
Austin Dziwornu Ablo ◽  
Ragnhild Overå
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Business Environment ◽  
Local Participation ◽  
Gas Industry ◽  
Oil Companies ◽  
Reduce Risk ◽  
Entrepreneurial Strategies ◽  
Entrepreneurial Activities ◽  
Oil And Gas Sector

ABSTRACTIn December 2010 Ghana pumped its first oil and a local content law was passed in 2013 to promote local participation in the oil and gas industry. This paper examines Ghanaian entrepreneurial activities and the dynamics of local participation in the emerging oil and gas sector. We explore Ghanaian entrepreneurs' strategies of mobilising networks to acquire information, build trust, raise financial capital and reduce risk with the aim to gain entry, win contracts and participate in the oil and gas industry. We argue that the resources and strategies activated by entrepreneurs embedded in the context of the Ghanaian business environment are inadequate and problematic when deployed in the context of the international oil and gas industry. The international oil companies' cost-intensive standard requirements and state officials' informal interventions further limit local firms' prospects for participation in the oil and gas industry.

Addressing the Socio-Economic Concerns of the Niger Delta Host Communities Through Local Content Policy; the Impact of Nigerias Local Participation Policy on Her Investment Climate

2021 ◽  
Author(s):  
Babatunde Oni
Keyword(s):  
Niger Delta ◽  
Oil And Gas ◽  
Research Study ◽  
Oil And Gas Industry ◽  
Investment Climate ◽  
Local Participation ◽  
Gas Industry ◽  
Local Content ◽  
The Social

Abstract Objective and scope This paper aims to establish that proper resource management and governance within the Nigerian oil and gas industry, more specifically, her local participation policy, which focuses on adequately addressing the social and economic concerns of the host communities in oil producing regions of Nigeria, particularly in the Niger Delta, will ultimately lead to more secure and sustainable economic development and a more attractive investment climate for Nigeria. Methods Procedure, process This research study will employ an analytical approach, more specifically qualitative analysis, in analyzing the interplay between the various factors which have birthed low oil and gas productivity in the Niger delta region of Nigeria and how proper application of Nigeria's local participation policy can influence the circumstances and yield positive result. The research study will rely heavily on available literature and legislative enactments, as well as available case law on the issues concerned. The primary sources in the collection of materials for this paper will comprise of journals, books, and articles which address the relevant research questions guiding the scope of this paper. Results, Observation, conclusion Nigeria's local content policy, just like many other governmental policies in Nigeria, has been criticized as being vulnerable to corruption as a result of the manifest lack of transparency in the Nigerian oil and gas industry, and local content has already been labelled as a potential victim of capture as a result of this dearth in transparency. It is imperative that the broad discretionary powers granted to the local content monitoring board, and the minister of petroleum by the provisions of the Nigerian Oil and Gas Industry Content Development Act, be utilized in a manner devoid of parochial ethnic sentiments or political interest, in order for Nigeria to properly take advantage of the economic development benefits provided by the proper implementation of local content policy. The long term benefits of local content policy such as technology transfer, long term fiscal incentives, and the growth of local commerce and industry, will go a long way in setting Nigeria on a plain path to sustainable economic growth and better resource management. It is important that the Nigerian government play its role in driving local content policy by facilitating Nigerian enterprises to take active part in the local content programs, as well as keep tabs and monitor the effectiveness of local content policy in achieving its targets. New or additive information to the industry Proper implementation of Local Content policy in Nigeria will be beneficial, not just for the host communities but for the rest of the country, as well as for all investors in the Nigerian oil and gas industry, by providing thousands of employment opportunities for the locals, as well as providing a much needed technology transfer which will result in a structural transformation of not just the local manufacturing industries in Nigeria but the entire Nigerian oil and gas industry as well; thus addressing a major aspect of the social and economic concerns of the local people, and also giving Nigeria's economy a much needed boost towards achieving sustainable development in her natural resources sector.

A business network perspective on local content in emerging African petroleum nations

2016 ◽  
Vol 10 (4) ◽  
pp. 594-616 ◽  
Author(s):  
Richard Afriyie Owusu ◽  
Terje I. Vaaland
Keyword(s):  
Network Theory ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Business Networks ◽  
Business Network ◽  
Gas Industry ◽  
Content Type ◽  
Oil Companies ◽  
Local Content ◽  
Industrial Network

Purpose The paper aims to identify and analyze the actors and their interrelationships in realizing local content objectives in African oil- and gas-producing nations. Design/methodology/approach The paper includes content analysis of relevant research papers and reports within the oil and gas industry, local content and industrial networks published between 2000 and 2014. Findings The study developed a framework that integrates the literature on local content with the industrial network theory. The framework classifies the various critical actors for achieving local content, proposing that achieving local content requires the development of business network links and a resource alignment among local companies and institutions and foreign companies and institutions, in addition to multinational oil companies. Research limitations/implications The framework of this study contributes to an emerging theory on local content by integrating the industrial network theory, which provides specific frameworks for analyzing embedded business environments, along with the previous economic and legal-based studies of local content achievement. Practical implications The way the relevant actors organize their resources and business networks provides potential for local content in an emerging oil and gas industry in Africa. Originality/value The paper is one of the few to integrate studies of local content with the industrial network theory. The literature review provides a summary window of the research on the subject over a 14-year period.

Trends and Prospects of Development of the Oil and Gas Sector in the Context of Digitalization

2020 ◽  
Vol 26 (1) ◽  
pp. 35-45 ◽  
Author(s):  
A. G. Kazanin
Keyword(s):  
Oil And Gas ◽  
Digital Technologies ◽  
Oil And Gas Industry ◽  
Global Market ◽  
The Arctic ◽  
Business And Society ◽  
Gas Industry ◽  
Exploration And Production ◽  
Oil And Gas Sector

The modern oil and gas industry is heavily dependent on the processes and trends driven by the accelerating digitalization of the economy. Thus, the digitalization of the oil and gas sector has become Russia’s top priority, which involves a technological and structural transformation of all production processes and stages.Aim. The presented study aims to identify the major trends and prospects of development of the Russian oil and gas sector in the context of its digitalization and formation of the digital economy.Tasks. The authors analyze the major trends in the development of the oil and gas industry at a global scale and in Russia with allowance for the prospects of accelerated exploration of the Arctic; determine the best practices of implementation of digital technologies by oil and gas companies as well as the prospects and obstacles for the subsequent transfer of digital technologies to the Russian oil and gas industry.Methods. This study uses general scientific methods, such as analysis, synthesis, and scientific generalization.Results. Arctic hydrocarbons will become increasingly important to Russia in the long term, and their exploration and production will require the implementation of innovative technologies. Priority directions for the development of many oil and gas producers will include active application of digital technologies as a whole (different types of robots that could replace people in performing complex procedures), processing and analysis of big data using artificial intelligence to optimize processes, particularly in the field of exploration and production, processing and transportation. Digitalization of the oil and gas sector is a powerful factor in the improvement of the efficiency of the Russian economy. However, Russian companies are notably lagging behind in this field of innovative development and there are problems and high risks that need to be overcome to realize its potential for business and society.Conclusions. Given the strategic importance of the oil and gas industry for Russia, its sustainable development and national security, it is recommendable to focus on the development and implementation of digital technologies. This is crucial for the digitalization of long-term projection and strategic planning, assessment of the role and place of Russia and its largest energy companies in the global market with allowance for a maximum number of different internal and external factors.

scholarly journals A Review of Job Role Localization in the Oil and Gas Industry

Energies ◽  
2018 ◽  
Vol 11 (10) ◽  
pp. 2779 ◽  
Author(s):  
Jack Pegram ◽  
Gioia Falcone ◽  
Athanasios Kolios
Keyword(s):  
Oil And Gas ◽  
Relevant Literature ◽  
Oil And Gas Industry ◽  
Critical Discussion ◽  
Future Application ◽  
Gas Industry ◽  
Local Content ◽  
Job Role ◽  
Key Terms

Job role localization is a strategic local content solution used by countries bearing natural resource stocks to maximize the long-term benefits of exploring and producing them. Currently, there is significant variation in how countries and organizations plan and implement local content and job role localization strategies; hence, this paper aims to gather, classify, and discuss relevant literature with a view to identify best practices for future application. After a multi-dimensional discussion of key terms relevant to the topic, the drivers and theoretical underpinnings of local content are examined, followed by an assessment of job role localization literature qualifying enablers and barriers to localization. A critical discussion on the means of evaluating local content policies summarizes the findings of this critical review.

scholarly journals How Oil Contracts Affect Human Rights

2018 ◽  
Vol 3 (4) ◽  
pp. 30
Author(s):  
Maria João Mimoso ◽  
Clara da Conceição de Sousa Alves ◽  
Diogo Filipe Dias Gonçalves
Keyword(s):  
Human Rights ◽  
Oil And Gas ◽  
Social Issues ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Oil Companies ◽  
The Social ◽  
Oil Contracts ◽  
The 19Th Century ◽  
The Impact

Since the beginning of the 19th century, we have assisted major proliferation of the oil and gas industry. This phenomenon of exponential growth is due to the fact that oil companies hold the world’s oil monopoly on the extraction, processing and commercialization. Therefore, as being one of the most influential sectors in the world, is crucial to strictly regulate how oil and gas contracts concerns the potential environmental and social impacts arising from the conduct of petroleum operations and how such behavior affects the human rights. As a matter of fact, the social issues field is an emerging area, and despite such importance, oil contracts do not often deal with them in great detail, corresponding to an actual emptiness of the human rights provisions. In terms of responsibly, oil companies, have an inalienable obligation to ensure that their actions do not violate human rights or contribute for their violation. This study aims to trace a detailed analysis of the impact of the oil and gas agreements in human rights. In order to fully comprehend the deep effects of this industry, we will examine, in detail, numerous of published oil and gas agreements, as well as, decode which are the real standards and practices accepted by this industry. We will use a deductive and speculative reasoning. We will try to demonstrate how incipient and short protection is given to human rights and what responsible conducts must urgently be developed.

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