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.

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.

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.

Early Interventions for Guyanese Business Development and Optimization

2021 ◽  
Author(s):  
Treacy Anne Roberts ◽  
Natasha Theresa Gaskin-Peters
Keyword(s):  
Supply Chain ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Business Development ◽  
Local Economy ◽  
Gas Industry ◽  
Local Content ◽  
Fit For Purpose ◽  
Oil And Gas Sector

Early Intervention and Local Content Optimization Esso Exploration and Production Guyana Limited ("ExxonMobil"), an affiliate of Exxon Mobil Corporation, and its co-venturers Hess Guyana Exploration Limited and CNOOC Petroleum Guyana Limited, discovered oil in the Stabroek block offshore Guyana during the first half of 2015. The success of safely drilling their first well (Liza-1), followed a history of 40 dry holes in the Guiana Basin prior to ExxonMobil beginning ultra-deepwater oil and gas exploration in 2008 (Varga et al. 2021). Guyana, with a small population of 750,000, was primarily economically focused on agriculture, manufacturing, and the mining of bauxite and gold. ExxonMobil identified the need for an early, focused, coordinated, and long-lasting approach to local content planning to provide tangible results for Guyana. Developing local businesses to actively participate in the industry and enter the supply chain while raising awareness of how the oil and gas industry operates was paramount, as was managing expectations of the Guyanese government and populace about local content. ExxonMobil recognized that the established mining sector in Guyana had the potential to provide a base of local suppliers able to transition into the emerging oil and gas sector. It subsequently undertook a number of assessments and studies on the local economy to further understand the local context. The finding of these assessments highlighted that most Guyanese companies were operating in the small local economy or working within the Caribbean region, limiting their exposure to international standards and providing little impetus to become globally competitive. Despite having technical competencies that could be utilized in the oil and gas industry, shortfalls were apparent in the areas of auditable systems, business processes, quality assurance, and safety. Closing the gaps would take time and investment, and a shift in culture in some parts. An internal assessment of ExxonMobil's supplier development programs was conducted, and a Guyana supplier development program was developed by drawing from best practices around the globe. ExxonMobil, with the support of its Stabroek Block co-venturers, took a proactive decision and devised a plan to engage an independent third party to run a "fit for purpose" enterprise development centre (EDC) to support the technical development in country through local content prior to final investment decision (FID). In order to be equipped to provide early roll out of local content development, and 6 months before FID for Liza 1, ExxonMobil released a Request for Proposal (RFP). Bidders were invited to submit proposals on how the EDC would function "fit for purpose" and compliment rather than compete with current Guyanese activities and vendors. The successful bidder, DAI Global LLC (DAI), had a proven track record of international socioeconomic project successes and was selected to form a unique and collaborative, strategic relationship with ExxonMobil. Although DAI had previous experience in nascent markets, the challenge in Guyana was to expand the Guyanese supplier base into a new sector. The global experience of both ExxonMobil and DAI worked in tandem to produce a flexible management structure with the capability to adapt to the ensuing exploration successes and expanding industry needs. Both short and long term programs would be utilized to engage businesses for the changing needs of businesses during varying developmental stages. Additionally, ExxonMobil's foresight to incorporate local content requirements and contractual use of the centre into prime contractor contracts provided support for the long-term viability of the EDC. The EDC established in Guyana was named The Centre for Local Business Development (Centre). The Centre design provides a supportive environment where seeking and acquiring information about the oil and gas sector is a comfortable experience. Inclusive of classrooms, meeting spaces, offices, and networking areas, the Centre sponsors engaging programs and provides mentorship for companies entering the industy. Drawing upon studies and data to drive the content and focus of its programs, the Centre addresses relevant needs in the business community. For example, a DAI baseline study on the international competitiveness of local businesses showed that two-thirds of Guyanese businesses were not internationally competitive and needed support with basic business systems (e.g. financial management, supply chain management and human resources). Other stakeholder focus group studies conducted by ExxonMobil determined that there was a lack of foundational knowledge about the oil and gas sector. Having access to this research pre-FID allowed for a head start on planning and enabled the implementation of a work program just 3 months after the Centre's opening.

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 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.

Assessment of Conflict Management in Niger Delta and Implications for Sustainable Development of Oil and Gas in Nigeria

2021 ◽  
Author(s):  
Humphrey Otombosoba Oruwari
Keyword(s):  
Conflict Management ◽  
Niger Delta ◽  
Oil And Gas ◽  
Ecological Factors ◽  
Oil And Gas Industry ◽  
Negative Effects ◽  
Gas Industry ◽  
Secondary Sources ◽  
Positive Elements ◽  
Oil And Gas Companies

Abstract Nigerian oil and gas industry have over the years witnessed incessant conflicts between the stakeholders, particularly the host communities in Niger Delta region and the oil and gas companies in partnership with the Federal Government. Conflict which is here defined as manifestation of disagreement between individual and groups arising from differing and mutually incompatible interests has both positive and negative effects depending on how it was managed. Managing conflicts is all about limiting the negative aspects. The study examined conflicts management in Nigeria oil and gas industry and how best the positive elements of conflicts can be maximally exploited for the mutual benefit of both oil and gas company and the host communities in Niger Delta. The study adopted the multidisciplinary approach, literature review, case study and relied on secondary sources using analytical method of data analysis. The study findings revealed that the major factors that precipitate conflicts between the oil and gas industry and host communities in Niger Delta include economic, social, political, and ecological factors. There are available strategies that can be used in conflict management. These include avoiding, accommodating, or smoothing, competing, or forcing, compromising, and collaborating. Any of these strategies can be used to manage conflict depending on the situation, the environment factor, and the nature of the conflict. The problem is that the oil and gas companies in partnership with the Nigerian government often adopted the wrong approach in dealing with the conflict with host communities, using avoiding or forcing strategies. The study recommends collaboration strategy which ensues long term-term solution to mutual benefits.

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