Local Content Policies in Resource-rich Countries

Abstract

Th e transition of the countries in Euro-Asia is one of the most important developments aff ecting the international system since the end of the Cold War. Th e development of market economies after decades of central planning, the formation of new states and national identities, the creation of new, democratic institutions of state and the reintegration into the world economy poses enormous challenges. While some countries have progressed relatively well and are in the process of joining the European Union, others have experienced severe economic and social dislocations, to the point of political disintegration and armed confl icts. Th e Centre for Euro-Asian Studies at the University of Reading is dedicated to the academic study of the political, economic, social and cultural aspects of this process. Th is series presents the most recent contributions from leading academics in the fi eld. With an interdisciplinary focus, it seeks to provide a substantial, original and ongoing contribution to our understanding of the region which is of vital importance for academics and of high policy relevance for governments and businesses.

Local Content Implementation Enhancement through Infrastructure Development in Ghana’s Oil and Gas Industry

“…In 1959, the North Sea emerged as prominent O&G producing region after gas was discovered off the coast of the Netherlands, [2] which led to series of agreements between the UK, Denmark, the Netherlands and Norway. In 1965, the Norwegian Petroleum law was enacted to enable O&G exploration.…”

“…Furthermore, the government established a state-owned company, Statoil to participate in oil exploration. In countries such as Brazil and Kazakhstan, LC is considered as a strategic tool for overall economic development whereas, Norway and the UK had a different strategic vision towards LC [2]. The latter countries focussed on sectoral catch up within their economies.…”

“…Resource-rich developing countries can increase the value contribution from their resources (minerals, oil and gas etc.) to stimulate socioeconomic growth and development through two main routes -fiscal policy and non-fiscal policy measures [1,2]. The former has been the usual means of generating revenue to a host country's coffers through royalties and tax instruments.…”

A Comparative Analysis of Local Content Policies in the North Sea and the Gulf of Guinea Regions

“…The United Kingdom until its ascension into the European Single Market has been implementing a loose form of local content policy in the North Sea since the 1960s. In other words, the local content was less interventionist as happened in Norway which was a state-led policy at the early stages of oil production [20]. UK implemented a discretionary licensing system for petroleum contracts with an emphasis on rapid exploration and development (E&P) programme and the companies' usage of local suppliers [21].…”

Value co‐creation between foreign firms and indigenous small‐ and medium‐sized enterprises (SMEs) in Kazakhstan's oil and gas industry: The role of information technology spillovers

“…The government imposes local content requirements Government of Kazakhstan (2010); Kalyuzhnova et al (2016) Abbreviations: ICT, information and communication technologies; IOC, international O&G company; NOC, national oil company, O&G, oil and gas; SME, small-and medium-sized enterprise. Source: Authors.…”