Country Case Studies
A cross-country selection and analysis is made to determine how local content policies function in different jurisdictions. The countries are chosen based on economic development and the maturity of the oil and gas industry. Though the poster boy of globa
- PDF / 496,869 Bytes
- 38 Pages / 419.528 x 595.276 pts Page_size
- 106 Downloads / 197 Views
5.1
Introduction
Local content addresses oil and gas industry bottlenecks. The policy has entrenched into the legislative, regulatory and contractual frameworks of different energy resource-rich countries. Countries are mostly assessed on the policymaker’s probable intentions, policy structure and what cause of action was taken before the discovery of oil and gas discovery and after thereof. The case studies have different social, political and economic structures that cannot be put to comparison at the current state of affairs in each country. We undertake a cross-country analysis made across several countries, namely Tanzania, Kenya, Uganda, Nigeria, Brazil, Angola, Mozambique and Norway. This will facilitate the indepth understanding of whether local content policies are well designed and implemented to crack through the enclave of the oil and gas industry in Sub-Saharan Africa. We will see that in developed economies such as Brazil and Norway, it is easier for these policies to crack through the enclave nature of the oil and gas industry because they are dependent on the oil and gas industry for economic development. It is easier for countries like Norway and Brazil, to have fewer regulations and requirements when it comes to local content policies, unlike countries from © The Author(s) 2020 R. S. Muhongo, Energy Justice, Energy, Climate and the Environment, https://doi.org/10.1007/978-3-030-61338-9_5
97
98
R. S. Muhongo
Sub-Saharan Africa. Unlike Sub-Saharan economies that are dependent on natural resources that rely on “natural-resource based development” unlike developed economies that are characterised by strong manufacturing, technology, service and shipping sector. Something that is not readily available in other developed oil and gas economies. This chapter illustrates what local content policies are in a real-life context according to the countries that have implemented them.
5.2
Country Selection Justification
Norway was selected due to its exemplary and commendable oil and gas industry. Norway has a sector that avoided the resource curse, Dutch disease, and the industry is transparent with efficient regulatory systems. Furthermore, the industry has also developed major local players in the oil and gas industry. Norway has been a poster boy for the development and adoption of local content policies since the proliferation of these policies in oil and gas plus oil and gas-rich jurisdictions. The country offers great lessons to be drawn by nascent oil and gas-rich economies to transform these natural resources into a vehicle leading to economic prosperity for any oil and gas-rich country. As much as Norway is being used in this book for comparable analytical reasons as to why local content policies thrive in Norway and not in other developing countries such as Nigeria and Angola. Norway is also used to determine whether national content policies only thrive in jurisdictions with a stable economic and political background, or whether the transplantation of the Norwegian model can be shipped into
Data Loading...
