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R. S. Muhongo
ambitious goal is to develop local content policies within an economy
of an emergency oil and gas producer.
Literature shows how difficult it is to obtain the probable advantages
of implementing such policies.
13 This is because emerging producers face
numerous challenges in materializing the effects of an adequate, credible
and exemplary local content policy. Emerging producers are uncertain of
their resource base; hence they are not certain of the investment value
their reserves pose.
14 Furthermore, they lack both a skilled labour force
and limited state administrative capacity. But for emerging producers,
local content policies need to be adopted and implemented within the
dimensions of the new era and world order.
Emerging producers are creating local content policies in the world
that seeks climate change by implementing climate mitigation measures
to achieve a just transition. The emerging producers face the difficulty
of creating local content policies in a post-COVID-19 era, where supply
chains are disrupted, procurement mechanisms are distorted. With the
dwindling oil prices that have recorded an unprecedented record of a
negative value price per barrel
15 ; Local content policies are the least
desired policy tools that could attract foreign direct investment as well
as be a vehicle to further develop an economy.
This chapter is divided into eight parts, the second part of the chapter
explains the oil and gas industry as an enclaved industry for domestic
suppliers and workforce to integrate due to numerous factors, the third
part discusses the policy design and factors that affect local content
policy design in any economy be it a developing or developed economy.
Furthermore, the chapter discusses the probable advantages and disadvantages of local content policies in oil and gas industries, in the fifth
part, the chapter undertakes a case study analysis between Norway and
Brazil being exemplary local content models for drawing lessons for
emerging oil and gas producers such as Kenya, Tanzania and Uganda.
13 Ibid.
14 Andrews, Nathan, and Chilenye Nwapi. “Bringing the state back in again? The emerging
developmental state in Africa’s energy sector.” Energy Research & Social Science 41 (2018):
48–58.
15 See “East Africa’s oil industry: A new story in the making.” https://www.busiweek.com/eastafricas-oil-industry-a-new-story-in-the-making/.
R. S. Muhongo
ambitious goal is to develop local content policies within an economy
of an emergency oil and gas producer.
Literature shows how difficult it is to obtain the probable advantages
of implementing such policies.
13 This is because emerging producers face
numerous challenges in materializing the effects of an adequate, credible
and exemplary local content policy. Emerging producers are uncertain of
their resource base; hence they are not certain of the investment value
their reserves pose.
14 Furthermore, they lack both a skilled labour force
and limited state administrative capacity. But for emerging producers,
local content policies need to be adopted and implemented within the
dimensions of the new era and world order.
Emerging producers are creating local content policies in the world
that seeks climate change by implementing climate mitigation measures
to achieve a just transition. The emerging producers face the difficulty
of creating local content policies in a post-COVID-19 era, where supply
chains are disrupted, procurement mechanisms are distorted. With the
dwindling oil prices that have recorded an unprecedented record of a
negative value price per barrel
15 ; Local content policies are the least
desired policy tools that could attract foreign direct investment as well
as be a vehicle to further develop an economy.
This chapter is divided into eight parts, the second part of the chapter
explains the oil and gas industry as an enclaved industry for domestic
suppliers and workforce to integrate due to numerous factors, the third
part discusses the policy design and factors that affect local content
policy design in any economy be it a developing or developed economy.
Furthermore, the chapter discusses the probable advantages and disadvantages of local content policies in oil and gas industries, in the fifth
part, the chapter undertakes a case study analysis between Norway and
Brazil being exemplary local content models for drawing lessons for
emerging oil and gas producers such as Kenya, Tanzania and Uganda.
13 Ibid.
14 Andrews, Nathan, and Chilenye Nwapi. “Bringing the state back in again? The emerging
developmental state in Africa’s energy sector.” Energy Research & Social Science 41 (2018):
48–58.
15 See “East Africa’s oil industry: A new story in the making.” https://www.busiweek.com/eastafricas-oil-industry-a-new-story-in-the-making/.