328
R. S. Muhongo
The licensing system in Brazil established local content targets created
by the APN. The multinational oil companies were to meet the scores
on the basis of technical, financial and local content targets throughout
the exploration to the production phase of the oil and gas value chain.
58
The Norwegian licensing procedure did not follow strict requirements on
local content targets. The policymakers specified that Norwegian-based
firms should be chosen whenever the firms were competitive in price,
quality and delivery.
The Brazilian and Norwegian oil and gas governance had incentives
and penalties. In Brazil, the fiscal policy had exemptions on the oil and
gas-related goods that are manufactured in Brazil, the raw materials used
in manufacturing domestic goods and services were exempted from a
social security system, import tax and tax on industrial products and
social integration plan.
59 The Merchant Marine Fund was established
by the Brazilian government to finance the 17 new shipyards and the
expansion of the existing shipyards. It should be noted that Norway
also leveraged on the shipping industry that the Country possessed in
local content development. Furthermore, Norway created the ‘Goods
and Service’ Office that was the Watchdog on the quality, price and
delivery of the goods and services that were manufactured in Norway.
60
Norway also developed a gradual fiscal regime according to the development of domestic capabilities. The political will of the policymakers in
Norway and sentiment of local content development was known to the
multinational oil and gas companies.
The Brazilian and Norwegian oil and gas industry had a systematic
institutional set-up. In Brazil, the Conselho Nacional de Politica Energetica created guidelines for local content policies in harmony with the
Ministry of Mines and Energy.
61 The Regulatory activities fall under the
58 Ngoasong, Michael Zisuh. “How international oil and gas companies respond to local content
policies in petroleum-producing developing countries: A narrative enquiry.” Energy Policy 73
(2014): 471–479.
59 Tordo, Silvana, et al. Local content policies in the oil and gas sector. The World Bank, 2013.
60 Ibid.
61 Gonzales Rodriguez, Marco Antonio. “Success below the surface: Explaining success in the
management of petroleum resources in Norway and Brazil.” MS thesis. Norwegian University
of Life Sciences, Ås, 2013.
R. S. Muhongo
The licensing system in Brazil established local content targets created
by the APN. The multinational oil companies were to meet the scores
on the basis of technical, financial and local content targets throughout
the exploration to the production phase of the oil and gas value chain.
58
The Norwegian licensing procedure did not follow strict requirements on
local content targets. The policymakers specified that Norwegian-based
firms should be chosen whenever the firms were competitive in price,
quality and delivery.
The Brazilian and Norwegian oil and gas governance had incentives
and penalties. In Brazil, the fiscal policy had exemptions on the oil and
gas-related goods that are manufactured in Brazil, the raw materials used
in manufacturing domestic goods and services were exempted from a
social security system, import tax and tax on industrial products and
social integration plan.
59 The Merchant Marine Fund was established
by the Brazilian government to finance the 17 new shipyards and the
expansion of the existing shipyards. It should be noted that Norway
also leveraged on the shipping industry that the Country possessed in
local content development. Furthermore, Norway created the ‘Goods
and Service’ Office that was the Watchdog on the quality, price and
delivery of the goods and services that were manufactured in Norway.
60
Norway also developed a gradual fiscal regime according to the development of domestic capabilities. The political will of the policymakers in
Norway and sentiment of local content development was known to the
multinational oil and gas companies.
The Brazilian and Norwegian oil and gas industry had a systematic
institutional set-up. In Brazil, the Conselho Nacional de Politica Energetica created guidelines for local content policies in harmony with the
Ministry of Mines and Energy.
61 The Regulatory activities fall under the
58 Ngoasong, Michael Zisuh. “How international oil and gas companies respond to local content
policies in petroleum-producing developing countries: A narrative enquiry.” Energy Policy 73
(2014): 471–479.
59 Tordo, Silvana, et al. Local content policies in the oil and gas sector. The World Bank, 2013.
60 Ibid.
61 Gonzales Rodriguez, Marco Antonio. “Success below the surface: Explaining success in the
management of petroleum resources in Norway and Brazil.” MS thesis. Norwegian University
of Life Sciences, Ås, 2013.