10 Local Content Policies in the Energy Transition Era …
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responsibilities of Agecia Nacional do Petroleo, which sets the minimum
local content requirements. The PROMINP includes the Minister of
Mining and Energy, the Minister of Development, Industry, and Trade
Ministry, President and Services Director of Petrobras, the President
of BNDES, the President of ONIP and the President of the Brazilian
Petroleum Institute.
62 In Norway, the Ministry of Petroleum and Energy
was responsible for policymaking and awarding licences that met the
Norwegian requirements.
63 The Norwegian Petroleum Directorate dealt
with the technical control and regulatory advisory functions. Lastly,
Statoil was the state-owned monopoly that was and still is instrumental
in maintaining the government interests on behalf of the government.
10.6 Analysis of the Norwegian and Brazilian
Local Content Regimes
The Norwegian and Brazilian local content regimes are the exemplary
and poster boys for oil and gas governance as well as local content
implementation and adoption. The analysis of these regimes will be
undertaken under four significant issues. These are the institutional
set-up, the nature of the local content policy and the rationale of
implementing the policy.
10.6.1 The Institutional Set-up
Local content development relies heavily on the presence of good independent institutions, just like any other policy. Since local content
policies are susceptible to corruption, the presence of independent institutions provides checks and balances that lead to effectiveness of the
policy. Structurally, Brazil and Norway divided labour between different
institutions. The business and regulatory interest of the government
62 Ibid.
63 Tordo, Silvana, et al. Local content policies in the oil and gas sector. The World Bank, 2013.
329
responsibilities of Agecia Nacional do Petroleo, which sets the minimum
local content requirements. The PROMINP includes the Minister of
Mining and Energy, the Minister of Development, Industry, and Trade
Ministry, President and Services Director of Petrobras, the President
of BNDES, the President of ONIP and the President of the Brazilian
Petroleum Institute.
62 In Norway, the Ministry of Petroleum and Energy
was responsible for policymaking and awarding licences that met the
Norwegian requirements.
63 The Norwegian Petroleum Directorate dealt
with the technical control and regulatory advisory functions. Lastly,
Statoil was the state-owned monopoly that was and still is instrumental
in maintaining the government interests on behalf of the government.
10.6 Analysis of the Norwegian and Brazilian
Local Content Regimes
The Norwegian and Brazilian local content regimes are the exemplary
and poster boys for oil and gas governance as well as local content
implementation and adoption. The analysis of these regimes will be
undertaken under four significant issues. These are the institutional
set-up, the nature of the local content policy and the rationale of
implementing the policy.
10.6.1 The Institutional Set-up
Local content development relies heavily on the presence of good independent institutions, just like any other policy. Since local content
policies are susceptible to corruption, the presence of independent institutions provides checks and balances that lead to effectiveness of the
policy. Structurally, Brazil and Norway divided labour between different
institutions. The business and regulatory interest of the government
62 Ibid.
63 Tordo, Silvana, et al. Local content policies in the oil and gas sector. The World Bank, 2013.