330
R. S. Muhongo
were separated within the same oil and gas governing framework.
64 The
division of labour was to achieve domestic capabilities to facilitate the
domestic industry to function at an internationally competitive level.
Statoil and Petrobras emphasized on commercial activities while other
government agencies regulated the oil and gas industry.
65
10.6.2 The Nature of the Local Content Policy
Local content can be approached in one of two ways, the policy’s regulatory model can be either based on principle or rule-based associated with
stringent requirements. The nature of the local content policy is through
government intervention into the oil and gas value chain. Such intervention must be either through a rule-based approach or a strict, stringent
approach within the oil and gas economy. The Norwegian model of local
content adopted a principle-based approach that did not institute strict
quantitative local content targets that were associated with hefty fines
for non-compliance.
66 Instead of creating laws and rules that were strict
on the foreign investors, the Norwegian model implemented the ‘ten
commandments’ that were the framework that governed the oil and gas
sector as well as local content policies in Norway.
Meanwhile, Brazil adopted a strict regulatory approach that did not
appreciate the limitations facing the oil and gas industry. The Brazilian
local content model allowed space for creative compliance, due to the
stringent local content plans that were to be made in the local content
booklet.
67 The restrictive Brazilian rules led to a legitimacy crisis as the
industry could not meet the objectives of the policymakers. This led to
64 Mendonça, Roberto Wagner, and Luiz Guilherme de Oliveira. “Local content policy in the
Brazilian oil and gas sectoral system of innovation.” Latin American Business Review 14.3–4
(2013): 271–287.
65 Mendes, Pietro A.S., et al. “Reforming Brazil’s offshore oil and gas safety regulatory framework: Lessons from Norway, the United Kingdom and the United States.” Energy Policy 74
(2014): 443–453.
66 Ibid.
67 Noreng, Øystein. “Brazil and Norway–Offshore Petroleum Experiences and Lessons.” The
Journal of Energy and Development 35.1/2 (2009): 79–99.
R. S. Muhongo
were separated within the same oil and gas governing framework.
64 The
division of labour was to achieve domestic capabilities to facilitate the
domestic industry to function at an internationally competitive level.
Statoil and Petrobras emphasized on commercial activities while other
government agencies regulated the oil and gas industry.
65
10.6.2 The Nature of the Local Content Policy
Local content can be approached in one of two ways, the policy’s regulatory model can be either based on principle or rule-based associated with
stringent requirements. The nature of the local content policy is through
government intervention into the oil and gas value chain. Such intervention must be either through a rule-based approach or a strict, stringent
approach within the oil and gas economy. The Norwegian model of local
content adopted a principle-based approach that did not institute strict
quantitative local content targets that were associated with hefty fines
for non-compliance.
66 Instead of creating laws and rules that were strict
on the foreign investors, the Norwegian model implemented the ‘ten
commandments’ that were the framework that governed the oil and gas
sector as well as local content policies in Norway.
Meanwhile, Brazil adopted a strict regulatory approach that did not
appreciate the limitations facing the oil and gas industry. The Brazilian
local content model allowed space for creative compliance, due to the
stringent local content plans that were to be made in the local content
booklet.
67 The restrictive Brazilian rules led to a legitimacy crisis as the
industry could not meet the objectives of the policymakers. This led to
64 Mendonça, Roberto Wagner, and Luiz Guilherme de Oliveira. “Local content policy in the
Brazilian oil and gas sectoral system of innovation.” Latin American Business Review 14.3–4
(2013): 271–287.
65 Mendes, Pietro A.S., et al. “Reforming Brazil’s offshore oil and gas safety regulatory framework: Lessons from Norway, the United Kingdom and the United States.” Energy Policy 74
(2014): 443–453.
66 Ibid.
67 Noreng, Øystein. “Brazil and Norway–Offshore Petroleum Experiences and Lessons.” The
Journal of Energy and Development 35.1/2 (2009): 79–99.