10 Local Content Policies in the Energy Transition Era …
331
corruption scandals such as the car-wash scandal in Brazil that were motivated by oil and gas operators circumventing the industry’s requirements
through corruption.
68
10.6.3 The Rationale and Objective of the Local
Content Policy
The rationale behind adopting and implementing local content policies
is a fundamental principle to the effectiveness and efficient implementation of the policy. Brazil and Norway understood that for local content
policies to propel their economies to success, they needed to focus on
the capacity development and gradual domestic integration into the oil
and gas industry without heavily affecting the market forces. Hence,
they emphasized R&D development, transfer of knowledge, technological transfer and achieving more from the multinational oil companies
than just compliance of the local content targets.
69 For instance, Norway
did not define what local content was but developed mechanisms that
could channel domestic value creation and facilitate local participation.
70
10.7 Lessons for Emerging Oil and Gas
Producers Such as Kenya, Tanzania
and Uganda
Kenya, Uganda and Tanzania have recently been the new kids on the
oil and gas block. These emerging oil and gas producers do not possess
the technology, capital, capacity and supporting industries to develop
from the maximum output of the industry.
71 In terms of gas resources,
68 De Figueiredo, Fernanda Odilla. “Inside the car wash: The narrative of a corruption scandal
in Brazil” (2016).
69 Dos Santos Silvestre, Bruno, and Paulo Roberto Tavares Dalcol. “Geographical proximity
and innovation: Evidence from the Campos Basin oil & gas industrial agglomeration—Brazil.”
Technovation 29.8 (2009): 546–561.
70 Tordo, Silvana, et al. Local content policies in the oil and gas sector. The World Bank, 2013.
71 Anderson, Wineaster. “Local suppliers in Tanzania: Ready for the petroleum sector?” The
African Review 43.2 (2017): 51–82.
331
corruption scandals such as the car-wash scandal in Brazil that were motivated by oil and gas operators circumventing the industry’s requirements
through corruption.
68
10.6.3 The Rationale and Objective of the Local
Content Policy
The rationale behind adopting and implementing local content policies
is a fundamental principle to the effectiveness and efficient implementation of the policy. Brazil and Norway understood that for local content
policies to propel their economies to success, they needed to focus on
the capacity development and gradual domestic integration into the oil
and gas industry without heavily affecting the market forces. Hence,
they emphasized R&D development, transfer of knowledge, technological transfer and achieving more from the multinational oil companies
than just compliance of the local content targets.
69 For instance, Norway
did not define what local content was but developed mechanisms that
could channel domestic value creation and facilitate local participation.
70
10.7 Lessons for Emerging Oil and Gas
Producers Such as Kenya, Tanzania
and Uganda
Kenya, Uganda and Tanzania have recently been the new kids on the
oil and gas block. These emerging oil and gas producers do not possess
the technology, capital, capacity and supporting industries to develop
from the maximum output of the industry.
71 In terms of gas resources,
68 De Figueiredo, Fernanda Odilla. “Inside the car wash: The narrative of a corruption scandal
in Brazil” (2016).
69 Dos Santos Silvestre, Bruno, and Paulo Roberto Tavares Dalcol. “Geographical proximity
and innovation: Evidence from the Campos Basin oil & gas industrial agglomeration—Brazil.”
Technovation 29.8 (2009): 546–561.
70 Tordo, Silvana, et al. Local content policies in the oil and gas sector. The World Bank, 2013.
71 Anderson, Wineaster. “Local suppliers in Tanzania: Ready for the petroleum sector?” The
African Review 43.2 (2017): 51–82.