Think global but act local: local content rules in the oil and gas sector
By Raj Kulasingam
We all want things to be local, whether it is shops, banks (remember the HSBC advert about your local bank?) or products. So it is only right that resource-rich countries should want to spread the wealth taken out of the ground locally. Hence local content is a theme that is becoming increasingly prevalent for investment in the oil and gas sectors in Africa. While the concept has been around for some time, it seems to have crept up the agenda in a number of African countries of late, most recently with Ghana passing its own local content rules (LCRs) — perhaps (dare I say it) — following Nigeria’s path.
Whether you call it local content, local participation or beneficiation, the basic tenet is the same: that where foreign companies are looking to exploit local resources and opportunities, then ‘local’ people and the local economy should benefit from these investments through ownership and operation of assets in the sector; increased employment in the sector; transfer of skills and technology; and the manufacturing and production of materials and parts to be used in the sector (rather than being imported) and development and diversification of the manufacturing sector…
Click on the link below to read the rest of the Dentons briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from The Lawyer
Analysis from The Lawyer
So last week it emerged that Dentons, already the biggest law firm in the world, is currently in merger negotiations with 21 firms around the globe.
Life in Canada is getting harder for firms as commodities prices fall and work volumes slow