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.
News from Dentons
News from The Lawyer
Briefings from Dentons
Dentons highlights lessons that can be learned from the Humphrey case and provides advice for navigating the risks associated with internal investigations in China.
A recent MOL safety blitz has shown that many new small businesses violate basic legal requirements such as posting a copy of the Occupational Health and Safety Act.
Analysis from The Lawyer
The continent’s boom in natural resources and renewable energy is sparking an infrastructure drive
Shearman & Sterling is making its presence felt in the City, squaring up to magic circle firms and looking to muscle in on key relationships. Private equity house Bridgepoint is one outfit that has had its head turned by the US firm.