Research Paper (postgraduate) from the year 2018 in the subject Business
economics - Business Management, Corporate Governance, grade: A,
University of Bedfordshire, language: English, abstract: Most
petroleum-producing countries have enacted local legislation and content
to regulate international Oil and Gas companies. However, there is a
dearth of literature focusing on local content policies. Due to the gap
in the literature, the research focused on exploring the contents and
the impacts of the LCP implementation in Norway and Ghana. These two
petro-states have been chosen because they emphasis the contrast between
a developing country which initially did not have the means to develop a
regulatory framework for local content (Ghana) and a developed country
which did (Norway). The aim of the study was to determine the economic
impact of the implementation of local content policies in Oil and Gas
producing countries, using Ghana and Norway as examples. There are a
number of major conclusions from the research. First, very high minimum
targets for local employment can lead to the creation of skill gaps in
some areas while only achieving increases in some job categories; mostly
the semi-skilled and the unskilled positions. Secondly, considering the
unemployment, there appears to be no relationship between the
unemployment percentage and the quality of the local content policies.
Third, where National Oil Company takes the lead in the fostering of
local content policies, better results are achieved in terms of skills
transfer, increased local sourcing and better training programs.
Moreover, mandatory cooperation through JVs and partnerships leads to
greater technology spill over from the foreign companies to the local
companies. Coupled with the above, higher government spending by there
would be an increase in the local supply of both non-specialised and
specialised products to the oil and gas industry. Finally, the
successful LCPs require the provision of fiscal
