Carrot or Stick? Enforcing Compliance with Local Content Requirements in the International Oil and Gas Industry
Article from: OGEL 3 (2022), in Roundup of Articles
Local content rules or requirements (LCRs) are well known tools in the oil and gas industry as they are used to enhance economic development in the host nation, thereby potentially contributing to addressing the resource curse. Host nations aim to increase job creation, fostering technology spillover through ancillary sections via obtaining higher commitment from companies involved (i.e., private, public, domestic and foreign enterprises) to acquire local goods and services and to invest in local capacity building to increase local skills and employment. These are the key issues in local ...