A Comparative Analysis of Local Content Policies in the North Sea and the Gulf of Guinea Regions

Main Article Content

Kwadwo Ayeh Obiri
Bassam Bjeirmi


Most resource-rich countries in Africa are introducing or reinforcing Local Content Policies (LCPs) and regulations to propel socio-economic development since its introduction in the North Sea. Local content is now a prerequisite for granting exploration license to international oil companies (IOCs) and suppliers in the Gulf of Guinea region (GGR). The paper analyses and compares LCPs - successes and impediments factors - from two perspectives: the North Sea – Norway, UK, and Denmark; and the Gulf of Guinea – Angola, Nigeria, Ghana, Liberia and Equatorial Guinea to glean policy lessons for the Gulf of Guinea countries. The study of the comparator countries found that the policy implementation in the GGR is constrained, inter alia by inadequate infrastructure, industrial base and supplier base, technical and financial capacity of domestic firms and weak regulatory institutions. Also, the LC policy is overly ambitious and prescriptive which ignores the GGR’s state of industrial development. To engineer resource-based development in the GGR these countries must move beyond its preoccupation with local content regulations to addressing the above challenges conducive for the development of linkages.

Local content policies, oil and gas, the North Sea, The Gulf of Guinea.

Article Details

How to Cite
Obiri, K. A., & Bjeirmi, B. (2019). A Comparative Analysis of Local Content Policies in the North Sea and the Gulf of Guinea Regions. Journal of Scientific Research and Reports, 25(5), 1-13. https://doi.org/10.9734/jsrr/2019/v25i530195
Original Research Article


Sachs JD, Warner AM. Natural resource abundance and economic growth. NBER working paper, no. 5039; 1995.

Obiri KA, Bjeirmi B, Boateng P. Local content implementation enhancement through infrastructure development in Ghana’s Oil and Gas Industry. Journal of Energy Research and Reviews. 2019;1- 10.

Economist. The paradox of plenty; 2005.
Available:http://www.economist.com/node/5323394. > 25/05/2017

Ebrahim-Zadeh C. Back to basics: Dutch disease. Too much Wealth Managed Unwisely. Finance and Development. 2003;40(1):50-51.

Ross ML. The political economy of the resource curse. World Politics. 1999;51: 297-322.

Ross M. The oil curse: How petroleum wealth shapes the development of nations. Princeton University Press; 2012.

Jensen N, Wantchekon L. Resource wealth and political regimes in Africa. Comparative Political Studies. 2004;37: 816-841.

Collier P, Hoeffler A. Resource rents, governance and conflict. Journal of Conflict Resolution. 2005;49:625-633.

Hodler R. The curse of natural resources in fractionalized countries. European Economic Review. 2006;50:1367-1386.

Robinson JA, Torvik R, Verdier T. Political foundations of the resource curse. Journal of development Economics. 2006;79(2): 447-468.

Veloso FM. Understanding local content decision: Economic analysis and an application to the automotive industry. Journal of Regional Science. 2006;46(4): 747- 772.

Tordo S, Warner M, Manzano O, Anouti Y. Local content policies in the oil and gas sector. World Bank Publications; 2013.

Ado R. Local content policy and the WTO rules of trade-related investment measures (TRIMS): The pros and cons. International Journal of Business and Management Studies. 2013;137-146.

World Bank. Local Content in Oil, Gas, and Mining; 2016.
(Accessed 29/11/2019)

NPD (Norwegian Petroleum Directorate). 10 commanding Achievements; 2010.
(Accessed 09/02/2019)

Heum P. Local content development: Experiences from oil and gas activities in Norway. Bergen: Institute for Research in Economics and Business Administration; 2008.

The Conversation. Why Norway is not panicking about the oil price collapse; 2015.
(Accessed 07/062018)

UNCTAD (United Nations Conference on Trade and Development. Domestic requirements and support measures in green sectors: Economic and environ-mental effectiveness and implications for trade; 2013.
(Accessed 9/12/2017)

Acheampong T, Ashong M, Svanikier VC. An assessment of local-content policies in oil and gas producing countries. The Journal of World Energy Law & Business. 2015;9(4):282-302.

Kalyuzhnova Y, Nygaard A, Omarov ES, Saparbayev A. Local content policies in resource-rich countries. Palgrave Macmillan; 2016.

Klueh UH, Pastor G, Segura A. Policies to improve the local impact from hydrocarbon extraction: Observations on West Africa and possible lessons for Central Asia. Energy Policy. 2009;37(3):1128-1144.

Smith NJ. The sea of lost opportunity: North sea oil and gas, British Industry and the Offshore Supplies Office. Elsevier. 2011;7.

Civitas. Industrial Policy: Lessons from the North Sea; 2013.
(Accessed 25 /06/2018)

Weihe J, Hemmer P, Kassis P. Oil regulation; Denmark; 2018.
(Accessed 19 /07/2018)

Nordsofoden. Danish oil and gas history; 2018.
(Accessed 18 /07/2018)

NCDMB (National Content Development and Monitoring Board); 2016.
(Accessed 29/11/2019)

Adewuyi A, Oyejedi O. Determinants of backward linkages of oil and gas industry in the Nigerian economy. Resources Policy. 2012;37:453.

IMANI. Is Ghana ready for more local content? Lessons from eight comparator countries in five economic sectors; 2019.
(Accessed 29/11/2019)

Heum P, Kasande R, Ekern OF, Nyombi A. Policy and regulatory framework to enhance local content. Kampala, Uganda; 2011.

Omenikolo IA, Amadi RO. Challenges facing Nigerian local content in oil and gas industry; 2010.
(Accessed 13/07/13)

Balouga J. Nigerian local content: Challenges and Prospects; 2012.
(Accessed 14/07/13)

CCSI (Columbia Centre for Sustainable Investment) (n.d) Local Content; Angola-Petroleum.
(Accessed 29/11/2019)

Tordo S, Anouti Y. Local content in the oil and gas sector: Case studies. The World Bank, Washington, DC; 2013.

Ovadia JS. The dual nature of local content in Angola's oil and gas industry: Development vs. elite accumulation. Journal of Contemporary African Studies. 2012;30(3):395-417.

PWC (Price Walterhouse Coopers). Future prospects in Africa for the transportation and logistics industry; 2013.
(Accessed 15/05/2018)

MoE (Ministry of Energy, Ghana). Ghana. Local Content and Local Participation Policy Framework; 2010.
(Accessed 06/03/2018)

NOCL (National Oil company of Liberia). National Petroleum Policy; 2012.
(Accessed 29/10/19)

NOCL (National Oil Company of Liberia). Local Content; 2013.
(Accessed 29/10/2019)

All Africa. Liberia: President Weah signs into law amended Petroleum Act of 2019; 2019.
(Accessed 29/10/19)

Oyewole B. Overview of Local Content Regulatory Frameworks in Selected ECCAS Countries; 2018.