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Welcome to Menas'
Local Content Online

Interest in local content and national content is being driven by a number of converging factors. With renewed attention being paid to issues such as transparency in the oil and gas sector, the need to combat the "Dutch Disease," and sustainability generally, resource rich nations are starting to take seriously the need to adjust their relationships with international companies so as to transfer the benefits of those resources to their citizens.

But those companies too are looking to improve their local content policies. In part, this is because pressure, both informal and (increasingly) formalised, in the form of legislation, guidelines, and standard contract terms, demands that local content programs go beyond philanthropy and the hiring of manual labour.

Internally, there are also drivers. A well-planned and conscientiously implemented local content strategy may bring direct economic benefits, not only in terms of reducing the costs of labour, goods or services, but as a means of differentiation in a competitive market, of forging relationships with stakeholders, and even hedging against political change.

Clearly, while often presented as a "win-win", there are also challenges for everyone involved. Governments may set targets that are too ambitious, in the light of actual capacity within a given country or region. Or legislation may be so broad and ill-defined that foreign companies are left unsure as to what a host government really requires.

Sometimes, also, companies are tempted to pay lip-service to local content, funding development or health projects but doing little to confer the knowledge and skills required to actually increase capacity within the host country. Local contractors are sometimes left with the sensation of being patronized by IOCs or others who are unwilling to contract projects large enough to justify investment in the technology and skills necessary to begin competing nationally, regionally, or globally.

This online resource is intended to be of benefit to IOCs, oil and gas service companies, lawyers and other service providers, and also regulators or ministries who may be wishing to see how their policies, laws or guidelines stack up against others. We don't yet claim that it is comprehensive, but to assist in the mission of it becoming so, we would very much value input, suggestions (even criticism) from any party with an interest in local content, skills transfer, capacity building, human resources and related issues.

Subscribers can also access a wealth of infromation from our local content resources database, stored in the Menas e-library. The database contains legal documents, reports and presentations from all sections of the hydrocarbon industry on issues pertaining to local content in the countries we cover.