Pursing Local Content Sustainably

Project delivery requires both investors and governments to consider local content. Governments usually insist on this to maximise local and state benefits including jobs, achieving this through legislation. Investors, on the other hand, look to minimise cost, maintain schedule and maximise returns. A blanket approach to policy drives inefficiencies through promotion of non-sustainable local goods and services and corrupt practices. There are many examples where it has been difficult to square the circle on these and other stakeholder drivers, and local businesses and communities become the pawns in the final solution. In extremis, projects may not secure sanction eliminating potential for any benefit.

In this presentation, based upon personal experiences in the Oil and Gas sector, I will outline new strategies for local content to successfully deliver major projects AND long term jobs sustainably. These must be project specific and consider improved planning of a region’s infrastructure needs, skills levels, local jobs and growth opportunities. A ‘planned, opportunity driven regional approach’ to project execution will foster a virtuous development cycle tempering the demands of governments, civil societies and local communities, ensuring investors and donors secure more favourable hearings as they look to develop major projects sustainably in a changing world.