BSR Insight | Building Effective Local Content Programs in the Extractives Industry
At a recent event in Paris, BSR brought global oil and gas companies and industry service providers together to share emerging best practices in the management of "local content"—the procurement of materials, goods, and services made in-country rather than imported. Local content is one of the most important contributions the extractives industry can make to economic development and to maintaining a secure social operating license.
The workshop focused on local content design and execution challenges as well as opportunities for cost reduction and quality assurance. Recommendations included:
- Integrating local content into project design and management systems and improving alignment across corporate functions
- Maintaining a consistent focus across life-cycle transitions (e.g. from development to operations)
- Facilitating "deeper" supply chain participation by service providers in support of sustainable and competitive local enterprises
Companies also discussed successful outcomes that resulted from early engagement, focus, and alignment; robust systems and tools; and strong information flows among project stakeholders.
For more information on local content projects and related initiatives, contact Michael Hackenbruch.
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