+44 (0)1491 572638
LCS@localcontentsolutions.com
+44 (0)1491 572638
LCS@localcontentsolutions.com
LCS provides solutions to manage the rising expectations for Local Content within supply chains.
These expectations include employment and training prioritised towards national citizens; margins of preferences to local suppliers in developing countries; fair access for national industry in the EU, Australia and North America, pressure for supplier development and technology transfer from international to domestic suppliers, and private infrastructure that provides a public service.
At the heart of our consultancy and training services, and through our innovation in procurement, we provide solutions that build the international competitiveness of domestic industry. These solutions are underpinned by analysis of local supplier markets to understand what can and cannot be done in-country; procurement strategies that optimise risk allocation around Local Content between client and contractors; and regulations crafted to drive Local Content to be more competitive and less risky. More »
Click here to find out what is driving interest in competitive Local Content.
What lies at the heart of effective Local Content management?
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LCS provides a range of Local Content solutions, including:
This three day Master Class imparts skills for effective management of Local Content in the supply chains of oil, gas and mining companies. Read more »
LCS Local Content Calculator: LCS launches new on-line tool for calculating local content in the workforce and supply chains. Use the tool »
Ethical risks of Local Content - FT article on oil and gas in Angola (15th April 2012) highlights ethical risks associated with local content policies that promote alliances between foreign and indigenous exploration and development companies. Click here for article.
Tax disadvantages for local suppliers in Trinidad - The Business Guardian in Trinidad and Tobago (16th February 2012) reports on comments by the Trade Minister on the lack of a level playing field for local content, with foreign firms exempt of import duties and VAT. Click here for article.
Tullow Oil sets up Local Content Department in Ghana - Channel Two Communications (15th Feb 2012) reports on how Tullow Oil Ghana has set up "entire department solely focusing on local content". Click here for article.
In Brazil Local Content regulations from oil & gas are spreading to the mining sector - report from Bloomberg Businessweek (14th Feb 2012) explains that the government in Brazil is in the process of modelling new mining rules on the requirements for Local Content used in the off-shore oil industry. Click here for article.
Local Content in Mining - new article from Mining Weekly (25th Nov 2011) explores trends in local content within the mining and minerals sector, including proposals in South Africa and importance of rolling capital expenditure. Click here for article.
New South African preferential procurement policy regulations - come into force on 7th December 2011, bringing public procurement into line with government policy on broad-based black economic empowerment. Regulations assure that award of public contracts is based not only on black ownership, but on a wider 'score-card' of participation and local content criteria. Click here for Supply Management article (11th Sept 2011) and click here for the June 2011 Regulations.
Jobs For the Boys From Brazil - Under this sub-heading, a recent Economist article discusses how local content regulations in Brazil, though intended to offset the Dutch-disease of high exchange rates by reducing imports of manufactured goods, may have the unintended consequence of introducing inefficiencies into oil field developments that then make it difficult for Brazil and Petrobras to continue to attract the foreign capital they need. Click here for article.
NOC Leadership in Local Content - A new article from Accenture takes a look at how International Oil Companies (IOCs) need to react to the demand of increasingly powerful National Oil Companies (NOCs) for higher non-rent returns from oil and gas investments through transfer of technology and competence in the national economy and workforce. Click here for article.
Local Content in Canada - The approach taken by the Offshore Petroleum Boards to the development of oil and gas resources in the provinces of Newfoundland and Nova Scotia offers insight into the formulation of local content regulations when subject to international competition rules. Click here for article.
Lessons from Offsets for Local Content - In the defence industry 'Offsets' are used as a vehicle for Original Equipment Manufacturers (OEMs) to partner with their customers to develop local manufacturing and equipment servicing capability. LSC has begun a research project to ask what can be learned from Offsets for local content regulations and associated contract tendering. Click here for article.
LCS on Local Content in Mining - In recent IQPC article: "The Metals and Minerals Sector: An Underexplored Gold Mine for Local Content", LCS Director Dr Michael Warner argues that the long-term 'rollling' capital expenditure characteristic of mining operations provides an unrealised opportunity for leveraging local content, especially in domestic manufacturing. Click here for article.
Nigerian Content Act in Action - 26th August 2011, Indigenous Nigerian logistics company Talod Oceanair Freight Limited is reported to have successfully transported a major drilling rig owned by Transocean to the Nigerdock for repairs. Managing Director notes the role played by national oil company (NNPC) and regulator Nigerian Content Development and Monitoring Board (NCDMB). Click here for article.
Petrobras may be fined on local content - 17th August 2011, this article suggests that Petrobras may be fined by its own regulators, not for failure to meet local content targets, but for not having the business systems in place to report on performance in meeting compliance requirements. Click here for article.
Local Content Forum Latin America - 28th to 30th November 2011, Rio de Janeiro, dedicated to the evolution of local content across the region, with a strong focus on Brazil and Mexico and speakers from Petrobras, Statoil, OGX Brazil etc. Click here.
LCS in the FT -(30th June, 2011) In an article by Joe Leahy, Michael Warner, Director of LCS, argues that the challenge for the Brazilian Government is to "optimise" local content, and that the best test of current local content policy would be the success rate of Brazilian contractors in international open tenders. Click here.
IFC/EAP Local Procurement Guide. A useful guide to formulating policy and strategy for local-local/community content. Of particular note are: model policy clauses p21-24; questionnaire for supplier diversity (Annex 4, p43); key performance indicators (Annex 11, p54) and sample language for local supplier sub-contracting (Annex 12, p55). Click here
Africa Energy Week - 20-23rd September 2011, Accra, Ghana. 22nd September dedicated to African National Content, with speakers that include Head of Local Content for Ministry of Energy, Ghana; and Executive General of Nigerian Content Development and Monitoring Board. Click here
LCS in Africa Investor Magazine - March/April 2011. In article by Michael Dynes, Michael Warner of LCS aserts that local content regulations in public procurement across Africa can be either protectionist or a force for sustainable industrial development. Click here
Brazil - newswire article on overcoming the local content regulatory challenges to foreign companies penetrating Brazilian oil and gas supplier market. Click here
Opinion Survey - article showcasing results of recent opinion survey on local content in upstream oil and gas sector Click here
Ghana Public Procurement Act – useful reference document for procurement managers: establishes principle of internationally competitive tendering (Clause 45), but also scope for national-only tendering (Clause 44); margin of preference for domestic contractors (Clause 60); and principles for economic tender evaluation, incl. impact of contract execution on local content, inward investment, employment and technology transfer (Clause 59) Click here
LCS to Chair IQPC Global Local Content Summit 2011 – Director of LCS, Dr Michael Warner, will be Chairman for the main two days of the Summit on 27th and 28th September . Conference themes: focus on Brazil with PROMINP, Shell and Halliburton; mining sector approach to SME development, with Newmont Ghana; and role of procurement procedures in managing local content.
3-Day Master Class in Local Content – revised and improved Master Class training. From 25th to 27th October. Click here for the Brochure and Application Form.
International Institute for Environment and Development new report recommends shared responsibilities between client and lead contractors for local content development: http://pubs.iied.org/16026IIED.html
World Bank – how far does the World Bank (IBRD and IDA) go in using tender evaluation criteria to reward higher levels of local content in contract award. 2010 Standardised Bidding Documents for the Procurement of Goods carries an option to apply a 15% nominal price advantage to bids with >30% local content (p34): click here.
LCS Solutions Briefing #5 – March – investigates when Local Content regulations drive competitiveness vs fuel protectionism. Includes inventory of regulations and analysis of applicable WTO rules: click here.
LCS offers seminars and training programmes on international best practice in the management of Local Content,
combining skills in risk analysis, procurement, competition law, stakeholder engagement and local content reporting.
Programmes include
a 3-day open course and customised training for individual organisations
LCS consultancy services are directed at the following clients: