Many companies and their host countries identify and target local content objectives as ways to create and share value from oil and gas developments.
Host countries may use local content as part of an industrial policy aimed at delivering benefits beyond the payment of royalties and taxes. Many oil and gas companies take a strategic approach to local content efforts in recognition of the wider business benefits of creating and sharing value between themselves, local communities and countries.
IPIECA helps the industry develop and implement robust local content strategies through the development of good practice guidance, facilitating information sharing between companies and engaging with stakeholders.
IPIECA also engages with external organizations developing work in this area, such as the World Bank and the United Nations Development Programme, and the Organisation for Economic Co-operation and Development (OECD), where IPIECA contributed to the development of the OECD Framework on Public-Private Collaboration for In-Country Shared Value Creation from Extractive Projects in February 2016,