CHAPTER 27 LOCAL CONTENT: RECENT DEVELOPMENTS AND BEST PRACTICES FOR A SUCCESSFUL LOCAL CONTENT STRATEGY

• Jurisdiction: Derecho Internacional

International Mining and Oil & Gas Law, Development, and Investment
(Apr 2015)
CHAPTER 27
LOCAL CONTENT: RECENT DEVELOPMENTS AND BEST PRACTICES FOR A SUCCESSFUL LOCAL CONTENT STRATEGY
D. Marie Wagner
Senior Counsel and Solicitor
Anadarko Petroleum Corporation
The Woodlands, Texas

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D. MARIE WAGNER is Senior Counsel-International with Anadarko Petroleum Corporation (APC), where she is responsible for counseling her clients on a wide variety of upstream international transactional, operational, and compliance matters, and for drafting and negotiating acquisition, divestiture, farmin, farmout, joint bidding, joint operating, lifting, production sharing/concession, and unitization agreements in connection with Anadarko's exploration, development, and operations projects in Africa, Europe, Latin America, and Asia. In her role as lead project counsel for APC in Ghana she has successfully represented the company in connection with the unitization/development and operation phases of the Jubilee Unit project. Prior experience includes serving as Senior Counsel International with El Paso Energy Corporation and as Paris-based General Counsel of a Vivendi subsidiary. Marie began her legal career as an associate with Bracewell & Giuliani in Houston. She earned her B.A. in Foreign Affairs (Middle East Studies) from the University of Virginia where she graduated with High Distinction, and her J.D. from the University of Maryland, where she served as Editor in Chief of the Maryland Journal of International Law & Trade and as President of the International Law Society. She holds a Master of Architecture from the University of Illinois. Marie is a passionate advocate for multi-disciplinary legal education that facilitates the development of real-world legal practice and business skills. She designed and taught the multi-disciplinary course "The Law, Finance and Science of Global Energy Projects" as an Adjunct/Extended Faculty (with MBA and Geoscience faculty) at the University of Texas; a course that has since served as a model for subsequent multi-disciplinary courses at UT. In addition, she has taught as an adjunct at the University of Houston School of Law and as a speaker, faculty member, and co-chair of multiple conferences. She is admitted to the bar in Texas and Washington, D.C. and as a Solicitor in England and Wales.

ANADARKO PETROLEUM CORPORATION

SMART Local Content: Recent Developments & Best Practices

RMMLF Cartagena de Indias, Colombia 22 April 2015

D. Marie Wagner, Lead Counsel International & Solicitor

Disclaimer

The opinions contained in the presentations are those of the author and are not intended to be an expression of the opinions of Anadarko Petroleum Corporation.

Agenda

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Introduction

• The Resource Blessing and Curse

• Local Content Policies: A Taxonomy

• Recent Developments

"SMART" Local Content

• SPECIFIC & SUSTAINABLE

• MEASURABLE

• ACHIEVABLE

• RELEVANT

• TIME BOUND & TRANSPARENT

Case Study: Angola OH & Gas LLM

Conclusions

SMART Local Content: Recent Developments & Best Practices

Introduction

The Resource Blessing

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Blessed as we are with abundant resources of oil and gas, the Government of Trinidad and Tobago recognises that our country's development is enabled by a wasting asset which belongs to all our dtizens and which, once removed, is not replenished. The Government, as caretaker and manager of these assets, has an obligation to ensure that the exploitation of these resources is conducted in a manner that generates maximum benefit to all the people of the Republic of Trinidad and Tobago.

Trinidad & Tobago (2004)

The Resource Curse

"instead of being a blessing, oil sometimes proves the undoing of many... nations who come by this precious commodity".

Ghanaian President John Kufuor, March 2008

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• Definition:

• The resource curse, also known as the paradox of plenty, refers to the paradox that countries and regions with an abundance of natural resources, specifically point-source non-renewable resources like minerals and fuels, tend to have less economic growth and worse development outcomes than countries with fewer natural resources.

• Characteristics that suggest a country is "at risk"

• Lack of economic diversity/ alternatives

• Revenue volatility due to commodity price volatility

• Inadequate human capital /weak education system/ high unemployment

• Immature/unstable government institutions/ bureaucracy

• Immature oil & gas sector/ bureaucrats

• Environmental degradation

• High government spending on health, welfare, military, and public infrastructure (which disincentives private infrastructure growth)

• Lack of government transparency and accountability to its citizens (revenue flows from IOC's not individual taxes)/ corruption

• Government use of revenue to "enable" continued structural inadequacies rather than to "address" inadequacies with sustainable development initiatives

Defin...