An appraisal of local content requirements in the Iranian oil and gas industry

Farideh Shabani Jahromi

Resources Policy, 2021, vol. 73, issue C

Abstract: Leading countries in the petroleum industry strive to maximize their benefits from exploring, developing, and producing oil and gas by setting out various policies and requirements such as local content. Iran, like many other oil and gas-producing countries, has legal and contractual local content requirements. However, the lack of transparent and integrated regulatory and contractual frameworks and fixed threshold applied for all types and life cycle of fields and operations are considered as concerns and challenges of local content policies in Iran. Determining metrics to measure local content is another issue that is not clarified as required in legal and contractual requirements. Establishing a constructive local content policy in Iran requires the active integration of factors such as actual improvements in local service or product and labor productivity. Transparent legislative and regulatory frameworks, robust performance planning, monitoring, and control mechanisms, along with precise metrics for measurement of local content, are indispensable prerequisites for realizing local content policies. The characteristics of operations and the need to implement new technologies must also be considered to design an appropriate policy. Moreover, the development of integrated approaches and congruent laws and regulations could facilitate and accelerate the achievement of development goals.

Keywords: Local content; Requirements; Iranian content; Petroleum (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301420721001653
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:73:y:2021:i:c:s0301420721001653

DOI: 10.1016/j.resourpol.2021.102151

Access Statistics for this article

Resources Policy is currently edited by R. G. Eggert

More articles in Resources Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().