Operating Under “Local Content” In the Oil and Gas
In the period of high oil prices, companies operating out of their home office would hire a highly experienced expatriate from any part of the world and bring them to work in East Africa.
They could also buy goods and services from any part of the world if that will get them the price and quality they want.
Today, this approach is changing in this dynamic industry. Because the model is the result of all the headaches and hassles that many oil and gas companies are forced to go through: Higher operating costs. Lower productivity. And the poor performance of the employees in the workplace.
However, In today’s economic environment, maximizing local content participation in the oil and gas industry is not only politically sensible.
But are also commercially feasible for companies operating out of their home office.
By increasing in the development training of locals to participate in higher-level activities and move them from just followers to high performers and project leaders, you can reduce operating costs over the long term, improve the performance of the employees in the workplace and stimulate economic and industrial development.
The simple truth is that the cost of maintaining an international expert is relatively higher.
You need to offer experts very high salary packages, accommodations, school fees for their children and full-blown medical insurance for them and family. That is daunting and expensive..
Also procuring materials and services locally especially where these items are readily available and prices are competitive can maximize shareholders value and stimulate locally based economic growth.
Final Words
To realize the return on hundred of dollars spent on training and development of the local workforce, management in the oil and gas companies should focus on what employees must do on the job versus on what people must learn.
This can be achieved by working in collaboration with training providers to identify organizational goals and ensure those training programs are tied to meet operational goals and business needs of an organization,
