Local Content Frameworks in Latin American Oil and Gas sector: Lessons from Ecuador and Colombia
Based on a review of regional experiences, the research aims to identify which types of local content framework produce more positive outcomes in terms of local employment, skills development and national industry participation A regional catalogue of local content frameworks has been developed. This study explores the factors that influence the outcomes of local content frameworks by examining in more detail the experiences of Ecuador and Colombia.
Findings suggest that the greater the specificity of local content frameworks, the better the outcomes. Among countries with fairly similar frameworks in terms of specificity, a supportive business environment and a longer-term vision of the oil and gas sector appear to produce better results than a more protectionist and state-centric approach focused on short-term goals such as local employment.
Juan José Herrera
The authors of this research work at Grupo Faro, Ecuador.
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