The issue of what constitutes local content in a workforce or supply chain is the subject of different interpretations. For instance, with regard to local procurement, in some usages the term is equated with locally owned, whereas at the other extreme. Gilbert (2012) described local content as any business that maintains a permanent operational office within a given area. Local content has been defined in terms of the value contributed to the national economy through purchase of national goods and services. “Local value-added” is the wealth local companies create in transforming materials and services purchased from other countries into revenue-generating output (Esho, 2013). It is calculated as the value of the firm’s output minus the value of all foreign purchased inputs (including raw materials, energy, contractor services and rents). The International Petroleum Industry Environmental Conservation Association (IPIECA), the global oil and gas industry association for environmental and social issues, also refers to local content as the added value brought to a host nation (or region or locality) through workforce development (employment and training of local workforce), and investments in supplier development (developing and procuring supplies and services locally). Some jurisdictions differentiate between local content and local participation; local content is defined as the quantum/percentage of locally produced materials, personnel, goods and services rendered to the oil, gas and mining industries. It can be measured in monetary terms. Local participation is the level of equity ownership local citizens hold. These definitions have led to the emergence of numerous definitions for a local company.
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Licensed under Creative Common Page 154 constrained by the small nature of firms. These capacity gaps were found to significantly reduce the companies’ chances of exploiting the business opportunities in the oil and gas industry. The findings of this study point to the need for Local companies to create long term credible partnership linkages with potential exporters so as to attract purchase of goods on credit to circumvent the huge capital requirements for supplies in the industry. To bridge the technical gap in bidding for supplies tenders, key players in capacity building for local content development such as Tullow need to re-focus trainings towards building technical competence of the local companies in the bidding process. This paper is critical in providing guidance in an era where Ugandan government and governments elsewhere over are developing and implementing procurement guidelines aimed at fast-tracking local content.
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with medium to a long-term development plan, and to be reviewed every three years after the commencement of the act. Additionally, the act created the Ghana Petroleum Fund. This fund comprised of the Ghana Stabilisation Fund and Ghana Heritage Fund and is to cushion the impact of oil prices fluctuations on the international market as well as to save for future generations respectively. Furthermore, section 23 (1) states “commencing in the year 2011 until the year when petroleum production ceases, the following rules shall apply: (b) a minimum of thirty per cent of the excess revenue determined in subsection (1) (a) shall be transferred into the Ghana Heritage Fund and the balance shall be transferred into the Ghanaian Stabilisation Fund each quarter (PCG, 2015b). Despite the above regulations, Ofosu-Peasah  argued that the government was non-compliant with the above provision of minimum of 30% between 2011 and 2016. ACEP  critiquing the act argued that the areas listed under section 21(3) for oil revenue usage is non-restrictive allowing the sector minister to use the discretion granted him within section 21(3) and (5) of the act. For instance, they posit that, between 2011 and 2016, the government prioritised amortisation of loans for O&G infrastructure, roads and other critical infrastructure, capacity building, and agriculture modernisation. Furthermore, they moot that ‘capacity building’ allows the government to invest in a wide range of areas thereby defeating the fundamental purpose of prioritisation. Again, the Ministry of Finance has not been unable to report completion status of oil revenue-financed projects thereby flouting section 48 (2) b of the act . The net effect of all this is that the government of the day tend to use oil revenue as they see fit without investing the oil money to lay a solid foundation for the growth of domestic companies.
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Terje, Alabi, and Richard (2012) examined how local content can be enhanced in the oil and gas industry in a developing country like Nigeria. The aim of the study was summarized into two questions: which actors are relevant for increasing local content in the Nigerian oil and gas industry and how are the capabilities provided by the actors interrelated, and why? The methodology adopted was open-ended face-to-face interviews. The empirical base was 18 in-depth interviews with professionals directly or indirectly related to the Nigerian oil and gas industry. The interviews revealed barriers for indigenous companies in accessing the industry. These were related to three major capabilities; capital, competence and delivery possibilities. The study found that some foreign companies are not ready to support any studies on enhancing competitiveness by local peers, either by product or process assessments or through questionnaires, interviews, fieldworks or any other means of data collection. The study also found that formal networking is weak due to many problems: economic and social infrastructural inadequacies; weak legal infrastructure; weak financial sector; low level of trust among major actors in the industrial network due partly to the weak legal infrastructure; low level of support for local suppliers by foreign oil companies; absence (until recently) of a local content law that encourages and even forces the major actors to consider local companies in supply contracts; low level of support for the local industry by the government; weak managerial competencies of local companies; low level of indigenous R&D and weak links between local universities, research institutions and companies. Many indigenous companies are not conversant of the need for such while many of the foreign companies are afraid
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Local content has had mixed successes worldwide. Notably many African nations have not maximized the exploitation of their natural resources for the benefit of local people . Successful models of local content worldwide include Botswana, Norway, Chile, Malaysia, and Indonesia , whereby effective resource management, supported by strong institutions, policy design and implementation have led to economic transformation. In contrast, those which have not been so successful include Nigeria, Chad, and Angola . In these countries, this can be linked to historically weak institutions, where poor governance leads to a misuse of resource rents, non-productive investment, increased likelihood of corruption, and significant social, and economic polarities [52,60]. Considering country specific contexts is important in understanding why local content strategies succeed or fail .
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With regards to Nigerian content, the PIB establishes linkages between field development work plans, midstream and downstream project approvals with national content requirements. Specific Nigerian content provisions are included which complement general Nigerian content legislation, related to Nigerian goods and services, Procurement, Employment and personnel, Training, Research and Development. Detailed local social responsibility provisions are also proposed in the PIB. The PIB adequately addresses the long term agitation of our Oil producing communities in a manner that is commendable. The passage will also accelerate the growth of the local content initiatives already embarked upon in the industry. The impact on the fortunes of the oil-rich Niger Delta will also see an acceleration of the economic and infrastructural development of the area. The bill, if and whenpassed into law would loosen up the hegemonic stranglehold of the local
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develop oil and gas resources must consider their overall economic situation and national priorities, and craft LCPs consistent with the nation’s other development policies. 97 Specialty agencies like Norway’s GSO or the UK’s OSO can be a valuable tool for monitoring progress of the nation’s petroleum LCPs, if they are given the resources and authority needed to gather relevant data. Such agencies may also be used to enforce the policies through fines or incentives, and to make or recommend changes to the LCP regime as needed. Coordination is essential to this task. Where the LCPs are focused on building infrastructure like roads and ports, they must be harmonized with the overall efforts of the country’s transportation ministry. If the host country needs improved schools, the education ministry must be involved; and so on. Although the national oil company may have enough expertise to run the petroleum sector, this does not guarantee that it will have the institutional knowledge or incentives to work with such a broad spectrum of government activities. 98 An agency independent of the national oil company may be better able to operate as regulator and intermediator in coordinating various aspects of national policy.
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Although the evidence on the relationship between resource-dependence and entrepreneurship is scarce, it suggests that the legacy of natural resource development has a persistent dampening effect. Several empirical studies that specifically study the impact of resources on entrepreneurship describe both intertemporal and contemporaneous mechanisms of this relationship. Their research design, however, allows for systematic investigation of the intertemporal effects only. In contrast, we are interested in the contemporaneous impact of oil and gas development on entrepreneurship in rural and urban communities. To separate the intertemporal and contemporaneous effects, we employ a unique modeling approach. Our models rely on differencing strategy and include an explicit control for the legacy of mining (besides other control variables) and dummy variables to account for persistent disequilibrium effects of historic energy sector agglomerations and of location above mostly oil and/or mostly gas plays. The first differencing allows to remove location-specific invariant characteristics (county fixed effects), such as history, culture, climate, and business climate 3 , The models are
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The powers of revocation of oil licences vested in the Minister are pro- vided in paragraphs 25-26 of Schedule 1 of the Petroleum Act. Paragraph 25 states that the Minister shall inform the licensee or lessee of the grounds on which the revocation is made or contemplated and shall in- vite the lessee or licensee to make any explanation if he so desires. Para- graph 26 posits that if the Minister is satisfied with the explanation given (by the licensee and lessee), he may invite the firms to rectify the matter complained of within a specified period of time. By virtue of paragraph 27, if the licensee or lessee provides insufficient explanation or does not rectify the matter complained of within a stipulated period, the Minister may revoke the license or lease. Furthermore, a notice sent to the last known address of the licensee or lessee or his legal representative in Nigeria and published in the federal gazette shall be sufficient notice to the licensee or lessee of the revocation of the license or lease (paragraph 28). Additionally, by virtue of paragraph 29, the revocation shall be with- out prejudice to any liabilities which the licensee or lessee may have incurred or any claim against them which may have accrued to the Niger- ian government.
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In exploration and development, big data analysis can help expert perform strategic and operational decision-making, such as based on real-time data, company can deliver new insights, it can help operating teams to enhance exploration efforts; In production, based on historical and real-time data, big data can predict future performance; In equipment maintenance, based on the data collected from equipment, big data can help oil & gas companies to build predictive maintenance model, and help to prevent down time .
Violet C. Rogers, Ph.D., CPA is a Professor of Accountancy in the Gerald W. Schlief School of Accountancy at Stephen F. Austin State University in Nacogdoches TX. Her primary teaching interests include Oil and Gas Accounting, Auditing, and Managerial Accounting. Research interests include ethical and environmental disclosures and accounting for the oil and gas industry. Other interests include Auditing and audit changes as they relate to a changing environment. She served as Dean of the College of Business for six years before returning to full professor status three years ago. E-mail: email@example.com (Corresponding author)
South Stream is intended to transport Russian natural gas across the Black Sea to Bulgaria, Serbia, Hungary, Slovenia and Italy as well as to Austria and Greece, with planned branches to Croatia and Bosnia and Herzegovina. For the implementation of the onshore section of the project, intergovernmental agreements have already been signed with the most of the mentioned countries. This route avoids both Ukraine and Turkey. However, while South Stream could lower the risk of gas shortages caused by problems in Ukraine, there are serious concerns that it could cause the Balkans and parts of Central Europe to be even more reliant on Russian Public Joint Stock Company Gazprom. He thinks that the alternatives to meet the rising gas demand are restricted.
5) The average % CSR expenditure yet to be spent is relatively higher for all industries since the figures do not include 0.0% outstanding expenditure. It is important to note that the industries such as cement, iron and steel as well as mining though have spent relatively higher volume of their profit on CSR but are still yet spend more on CSR in the subsequent financial years. Cement industry required to spend much higher on CSR in the year 2005-06 since they had relatively higher profit in the previous year i.e. 2004-05.
, each primary fracture has an enhanced zone, namely SRV zone. This method saves much developing fine-grid time and computing time. Compared with the simulation results of fine-grid reference model, it has shown that this simplified model greatly decreases simulation time and provides accurate results. In order to analyze the impacts of related parameters on production, a series of simulation scenarios and corresponding production performance were designed. Optimal design and analyses of fracturing parameters and the formation parameters have been calculated in this model. Simulation results showed that the number of primary fractures, half length, SRV half-width and drop-down have great effects on the post-fracturing production. Formation anisotropies also control the production performance while the conductivity of the primary fractures and SRV permeability do not have much impact on production performance. The complexity of stimulated reservoir volume has strong effect on gas well productivity. Fracture number mainly affects the early time production performance. The increase of SRV width cannot enlarge the drainage area of the multi-fractured horizontal wells, but it can improve the recovery in its own drainage region. Permeability anisotropies have much effect on production rate, especially the late time production rate. The results prove that horizontal well with volume fracturing plays an irreplaceable role in the development of ultra-low permeability shale gas reservoir.
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154. Generally, a party who purchases an oil and gas interest might have a cause of action under state and federal securities laws in Texas if they: (1) purchase an oil and gas interest that required registration but was not registered; or (2) are the victim of a misrepresentation by a promoter. When dealing with the first claim, federal and Texas laws address the type of injury similarly. However, when a claim involves misrepresentation or an omission by the oil and gas operation, many parties opt to bring claims under Texas state law instead of federal laws because Texas’s Blue Sky laws include more oil and gas interests than federal securities laws. This differentiation shows why it is important for attorneys and clients alike to be informed on securities regulation at both the federal and state level. 155. Tex. Rev. Civ. Stat. Ann. Art. 581-33 (West 2001).
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bacteria along with numerous opportunities for crevices, the offshore oil and gas production system as a whole and its individual components [including but not limited to subsea trees, jumpers, flowlines, pipeline end terminals (PLETs), pipeline end manifolds (PLEMs), in-line sleds (ILSs), jackets, platforms, risers, manifolds, export pipelines, and shore crossing pipelines] are even more susceptible to corrosion. In the light of the total annual cost of corrosion in the oil and gas production industry estimated at approximately $1.372 billion, it is critical to design and manage cathodic protection system along with implementation of other corrosion protection mechanisms in the most effective manner. In this research paper, the authors discussed and analyzed what makes a cathodic protection system for the offshore environment and offshore oil and gas production system. By implementing a robust, effective and efficient cathodic protection system, the companies in the oil and gas industry will not only see cost savings but will also observe reduction in the quality failures and safety incidents due to the corrosion.
In this research, we have developed a wearable gas sensor network that overcomes the challenges of implementing an inexpensive, low maintenance, and rapidly responding network to measure several toxic gases (i.e. CO and CH4) by using one gas sensor. The experimental results outline the ability of the sensor to accurately detect the change in concentrations of CO and CH4. However, the sensor reading was affected by climate conditions (i.e. temperature and humidity) during the day time. The power consumption of the sensor node is reduced by using sleeping period and on-demand switching ON/OFF the sensor components with the help of accelerometer. By using rechargeable solar battery the life time of the sensor can be increased to several years because the sensor node consumes only 1.6W. The system can be improved by adding more gas sensors such as H 2 S, NO, and HCl. Moreover, Web portal creation can be developed in this
Leading edge practices in the mining industry Lao People’s Democratic Republic (Lao PDR) still retains approximately 68% of its forest cover (FAO, 2011b), which is habitat for six species of gibbon (Duckworth, 2008; MAF, 2011). All of these gibbon species are under threat, principally from high levels of hunting for food and trade, and the conversion and degradation of their forest habitat. The 2011 Gibbon Conservation Action Plan for Lao (MAF, 2011) identifies mining as a development activity that can cause major impacts on biodiversity, including gibbons. Mining is central to the economy of Lao PDR however. A 2011 report (ICMM, 2011) concluded that mining contrib- uted 45% of all exports, 12% of government revenue, and 10% of GDP. Almost all of this derives from only two mines, the PBM Phu Kham mine, and the Sepon gold and cop- per mine. Funds from mining operations could be used to support gibbon conservation elsewhere in the country, as proposed by the Gibbon Action Plan (MAF, 2011). The Sepon mine is located in northern Savannakhet Prov- ince, in central Lao (Figure 5.11). The mine was originally developed as an open-pit copper and gold mine by the Australian company Oxiana. Gold production started in 2002, and copper in 2005 (MMG, 2012). After a series of mergers most of what was then known as OZ Minerals was bought by the Chinese company Minmetals Resources
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The mechanism of generating single walled carbon nanotubes (SWCNTs) may depend on the production method used because there is a variation in the different methods. Due to the limitations and drawbacks in the methods currently being used, researchers are still looking for better processes. The Arc discharge method is reported to yield significantly less carbon nanotubes with a large amount of unwanted carbonaceous by- products. The high costs of operation and equipment, as well as a low production rate, limit the laser vaporisation method (Chai et al., 2004). An attractive alternative is the use of natural gas (instead of flaring the gas) to produce single-walled carbon nanotubes. The idea is to spray a solution of the transition metal catalysts such as Ni or Fe (to produce fine droplets of D n0.50 < 5 μm) into the methane gas stream which is used
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pollution caused by oil exploration activities and accidents. Radiological damage to the environment because of the impact of ionizing radiations from atmosphere as well as water bodies has also been reported with consequent contamination of aquatic life-forms which when ingested by humans inadvertently has the capacity to increase the risk of occurrence of several diseases [6,9]. Activities in oil installations entails manual handling tasks like lifting, reaching, carrying, holding, climbing, repetitive movements, pushing, lowering, use of visual display units in the control room among others. Often there is congestion due to large number of personnel working in a confined or limited workplace; thus, making man- machine interface a notable flash point for hazards as well as occupational injuries and illnesses in an offshore oil facility. This explains why musculoskeletal complaint is a constant recurrence among offshore oil workers [6-8]