ABSTRACT
The oil industry has constantly developed worldwide and has substantial representation in the economic development of several countries. This chapter explores the critical link between local content and sustainable development in the context of the extractive industries of oil and natural gas. The concept of local content refers to the participation and inclusion of local communities, businesses, and labour in the operations and value chains of extractive industries. Sustainable development, on the other hand, emphasises the harmonious integration of economic, social, and environmental considerations to ensure long-term prosperity and well-being. Local content requirements are implemented in different ways in the most different world economies, under the concept of essential development of the domestic industry for supplying goods and services. The increase in demand for new technology and specific supplies that support the energy transition and enable the exploration of new energy sources spread opportunities for the development of local markets, increasing competition of local companies as suppliers for investors and energy project operators, and in the meantime, promotes the sustainable development of the countries. The study begins by examining the sustainable development goals provided by the United Nations in the Agenda for Sustainable Development, analysing how the local industry of oil extraction could benefit the achievement of such goals by the countries. The chapter analyses the challenges and complexities associated with implementing local content policies and its regulatory frameworks in Brazil and Nigeria, exposing how each country addresses locally the nations concerns regarding the sustainable development goals throughout the extractive industries. It argues that a robust local content framework can contribute significantly to sustainable development objectives by creating jobs, revenue, reducing poverty, and inclusive growth. The chapter also adds that a local content policy combined with the sustainable development objective could be a powerful tool to increase competitiveness of the local companies in the context of energy transition.
