The chapter reviews the use of local content
requirements (LCRs) in the Norwegian oil and gas legislation. Looking at the
evolution of the regulation of LCRs over time and structured around two main
phases, it identifies some best practice in terms of sustainability. In the
primary phase of the development of the Norwegian petroleum sector (1970s to
mid-1990s), the national legislation included explicit LCRs. The chapter
provides a categorisation of the different forms of LCRs practised at that time
under Norwegian law. In the second phase, the use of LCRs has been constrained
by the obligations deriving from the entry into force of the European Economic
Area (EEA) Agreement in 1994 (including the Licensing Directive 94/22/EC and
internal market rules), and the application of the relevant WTO Agreements
after Norway joined the WTO in 1995 (TRIMs agreement, GATS). Norway has also
entered into a series of Bilateral Investment Treaties (BITs) which can
restrain the country’s ability to include LCRs. The chapter consequently
reviews the changes introduced by Norway’s accession to the EEA, to the WTO and
the implementation of certain BITs for Norwegian practices. The final part of
the chapter draws conclusions in terms of a sustainability framework for LCRs
and the lessons that can be drawn from the Norwegian experience that can serve
as effective transplants - both prerequisites and barriers - in other
jurisdictions or in other sectors.
Webinar recordings
The book was presented during a Webinar organised by Hamad bin Khalifa University in January 2021. The recordings of the webinar is alvailable on Youtube at the following address: #HBKU_CL: Local Content and Sustainable Development in Global Energy Markets - YouTube
Reference:
Catherine Banet, 'Local Content and Sustainable Development in Norway', in D. Olawuyi (ed.) Local Content and Sustainable Development in Global Energy Markets (Cambridge University Press, 2021), Chapter 13.
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