Meeting Local Content Requirements:The Case of Angola

摘要

This paper discusses strategies adopted by international petroleum companies to provide local content to their operations in Angola, one of the fastest-growing producing countries. In 2007, Angola’s oil production averaged 1.5 mbd, enabling Angola (a new OPEC member) to become a major exporter. Oil production capacity is projected to level off at around 3 mbd in the next decade before gradually declining after 2025. Gas production is expected to follow a similar pattern, with a lag of about 10 years. Successful economic development of resource-rich developing countries generally has been an elusive objective, with petroleum producers as a prime example. In particular, while tracking has improved for inputs from foreign direct investment (FDI), from economic activity of foreign companies, and from export revenues, the internal lack of transparency and accountability has prevented more complete analysis to explain the widespread failure of these countries to achieve broad distribution of benefits – whatever their political or economic system. Angola has experienced an average annual GDP growth of 20-25% for several years, elevating the country into the category of lower-middle income economies. Yet the poverty rate remains at over 70%, and the country continues to lag in other measures of human development.