Managing Localisation Programs – Is it time for a Chief Localisation Officer

In a very interesting article, SCHLÜTER GRAF Legal Consultants make the argument that for companies to survive and thrive in the ever-changing Value Add and Local Content Oil and Gas world, they will need to invest in management level human resources.  The rational for this is quite straight forward: various National Oil Companies (Aramco, ADNOC, PDO and now QP) all have specific Value Add programs, each program is different, there is no mutual recognition, the programs change over time, and it is a requirement to participate in order to do business with these oil companies or their supply chains.

Understanding the programs, how to maximize the benefit of the programs to your company, determining the strategies required for successful participation as measured by winning tenders requires a management level position to oversee the programs and compliance.  In addition, as each program is different there are specific legal and tax implications.

For the full article please download here: 181213 Managing Localisation Programs chuelter graff (1)

ADNOC Launches Version 2.0

ADNOC launches enhancements to their In-Country Value Program under version 2.0. The program has undergone key upgrades designed to help suppliers capture all their value add activities. Furthermore, ICV Improvement Plans are a part of the contract award process and allow suppliers to demonstrate future value add. The Improvement Plan will be taken into consideration, along with historical performance. Based on the ICV Improvement Plan committed to by suppliers, ADONC will now tie ICV performance to contractual progress payments worth 5% of the contract value.

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Q3 2018