A novel concept, local content, in oil industry is gradually emerging. Local content should be defined in terms of value addition in local country (by local staff, local materials, local services and facilities) rather than in terms of ownership of the company performing the value added activities. Many oil exporting countries have taken a positive approach toward local content development to maximize the benefits from oil and gas extraction. The purpose of this study is to develop a conceptual model for local content development in petroleum industry. Local content can generally be defined in terms of the ownership and/ or location of the enterprises involved in production and/ or the value-added in the production process. Local content promotion will have to vary significantly between countries, depending on the current status of their economic, political and social development. This model is useful for state governments to consider all aspects and factors affecting local content development generally. Local content development outcomes are economic growth, industrial growth and spillover effects.

Kazzazi, A & Nouri, B. (2012). A conceptual model for local content development in petroleum industry.Management Science Letters, 2(6), 2165-2174.

Auty, R. (2006). Improving the beneficial socio-economic impact from hydrocarbon extraction on local/regional development in caspian economies.

Cusumano, M., & Elenkov, D. (1994). Linking international technology transfer with strategy and management: a literature commentary. 23(2), 195–215.

Grossman, G. M. (1981). The theory of domestic content protection and content preference. Quarterly Journal of, 96, 583–603.

Hausmann, R., & Rodrik, D. (2006). Doomed to choose: industrial policy as predicament. Mimeo. Cambridge, MA: Harvard University.

Heum, P., Kasande, R., Ekern, O. F., & Nyombi, A. (2011). Policy and regulatory framework to enhance local content. Kampala, Uganda.

International Monetary Fund (IMF). (2006). Republic of Equatorial Guinea: Selected Issues and Statistical Appendix. International Monetary Fund.

INTSOK. (2003). Enhancing of Local Content in the Upstream Oil and Gas Industry in Nigeria. Norwegian Oil and Gas Partners.

Klueh, U. H., Pastor, G., & Segura, A. (2009). Policies to improve the local impact from hydrocarbon extraction: Observations on West Africa and possible lessons for Central Asia. Energy Policy, 37, 1128–1144.

Klueh, U., Gonzalo, P., Alonso, S., & Walter, Z. (2007). Inter-sectoral Linkages and Local Content in Extractive Industries and Beyond The Case of São Tomé and Príncipe. IMF.

Kumar, V., Kumar, U., & Persaud, A. (1999). Building Technological Capability Through Importing Technology: The Case of Indonesian Manufacturing Industry. Journal of Technology Transfer, 24(1), 81-96.

Ministry of energy of Republic of Ghana. (2010). Local Content and Local Participation in Petroleum Activities.

Nordås, H., Kyvik, E., & Heum, P. (2003). The upstream petroleum industry and local industrial development: A comparative study. The Institute for Research in Economics and Business Administration.

Nwokeji, G. U. (2007). The Nigerian national petroleum corporation and the development of the Nigerian oil and gas industry history, strategies and current directions. The James A. Baker III institute for public policy.

Tordo, S., Tracy, B. S., & Arfaa, N. (2011). National Oil Companies and Value Creation. The World Bank.

Veloso, F. (2001). Local Content Requirements and Industrial Development Economic Analysis and Cost Modeling of the Automotive Supply Chain.

Wells, J., & John, H. (2008). Increasing local content in the procurement of infrastructure projects in low income countries. Institution of Civil Engineers, 6-7.