A Local Content Knowledge Management System as a Strategy for Achieving Sustainable Local Content Development in the Nigerian Oil & Gas Industry

Abstract

ABSTRACT The accepted industry definition of the concept of local content development in Nigeria refers to "the quantum of composite value added or created in the Nigerian economy through the utilization of indigenous human capabilities and material resources for the provision of goods and services to the petroleum industry, within acceptable quality, health, safety and environment standards" The operating factors here are the in-country ability to add value, and the international competitiveness of such added value. By the nature of its challenges, virtually all human activities in the oil and gas industry emphasize knowledge work as it relates to solving problems, accomplishing given tasks, etc. Organizing, analyzing, creating, and synthesizing information and expertise have today become a core activity of knowledge workers. What with an ageing global workforce, exponentially exploding data volumes, extremely challenging work environment, and an unforgiving competitive landscape? To address these challenges, oil and gas companies around the world are leveraging advances in the field of knowledge management to craft strategies for sustainable growth and competitiveness. Given that the local content players are faced with similar challenges – and perhaps more, given their weak technological financial, and managerial bases – it is argued that a Local Content Knowledge Management System presents a sustainable platform for the creation of a Nigerian value-added that is "within acceptable quality, health, safety and environment standards". In other words, the ability of the local content organizations to survive in the long run depends on their ability to deliver internationally recognizable superior performance which in turn will depend on their collective ability to gain access to, and harness the available institutional knowledge at each given point in time. Knowledge Management (KM) as a discipline borrows extensively from other fields such as social psychology and information technology to provide frameworks for knowledge creation and sharing within social groups known as Communities of Practice (CoP). The paper explores emerging Knowledge Management perspectives and reviews a case study of the application of KM in a leading oil and gas service company's Logging and Perforating business unit. A model "Local Content Knowledge Management System" is presented and suggestions for implementation given.