In the same year, guidelines were added to the Procurement MSG on the management of Local Content. Local content is considered as the added value received by the host Country when the eni subsidiary procures locally produced goods and uses local labour in construction works and to provide services. Each subsidiary in the upstream sector develops its own Local Content Framework to define the goals and the reference principles for its management. The framework is drawn up in accordance with the requirements previously agreed with partners and local authorities and in compliance with the applicable regulations, and it defines the Local Content plan, taking into account the analysis of the local market, the risk assessment and the potential for satisfying procurement needs.
In Angola, eni has adopted and implemented a specific Local Content procedure which also aims to communicate clearly its own commitment to local businesses.
In Mozambique, which is a new entrant to the industry, maximizing local content is one of the priorities in the cooperation strategy with the Country. For each tender, a market analysis at the local level is performed in order to maximize the number of Mozambican companies added to eni’s Vendor List. Furthermore, when turning to international companies is considered to be necessary, eni has introduced specific assessment criteria which include respecting a certain percentage of local content and a plan for its development.
In Africa the amount procured locally grew from 54% to 60%.
eni contributes to the development of local supply chains, paying particular attention to sensitive areas where indigenous peoples are present. In Australia, every contract tender must provide for the drafting of the Indigenous Affairs Management Plan (IAMP), which includes training for the indigenous peoples in order to increase their employability, the development of local business and the protection of cultural heritage.
Guidelines on the management of local content have been added to the Procurement Management System Guideline.