Petrobras would rather pay fines than fulfil local content?

Only at the beginning of this year, Petrobras has already paid about R$ 3,450,000 in fines for non-compliance with local content. The news comes in handy in a propitious moment in view of the discussions on the participation of the brazilian industry in the 14th round of bidding for exploration blocks.

The question that won't shut up is the following: because Petrobras "prefers" pay fines for breaches imposed on local content percentages than hiring the services of Brazilian companies? The discussion seems to have no end, because, on the one hand are those who advocate easing in local content rules, on the other, companies in search of business opportunities with the State.

In all, the brazilian oil company has paid R$ 149 million in fines for disregarding the local content rates offered at auction, according to data of the national agency of petroleum, Natural gas and biofuels (ANP).
The Offshore Panorama comes with the "soap opera" of local content. What is known so far is that, on account of these impasses, the Government postponed again the vote on the rule changes, which will be worth to the 14° bidding round.

In less formal terms, according to Petrobras, buy out cheaper. However, we follow also the complaints from representatives of the brazilian industry who have said they have not even been consulted by brazilian State.

However, it seems that the impasse may end on February 16, the date mentioned by the Minister of mines and energy, Fernando Rabbit Son, in which the Government can hold a meeting with the Staff and the Ministry of industry, Trade and services to treat about the rules that will be applied in the 14th round of bidding for exploration blocks. We continue following and waiting for the next chapters of "novel" about local content.


14 thoughts on “Petrobras would rather pay fines than fulfil local content?

Leave a Reply