Oil: local content rules follow undefined

Although again there has been a consensus on the issue of local content rules for oil and gas industry, the Government reported that the proposal is to find a definition for the topic until the end of February, but a new meeting is scheduled to take place next Wednesday, February 22.

The debate happened Thursday, February 16, on Staff, between the Minister of mines and energy, Fernando Coelho Filho, the Chief of staff, Eliseu Padilha, and the Minister of industry, Trade and services, Marcos Pereira.

The Minister of mines and energy said, after meeting with the other Ministers, which the Government is converging a position desfavorece none of the two sides interested and who intends to create some measures to promote the competitiveness of the industry today and for the future.

Disagreements about the new local content percentage of divergent proposals arose between industry, which provides equipment for oil exploration activities, with the oil companies that, under the rules of the ANP, they can't hire outside services.

Local content is the minimum volume of equipment, goods and services produced in the country. The winning companies in the processes of bidding, according to ANP's contract, have an obligation to maintain the participation of the national industry in business, which generates jobs and income for Brazil. These new rules should be applied in the 14th round of bidding for blocks for oil and natural gas exploration, expected to happen later this year.


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