Industry representatives try to prevent new rules on local content

In a meeting held on Wednesday, April 5, representatives of industry and production of oil and gas chain workers asked the Senate President Eunício Oliveira, to mediate in order to achieve a meeting between the category and President Michel fear to treat the new rules on local content.

The objective of this meeting with the president is trying to prevent it from being adopted the Local Content percentage reduction (CL) in the 14th round of bidding for exploration blocks for oil and natural gas, which must take place in September this year.

After a long period of deadlock, the government announced in February that the average reduction in the percentage of local content will be about 50%. In offshore blocks, the minimum content is 18% in the operational phase, 25% for well construction and 40% in collection and disposal systems.

The index for offshore platforms was also greatly reduced, from 65% to 25% for procurement of services, which will reduce local labor and consequently decrease the hiring and increase layoffs in the sector. Before the decision, the percentages were defined separately in each round of bids to formalize the auction.

Local content is the minimum amount of equipment, goods and services produced in the country. The winning companies in the bidding process, according to the ANP contract, have an obligation to maintain the participation of domestic industry in business, thus generating more jobs and income for Brazil.

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