Experts discuss local content law in the House

The application of a new bill (7401/2017) is still under discussion in the House of Deputies. The Finance and Taxation Committee listened, on this last Wednesday (25), experts ' criticism of the fixing of minimum local content percentage legislation in block bids, for the exploration and production of oil and natural gas.  

The project (PL 7401/17), already approved by the Commission of Mines and Energy of the chamber last month, establishes a policy of local content for the activities of exploration and production of oil, natural gas and other hydrocarbons, applicable to the concession regime ( Law 9.478/97) and the production sharing regime (law 12.351/10). The policy refers to the quantity of each good or service produced or developed in the country, in percentage terms.

Considering an error in the fixation of these percentages, Gustavo Gonçalves Manfrim, General Coordinator of Petroleum, Natural gas and biofuels of the Sub-Secretariat of Energy of the Ministry of Economics, said the program to stimulate the competitiveness of the chain Productive in conjunction with the action of the National Energy Policy Council, since 2016, have been attracting more national companies for auctions.

Starting from the same opinion, the Executive Secretary of the Brazilian Institute of Petroleum, Gas and biofuels, Antônio Guimarães, said that changing the rule can create legal insecurity, especially on the eve of auctions in the oil sector.

"We are facing a billionaire pre-salt, I would say even, triliary, with immense opportunities, which are greater than opportunities of several producing countries in the world," said the chemical engineer at Fundação Getúlio Vargas, Magda Chambriard.

Finally, Congressman Sérgio Souza (MDB-PR) praised the arguments and said that the debate served to capture information and from that, they will build the report to be appreciated in the Finance Committee.

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