The Brazil Petroleum Agency ("ANP") published a press release on September 16, 2015, announcing the preparation of a regulation to improve the current local content policy. The purpose is to mitigate the distortions caused by price changes, which can affect the ability of the parties to comply with the global local content.
The announcement is part of an effort from the Local Content Coordination of ANP to regulate the new clause 20.5 included in the Bidding Round 13 Concession Contract. This clause provides that if at the end of the Exploration Phase or Development Stage the weights attributed to each local content item are different from those considered during the local content offer in the bidding round, the change should be neutralized in relation to the equivalent global local content.
Any interested party may send its contributions until September 18, 2015,, which will be analyzed by ANP and eventually included in the draft new regulations. However, after publication of the initial document, a public consultation period will be formally initiated and new contributions may then be submitted and discussed with ANP.
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