Brazil Petroleum Agency Starts Discussions For New Regulations For Calculation Of Global Local Content

Author:Mr Alexandre Chequer, Leonardo P. Costa, Victor Galante and Bruno Belchior
Profession:Tauil & Chequer
 
FREE EXCERPT

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.

Visit us at Tauil & Chequer

Founded in 2001, Tauil & Chequer Advogados is a full service law firm with approximately 90 lawyers and offices in Rio de Janeiro, São Paulo and Vitória. T&C represents local and international businesses on their domestic and cross-border activities...

To continue reading

REQUEST YOUR TRIAL