anp marcelo
TRANSCRIPT
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The Local Content Regulation forThe Local Content Regulation for
Concession AgreementsConcession Agreements
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Mature & democratic State
Economic stability
Solid regulations
environment: The BidRounds
Successful & strong
concession agreements
Pre-salt fields
61 active operators
3513 blocks offered & 731
concession agreements
Highlights
The Brazilian Oil & Gas MarketThe Brazilian Oil & Gas Market
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Contractual commitment ofpurchasing local goods and
services in a competitive
basis.
Definition:
What is Local Content? And why?What is Local Content? And why?
Development of local
suppliers & technology
Employment & income
growth
Objectives:
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Local Content RulesLocal Content Rules
Bids 1 to 4
Free LC offerings
LC Incentives
Bids 5 and 6
Minimum offering limits
No more incentives
Bids 7 to 10
Max. & Min. offering limits
LC Certification by 3 rd part
New methodology to calculatethe LC
Local Content was required in all Bid Rounds
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Local Content OfferingsLocal Content Offerings
40%MEP
40%Bonus
Local Content represents 20%
of the final score:
5% to exploratory phase
15% to development phase
LC offering applied on the 20 th
clause of the concession
agreement
Certificates to prove local
investments
At the Bid Round 20%Local
Content
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Local Investments
CertificationCertificationCertification
The ProcessThe Process
The 20th Clause of thecontract sets the localcontent commitment ofthe winning offering forthe exploratory anddevelopment phases.
C o n c e s s i o
n C o n c
e s s i o n
A g r e e m e n
tA g r e
e m e n t
Concessionaires
Local goods & services acquisition
ANP monitoring and auditing the contractual localcontent requirements
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Local Content RulesLocal Content Rules
Bids 1 toBids 1 to 66
Bids 1 to 6LC calculation: Declaration of Origin
Goods > 60% local items cost = 100% LC
Services > 80% local items cost = 100% LC
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Bids 7 to 10
LC calculation: 3rd part(companies accredited by ANP)
Imported items cost VS sales price
Compulsory certification to prove
local investments
Local Content RulesLocal Content Rules
Bids 7 to 10Bids 7 to 10
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Local Content Commitments onLocal Content Commitments on
Concession AgreementsConcession Agreements
* Only on-shore blocks
*
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Local Content AuditingLocal Content Auditing
Check the accomplishment ofcontractual Local Content
requirements.
Apply penalties when the contract
terms are not completely fulfilled.
Fines are proportional to the non-
realized local investment.
Procedures:
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How to increase Local ContentHow to increase Local Content
Making partnership andcooperation with local
companies;
Setting production units in Brazil;
Increasing the participation of
local labor on services;
Obtaining local contentcertification on goods and
services.
Suggestions:
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Increase the volume of local
investments (certification);
Inform the market about
certification process and its
rules;
Expand the dialog and
interaction with the industry,building a strong relationship
capable of facing controversial
issues.
Local Content ChallengesLocal Content Challenges
Main Challenges:
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Our Web SiteOur Web Site
www.brazil-rounds.gov.br
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Agncia Nacional do Petrleo, Gs Natural e BiocombustveisCoordenadoria de Contedo Local (CCL)
Av. Rio Branco, 65 - 17 andar - Rio de Janeiro RJ Brasil
Tel.: (55 21) 2112-8550 / (55 21) 2112-8535
[email protected]@anp.gov.brwww.anp.gov.br
Thanks!