Local Content
The ANP has just concluded the regulation process of the Local Content Certification system, in compliance with contractual requirements which have been established since Brazil Round 7. This regulation comprises a set of 4 Administrative Acts:
The regulation proposal was submitted in its initial version for public comment from May 4th, 2007 to July 2nd, 2007, period during which it received several comments and suggestions which helped improve the regulation process, which was followed by public hearings. The relevant contributions received during the public comments and hearings were incorporated into the rules which constituted the final versions that, after being approved by the Board of Directors, became the Administrative Acts published in the Federal Official Gazette on November 16th, 2007.
The implementation of the regulation begins with the immediate effect of the Administrative Acts ANP no. 37 and ANP no. 39, Rules for Entity Accreditation for Local Content Certification and Rules for Local Investment Reports, respectively. As for Administrative Acts ANP no. 36 and ANP no. 38 (Rules for Local Content Certification and Rules for Auditing Certifying Entities, respectively), they will be in full force and effect 150 (one hundred and fifty) days from the publication in the Federal Official Gazette. This term is necessary for the accreditation of a reasonable number of entities to perform the Local Content Certification.
It is important to highlight that Administrative Act ANP no. 36 – Rules for Local Content Certification – considers, in its Article 3, the transition rule, that is to say, for the purpose of proof of local content, the figures stated in the Reports set forth in the Rules for Local Investments in Exploration and Development will be taken into account until the Rules for Local Content Certification attached be in force and effect.
The Rules no. 7/2007 dated November 13th, 2007, which establishes the requirements and procedures for the accreditation of entities to perform local content certification activities defines, in item 3.1.1, a relation containing areas of activities of registration and accreditation. Below we can see the development of these areas of activities which consider all the activities of the productive chain of E&P of oil and natural gas and which must be taken in consideration in the registration and accreditation aforementioned. Besides, this relation must be a guideline for the application of investments in E&P undertakings, for the purpose of calculation of local content. |
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