Local Content: goals and brief history


Goals of the Local Content Politics

» Increment of the participation of the national industry in competitive bases

» Increment of the qualification and the national technological development

» Increment of the professional qualification

» Employment and income generation


Brief Historical of Local Content in Bid Rounds

In Rounds 1 and 4, between 1999 and 2002, there wasn´t any minimum previous requirement of the local content, only a limit for a maximum value, for punctuation effect, 70%.
The companies had offered a percentage for exploration phase and another for the development phase.
In Rounds 5 and 6, in 2003 and 2004, were introduced modifications in the local contents rules. Was transferred to demand it minimum percentage of local content differentiated for blocks located in lands, blocks located in flat waters and for blocks located in deep waters.
The punctuation of local content was composed of offers of percentages for differents tipical activities of the exploration phase and of the development phase.
Moreover, the weight of the local content in the note of offers for the block, went up from 15% (rounds 1 to 4) to 40%.
In Rounds 7 and 8, in 2005 and 2006, new changes were introduced in the rules of local content. Beyond the requirement of global minimum percentages was transferred to limit the offers to the maximum values. In these rounds was transferred to consider the localization of the blocks according to 4 criterias: in land, flat waters with blade up to 100 meters, flat waters with blade between 100 and 400 meters and deep waters with blade above of 400 meters. A relation having itens and subitens so for the exploration as for the development it was in a spread sheet, with a minimum percentage for each one of these itens and subitens, only the company offered values of local content and attributed weights for each one of them.
The punctuation of global local content in such a way for exploration as for the development was a result from the sum of the multiplication of the offers of percentages of local content for itens and subitens for the respective weights.
Another new from the rounds was the introduction of the "Cartilha de Conteúdo Local" as a tool of measurement of contractual local content. For these rounds the weight of the Local Content was 20%.




Local Content´s Rules for the 9th Round

Round 9 will keep the same rules used in rounds 7 and 8.