ANP Seeks Alternatives to Fines in Local Content

03/14/2018

One option is to turn R & D investment into local content engagement.

The ANP is studying alternatives to avoid imposing fines for non-compliance with local content requirements, said director Aurelio Amaral, on Tuesday (13/3), in a conversation with journalists during an event held by Aker Solutions in Curitiba.

According to the director, this is one of the regulatory agency’s priorities this year. One of the options under study is to transform local research and development (R & D) investment into local content commitment. In this way, it believes, through inspection of the contracts, the agency will be able to have time to anticipate the application of fines. “We have to get away from the fictional number. Fake barrier does not solve, will generate fines, “he commented.

The agency is pushing for major changes in the areas of local content and R & D this year. Recently, Alfredo Renault was appointed to the R & D and Luiz Henrique Bispo area for the coordination of LC, which could go from coordinating to superintendency status, as a way to strengthen the topic internally.

Aurélio also said that another issue related to local content is close to being resolved. The resolution that regulates the waiver and establishes local content indexes for areas from the seventh round of bids has to be published by April 15, so the agency is working to set all parameters by then.

Another issue related to the subject will also have changes this year. The agency is talking to associations of suppliers of goods and services in the oil sector to reach consensus in the revision of resolution 19/2013, which establishes criteria for measuring local content. This is a topic that has also generated controversy in recent years, since different criteria are used to compare the percentage of local purchase at different times

Source: Brasil Energia

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