Pedefor recommends a minimum index of 25% of local content for FPSOs to CNPE

March 27, 2018

The Program to Stimulate the Competitiveness of the Productive Chain, to the Development and Improvement of Suppliers of the Oil and Natural Gas Sector (Pedefor) proposed, from a resolution published on Tuesday, that local content indexes for the regulation of the waiver for projects tendered up to the thirteenth round, in addition to the onerous assignment and the first two pre-salt auctions, are not inferior to those indicated by CNPE Resolution 7/2017. The resolution is February 1, before the CNPE meeting last week, but was published only on Tuesday (March 27), and predicts a local content index of 25% for well construction; 40% for subsea; and 25% for the construction of platforms.

Last week, the National Energy Policy Council (CNPE) decided to authorize the ANP to define local content indices in contracts signed up to the 13th round. Recently, Márcio Félix, Secretary of Oil and Gas of the Ministry of Mines and Energy, in an exclusive interview with E & P Brasil in the Influencers E & P series, said that the proposal greatly diminishes the chance of judicializing the issue of waiver regulation for past contracts.

In December last year, the ANP indicated that it would send to Pedefor a proposal that would contemplate a commitment to build platforms divided into three segments: Engineering (40%), Machinery and Equipment (40%) and Construction, Integration and Assembly (40%). The proposal was seen by much of the government and industry as a peacemaker for discussions on local content.