ANP studies alternative to fines for local content

03/05/2019

Agency to launch public hearing for contributions on terms of conduct adjustment in closed exploration projects

The ANP approved on Thursday (02/05) a public hearing for contributions to discuss local content conduct adjustment terms (TACs) in exploration and production contracts closed on August 10, 2018.

The agency proposes that commitments be signed  only after determining the amount of fines due for non-compliance with the requirements originally established in the contracts, among other requirements.

The decision is an alternative for oil companies with projects already completed and not contemplated by ANP resolution 726/2018, which establishes criteria, requirements and procedures for exemption of local content.

If signed, the new commitments of local content should imply investments higher than the fines caused by non-compliance with the original requirements. However, part of the fine must be paid when the TAC is concluded.

The director general of the ANP, Décio Oddone, stressed the importance of collecting suggestions to address the issue.

“We are reminded that this is a public hearing of contributions, an initial call that the ANP makes to listen to the society before putting into consultation a pre-elaborated draft,” he emphasized during the board meeting.

Source: Portos e Navios

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