The ANP Board of Directors approved yesterday (8/7) the resolution that regulates the terms of adjustment of conduct (TAC) for local content. With the new standard, companies will be able to replace the payment of fines for non-compliance with local content commitments, in certain cases, by making new investments in national goods and services, in order to stimulate the Brazilian industry.

Local content commitments are those assumed by companies, in oil and gas exploration and production contracts, to contract a minimum percentage of national goods and services.

In order for a TAC to be signed, there must be a sanctioning process, and that this process is related to contracts that could not be amended by ANP Resolution No. 726/2018, charging a fine for non-compliance with these commitments. The idea is exactly to replace the fine with new investment commitments in the local industry. (See more information about ANP Resolution No. 726/2018, click here!)

The execution of the TAC is optional for operators. According to the resolution, the term may replace the sanctioning process, that is, this process will be filed when the term is signed. And, in case of non-compliance, the operator will pay a fine relating to non-compliance with the TAC.

The resolution will come into effect from the date indicated in the publication of the Official Gazette of the Union.