The ANP held a public hearing yesterday (9/9) to discuss a proposal to amend the Technical Regulation of the Quarterly Expenditure Report on Exploration, Development and Production attached to ANP Ordinance 180/2003, which establishes rules for the preparation of accounting and financial statements and to prove the minimum percentage of local investments in the exploration and development phases provided for in the concession contracts.

The amendment to the regulation represents efficiency gains and procedural savings for the operating companies and the Agency. At the opening of the hearing, the director of ANP Dirceu Amorelli highlighted the importance of the initiative, which aims to eliminate the use, in some situations, of two different methods of presenting reports of local content, with different parameters and periodicity.

"It is another step towards regulatory simplification and cost and bureaucracy reduction. We are improving the environment for companies in the sector, which will have their procedures facilitated. This is the first of three hearings on Local Content that will be held, maintaining the ANP's commitment to transparency with society ", affirmed Amorelli.

ANP Ordinance 180/2003 establishes the obligation to send Quarterly Expenses Report (RGT) in all exploration and production contracts entered into, while ANP Resolution 27/2016 requires the sending of Local Content Report (RCL) to the contracts signed from the Seventh Round and those signed in previous rounds that have signed the addendum provided for in ANP Resolution No. 726/2018, which allowed companies to adhere to the new rules of local content.

The draft resolution discussed today aims to dispense with the obligation to submit the Quarterly Spending Report in the contracts covered by Article 6 of ANP Resolution No. 27/2016 or by the addition of the Local Content Clause provided by Resolution ANP No. 726/2018. The video of the session via teleconference is now available on the Public Hearing No. 6/2020 page.

ANP will hold, in September, two other public hearings on Local Content. On 9/15, the theme will be local content in agreements and commitments to individualize production and annex areas (4/2020). And, on the 25th, the terms of conduct adjustment (TACs) for phases already closed in the contracts (5/2020).