The ANP received 24 proposals for the execution of a Term of Adjustment of Conduct (TAC) of local content, under the terms of ANP Resolution No. ANP until December 17, 2021).

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

ANP Resolution No. 848/2021 regulates the execution of TAC related to sanctioning proceedings for non-compliance with local content commitments in contracts that could not be amended by ANP Resolution No. 726/2018. In such cases, companies may request the replacement of the payment of fines by new commitments to invest in national goods and services, in order to stimulate Brazilian industry.

The proposals received total an amount of R$ 1,889,499,425.97, which will be invested in goods and services of the national industry. This investment value exceeds the values of the fines that would be applied. They come from 41 notices of infraction related to 52 E&P contracts, covering 24 companies, in consortium or individually.

New TAC requirements related to infraction notices that will be issued after December 17, 2021 and that fall within the scope of the resolution are also expected.

The conclusion of the TAC is optional and configures the recognition of non-compliance with the local content obligation provided for in the sanctioning process. According to the resolution, the TAC replaces the sanctioning administrative process, with its respective filing after the conclusion of the term.

The commitments to acquire goods and services in the TAC proposals are compatible with art. 17 of ANP Resolution No. 848/2021 and focus on exploration and production development activities in Round Zero areas, whose contracts do not establish minimum percentages of local content to be achieved, and on exploration and production development operations abroad, that is, with the export of national goods and services.

Following the rite established in ANP Resolution No. 848/2021, the proposals received will be analyzed by the ANP with regard to the feasibility and reasonableness of the deadlines and, after the Federal Attorney's Office with the ANP, will be the subject of deliberation by the Collegiate Board.

The ANP will give publicity and transparency to the execution, monitoring and inspection of TACs related to ANP Resolution No. 848/2021. For more information click here!

See ANP Resolution nº 848/2021: click here!

See ANP Resolution nº 726/2018: click here!