The ANP discussed today (9/25), in a public hearing held by videoconference, the draft resolution on the regulation of the terms of conduct adjustment (TACs) of local content for phases already closed of the E&P contracts (Audience 5/2020) . The purpose of the new regulation is to reverse fines imposed for non-compliance with local content commitments in investments, in order to stimulate the Brazilian industry.

At the opening, the superintendent of Local Content of the ANP, Luiz Henrique Bispo (photo), noted that the proposal aims to present, in a very clear and objective way, what will be the rite for analysis and acceptance of requests for TAC celebration and also for monitoring and inspection of that commitment and the consequences of any non-compliance.

"I hope it will be an excellent opportunity and a great help for the ANP to improve this draft and gather information and suggestions from society, giving publicity, transparency and legitimacy in relation to these Agency regulations", said Bispo.

In Brazil, contracts for exploration and production of oil and natural gas have clauses with local content, which stipulate a minimum percentage of contracts for goods and services that must be carried out in Brazil.

After the 13th Bidding Round, the National Energy Policy Council (CNPE) determined the adoption of a new model of local content and allowed the adoption of requirements different from those in force in past contracts, which resulted in ANP Resolution No. 726/2018 and in possibility of adding current contracts with unfinished phases so that they could incorporate the improvements resulting from regulatory developments.

Due to legal limitations, however, the regulatory evolution cannot be applied to extinct contracts or to phases that have already ended. Thus, it is proposed that these cases not contemplated by the amendment be treated by means of Conduct Adjustment Terms, which are optional for the concessionaires.

The ANP carried out the Public Contribution Taking - TPC No. 1/2019, starting on May 3, 2019 and lasting 30 days. During that period, several contributions were received. Discussions were also held at various industry events to clarify the proposal and regulatory alternatives, in addition to technical and legal analysis, which contributed to the drafting of the Resolution.

The topic was subject to public consultation for 60 days and received 12 contributions from nine economic agents. The contributions received in the consultation and at the hearing will undergo technical analysis to consolidate the draft resolution, which will then undergo a legal assessment and approval by the ANP board before the publication of the final resolution.

Today's hearing was the third held by the ANP, this month, on local content. The first, on 9/9, was about the amendment to the Technical Regulation for Quarterly Expenditure on Exploration, Development and Production, attached to ANP Ordinance No. 180/2003. And the second, on 9/15, dealt with local content in agreements and commitments to individualize production and in the annexation of areas.