A simpler local content policy, with clear rules and focused on sectors capable of competing on a global basis are the assumptions that should guide the changes being considered by the government. The proposals were explained during the October 30th edition of the Debate Series on Oil and Economics, with the theme Costs and Benefits of the Current Local Content Policy, held at the IBP.
The IBP’s executive E&P secretary, Antônio Guimarães, said that the industry is awaiting the ordination of the decree that establishes the PEDEFOR on a competitive basis, which are able to facilitate investment and attract the interest of new companies in the country.
“We are in favor of the local content and we defend that the contractual terms for goods and services need to be competitive in price and term, so we can foster a strong and competitive supplier industry in the country and stimulate investments in the country”, said Guimarães.
Márcio Felix, Secretary of Oil & Gas for the Ministry of Mines and Energy, was present at the event and said that the changes in the local content regulations being considered by the PEDEFOR are positive because they abandon a fine-based logic and move on to the subsidies regime.
Along with other changes, such as the end of the single operator and the unitization regulation, the new local content policy rules will be relevant to bring more stakeholders and facilitate investments during the next bidding round for oil & gas blocks, estimated to 2017.
“Brazil missed the opportunity to auction off areas when oil was USD 100 a barrel, which could already be in the production phase. Now, we cannot waste any more time”.
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