Local Content Requirements in the Brazilian Upstream Oil Industry : With special focus on Concession Agreements

Abstract

The objective of this thesis is to analyse the local content requirements in the Brazilian upstream oil industry. This analysis focuses on the requirements set forth in the Concession Agreements drafted by the National Oil Agency (ANP), but it also deals with the requirements established by Petrobras in the bidding procedures for the construction of platforms.

The thesis will firstly offer a general introduction to the recent debate around local content rules as well as an overview of the Brazilian oil industry. Next, the thesis will look to two obligations in the Concession Agreement related to local content, namely the obligation to provide equal opportunities to local suppliers and the obligation to give preference to these whenever they are competitive. Further, the thesis will look at key legal problems pertaining to the obligation to purchase minimum amounts of goods and services locally. The relevance of the Petrobras procurement strategies and the rules the company have introduced in the bidding for construction of platforms will also be addressed. Finally, an overview of the local content calculation system will be provided.