Resolution n. 832/2020 from the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP) altered the rules for financial disclosure and local investment demonstrations related to concession contract operations under the local content policy, extinguishing the requirement of two different demonstration processes.
The Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP) issued Resolution n. 832/2020, altering ANP Ordinance n. 180/2003 on the rules of financial disclosure and demonstration of minimum local investment percentages in the phases of exploration and production development of concession contracts.
The alterations apply to concession contracts under the local content policy (from the 7th concession round on), more specifically, to those contracts under article 6 of ANP Resolution n. 27/2016, which provides the presentation of Local Content Reports (RCLs, in the Portuguese acronym) on the phases of exploration and production development.
The new resolution provided that those concession contract operations are no longer obliged to present the Quarterly Expenditures Report (RGT, in the Portuguese acronym) as a means of demonstrating local content provisions and financial disclosure, since the RCLs are an equivalent methodology.
That optional conditions are also provided for different cases, under ANP Resolution n. 726/2018, which has not been altered.
