Local Content In Brazil (Global Energy)

Keywords: protocols, governments, companies, oil, gas

The phrase "local content" has begun to appear more frequently in the laws, internal policies and tender protocols of governments and companies around the world, particularly with regard to the oil & gas industry. The main argument to justify the local content rules is the enhancement of the local industry. But is it working?

Before analyzing the efficacy of the local content rules, it is important to understand the different approaches being adopted by different countries.

Certain countries consider a local content rule to be fully observed when a service or good is provided by a company that is owned or controlled domestically; other countries have more complex methods to calculate the percentage of good and services available in the country, by local providers.