ANP Received 24 Proposals for Conduct Adjustment Terms (TAC) in the Oil and Natural Gas Sector and Will Ensure Investments in National Industry Goods and Services

The Receipt of 24 Proposals for TAC by Oil and Natural Gas Companies for the ANP Will Ensure a Billion-Dollar Revenue, Which Will Be Reverted to Investments in Goods and Services Targeted at the National Industry.

As of last Wednesday (06/15), the National Agency of Petroleum (ANP) received 24 proposals for the celebration of a Terms of Adjustment of Conduct (TAC) for local content, under ANP Resolution No. 848/2021, from companies engaged in oil and natural gas exploration. Thus, the agency will be able to revert a billion-dollar amount into future investments in goods and services for industries to boost the growth of the Brazilian industrial sector.

Oil and Natural Gas Companies Submit 24 Proposals for TAC to the ANP as a Way to Reverse Irregularities and Errors Made in National Exploration

The ANP announced that companies operating in Brazil in the oil and natural gas sector submitted a total of 24 proposals for TAC as a way to reverse irregularities in fuel exploration and invest in other segments of the national market. All TAC proposals comply with ANP Resolution No. 848/2021, which regulates the celebration of sanctioning processes for non-compliance with local content commitments in contracts that could not be amended by ANP Resolution No. 726/2018.

This means that companies that engaged in irregular acts in their oil and natural gas exploration chain in Brazil will be able to revert paid fines into new investments to be applied in goods and services in the national industrial sector.

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Thus, the ANP announced that the proposals received total R$ 1,889,499,425.97, which will be invested in goods and services for the national industry. This amount exceeds what would be applied in fines to the companies, thereby ensuring a more profitable allocation for the national market.

Furthermore, the 24 TAC proposals received by the ANP stem from 41 violation notices related to 52 E&P contracts, involving 24 companies, either in consortia or individually, within the oil and natural gas exploration fields in Brazil. These TAC proposals refer to violations announced up to December 17, 2021, and now the ANP expects to receive new proposals regarding errors committed in the months following the reported period.

The Celebration of TAC Is Optional, But Guarantees New Investments for Goods and Services in the Brazilian Industrial Sector, According to ANP Resolutions

The entire celebration of the TAC is 100% optional for the companies, meaning that they are not obliged to make proposals to reverse their errors in oil and natural gas exploration, but they guarantee a series of benefits to the national industrial sector.

Thus, according to the resolution, the TAC replaces the sanctioning administrative process, with its respective filing after the celebration of the term. In addition, all commitments for the acquisition of goods and services in the TAC proposals are compatible with Article 17 of ANP Resolution No. 848/2021 aimed at the national industrial sector.

This means that the funds are reverted into investments for the areas of Round Zero, whose contracts do not establish minimum percentages of local content to be achieved, in addition to the application in areas of foreign exploration, focusing on the export of goods and services produced here in Brazil.

Now, all 24 TAC proposals submitted to the ANP will be evaluated by the agency, to verify deadlines and amounts in a more technical manner, and, after a statement from the Federal Attorney’s Office with the ANP, they may proceed to the deliberation phase of the collegiate board of the entity.