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Local Content Certification

Local content is the ratio between the value of goods and services provided domestically in Brazil to meet contract obligations and the total value of goods and services used for said purpose. Local content policy strictly follows this guideline by requiring a minimum percentage of domestic content for a variety of equipment and materials to promote domestic Brazilian industry and strengthen the country's productive capacity.

Purpose

The aim of local content policy is to increase the participation of domestic manufacturers and service providers in the oil and natural gas supply chain on a competitive basis. This policy promotes the growth of domestic businesses, the country's technological development, the development of local professional talent and the generation of employment and income.

Local Content Program

As per concession contract Clause No. 20, concessionaires must favor Brazilian contractors when the latters' offers are equivalent in terms of price, term, and quality to those of other suppliers invited to submit proposals.

The process for obtaining a local content certificate is as shown in the figure to the right.

Origin

The Brazilian petroleum industry has been entering into concession contracts since 1997 to explore domestic reserves. Nevertheless, this market opening has exposed existing gaps in expertise, technology, human resources and infrastructure between Brazilian and foreign firms. For this reason, the National Petroleum Agency (ANP) decided in 2008 to implement the Local Content program for the purpose of promoting economic development and the transfer of technical knowledge to Brazilians.

ANP Accreditation

ABS Group operates in accordance with ANP regulations and provides local content certification for goods and services suppliers in a wide range of industries. In addition, ABS Group has been working directly with concessionaires, making it possible not only to consolidate technical expertise and operational structures, but also allowing our professionals to gain considerable experience. ABS Group is accredited to support local content certification of goods and services in ALL areas of activity shown in the table.

Certified Activities

CODE

AREA OF ACTIVITY

GE001

Geology and Geophysics

PE001

Drilling Rigs and Equipment

PE002

Logistical and Operational Support

PE003

Well Drilling, Completion and Evaluation

EN001

Basic and Detailed Engineering

EN002

Management, Construction, Assembly and Commissioning

EN003

Electric, Control, Instrumentation and Measurement Systems

EN004

Telecommunications Systems

ES001

Oil and Gas Pipelines and Storage Tanks

ES002

Transfer Pumps

UP001

Compressors

UP002

Electric Generators

UP003

Vapor Injectors and Generators

UP004

Water Injection and Treatment Units

ES003

Subsea Control Systems, Rigit Pipe, Flexible Pipe, Umbilicals and Manifolds

ES004

Monobuoys and Mooring Systems

UP005

Oil Processing and Treatment Systems

UP006

Natural Gas Processing and Treatment Systems

UP007

Naval Construction Services (Hull, Turret, Anchoring and Naval Systems)

UP008

Operational Safety

EN005

Civil Engineering and Public Utilities

Why Choose ABS Group?

ABS Group is present in 39 countries and has been performing certification activities in Brazil for over 40 years. ABS Group is also accredited by the National Petroleum Agency (ANP) in all areas of activity set forth in ANP Resolution No. 36 and Regulation No. 6/2007 and is ready and able to provide support to concessionaires and their suppliers with regard to local content certification of goods and services.

ABS Group is a pioneer in ANP accreditation and has been actively investing in its team and specific infrastructure to increase its support of a wide range of certification projects along the entire oil and gas productive chain.

What sets us apart?

What makes us different are our expert professionals, who are recognized in the market for their technical expertise, agility, quality, strong ethics and accountability as regards certification.

We constantly invest in training and attend seminars and workshops to continually improve the qualifications of our team. We concentrate our efforts on improving our working relationship with our clients to enhance service delivery and bring greater credibility, confidence, integrity and innovation to our personalized services.

We are focused on continual improvement through managing our competencies as we seek to improve the efficiency of our activities and the effectiveness of the final result.

ABS Group Experience

Since ABS Group's inception, our products and services have reflected our core values and the dedication of our employees. Our combination of talent and resources results in service excellence and timely, innovative solutions to meet the challenges of our clients.

ABS Group has a team solely dedicated to local content certification comprised of trained professionals from a variety of fields including chemical, environmental, mechanical, civil and petroleum engineering, as well as administration, with extensive knowledge of how to apply local content methodologies. Altogether, we have 30 professionals devoted exclusively to meeting local content needs.

National and International Scope

We provide consulting for international companies interested in entering the Brazilian market.

We can even provide a multidisciplinary team onsite at the client's office to work entirely on local content certification processes, thereby ensuring greater integration among the client's divisions and facilitating the rapid identification of those items that need to be measured, audited and certified. This strategy maximizes local content, customization and segmentation of our services and promotes an assertive approach to certification activities.

 

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