Local Content and Extractive Industry in Brazil

Israel Lacerda Araújo () and Hirdan Katarina Medeiro Costa ()
Additional contact information
Israel Lacerda Araújo: IEE, University of São Paulo
Hirdan Katarina Medeiro Costa: IEE, University of São Paulo

A chapter in Sovereign Wealth Funds, Local Content Policies and CSR, 2021, pp 309-325 from Springer

Abstract: Abstract Local content clause is the obligation of hiring a share of national goods, employment, as well as services in the exploration, development and production processes. If companies do not comply with this clause, they will incur a fine applied by government agents. The Brazilian oil and gas industry has used the local content clause since 2003. The clause and regulation is long, and the details allow the contractor to know each parameter before the bidding round, to be prepared, and to be aware of the penalty in case of disobeying. This chapter answers the following questions: (i) What are the main obligations related to local content in Brazil within the extractives resources industry? Are there any peculiarities? (ii) What are the main challenges that extractives resources are facing with regards to local content practices and local involvement? (iii) What are the best and worst experiences with local content requirements in the extractive resources sector in Brazil?

Keywords: Local content; Oil industry; Market failure; Effective protection (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:csrchp:978-3-030-56092-8_17

Ordering information: This item can be ordered from
http://www.springer.com/9783030560928

DOI: 10.1007/978-3-030-56092-8_17

Access Statistics for this chapter

More chapters in CSR, Sustainability, Ethics & Governance from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().