Common use of Development Phase for the Purposes of Local Content Clause in Contracts

Development Phase for the Purposes of Local Content. For the purposes of benchmarking of the Local Content, the development phase will begin on the date of submission of the Declaration of Commerciality and will close, for each module of the development phase, with the first among the following occurrences: The course of five years after the extraction of the first oil; The abandonment of the development of the module of the development phase; or The achievement of the investments foreseen in the Development Plan. Exemption from the Obligation of Compliance with the Local Content ANP may, in exceptional character and upon request of the Contracted Party, exempt it from the compliance with the Local Content percentage with which it is committed in relation to the recruitment of a specific good or service when: There is no Brazilian supplier for the purchased product or contracted service; All proposals received from Brazilian suppliers present an excessive delivery limit in relation to non-Brazilian counterparts; All proposals received from Brazilian suppliers present an excessive delivery price in relation to non-Brazilian counterparts; or There is no replacement of a given technology for which there is no offer with Local Content. In this case the exemption from the compliance with the Local Content only applies to goods and services replaced by the new technology. The exemption from the requirement of compliance with the Local Content does not extend to the overall percentage of Local Content, not distracting, therefore, any deduction of amount. The request must be made in a reasoned way and presented to ANP during the duration of the phase or step in which the exemption is intended. If ANP has granted the exemption mentioned in the caput of this paragraph due to the conditions provided in lines “a”, “b”, “c” or “d”, the Contracted Party is obliged to prove the accomplishment of the alleged conditions for the granting of the exemption. The exemption from the obligation of compliance with the Local Content does not apply to items of basic and detailed engineering Adjustments in the Committed Local Content The Contracted Party may request from ANP the adjustment of the Local Content with which it has committed itself to. The request for reduction of the Local Content should be made in relation to the supply lines of the Table of Local Content, whereas the Local Content for the other items. The adjustments in the committed Local Content do not extend to the overall Local Content. The request must be made in such a way as detailed, formal, written and presented to ANP during the duration of the phase or stage for which the adjustment is requested. The items associated with the basic and detailed engineering may not be reviewed.

Development Phase for the Purposes of Local Content. For the purposes of benchmarking of the Local Content, the development phase will begin on the date of submission of the Declaration of Commerciality and will close, for each module of the development phase, with the first among the following occurrences: The course of five ten years after the extraction of the first oil; The abandonment abandonment, by the Concessionaire, of the development of the module of the development phase; or The achievement of the investments foreseen in the Development Plan. Exemption from the Obligation of Compliance with the Local Content ANP may, in exceptional character and upon request of may exempt the Contracted Party, exempt it Concessionaire from the compliance with the Local Content percentage with which it is committed in relation to the recruitment of a specific good or service when: There is no Brazilian supplier for the purchased product or contracted service; All proposals received from Brazilian suppliers present an excessive delivery limit in relation to non-Brazilian counterparts; All proposals received from Brazilian suppliers present an excessive delivery price in relation to non-Brazilian counterparts; or There is no replacement of a given technology for which there is no offer with Local Content. In this case the exemption from the of compliance with the Local Content only applies to goods and services replaced by the new technology. The exemption from the requirement of compliance with the Local Content does not extend to the overall percentage of Local Content, not distracting, therefore, any deduction of amount. The request must be made in a reasoned way and presented to ANP during the duration of the phase or step in which the exemption is intended. If ANP has granted the exemption mentioned in the caput of this paragraph due to the conditions provided in lines “a”, “b”, “c” or and “d”, the Contracted Party Concessionaire is obliged to prove the accomplishment of the alleged conditions for the granting of the exemption. The exemption from the obligation of compliance with the Local Content does not apply to items of basic and detailed engineering Adjustments in the Committed Local Content Percentage The Contracted Party Concessionaire may request from ANP the adjustment of the Local Content with which it has committed itself to. The request for reduction of the Local Content should be made in relation to the supply lines of the Table of Local Content, whereas the Local Content for the other items. The adjustments in the committed Local Content do not extend to the overall Local Content. The request must be made in such a reasoned way as detailed, formal, written and presented to ANP during the duration of the phase or stage for step in which the adjustment exemption is requested. The items associated with the basic and detailed engineering may not be reviewedintended.

Development Phase for the Purposes of Local Content. For the purposes of benchmarking of the Local Content, the development phase will shall begin on the date of submission of the Declaration of Commerciality Commercial feasibility and will shall close, for each module of the development phase, with the first among the following occurrences: The course of five (10) ten years after the extraction of the first oil; The abandonment abandonment, by the Concessionaire, of the development of the module of the development phase; or The achievement of the investments foreseen in the Development Plan. Exemption from the Obligation of Compliance with the Local Content ANP may, in exceptional character and upon request of may exempt the Contracted Party, exempt it Concessionaire from the compliance with the Local Content percentage with of which it is committed in relation to the recruitment of a specific good or service up to the limit of the minimum required percentage in the bidding for the respective item or sub-item of commitment, especially when: There is no Brazilian supplier for the purchased product or contracted service; All proposals received from Brazilian suppliers present an excessive delivery limit in relation to non-Brazilian counterparts; All proposals received from Brazilian suppliers present an excessive delivery price in relation to non-Brazilian counterparts; or There is no replacement of a given certain technology for which there is no offer with Local Content. In this case the exemption from the of compliance with the Local Content only applies to goods Property and services replaced by the new technology. The exemption from the requirement of compliance with the Local Content does shall not extend to the overall percentage of Local Content, not distracting, therefore, any deduction of amount. The request must be made in a reasoned way and presented to ANP during the duration of the phase or step in which the exemption is intended. If ANP has granted the exemption mentioned in the caput of this paragraph due to the conditions provided in lines “a”, “b”, “c” or “d”, the Contracted Party Concessionaire is obliged to prove the accomplishment of the alleged conditions for the granting of the exemption. The exemption from the obligation of compliance with the Local Content does not apply to items of basic and detailed engineering Adjustments in the Committed Local Content The Contracted Party may request from ANP the adjustment of the Local Content with which it has committed itself to. The request for reduction of the Local Content should be made in relation to the supply lines of the Table of Local Content, whereas the Local Content for the other items. The adjustments in the committed Local Content do not extend to the overall Local Content. The request exemption must be made in such a way as detailed, formal, written detailed form and presented to towards ANP during throughout the duration of the any phase or stage for in which the adjustment exemption is requestedintended, pursuant the minimal presentation of certain acknowledgements by Concessionaire, cumulatively: To ensure broad and equitable conditions of competition for non-Brazilian counterparts when carrying out calls for proposals for the proper supply and / or attempts to hire from Brazilian Suppliers; To adopt the Local Content as selection criteria, when performing bidding for supply, once the corresponding contract took place with non-Brazilian suppliers, as a result of not complying with the requirements of price, delivery time and quality; and To maintain updated information together with associations or similar business associations union or bodies of knowledge of the subject, in regard to the existence of Brazilian Suppliers to be able to submit proposals for supply. The items associated with exemption from compliance upon Local Content: Shall be granted to one or more contracts related to the basic and detailed engineering may not be reviewed.same item or sub-item of Xxxxx XX; Xxxxx prevent the possible assignment of any surplus in the domestic currency, the Local Content of the item to which the contract relates to another addressed item;