Brazil’s government on Tuesday published new, more flexible rules for domestic content in development of the nation’s oil and gas reserves. The new rules widen the definition of what can be considered domestic content by companies investing in drilling, refining and distribution. Under the new rules, equipment and services purchased from Brazilian suppliers but used overseas can be counted as credit against domestic content minimums in Brazilian projects. Investments by Brazilian oil and gas companies in expansion and innovation projects undertaken by suppliers can also be turned into credits counted against minimum domestic content demands. Companies working in Brazilian oil and gas development have long complained about shortages, high costs and bureaucracy linked to minimum content rules. Mines and Energy Minister Eduardo Braga said the new rules were designed to boost investments in the oil and gas industry while cutting costs at a time of low world oil prices.
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