Local content commitments have been a mandatory element in Brazilian oil and gas concessions for almost a decade.
Minimum percentages for the purchase of local goods and services were introduced in the 2003 licensing round, when local content started to count in the scoring for bids.
Given this incentive, many companies confidently committed sky-high local content.
In 2004, for example, bidders promised that 87% of their spending would be done locally in the exploration phase.
The
