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Local content rules send costs higher in Brazil

Requirements are contributing to cost inflation in the country's oil and gas sector

Local content requirements in Brazil are compounding a manpower shortage and contributing to cost inflation in the country’s booming oil and gas sector as state-run Petrobras starts to bring a series of deep-water projects into production, the head Brazil’s largest oilfield services provider Odebrecht has said. “Local content and its impact on manpower has led to cost inflation. We’ve had experience, for instance, with the cost of operating rigs, where manpower costs have gone up by 100% in the past few years, which is very, very high,” Roberto Ramos, the chief executive of Odebrecht Oil and Gas told reporters in London last week. Petrobras, which dominates Brazil’s oil and gas sector, rep

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