# Presentation: 164065

## 		U.S. Commercial Service		Rio de Janeiro, Brazil

**Remarks by**
**Camille Richardson**
**Principal Commercial Officer**

## The Brazilian Oil and Gas Sector

- Until 1997, the oil & gas exploration was a federal monopoly
- Petrobras was the sole player and virtually the only customer
- Currently, there are 44 oil companies with oil exploration and appraisal areas in Brazil

## 	Oil Players in Brazil (offshore & onshore)

- Amerada Hess, Arbi, Aurizônia, BG
- Brazalta, Chevron, Codemig, Delp
- Devon, El Paso, EnCana, Engepet
- ENI, Exxon Mobi, Geobras, Kerr-McGee
- Koch, Logos, Maersk Oil, Newfield
- Norsk Hydro, Northern Oil M&S, Orteng
- Partex, Petrobras, Petroga, PetroRecôncavo
- Petroserv, Petrosynergy, Phoenix, Potióleo

## Oil Players in Brazil (offshore & onshore)

- Queiroz Galvão, Repsol YPF,
- Shell, Silver Marlim
- SK Corporation, Starfish,
- Statoil, Tarmar
- TotalFina, Vitória Ambiental,
- W. Washington, Wintershall

## The Brazilian Oil and Gas Sector

- 40 drilling rigs with ongoing activities in Brazil (as of January 2006)
- Brazil:  326 exploration blocks, 47 fields under development stage, & 256 production fields which contain proven reserves of 11.2 billion barrels of oil and 326 billion cubic meters of natural gas

## The Brazilian Oil and Gas Sector

- Brazil ranks 6th in world proven oil reserves as well as in oil production
- Brazil is not part of the Organization of Petroleum Exporting Countries (OPEC)
- Brazil’s crude:  API degree of 13 to 42 with an average above an API of 20, heavy oil
- Offshore fields:  about 82% of Brazil’s total oil production
- Onshore: larger number of oil/gas fields

## Oil Rounds

- 7 Oil Bidding Rounds (from 1999 to 2005)
- 594 oil blocks have been acquired to-date by 44 Brazilian and foreign companies
- 8th oil bidding round scheduled for November 28, 2006
- Criteria to win blocks:  exploration work commitments and local equipment and service content

## The Brazilian Oil & Gas Market

- Expected investment in Brazil from 2007 to 2011 (Petrobras and other oil companies): US$100 billion
- “In 2005, Petrobras purchased around USD 205MM in US goods and contracted services in the range of USD 800MM”- (Pedro Bonesio, Petrobras Executive Manager, Finance, on 7/31/06)).

## The Brazilian Oil & Gas Market

- 16 new oil platforms to be built through 2008
- Chevron’s recent contract awards for the Frade offshore oil field:  SBM-Imodco, Acergy, FMC, Transocean, Halliburton, Schlumberger, & BJ Services
- SBM is registering subcontractors/suppliers interested in this project: http://sbmimodco.com/frade/

## Upcoming Oil and Gas Trade Shows in Brazil

- Rio Oil and Gas  - September 11-14, 2006 _[www.](http://www.riooilegas.com.br/)__[riooilegas](http://www.riooilegas.com.br/)__[.com.](http://www.riooilegas.com.br/)__[br](http://www.riooilegas.com.br/)_
- Brazil Offshore – June 19-22, 2007
-    _[www.brasiloffshore.com/offshore/index.htm](http://www.brasiloffshore.com/offshore/index.htm)_
- _CS Rio will have U.S. catalog display booths at these events and other services for U.S. companies.  Contact:  __[regina.cunha@mail.doc.gov](mailto:regina.cunha@mail.doc.gov)__ for information._

## US Commercial Service

- Who We Are,
- What We Do ...
- And How

**Notes:**
My agency is the US Commercial Service which is part of the US Department of Commerce.  So, let me begin by speaking a little bit about the US Commercial Service and how we operate.

Who we are: Export arm of US Government and your global business partner
Network: 108 U.S. cities 80 + countries.

What we do:
Export solutions to help SMEs increase profits and lower risks. 
export counseling, customized market research, qualified international contacts and trade leads, advocacy, trade events, and more. 
In 2004, the Commercial Service network helped facilitate $26 billion in U.S. export sales. 

## CS Brazil Promotes...

-  **US Exports in Brazil & Paraguay**
**Trade contacts**
**Trade events, shows, and missions**
**New initiatives (Retail Brazil)**
**Product and co. launches **

**Notes:**
We assist US exporters to penetrate or expand their presence in the Brazilian market.  While we work with companies as large as Boeing and General Electric with their export efforts, our primary focus is on helping small and medium sized enterprises sell to Brazil.  We also work with existing US investors in Brazil to ensure that they have a level playing field.

Next slide please...

## CS Brazil Provides...

**Market intelligence** – briefings, market research (CCG)
**Business Counseling and Facilitation**– product analysis/ product launches
**Contacts and Matchmaking**: trade leads, CNUSA advertising, customized appts.
**Trade finance and incentives:** ExIm, OPIC and TDA

## USCS STRATEGIC PARTNERS

**USCS STRATEGIC PARTNERS**
** **_[www.tda.](http://www.tda.gov/)__[gov](http://www.tda.gov/)_
- _[www.exim.gov](http://www.exim.gov/)_
- _[www.opic.gov](http://www.opic.gov/)_

**Notes:**
As I mentioned earlier, we work with other agencies to offer trade finance, grants and assistance
TDA: The U.S. Trade and Development Agency (USTDA) advances economic development and U.S. commercial interests in developing and middle income countries. The agency funds various forms of technical assistance, feasibility studies, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment.

EXIM BANK: The Export-Import Bank of the United States (Ex-Im Bank) is the official export credit agency of the United States. Ex-Im Bank's mission is to assist in financing the export of U.S. goods and services to international markets.
Ex-Im Bank enables U.S. companies — large and small — to turn export opportunities into real sales that help to maintain and create U.S. jobs and contribute to a stronger national economy.

OPIC: OPIC's core mission is to support economic development by promoting U.S. private investment in developing countries and transition economies

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## Doing Business In Brazil

**Selling to the public sector:**
**Law 8666: no preference for local firms, but...**
**Important to work in association with a local firm**
**Legal representative needed**
**Local presence needed for short turnaround on tenders**

**Notes:**
Let’s spend a few seconds on selling to the government. Even though Federal Law 8666 says that no preference should be given to local firms on government procurement matters, to operate in the public sector in Brazil (that is to sell to the government) as a foreign firm, it’s generally necessary to work in association with a local partner.

If possible, it is also advisable to include some local content; experience shows us that bids containing some amount of local products or services are viewed favorably.

Also note that for government projects, successful bidders are required to have a legal representative in Brazil which can be an attorney, a sales representative, distributor or another entity.  This applies also to companies selling to petroleum giant Petrobras.

Additionally, since the open period for bidding on tenders is often as short as one month, it’s highly advisable to have a permanent resident in Brazil already established and in place to represent you on tenders as soon as they are announced.

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## USCS Services

**Customized Market Analyses**
**Gold Key Service**
**Platinum Key Service**
**International Partner Search**
**International Company Profiles**
**FUSE website listing**

**Notes:**
We provide a variety of services to help US companies with their needs.  

In conjunction with our offices in the US, we provide one-on-one counseling to educate our companies on the intricacies of this market.  We have Industry Specialists in our offices in Brazil and they focus on particular sectors in order to inform U.S. companies about a range of topics concerning their specific industries. 

In addition to one-on-one counseling, our Industry Specialists inform US companies about various sectors and developments within those sectors via market research reports.  Particularly helpful are the often-praised, annually-produced Industry Sector Analyses as well as the more frequently-written International Market Insights that reveal key developments and burgeoning opportunities here.
Likewise, each year, we (and our counterparts in the Commercial sections of the other US Embassies and Consulates around the world) update our Country Commercial Guides for each of our respective countries.  These comprehensive guides contain a wealth of commercial, economic and political information to help our firms familiarize themselves with the landscape of the country in question.  

And if you need further information specific to your industries, we are able to prepare customized analyses for a fee. With this service, you provide the issues and scope of the analyses, we provide the report.

While our market research reports contain tremendous information, at the end of the day, they are simply reports.  To consummate a business relationship here, U.S. companies need to meet face-to-face with prospective business partners.  For this reason, our matchmaker program, called Gold Key Service, is really our bread and butter.  Using information that US firms provide us about their business and their objectives in Brazil, we will design a program of one-on-one business meetings with prospective partners and a translator so that you can maximize your efficiency while in country.  I strongly urge companies looking for Brazilian business partners (be those distributors, representatives, licensees, joint venture partners or other) to use this very helpful service.

We also provide advocacy support for US companies doing business here.  I’ll not go into extensive detail on this, as this service is typically provided to firms with an existing presence in Brazil and which might be facing a specific issue, such as a regulatory or procurement matter with the Brazilian government. 

We also provide listings of potential partners through our International Partner Search, and, with our International Company Profile, we can also help you with your due diligence on prospective partners by doing background checks that include information on trade references, banking references, creditworthiness and their overall standing in the business community.

We also inform companies on which trade promotion events are best suited to help them launch or expand the sales of their product or service here in Brazil.

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## U.S. Commercial Service (USCS)Rio de Janeiro 

- Camille Richardson
- Principal Commercial Officer
- Phone:  55-21-3823-2410
- Fax:      55-21-3823-2424
- camille.richardson@mail.doc.gov
- _www.focusbrazil.org.br_
- _www.export.gov_
- For additional information regarding market research specific to your products and services, ask about our Flexible Market Research and Customized Market Analysis programs  by contacting us at 1-800-USA-TRAD(E) or www.usatrade.gov. Both reports provide timely, customized, reliable answers to your inquiries about a market and its receptivity to your products and services.
- To the best of our knowledge, the information contained in this report is accurate as of the date published. However, the Department of Commerce does not take responsibility for actions readers may take based on the information contained herein.  Readers should always conduct their own due diligence before entering into business ventures or other commercial arrangements.  The Department of Commerce can assist companies in these endeavors.
- ISA Customer Satisfaction Survey

## U.S. Commercial Service (USCS)Rio de Janeiro 

- Regina Cunha
- Senior Commercial Specialist
- Phone:  55-21-3823-2416
- Fax:      55-21-3823-2424
- regina.cunha@mail.doc.gov
- _www.focusbrazil.org.br_
- _www.export.gov_
- For additional information regarding market research specific to your products and services, ask about our Flexible Market Research and Customized Market Analysis programs  by contacting us at 1-800-USA-TRAD(E) or www.usatrade.gov. Both reports provide timely, customized, reliable answers to your inquiries about a market and its receptivity to your products and services.
- To the best of our knowledge, the information contained in this report is accurate as of the date published. However, the Department of Commerce does not take responsibility for actions readers may take based on the information contained herein.  Readers should always conduct their own due diligence before entering into business ventures or other commercial arrangements.  The Department of Commerce can assist companies in these endeavors.
- ISA Customer Satisfaction Survey