U.S. Commercial Service Rio de Janeiro, Brazil

1
U.S. Commercial Service Rio de Janeiro,
Brazil

• Remarks by
• Camille Richardson
• Principal Commercial Officer

2
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
  

3
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 MS, Orteng
• Partex, Petrobras, Petroga, PetroRecôncavo
• Petroserv, Petrosynergy, Phoenix, Potióleo

4
Oil Players in Brazil (offshore onshore)

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

5
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

6
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)
  
• Brazils crude API degree of 13 to 42 with an
  average above an API of 20, heavy oil
  
• Offshore fields about 82 of Brazils total oil
  production
  
• Onshore larger number of oil/gas fields

7
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
  

8
The Brazilian Oil Gas Market

• Expected investment in Brazil from 2007 to 2011
  (Petrobras and other oil companies) US100
  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)).

9
The Brazilian Oil Gas Market

• 16 new oil platforms to be built through 2008
• Chevrons 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/f
  rade/
  

10
Upcoming Oil and Gas Trade Shows in Brazil

• Rio Oil and Gas - September 11-14, 2006
  www.riooilegas.com.br
  
• Brazil Offshore June 19-22, 2007
• 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_at_mail.doc.gov
  for information.

11
US Commercial Service

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

12
CS Brazil Promotes...

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

13
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

14
USCS STRATEGIC PARTNERS www.tda.gov www
.exim.gov
www.opic.gov
15
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
  

16
USCS Services

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

17
U.S. Commercial Service (USCS)Rio de Janeiro

• Camille Richardson
• Principal Commercial Officer
• Phone [phone]
• Fax [phone]
• camille.richardson_at_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

18
U.S. Commercial Service (USCS)Rio de Janeiro

• Regina Cunha
• Senior Commercial Specialist
• Phone [phone]
• Fax [phone]
• regina.cunha_at_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