Identifier
Created
Classification
Origin
08SCTION02OF02SAOPAULO335
2008-06-26 09:29:00
CONFIDENTIAL
Consulate Sao Paulo
Cable title:
AMBASSADOR DISCUSSES BRAZILIAN OIL CONCESSION
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C O N F I D E N T I A L SCTION 02 OF 02 SAO PAULO 000335
SIPDIS
STATE FOR WHA/BSC,WHA/EPSC, EEB/ESC
USDOC FOR 4332/ITA/MAC/WH/OLAC/JANDERSON/ADRISCOLL/MWAR D
DEPT OF TREASURY FOR JHOEK
NSC FOR TOMASULO
E.O. 12958: DECL: 03/14/2018
TAGS: ECON ENRG EPET PGOV EINV EAGR BR
SUBJECT: AMBASSADOR DISCUSSES BRAZILIAN OIL CONCESSION
MODEL WITH DELFIM NETTO
the concession model and even more unlikely that it would
choose to change the rules on existing concessions.
Political and economic stability have been the cornerstones
of Brazil's policies and largely led to Brazil obtaining
investment grade status (Ref D). While some modification of
exploration and concession rules may take place for these new
"mega fields", it is doubtful the GOB would do anything to
undermine the overall image of Brazil as a stable country in
which to invest.
7. (C) Unlike Delfim Netto's view that the USG should hold
off on intervening to establish these new rules, Brazil's
Ministry of Mines and Energy, regulators, and US energy
companies have suggested that it could instead be within this
period for the USG to intervene. Indeed, Petrobras' interest
in consolidating deep-sea drilling in the Gulf of Mexico and
vertical integration in the US market could open an important
window of opportunity for the USG. Furthermore, ANP has
expressed interest in learning more about US small and medium
sized energy companies operating in US states to develop a
similar capacity in Brazil. They have, in fact, asked for
USG assistance to travel to the US to meet with and further
learn about this important part of the energy equation.
Clearly, Brazil's energy sector offers new partnerships,
opportunities, and increased energy security for the US. As
Brazil begins to increase exploration of its newfound
"pre-salt" reserves that many believe could be larger than
the finds in the North Sea, the US could potentially
capitalize on these new technologies to develop our own
offshore exploration efforts. Early engagement may be
crucial to ensuring that US firms will have opportunities in
this market. END COMMENT.
WHITE
SIPDIS
STATE FOR WHA/BSC,WHA/EPSC, EEB/ESC
USDOC FOR 4332/ITA/MAC/WH/OLAC/JANDERSON/ADRISCOLL/MWAR D
DEPT OF TREASURY FOR JHOEK
NSC FOR TOMASULO
E.O. 12958: DECL: 03/14/2018
TAGS: ECON ENRG EPET PGOV EINV EAGR BR
SUBJECT: AMBASSADOR DISCUSSES BRAZILIAN OIL CONCESSION
MODEL WITH DELFIM NETTO
the concession model and even more unlikely that it would
choose to change the rules on existing concessions.
Political and economic stability have been the cornerstones
of Brazil's policies and largely led to Brazil obtaining
investment grade status (Ref D). While some modification of
exploration and concession rules may take place for these new
"mega fields", it is doubtful the GOB would do anything to
undermine the overall image of Brazil as a stable country in
which to invest.
7. (C) Unlike Delfim Netto's view that the USG should hold
off on intervening to establish these new rules, Brazil's
Ministry of Mines and Energy, regulators, and US energy
companies have suggested that it could instead be within this
period for the USG to intervene. Indeed, Petrobras' interest
in consolidating deep-sea drilling in the Gulf of Mexico and
vertical integration in the US market could open an important
window of opportunity for the USG. Furthermore, ANP has
expressed interest in learning more about US small and medium
sized energy companies operating in US states to develop a
similar capacity in Brazil. They have, in fact, asked for
USG assistance to travel to the US to meet with and further
learn about this important part of the energy equation.
Clearly, Brazil's energy sector offers new partnerships,
opportunities, and increased energy security for the US. As
Brazil begins to increase exploration of its newfound
"pre-salt" reserves that many believe could be larger than
the finds in the North Sea, the US could potentially
capitalize on these new technologies to develop our own
offshore exploration efforts. Early engagement may be
crucial to ensuring that US firms will have opportunities in
this market. END COMMENT.
WHITE