Brazil to Shift to Domestic Providers in Oil Sector

A meeting with large companies in the oil and gas sector could generate business deals of at least US$ 6 million for micro and small businessmen from 12 Brazilian states over the next 12 months.

Suppliers and buyers met, on September 4 and 5, in a business roundtable during Rio Oil & Gas 2004, an international sector fair that started at the beginning of the week and will go on until tomorrow, in Rio de Janeiro, in southeastern Brazil.


These purchases of US$ 6 million were closed on the first day of the event alone. Today, the Brazilian Micro and Small Business Support Service (Sebrae), one of the promoters of the event, together with the National Organization of the Petroleum Industry (Onip), will be publishing the final result of the event. The figure, however, is already greater than the initial forecast of US$ 3.5 million.


A total of 196 micro and small companies participated in the event so as to be able to offer products that range from equipment for platforms, valves and software to maintenance or cleaning services.


On the other side of the counter were oil sector giants like Brazilian Petrobras, and international companies Halliburton, Weatherford and Schlumberger.


Although some of the companies, among them US company Halliburton, have foreign capital, all of them have operations in Brazil.


The micro-businessmen who participated in the business roundtables were trained by the Sebrae, together with another 760 small Brazilian companies, to serve the large players in the sector. The roundtable and the training are part of a greater project to replace sector import for products made by domestic producers.


“Petrobras currently purchases 50% of its products on the domestic market, and 50% on the foreign market,” stated the director-superintendent of the Sebrae in Rio de Janeiro state, Paulo Maurí­cio Castelo Branco.


The companies in Campos basin that are directly contracted by Petrobras, where the state-owned oil giant has one of its largest operations, execute just 10% of their purchases domestically, according to Castelo Branco.


In the region there are, however, 400 potential suppliers for the oil and gas sector. Around 90 of these companies were trained within the Sebrae and Onip program and are already providing services directly or indirectly to large companies.


The training program began in 2002. Up to now, the small entrepreneurs are only exploring the domestic market. The intention, however, is to go after international contracts later on.


“Companies that can offer good prices and quality services to organizations like Petrobras are prepared to supply to companies anywhere in the world,” stated Castelo Branco.


Oil Mayors


Yesterday, during Rio Oil & Gas, the Sebrae also released a guide for mayors of oil producing cities. The purpose of these publications is to provide orientation to administrators as to how the local community can benefit from the exploration of oil and gas.


The Sebrae is working on the establishment of a nation-wide network of oil producing cities, following the experiment in Campos Basin.


In the region, around ten cities, among them Macaé, Cabo Frio and São João da Barra, established the Organization of Cities in the Campos Basin Region to discuss actions turned to the oil area.


The Sebrae wants to expand the program around the country so that the mayors can discuss ways to guarantee the quality of life of populations living around platforms and the refining industry, how to establish a supply infrastructure in the region, and also how to work so that the local economy can have other alternatives for when the oil finishes.


In Brazil there are, according to the Sebrae, around 800 cities with incomes generated by the oil and gas sector.


The Fair


Up to Thursday, Rio Oil & Gas should receive around 35,000 visitors, according to forecasts by the Brazilian Oil Institute (IBP), the event organizer.


Around 800 exhibitors from 35 countries, among them the main world producers in the gas and oil area, are participating in the event.


Apart from the fair, there will also be a series of talks turned to the area. One of the themes to be discussed today is the natural gas sector.


Service


Rio Oil & Gas Expo and Conference
Date: October 04 to 07
Exhibition: from 12:00 pm to 08:00 pm
Conference: from 01:00 pm to 07:00 pm
Location: Riocentro, Avenida Salvador Allende, 6555 – Rio de Janeiro (RJ)
Information: (+5521) 2532-1610


ANBA – Brazil-Arab News Agency

Tags:

You May Also Like

Brazil May Reconsider Threat to Take Argentina do WTO

The Brazilian goverment and that of Argentina reached "relatively productive" results following the São ...

Brazilian Rice Growers Say They Are Losing Money and Nobody Cares

In the city of Esteio, 25 km from Porto Alegre, state of Rio Grande ...

Senator Gives First Salvo on Brazil’s Disarmament Campaign

Today the president of the Brazilian Senate, Renan Calheiros from the Alagoas PMDB party, ...

Nigeria Joins Brazil Fight to Reform the UN

Brazilian President Luiz Inácio Lula da Silva said in his speech during the banquet ...

Brazil’s Petrobras to Invest US$ 87 Billion in Aggressive 5-Year Plan

Brazilian-government-owned oil corporation Petrobras plans to invest US$ 87 billion between 2007 and 2011 ...

Sudan Benefits from Brazilian Program of Technology Transfer

The governments of Brazil and Sudan have signed a protocol of understanding for cooperation ...

A Push to Spread Brazilian Limes Overseas

The southeastern Brazilian state of Minas Gerais wants to export limes to the United ...

New Numbers on Life and Death Are In and Brazil Has Nothing to Call Home About

In 2000, Brazil was in 100th place on the UN list of countries ranked ...

Brazil Will Get 1 Million New Jobs This Year and 5% Growth the Next, Says Lula

Brazilian President Luiz Inácio Lula da Silva announced that Brazil will end 2009 with ...

In Brazil, Only 40% of Court Cases Are Judged in One Year or Less

The large number of legal appeals and the lack of organization and communication among ...

WordPress database error: [Table './brazzil3_live/wp_wfHits' is marked as crashed and last (automatic?) repair failed]
SHOW FULL COLUMNS FROM `wp_wfHits`