Brazil and Venezuela to start data exchange for oil industry

Aug 07, 2000 02:00 AM

Brazil and Venezuela announced they would begin to share data on qualified service and equipment suppliers for the oil industry, which will open the door for potentially billions of dollars in investment. Both Venezuela's PDVSA and Brazil's Petrobras federally owned companies view the data exchange as a means to strengthen their commercial ties.
According to Eduardo Rappel, director of Brazil's Petroleum Industry Organisation (Onip), the lack of reliable data on qualified suppliers of equipment and services for the sector has been a severe impediment to commercial partnership projects between the two countries. "Because of the high cost associated with the lack of data on qualified companies, Brazilian suppliers have done practically no business in neighbouring Venezuela," said Rappel.
According to PDVSA director Alejandro Newski, Venezuela is chiefly interested in offshore oil exploration and production equipment and services. He said only three Brazilian companies, Odebrecht, Mannesmann, and Confab Industrial, are currently qualified to supply PDVSA, while the company has a list of more than 1,200 qualified suppliers.
"The oil industry is very conservative, and wants to make sure their suppliers offer quality products and services," said Newski. Brazil will mark its entry into the digital marketplace for equipment and services in the petroleum sector with the creation by October of a new business-to-business portal, said Rappel. "We plan to have at least 500 companies registered by the end of the year, which will greatly ... reduce the costs of companies searching for partnerships not just in Brazil, but internationally," Rappel said.

Petrobras and PDVSA are currently "studying" possible future partnerships, said Newski. The companies have already announced plans to open 1,600 new gas stations in northern Brazil in a 50-50 % partnership, with Petrobras to assume a shareholder stake in a PDVSA oilfield in return.
According to official Roberto Gianetti of the Brazilian government's Foreign Trade Commission (CAMEX), total investments in petroleum within the two countries could easily exceed $ 100 bn by 2009. "Brazil is also working with the Andean Community to create a new format for trade, which could facilitate trade in goods and services for petroleum with Venezuela," he said. On Aug. 29, Brazilian President Fernando Henrique Cardoso will meet with the Andean Community president, and President of Venezuela, Hugo Chavez to discuss the trade plan in Brasilia.
He said Brazil expects results in the second half of this year. Once the agreement on tax and trade is reached, the deal could serve as the basis for multilateral co-operation within the petroleum industry in South America. "Brazil will negotiate individually with the Andean countries, although the agreements might eventually be offered to the Mercosur countries as a whole," said Gianetti.

Source: Bridge News via Newspage
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