Mission Statement
Oil and Gas Business Development Mission to Nigeria, Gabon, and Sao Tome and Principe
Equipment and Services & Exploration and Production
November 15-22, 2003
Mission Description
From November 15 to November 22, 2003, the Deputy Assistant Secretary of Commerce for Energy, Environment, and Materials in the Trade Development section of the International Trade Administration plans to lead an oil and gas business development mission to Nigeria, Gabon, and Sao Tome and Principe. The mission will include representatives from U.S. oil and gas companies interested in entering or expanding their presence in these Gulf of Guinea countries. The mission will focus on oilfield equipment and services as well as exploration and production opportunities.
Commercial Setting
West Africa’s burgeoning oil and gas sector presents numerous opportunities for U.S. companies that operate in the oil and gas infrastructure, equipment, services, exploration, and production sub-sectors. In West Africa, and in the Gulf of Guinea in particular, increased attention is now being given to traditional producer countries. Countries that have yet to experience substantial exploration efforts are now receiving increased attention as well. Nigeria averages a production level of 2.2 million barrels of oil per day (bbl/d), Gabon averages a production level of 250,000 bbl/d, and Sao Tome has not yet undertaken meaningful exploration
Nigeria is a traditional oil and gas producer and one of the largest energy producers and exporters in the world. Despite Nigeria’s dominating presence in African energy and longstanding position of prominence in the global energy industry, significant opportunities remain for U.S. industry in that country’s oilfield and energy services sectors. Liquified natural gas (LNG) has recently come to the forefront of energy activities in Nigeria, and near-term opportunities exist for U.S. companies. Nigeria has already undertaken, or will soon begin, several ambitious LNG projects.
Gabon is a traditional oil producing country whose production levels are in slow decline. Much like the United Kingdom’s North Sea oil province which is facing a similar scenario, Gabon is seeking additional foreign company interest particularly among so-called independents. Small and medium-sized companies can be best-positioned to take advantage of these shallow-water opportunities because of their economies of scale. The biggest oil and gas companies are simply finding it more and more difficult to operate in declining oil provinces such as the UK North Sea or Gabon’s shallow-water. In addition, new technologies now exist that enable increased levels of extraction from diminishing fields. Untapped opportunities still exist in Gabon’s shallow-water and deep-water blocks, a prospect that may be attractive to both independents and majors.
Sao Tome and Principe is one of the largest untapped oil provinces in Africa and several major oil and gas companies have recently shown interest in this small nation. ExxonMobil Corporation already holds exploration and production rights for multiple blocks through previous agreements. Despite its lack of exploration or production, prospects are good for Sao Tome and Principe. Exploitation of offshore petroleum had been impossible due to a maritime boundary dispute between Sao Tome and Principe and Nigeria. Completion of the Joint Development Zone (JDZ) agreement between the two nations followed a resolution of the dispute, clearing the way for business to commence. The first round of international tendering for offshore blocks in the JDZ has closed and bids will be opened and evaluated beginning in October 2003.
Mission Goals
The mission will seek to increase U.S. exports of goods and services to oil and gas industry markets in the Gulf of Guinea, West Africa. With regard to Sao Tome and Principe, the mission will also act to introduce multiple new-to-market companies to the opportunities present there. In Gabon and Sao Tome and Principe, exploration and production will feature prominently, while in Sao Tome and Principe and Nigeria opportunities with oilfield equipment and services will be emphasized.
Mission Scenario
The mission is scheduled to depart the United States on November 15, 2003 and arrive in Lagos, Nigeria on November 16. Mission activities formally begin on November 17. The itinerary for Nigeria will include economic and commercial briefings, one-on-one meetings with possible local alliance partners, receptions, and meetings with senior executives at the Nigerian National Petroleum Corporation.
After two full days in Nigeria the mission will continue to Libreville, Gabon on November 19 for meetings with critical elements of Gabon’s energy industry, including both senior corporate and governmental representatives.
The mission will then continue on to Sao Tome and Principe on November 20 for a program that will include extensive discussions with senior governmental representatives on the Sao Tome and Principe-Nigeria Joint Development Zone. The program will also address the commercial significance of the, by-then, recently awarded offshore blocks and additional upcoming opportunities.
The mission is scheduled to depart Africa for the United States on November 22, 2003 and arrive on the same day.
The precise schedule will depend in part on the availability of local government and business officials and the specific goals of the mission participants. The tentative schedule for the trade mission is as follows:
Saturday November 15 Depart for Nigeria
Sunday November 16 Arrive in Nigeria (4:50pm)
Monday November 17 Briefings and meetings: Nigeria
Tuesday November 18 Meetings and site visits: Nigeria
Wednesday November 19 Meetings: Nigeria
Depart for Gabon (1:05pm arrive 2:45pm)
Thursday November 20 Briefings and meetings: Gabon
Depart for Sao Tome (4:30pm)
Friday November 21 Meetings and site visits: Sao Tome and Principe
Depart for Gabon (7:30pm)
Saturday November 22 Depart for USA (9:50am)
Arrive in USA (9:15pm)
Criteria For Company Participation
The recruitment and selection of private sector participants for this mission will be conducted according to the Statement of Policy Governing Department of Commerce Overseas Trade Missions established in March 1997. Companies will be selected for the mission according to the criteria set out below.
- Consistency of the company’s market development goals with the scope and desired outcome of the mission as described.
- Past, present, or prospective business in West Africa.
- Diversity of company size, type, location, demographics, and traditional under-representation in business.
- Timely receipt of signed mission application, participation agreement, and participation fee of $3,000, and $1,000 for each additional representative. The fee does not include airfare, hotels, meals, or other personal expenses.
- Whether the company’s overall business objectives, including those of any U.S. or overseas affiliates, are fully consistent with the mission’s foreign and commercial policy objectives.
- Provision of adequate information on company’s products and/or services, and company’s primary market objectives, in order to facilitate appropriate matching with potential business partners.
Companies attempting to market goods and services on Department of Commerce trade missions must certify that these goods and services will be either (a) manufactured or produced in the United States, or (b) if manufactured or produced outside of the United States, be marketed under the name of a U.S. firm and have U.S. content representing at least 51 percent of the value of the finished good or service.
Recruitment will begin immediately and will be conducted in an open and public manner, including publication in the Federal Register, posting on the Commerce Department trade missions calendar - http://www.ita.doc.gov/doctm/tmcal.html - and other Internet websites, press releases to the general and trade media. Promotion of the mission will also take place through the involvement of U.S. Export Assistance Centers and relevant trade associations.
Any partisan political activities of an applicant, including political contributions, will be entirely irrelevant to the selection process.
Applications
Application deadline: September 15, 2003. Applications may be submitted immediately to Aaron Brickman (contact information follows). Applications received after the deadline will be considered if space and scheduling constraints permit.
Contact Information
Name: Aaron Brickman
Office: Office of Energy, International Trade Administration
Telephone: 202-482-1889
Fax: 202-482-0170
Email: aaron_brickman@ita.doc.gov
Address: 14th Street & Constitution Avenue, NW
Room 4054
Washington, DC 20230