You are hereHome CategoriesNews
Brazilian oil & gas sector fuels investment from Middle East
Source: BI-ME , Author: Posted by BI-ME staff
Posted: Wed July 17, 2013 10:31 am

INTERNATIONAL. GrupoBraz Consulting in association with BrazArtis, an import-export company based in Rio de Janeiro, today announced a campaign aimed at expansion of commerce with specialized product and services providers in the Oil & Gas sector from the Middle East.

This endeavor is fueled by the recent discoveries of Oil & Gas in Brasil and growing imports from the Gulf Region.

Brazil imported about US$2.76 billion worth of petroleum products, gas and energy from the Middle East from January to April of 2013 which accounted for almost 20% of total oil imports to the country, According to the Arab-Brazilian Chamber of Commerce (ABCC). 

In addition to the growing imports of products to the country, foreign specialized labor force has experienced a significant increase. Over the past 3 years, more than 50,000 specialized foreigners were employed in the Oil & Gas industry in Brazil, which represented 25% of all temporary and permanent work permits issued.

Jan Dabrowa, Commercial Director of BrazArtis – GrupoBraz Consulting, said: “Due to the growing demands in the Oil & Gas sector, the much needed resources and services have to be acquired abroad. With this in mind, the Middle East is one of the leading trading partners with Brazil, being a major supplier of Oil and Gas products and at the same time, consumer of Brazilian agricultural products.”

“While imports are on the rise in Brazil, it is important to note that imported products and services are controlled by strict fiscal and import legislation. On average, imported services are taxed at around 50% with six taxes being levied. This includes taxes over services, revenue and income as well as social contribution, financial operations and remittance of capital. Although Brazil offers great business opportunities, they require an understanding and attentiveness to the ever-changing and complex tax and legal regulations.”

As a whole, a notable increase has been noted in imports to Brazil of derivatives, in addition to steady imports of crude oil, naphtha, jet fuel, liquefied natural gas (LNG) and diesel oil, which continue to dominate the imports from the Middle East.

“Due to the current market dynamics and focus on expansion of local industries, adjustments have been implemented recently in the taxation of some products and services in Brazil. This included adjustments of 193 machines and industrial equipments. These changes are meant to benefit various sectors including Oil & Gas, mining, telecommunications, agriculture as well as the service sector.” - added Dabrowa.

The move to expand the exploration of the onshore and offshore basins in Brazil has been validated by the latest bids for exploratory concessions. At an event which took place in May of 2013, 142 blocks have been acquired by both national and international companies. This is equivalent to an area of ​​100,372.31 km² and totaled U$6.9 billion relating to minimum commitments for investments in exploration activities. As a result, Brazil experienced an influx of new foreign suppliers of products and services.

In Q1 of 2013, Saudi Arabia was the larger supplier of oil to Brazil, where Algeria contributed to U$867.75 million, Kuwait U$508 million, the United Arab Emirates U$130 million, Iraq U$104 million, Libya U$78 million, Qatar U$36 million and Bahrain U$660,000, according to ABCC.

About BrazArtis Commerce – GrupoBraz Consulting:

BrazArtis specializes in offering full trade solutions to companies wanting to enter the Brazilian market, source bulk quantity products and/or expanding their operations abroad. Its prime objective is to represent and guide companies through business transactions, facilitate safe and efficient operations, mitigate risks and achieve corporate business goals.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: June 29, 2017
SAUDI ARABIA. Ashridge Executive Education says the region's healthcare issues like diabetes can be tackled better by giving leadership training and power to those at the frontline of diabetes care.
date:Posted: June 28, 2017
UAE. Global defence subsector grew by 2.1% to US$351.3 billion as military spending increases; European commercial aerospace grew by 6.7%, outpacing the US which only grew marginally by 1.3%, for second consecutive year.
date:Posted: June 27, 2017
UAE. 38% of patients have trust in the system; 78% eager to use new technologies to make healthcare decisions.
dhgate