The innovation, diversity and abundance of natural resources are characteristics of our country and differentials that attract investors from all over the world. The oil and gas industry currently moves around 13% of Brazilian GDP and has a long chain, which goes from the wells to gas stations, with constant opportunities for a wide variety of international companies seeking to operate in the country, through partnerships.

In the oil and gas sector, Brazil is the largest producer in Latin America and one of the top 10 in the world. This milestone is the result of Brazilian entrepreneurship and the work of excellence of companies in the sector. In the field of ultra-deep-water exploration and production Petrobras has led the development of a set of technologies for pre-salt exploration. This shows the capacity of the Brazilian supplier industry to innovate. In this example the oil company acted in partnership with the industry to create engineering solutions directly applicable to the exploration and production area.

In 2020, with the covid-19 pandemic, the industry suffered a significant impact, pushed by decreasing demand and lower international oil prices. However, the oil sector showed its ability to resist crises and leverage the recovery of the economy.

In a scenario where the energy transition is presented as a global challenge, Brazil continues to stand out as a global player. The diversification and balance of the Brazilian energy matrix has opened a new frontier of opportunities for the country. Due to the pressure over producing countries to redirect investments to renewable sources, the search for alternatives has led several oil companies to direct their investments to the oil and gas sector in Brazil, opening a new frontier of investments.

This move has also been stimulated by Petrobras' bold divestment plan for assets located in onshore and conventional offshore, and the sale of refineries and other assets. The offer of a broad portfolio of fields and blocks by the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP) – whether on permanent offer and on the next bidding rounds, scheduled for early 2021 – make the Brazilian market even more attractive to international investors.

Despite the current volume of Brazilian oil production, our capacity can still be expanded and the way to increase exploration and production is by strengthening the sector. New Brazilian and foreign companies, served by Apex-Brasil, have come up with solutions based on innovative technologies and new businesses in the area of services and supply chain, showing the sector's capacity to renew itself and add even more value to the industry.

To support companies and institutions in the sector in facing the challenges, the Brazilian Trade and Investment Promotion Agency (Apex-Brasil) has developed a series of initiatives aimed to attract investments. We have developed a portfolio of services oriented to strengthen the foundations of the sector, disseminate innovation, support the generation of new businesses, position Brazil as an important player in the global value chain and attract investments for the growth of the economy.

One of our main programs is the Brazilian Petroleum Partnerships (BPP), an ongoing program that aims to form partnerships between Brazilian and foreign companies to strengthen the supply chain and develop investment opportunities in Brazil. The partnerships developed under the program have also helped foreign companies meet local content requirements in compliance with ANP regulations. Currently, BPP manages a portfolio of about 50 technology based innovative Brazilian companies and 15 foreign companies that are being supported to find their ideal business partners and make a soft-landing in our country.

In addition to the service through BPP, Apex-Brasil supports Brazilian companies in accessing the international market, including the promotion of their businesses at international fairs. That is the case of the Offshore Technology Conference (OTC), held annually in Houston, USA, and considered the largest trade show in the oil and gas sector in the world. The Agency is responsible for organizing the Brazilian Pavilion and the participation of Brazilian companies in the event. In the 2019 edition, 50 companies from the industry participated in the trade show and an internationalization business mission was held with seminars, technical visits, and consultancy on how to establish operations in the U.S., and more specifically in Houston.

Another outstanding initiative of Apex-Brasil is the Digital Oil & Gas Mission. This action was carried out in two phases in 2020 and aimed to explore opportunities for the sector in the three core activities of Apex-Brasil (Export promotion, Internationalization of companies, and Investment Attraction). The first phase led 15 select companies to present their innovative solutions to four of the main operators present in Brazil (Petrobras, Shell, Equinor and Eneva). This action mobilized about 150 companies, among which 15 were selected, receiving training for the development of pitch sessions and guidelines for negotiating with potential foreign investors.

The second phase of the Mission aimed to train companies in the methodology of internationalization and promote export opportunities with a focus on the USA. A total of 25 companies participated in this stage, which sought to develop contacts and networking with service providers and potential customers located in this country.

For 2021, Apex-Brasil plans a mix of activities, considering the still uncertain scenario of the pandemic. Registration for the OTC Brazilian Pavilion in 2021 is already open. The participation of interested companies can be confirmed until February 2021. The BPP program is also available to support Brazilian and foreign companies that intend to seek international partnerships to explore opportunities to invest in Brazil.

And finally, given the success of the Digital Oil and Gas Mission this year, we will hold a new edition on the first half of 2021, to be released from March 2021.

Roberto Escoto, Head of Investment Department of the Brazilian Trade and Investment Promotion Agency (Apex-Brasil)