[Federal Register: July 15, 2003 (Volume 68, Number 135)]
[Notices]
[Page 41780-41782]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15jy03-36]
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DEPARTMENT OF COMMERCE
Secretarial Oil and Gas Business Development Mission to Russia
AGENCY: Department of Commerce.
ACTION: Notice to announce Secretary Evans--Oil and Gas Business
Development Mission to Russia, September 21-25, 2003.
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SUMMARY: Secretary of Commerce Donald L. Evans will lead a senior-level
business development mission to St. Petersburg and Moscow, Russia from
September 21-25, 2003. The focus of the mission will be to assist U.S.
businesses to explore trade and investment opportunities in the oil and
gas sector including exploration and production, equipment and
services, and transportation. The delegation will include approximately
15 U.S. based senior executives of small, medium and large sized U.S.
firms. The mission will reaffirm U.S. Government support of U.S.-
Russian cooperation in the energy sector and seek to expand
opportunities for U.S. companies. Members will participate in the U.S.-
Russia Commercial Energy Summit in St. Petersburg on September 22-23,
and will participate in additional meetings in Moscow on September 24-
25.
DATES: Applications should be submitted to the Office of Business
Liaison by August 8, 2003. Applications received after that date will
be considered only if space and scheduling constraints permit.
FOR FURTHER INFORMATION CONTACT: Office of Business Liaison; Room 5062;
Department of Commerce; Washington, DC 20230; Tel: (202) 482-1360; Fax:
(202) 482-4054.
SUPPLEMENTARY INFORMATION:
Secretarial Oil and Gas Business Development Mission to Russia
September 21-25, 2003
I. Description of the Mission
Secretary of Commerce Donald L. Evans will lead a senior-level
business development mission to St. Petersburg and Moscow, Russia from
September 21-25, 2003. The focus of the mission will be to assist U.S.
businesses to explore trade and investment opportunities in the oil and
gas sector including exploration and production,
[[Page 41781]]
equipment and services, and transportation. The delegation will include
approximately 15 U.S. based senior executives of small, medium and
large sized U.S. firms. The mission will reaffirm U.S. Government
support of U.S.-Russian cooperation in the energy sector and seek to
expand opportunities for U.S. companies. Members will participate in
the U.S.-Russia Commercial Energy Summit in St. Petersburg on September
22-23, and will participate in additional meetings in Moscow on
September 24-25.
II. Commercial Setting for the Mission
The U.S. has become increasingly engaged with Russia on energy
issues. At the Presidential Summit in May 2002, Presidents Bush and
Putin announced a new Energy Dialogue, with the goals of increasing
global energy supply and security, and promoting U.S.-Russian
cooperation in developing energy resources. The first event of the new
Dialogue was the U.S.-Russia Commercial Energy Summit, in October 2002
in Houston, Texas. This historic Summit brought together top officials
and executives from the U.S. and Russian governments and energy
industries. It was chaired by the U.S. Secretaries of Commerce and
Energy, and the Russian Ministers of Energy and Economic Development
and Trade. Together, they agreed to strengthen energy cooperation
between the U.S. and Russia by working towards the common goals of
diversifying energy supplies, improving the investment environment,
expanding commercial partnerships, and developing resources in an
environmentally responsible way. They also agreed to form the U.S.-
Russia Commercial Energy Dialogue (CED). The CED consists of U.S. and
Russian energy companies, and provides a forum for discussing issues
affecting the U.S.-Russia commercial energy relationship. The CED has
had regular meetings since the Commercial Energy Summit, and will
submit a report outlining ways to promote more U.S.-Russian energy
cooperation at the Second Commercial Energy Summit, scheduled for
September 22-23 in St. Petersburg, Russia.
Oil and Gas Equipment and Services
Russia is currently the fifth largest export market for U.S.-made
oil and gas field equipment. In 2002, U.S. exports of oil and gas field
machinery to Russia totaled $328 million, an increase of 16 percent
from 2001. High oil prices, which allowed Russian oil companies to
invest in new and existing oil fields, new pipeline construction, and
major loans to Russian oil companies from the U.S. Export-Import Bank
and the European Bank for Reconstruction and Development account for
much of this increase.
Because Russia's mature oil production base has been exploited for
decades, efforts to offset production declines and to increase oil
recovery factors have led to excellent prospects for U.S. exports,
especially those targeted at oilfield rehabilitation and enhanced oil
recovery technology. There are also a number of new projects planned
for previously undeveloped regions such as Timan Pechora, East Siberia,
and the Russian Far East. The huge oil fields offshore Sakhalin Island
in the Russian Far East, which are being developed by several
international consortia, present enormous opportunities for U.S.
equipment suppliers. The consortia are expected to invest a total of
$30-45 billion over the 30-year life cycles of these projects.
Investment in energy-related infrastructure such as pipelines, ports,
and processing facilities is also planned.
Oil and Gas Exploration and Production
In 2003, Russia remains the world's top energy producer, when
production of both oil and natural gas is considered on an oil
equivalent basis. This year, Russia could produce as much as 8.0
million barrels of oil and natural gas liquids per day (bpd) and 610
billion cubic meters (bcm) of natural gas. These figures represent a
dramatic recovery in the oil and gas sector since 1996 when oil
production had dropped to only 6.04 million bpd and in 1997, when gas
production was 575 bcm. The Russian government expects oil and gas
production to continue to increase over the next decade as oil
companies discover new fields and rehabilitate old ones.
To date, U.S. companies have played a fairly limited role in
developing Russia's massive oil and gas resources. U.S. companies'
involvement ranges from several small joint ventures to the massive
Sakhalin-I project in the Russian Far East.
Oil and Gas Transportation
Russia's oil exports have been steadily increasing since 1995. In
2003, Russia will export about 5.5 million bpd of crude oil and refined
oil products, based on industry projections. The Russian government and
Russian energy industry have stated that they intend to increase oil
and gas exports, and to find new markets in addition to Europe, where
the demand for oil and gas is expected to remain relatively flat. This
will require new export infrastructure including pipelines and oil and
gas terminals. Currently, consideration is being given to building an
oil terminal at the warm-water port of Murmansk; a 2450-kilometer
pipeline from Angarsk (East Siberia) to Daqing in northeastern China;
and an LNG plant on Sakhalin for gas exports to the Far East.
III. Goals for the Mission
The mission aims to further U.S. commercial policy objectives and
to advance specific U.S. business interests. The mission will:
[sbull] Assess the commercial climate and export and investment
opportunities in Russia;
[sbull] Advance specific U.S. business interests of the mission
members by introducing them to key host government decision-making
officials and to potential clients and business partners;
[sbull] Assist new-to-market firms to gain a foothold in Russia and
increase the visibility of U.S. companies already operating in Russia
in this very competitive market;
[sbull] Support U.S. Government efforts to eliminate market access
problems encountered by U.S. firms in Russia;
[sbull] Encourage continued progress in economic reforms in Russia;
[sbull] Promote U.S.-Russian energy cooperation.
IV. Scenario for the Mission
The Business Development Mission will provide participants with
exposure to high level contacts and access to the Russian market.
American Embassy officials and local U.S. businesses will provide a
detailed briefing on the economic, commercial and political climate,
and current export and investment opportunities. Meetings will be
arranged with appropriate government ministers and other senior level
government officials. In addition, private meetings will be scheduled
with potential business partners. Networking events will also be
organized to provide opportunities to meet Russian business and
government representatives. Secretary Evans will meet with his trade
counterparts and other senior government officials to encourage support
for U.S. companies in Russia's energy sector.
Mission members will participate in the U.S.-Russia Commercial
Energy Summit in St. Petersburg, which will allow them to meet senior
energy sector officials and industry leaders. They will also travel to
Moscow for additional meetings with senior Russian government
officials, as well as for one-on-one sales and business partnership
opportunities.
[[Page 41782]]
The tentative trip itinerary will be as follows:
September 21: Arrive in St. Petersburg
September 22: Commercial Energy Summit in St. Petersburg
September 23: Commercial Energy Summit in St. Petersburg; travel to
Moscow
September 24: Meetings in Moscow
September 25: Meetings in Moscow; depart Moscow
V. Criteria for Participant Selection
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. Approximately 15 companies will be selected for the
mission. Companies will be selected according to the criteria set out
below.
Eligibility
Participating companies must be incorporated in the United States.
A company is eligible to participate if the products and/or services
that it will promote (a) are manufactured or produced in the United
States; or (b) if manufactured or produced outside the United States,
are 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.
Selection Criteria
Companies will be selected for participation in the mission on the
basis of:
[sbull] Consistency of company's goals with the scope and desired
outcome of the mission;
[sbull] Relevance of a company's business and product line to the
identified growth sectors;
[sbull] Rank of the designated company representative;
[sbull] Past, present, or prospective relevant international
business activity;
[sbull] Diversity of company size, type, location, demographics,
and traditional under-representation in business.
[sbull] Timely receipt of signed mission application, participation
agreement, and participation fee.
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.
An applicant's partisan, political activities (including political
contributions) are entirely irrelevant to the selection process.
VI. Time Frame for Applications
Applications for the Russia Business Development mission will be
made available on or about July 3, 2003. The fee to participate in this
mission has not yet been determined, but will be approximately $8,000-
$10,000. The fees will not cover travel or lodging expenses, which will
be the responsibility of each participant. For additional information
on the trade mission or to obtain an application, contact the Office of
Business Liaison at 202-482-1360. Applications should be submitted to
the Office of Business Liaison by August 8, 2003, in order to ensure
sufficient time to obtain in-country appointments for applicants
selected to participate in the mission. Applications received after
that date will be considered only if space and scheduling constraints
permit. A mission website will be posted at http://www.commerce.com/russiamission2003
to share information as it becomes available.
Contact: Office of Business Liaison, Room 5062, Department of
Commerce, Washington, DC 20230, Tel: (202) 482-1360, Fax: (202) 482-
4054,&fnl;http://www.commerce.com/russiamission.
Dated: July 9, 2003.
Dan McCardell,
Director, Office of Business Liaison.
[FR Doc. 03-17807 Filed 7-14-03; 8:45 am]