Keppel to Build 5 DSS 38E Semis for US$4.12 Billion for Sete Brasil

Keppel Offshore & Marine Ltd (Keppel O&M), through its subsidiaries, Keppel FELS Brasil S.A. and Estaleiro BrasFELS Ltda, has signed a Letter of Intent (LOI) with Sete Brasil Participações S.A. (Sete Brasil), for the design and construction of five additional semisubmersible (semi) drilling rigs based on Keppel's proprietary DSS 38E design. The aim of the LOI is to facilitate Keppel O&M's preparation work on these potential projects, pending the signing of the final construction contracts. The total value of the contracts, if and when successfully agreed and executed between Keppel O&M and Sete Brasil, will be approximately US$4.12 billion. Earlier in December 2011, Keppel O&M secured one semi to be built to the same DSS 38E design from Sete Brasil. Like the first rig, the additional five rigs are intended to support Brazil's exploration of its vast proven offshore oil and gas resources. The DSS 38E design is an enhancement of Keppel's proven fifth generation deepwater solution, the DSSTM 38. With improved capability and operability, the DSSTM 38E is well suited to meet the stringent requirements of the deepwater "Golden Triangle" region, comprising Brazil, Africa and the Gulf of Mexico. Sete Brasil's Chief Executive Officer, Mr Joao Carlos Ferraz, said, "We have entered into this LOI for five additional semis from Keppel, as we are confident of Keppel's strong track record in the design and construction of deepwater rigs, as well as their established yard in Brazil. It is full steam ahead for us in growing our fleet of rigs and vessels to support the E&P activities in offshore Brazil, and we need to partner shipyards like Keppel which can deliver the quality rigs in a timely manner which we are looking for." Mr Tong Chong Heong, Chief Executive Officer, Keppel O&M, said, "We are pleased that Sete Brasil is moving ahead with the decision to order five additional semis on top of the first DSS 38E semi ordered late last year. With our proven track record at our Angra yard in Brazil, we believe we are in a good position to continue to contribute effectively to the growth of Brazil's oil and gas industry." Jointly developed and owned by Keppel's Deepwater Technology Group and Marine Structure Consultants, the DSS 38E design is an innovative and cost-effective design. It is rated to drill to depths of 10,000 metres below the rotary table in 3,000 metres water depth. Its operational displacement is approximately 45,000 tonnes. Each rig will have accommodation facilities to house a crew of up to 160 men. The vessel is designed to stay in position via eight Azimuthing thrusters and the configurations comply with the American Bureau of Shipping Dynamic Positioned System (DPS-3) requirements. The transaction mentioned above is not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.

Joint Company Established by TOYO and SOG in Brazil

04/25/2012 | 03:37am Toyo Engineering Corporation (TOYO, President and CEO Yutaka Yamada) and SOG - Óleo e Gás S.A. (SOG, CEO Mauricio Godoy), a leading engineering company in Brazil, have agreed to establish a joint company to further reinforce operations in Brazil. Both companies aim to establish a holding company "TS Participações S.A." in June 2012 with a shareholding ratio of 50% per each company. The new company affiliates "TOYO-SETAL Engenharia Ltda." engaging in EPC of onshore business, and "Estaleiros do Brasil Ltda. (EBR)" engaging in EPC of offshore business including FPSO. Both companies will be established as fully held subsidiaries. EBR will own and operate a module fabrication and integration yard for the offshore business in the state of Rio Grande do Sul in the southern part of Brazil. SOG has handled a wide variety of projects in Brazil in the fields of oil, gas, petrochemicals and infrastructure, constructed offshore facilities (including FPSO and offshore platforms), and also operated a shipbuilding yard. TOYO has been collaborating with SOG for many years in oil and gas projects in Brazil. After making its first entry into Brazil in 1965, TOYO has engaged in a diverse range of large scale projects, and is now carrying out various projects in Brazil including 3 FPSO projects. TOYO opted to establish this joint company in response to the Brazilian Government policy of "Increasing the ratio of domestic production" and "Promoting technology transfer" as well as in accordance with TOYO's management strategy of expanding and upgrading the network of localized EPC bases in emerging countries. Brazil is blessed with an abundance of natural resources and maintains steady economic growth thanks to its increasing domestic demand. In this favorable environment, more investment than ever is expected to be made in development of offshore oil fields as typified by pre-salt oil fields and their downstream facilities as well as in infrastructure such as power generation and transportation systems. Foreign businesses, including Japanese companies, are expected to increase the number of their manufacturing bases and investment in development of natural resources. TOYO and SOG will contribute to the growth of the Brazilian economy through this company and exert efforts to expand business opportunities in the country. In future, the company will develop business in other South American and West African countries. Summary of Joint Company Company name TS Participações S.A. (It owns "TOYO-SETAL Engenharia Ltda." and "Estaleiros do Brasil Ltda." Location São Paulo with offices in Rio de Janeiro and São José do Norte, Federative Republic of Brazil Outline of business EPC contractor of onshore and offshore business such as oil, gas, petrochemicals, infrastructure and etc. Operation of the module fabrication and integration yard for the offshore business Ratio of shareholding TOYO 50% : SOG 50% About SOG - Óleo e Gás S.A. (SOG) SOG is one of the leading Engineering, Procurement and Construction (EPC) contractors in Brazil with specialized engineering team as well as with decades of experience in high complex projects. SOG has large experience in more than 400 projects, including 100 projects with Petróleo Brasileiro S.A. - PETROBRAS. SOG offers the most optimized EPC solutions for the Onshore and Offshore segments and is prepared to act in other segments such as Petrochemicals, Chemicals, Mining, Infrastruture, Power and Process and has been developing the shipyard (EBR) dedicated to Offshore segment.

Humala says Peru building $3 bln natural gas pipeline

(Reuters) - Peru will soon start construction on a $3 billion natural gas pipeline from the Camisea fields that will feed planned petrochemical plants on the country's southern Pacific coast, President Ollanta Humala said on Thursday. Brazil's Odebrecht and the U.S. firm Conduit will build the 620-mile (1,000 km) long pipeline, which has been stalled for several years. Construction is expected to start in next couple of months. It would be the country's second pipeline from the Camisea gas fields in Peru's southeastern jungle. The existing pipeline runs north toward the capital Lima. The new pipeline will run from near the Inca city of Cuzco to Arequipa. Humala, who took office in July and campaigned on promises to make inexpensive natural gas widely available on the domestic market for use in kitchens and cars, said the pipeline would help transform Peru's energy matrix, which is highly reliant on petroleum imports. He also said the pipeline would help develop the country's poor southern provinces. "This region has historically been ignored by the state," he said wearing a blue-feathered headdress and a poncho in the jungle town of Quillabamba. "This project will generate more than 40,000 jobs, more than 2 percent of GDP and related industries. We'll have the first petrochemical complex in the southern Pacific," he said. Major global energy firms have said they plan to participate in the petrochemicals plants, which would produce everything from fertilizer to explosives, but they first need to have steady and guaranteed supplies from the Camisea fields. Humala is also trying to steer more gas from the Camisea fields to the domestic market. The Peru LNG consortium, which is led by US-based Hunt Oil and also includes South Korea's SK Energy and Japan's Marubeni, began exporting liquefied natural gas in 2010 from the Peruvian liquefaction plant in Pampa Melchorita. Humala said that next week he will announce an agreement with the consortium of firms that operate Camisea to earmark fuel from Block 88 in the gas fields to domestic use. The consortium includes Argentina's Pluspetrol, Repsol-YPF, Hunt Oil, SK, Algeria's Sonatrach and Tecpetrol Argentina. Talks over Block 88 will not impact exports because they are fed from another area, Block 56. Peru says it has gas reserves of between 11.2 and 18.6 trillion cubic feet in its two main blocks. Negotiations between the Peruvian government and the consortium began in July 2010 during the administration of former president Alan Garcia. "Without having to take any drastic measures, we have made sure that the Camisea consortium will identify with national needs and collaborate on this project," Humala said

Blue Water to support FPSO conversion by SBM for Brazil

ESBJERG, Denmark – SBM Offshore has contracted Blue Water Shipping to provide logistics for materials and equipment to yards in China and Brazil, where conversion of the FPSO Cidade de Ilhabela will take place over the next two years.
The vessel is being converted from a tanker which is 400 m (1,312 ft) long and 70 m (229 ft) wide. Post-conversion, Blue Water claims, this will be the world’s largest FPSO and will operate offshore Brazil.
The project will involve several thousand shipments and involves Blue Water’s offices in Rio de Janeiro, Shanghai, Singapore, Esbjerg, Rotterdam, Aberdeen, and Houston.
Initially the focus will be in China where the preliminary basic changes will be performed to the tanker. Thereafter, the vessel will sail to SBM’s shipyard in Brazil for the final part of the conversion.
Conversion should be completed in 2014, with an estimated project cost of $4.6 billion.

Participation in FPSO Chartering for North Part of Sapinhoa Field (former Guara Area) in Petrobras's Pre-salt Area

Mitsubishi Corporation (MC) is pleased to announce that a Joint Venture established by affiliated company of SBM Offshore N.V. ("SBM"), MC, and affiliated companies of Queiroz Galvao Oleo e Gas S.A. (QGOG), has executed a contract with GUARA B.V., a Dutch company belonging to the BM-S-9 Consortium (*1), for the 20 (twenty) years charter of a Floating Production, Storage & Offloading System (FPSO). The Joint Venture has also executed a contract for the 20 years operation of the same FPSO with Petroleo Brasileiro S.A.

Based on the contracts, the Joint Venture will deliver the FPSO for development of the north part of Sapinhoa oil field located off the shore of Brazil (*2). Upon completion of the engineering, procurement and construction (EPC) work, the FPSO will be named FPSO Cidade de Ilhabela.

SBM is responsible for the EPC work of the FPSO. The FPSO will include topside facilities to process 150,000 bpd of production fluids and to treat associated gas for 6,000,000 Sm3/day as well as facilities for compression, removal of carbon dioxide and hydrogen sulphide, and water injection (180,000 bpd). The FPSO is scheduled for delivery during the second half of 2014, and it is expected to be chartered for 20(twenty) years, contributing to oil production in Brazil.

In February 2011, MC signed a long-term cooperation agreement with SBM, to jointly pursue FPSO lease and operate projects worldwide, and this unit will be the first milestone project for this long-term cooperation. MC will continue to expand its FPSO business worldwide, mainly in Brazil, based on the long-term cooperation with SBM.

Notes:

*1: An establishment consisting of PETROLEO BRASILEIRO S.A. - PETROBRAS (Operator, 45%), BG E&P BRASIL LTDA (30%), and REPSOL SINOPEC BRASIL S.A. (25%).

*2:Located in block BM-S-9 in the Santos Basin at approximately 300 kilometres offshore and 2,140 metres water depth.

Keppel Wins Preliminary $4.12 Billion Rig Order From Sete Brasil

Keppel Corp. (KEP), the world’s biggest builder of oil rigs, won a preliminary order worth about $4.12 billion from Sete Brasil Participacoes SA as Brazil’s state- backed oil company develops new fields off the country’s coast
Sete Brasil, part-owned by Petroleo Brasileiro SA (PETR4), signed a letter of intent to buy five semi-submersible rigs that will be made in Brazil, according to a statement from Singapore-based Keppel today. A final agreement may be signed within two months, according to a spokesman who declined to be named citing company policy.
Keppel is building its second yard in the South American country as Petrobras works through plans to spend $224.7 on equipment to support exploration in the largest crude discovery in the Americas since 1976. Sembcorp Marine Ltd. (SMM), the world’s second-biggest rig maker, and Hyundai Heavy Industries Co. have also invested in Brazil because of demand from Petrobras.
Sete Brasil said it February it will spend $27 billion by 2020 on drilling units. The company ordered an $809 million semi-submersible rig from Keppel in December and a drill ship from Sembcorp in February.
Demand for offshore unit remains “hot” this year, Keppel’s Chief Executive Officer Choo Chiau Beng said in January, after the company won record orders totaling more than S$10 billion ($8 billion) last year.

Brazil's Oil Future:The New (Big) Kid on the Block

THURSDAY, 19 APRIL 2012 00:00

In a noisy revolution that has announced the arrival of the BRIC countries over the past decade, Brazil quietly emerged in 2011 as the world’s sixth largest economy, the ninth largest consumer of energy and the the seventh largest consumer of oil. It has also emerged as one of the most influential and rapidly growing economies in the world. Already the South American continent’s powerhouse, Brazil alone accounts for over 40% of the region’s GDP influencing if not determining the direction of development across the continent. At a time when economies around the world are struggling, Brazil's economy is forecasted to continue remarkable growth. driven in part by its oil and gas sector which, if realized, would allow it to emerge as a global leader for the first time in crude oil production.

Crude oil prospects

The country’s energy policies for the last decade have been significant for the production and development of natural resources, crude oil and gas in particular. Brazil has transformed itself from a major oil importer to an exporter of crude oil. Post 2003, the country followed an aggressive ethanol blending policy. As a national policy, Brazil blends sugarcane-derived alcohol with gasoline rendering an ethanol fuel blend of between 20% -25% [ethanol] based on the country’s sugarcane harvest. Though having less energy per unit volume than gasoline, the cost economics of ethanol, combined with its high octane rating and environmental advantages, make ethanol an important element in Brazil’s energy matrix. Eighty percent of the cars today in Brazil can run on blended fuel making the country the world’s second largest producer of ethanol while concurrently reducing its consumption of traditional fuels to a great extent.

Critical to changing Brazil’s oil consumption pattern were low taxes on ethanol as a fuel compared to other liquid fuels, providing a minimum support price for sugarcane produced, and investment in research and development. The country’s ethanol policy along with new found oil transformed Brazil from being oil self-sufficient in 2006 to becoming a net oil exporter in 2009 and as a result one of the largest non-OPEC oil producers globally. The country’s energy demand is unexpectedly projected to grow steadily in the coming years. To ensure its energy needs, Brazil has progressively initiated an aggressive exploration and production policy for securing oil and gas reserves along its waters in the South Atlantic. The development of major projects in this area has resulted in increasingly large outputs of crude oil, shale oil and gas as well as oil derived from oil sands.



According to the US EIA, Brazil was the largest producer of liquids in South America in 2010. The reserves discovered are so huge that it is expected that the production decline in Venezuela and Mexico would be offset by Brazil to a great extent. With Venezuela’s socialist government increasing its cooperation with China and other Asian nations, and while the US government at the same time is losing production volumes from its traditional ally México, imports from Brazil could play a vital role in shaping the demand and supply balance in the region. New and major discoveries have been taking place in the Campos and the Santos Basin.

Map of the Campos and Santos Basin


Source: Energy Information Administration


The Campos Basin consisting of areas such as Frade, Papa Terra, Roncador and Peregrino are already producing or set to come on-stream soon. The Santos Basin has even larger reserves. The major oilfields located at Tupi, Iara and Guara should reach full scale production post-2015.Some estimate that the oil fields, located off Brazil's southeast Atlantic coast beneath kilometers of ocean and bedrock, contain more than 100 billion barrels of high-quality recoverable oil.



To ensure the security of its oil, different Brazilian regimes over time have stressed strengthening the country’s defense and naval capabilities. Its fleet is expanding as Brazil moves to protect key assets in deep waters. Contracts with Britain have already been signed to provide the country with three patrol vessels to secure offshore sites and oil installations. It has been underlined that one of the key components of the National Defense Strategy unveiled in 2008 is to protect the nation’s deep water oil and gas reserves to avoid any disruption in ongoing exploration and production activities. The country has already commenced its nuclear submarine program with technology transfer from France and it is expected that by 2016 Brazil will boast the continent’s largest Navy. The addition of a nuclear submarine would make it make an undisputed power in the region. A strong naval defense fleet would make its influence and dominance even more prominent in the South Atlantic, with no country around to match its power.

Type of crude

Petroleum products including natural gas account for over 50% of the country’s total energy use. Almost all of Brazil’s production comes from Brazil’s offshore rigs which produce heavy sour and heavy sweet crude with a high degree of TAN (Total Acid Number). This requires refineries to be equipped with advanced technologies which translates into a significant refinery complex in order to refine and process various crudes. The refineries in Brazil were initially designed to refine light sweet crude, but with the discovery of new heavy sour crude, existing refineries are being revamped and expanded. This is the prime reason that despite having an abundance of reserves Brazil still imports its oil from countries producing light sweet crude. Construction of new advanced refineries and petrochemical complexes are also taking place on an enormous scale with capacities that are unprecedented in the country.

Brazil’s refinery complex

Brazil has 13 refineries. The Petrobras supply chain [the national oil company] accounts for almost 6% of the country’s GDP. The company currently operates 11 of the country’s 13 refineries with a capacity of over 2 million b/d in 2010. The refining capacity is expected to reach 3.2 million b/d by 2020. Plans of building as many as 5 new refineries seem to be on course too. For example, the construction of a refinery jointly built with the Venezuelan state owned oil major PDVSA is well on course. It will process crude predominantly produced in the Marlim basin. Petrobras also plans to pump in another 224 billion dollars by 2014 to boost its upstream and downstream operations.

Exports

Brazil is expected to be the largest producer of crude oil in Latin America before 2015. Crude output is expected to reach 3.9 million b/pd by 2020. Most of this is expected in the offshore Campos and Santos basins. Brazil exports the majority of its oil to the US which buys 45% of it; this is expected to continue in the coming years despite the fact that US will increase its share of imports from the Middle East, in particular from Iraq and Saudi Arabia. The next biggest market is Asia accounting for over 30% of Brazilian crude oil exports with China and India being the most important. At present Indian private refiners Essar and Reliance are the major buyers, but PSU’s (Public Sector Undertakings) are expected to join them soon making India a very important market. It is estimated that in the future supplies to India and China will increase substantially, although exports to China will be significantly higher to any other Asian country.

As new oil is discovered the Brazilian government is looking for capital for investment from foreign oil majors. All the global energy giants Shell, Chevron, Exxon-Mobil, Repsol, Indian and Chinese nationalized oil companies already have major stakes in the country’s oil and gas markets and are expected to continue and consolidate their investments and in turn their interests in the future. Chinese government backed oil companies have a major advantage at present. The Chinese government offers loans for E&P (Exploration & Production) activities and in return is guaranteed shipments of oil on continual basis. Such loans provide China an edge over competitors and have proved to be a decisive blow in many cases in order to win major oil contracts. The best example for this was the $10 billion loan given to Petrobras in return for 200,000 b/d of oil for the next decade. The three Chinese oil majors CNPC (China National Petroleum Corporation), Sinopec and CNOOC (China national Offshore Oil Corporation) are going all out to secure supplies. Not only have the Chinese bought-up stakes of other companies such as Galp, it has also formed strategic joint ventures for oil equipment with Brazilian companies. CNPC’s BOMCO (Baoji Oilfield Machinery Co., Ltd), China’s largest oil equipment manufacturing and R&D have linked up with oil service providers recognized by Petrobras as one such example. Although the country’s oil reserves are increasing as indicated, growth rates may be unnecessarily hindered by Petrobras’ limitations as an overstretched company. The European debt crisis is only going to add to the list of problems for further exploration as investors will try to limit risk by restricting investments. Concurrently Petrobras by law must have a 30% stake in any new project which only complicates matters. In short, Brazil’s oil boom will continue into the future albeit at a slower pace.

Back to refinery expansion

Currently there is a huge deficit between existing refining capacity and the amount of heavy crude oil produced. New units have to be setup if the crude produced by domestic oil wells is to be refined locally. The country has already started to increase its hydrotreating and coking capacities in a massive way to generate more value out of a barrel. The majority of Brazil’s refineries are equipped with FCCU (Fluidized Catalytic Cracking Units) to cater to gasoline production. Installation of coking units is also on the rise to increase and further refine the bottoms products (asphalt, bitumen and heavier hydrocarbons), which is completely lacking in the country’s majority of refineries. The next wave of refineries has been designed to ensure the heaviest sweet, high TAN and heavy sour, high TAN crude oil can be processed. Brazil eventually would like to process and export distillates besides meeting its domestic consumption in order to enhance its profit margins and to reduce its dependence on supplies from the Middle East, Asia and other African countries. This is despite the fact that the major suppliers for crude as well as distillates for Brazil are South American nations, primarily Venezuela and Columbia. In addition to this, Brazil is also planning to setup and expand its petrochemical complexes. The petrochemical complex in Rio is pegged to be one of the largest in the world and would refine local heavy crude. Coming to distillates, its naphtha imports have risen due to the start-up of olefin plants recently and are expected to grow. Argentina and Algeria are the major naphtha suppliers. With diesel demand expected to grow, due subsidies and a decreasing market for gasoline, a number of hydrocracking and hydrotreating units are under way to meet higher demand for this product. With mandatory specification by the government to control sulfur; a number of hydrotreating units are being set up. Merox (UOP proprietary technology) is being used to contain sulfur content in a number of distillates produced from heavy sour crude oil to meet international standards and government specifications.

Importance of the South Atlantic

With reference to other countries in South America, Argentina is the second largest economy on the continent. Argentina has leading reserves of high quality shale hydrocarbons and is expected to increase its cooperation with the country to cater to its energy needs. According to US EIA, Argentina boasts the world’s third largest reserves of shale gas which US interests are closely monitoring.

There is another issue that has its relevance for South Atlantic oil and that is Argentina and the history of what Argentinians call the “occupation of Falkland Islands by the British.” A war has already been fought over these islands in 1982. But recently they have become even more important as massive oil reserves have been found offshore. Britain with its dwindling reserves in the North Sea is desperately looking forward to securing its supply from the region. Investment of over $150 million has already been committed by the British and is expected to increase considerably. With one rig already present in the north, the 2nd oil rig to reach the Falklands is expected to drill wells in the east and south east of the island. Britain has already mobilized its troops for any suspected tensions or blockade of the Las Malvinas (Falklands). The drilling of new wells is expected to be started in 2012. Almost all major economies in South America support Argentina’s claim to the Falklands. Brazil too is a vivid supporter .It has even said that if Brazil had nuclear submarines at that time of last war the outcome would have been entirely different. It seeks cooperation with Argentina on oil and considers it as a major ally for the future of its energy needs. Thus any interference with the country would have a direct and strong impact on Brazil’s interests. The matter has been already taken to the UN Security Council. It has been noted that China supports the Argentinians claim for the islands. This is an important development as no Security Council member has so far supported their claims.

With the Atlantic Basin having massive future implications for future oil and gas reserves, it is critical for governments to strategically ensure that their country is in the forefront of any such development taking place in the region. Control of the basin could ensure that countries in the region would have a dedicated supply of oil for the future not only for domestic consumption and securing energy needs, but also for export and boosting their economies which are still developing. The UN Law of the Sea treaty so far has been adhered to by the Brazilian and neighboring governments, but as exploration continues in the deep seas a conflict of interests amongst countries may gain relevance. So ensuring a strong navy for many is critical for a swift strategic response. Responding to the strengthening of navy, the Americans too have realized the importance of the South Atlantic. They have commissioned the US Naval 4th fleet in 2008 which is fully functional today to ensure smooth movement of crude across the Atlantic. For Brazil, it imports light sweet crude from Angola, Guinea and Nigeria and at the same time exports crude to the US, China and other Asian and European nations through this ocean. Ensuring the secure and swift movement of crude oil and gas is not only beneficial to the country but to other nations which import these supplies.

Conclusion

Brazil is one of the fastest growing economies in the world recently exceeding the GDP of the United Kingdom primarily due to export of the new found oil reserves in the South Atlantic. It is expanding its economic cooperation not only with its traditional allies like the US but also with emerging powers to the east primarily India and China along with Russia and other Central Asian countries. Oil will continue to play a vital role in shaping diplomatic relations and in ensuring its dominance in the world. Not only does Brazil seek to secure its own energy supply, but it will become instrumental in maintaining global crude oil supply and price stability. At a time when there is a nuclear crisis in Iran, unrest in Iraq and a monopoly of OPEC over major crude supplies, Brazil can help provide the world the oil it needs. Although demand forecasts for crude oil are projected as low as 1% worldwide, with oil demand in the US and EU flat, Brazil seems to be poised for robust growth in its oil sector. With markets expected to remain tight, oil prices are expected to hover around the $100 mark and the impact of Brazilian crude in the international market is going to be far greater than it has been in the past.

U.S., Brazil zero in on drilling, biofuels in bilateral meeting

President Obama and Brazilian President Dilma Rousseff said Monday they hoped to boost cooperation between the nations on energy matters ranging from oil and gas development to renewable power.

Following a bilateral meeting between the two leaders in Washington, the two zeroed in on oil and natural gas and biofuels as areas on which they saw promise for additional cooperation. The two nations both engage in deepwater drilling and are far and away the world’s largest producers of ethanol, which is increasingy being used in transportation fuel.

“Brazil has been a extraordinary leader in biofuels, and obviously is also becoming a world player when it comes to oil and gas development,” Obama said, according to an event transcript. “And the United States is not only a potential large customer to Brazil, but we think that we can cooperate closely on a whole range of energy projects together.”

The leaders said they want to build on work done as part of the Strategic Energy Dialogue between the two nations on fostering cooperation on oil, natural gas, biofuels, renewables and efficiency.

The dialogue seeks “to support the two countries’ common goals of developing safe, secure and affordable supplies of energy for economic growth, energy security, and the transition to a clean energy economy,” the White House said in a statement.

Cooperation on biofuels has included bilateral and multilateral efforts to boost research and development, as well as harmonize standards and boost deployment of biofuels in aviation, according to the White House.

BP and Royal Dutch Shell have invested billions combined in the Brazilian ethanol sector, which uses sugarcane as the main feedstock, amid growing world demand for biofuels.

U.S. ethanol exports in 2011 reached a record high and helped to partially offset a drop-off in Brazilian production brought on by a poor harvest of sugarcane, according to the Energy Information Administration. Most U.S. ethanol comes from corn.

Rousseff welcomed the recent expiration of a longtime U.S. tariff on imports of ethanol. Rousseff also touted oil and gas as “a tremendous opportunity for further cooperation, both as regards the supply of equipment and provision of services, and also as regards a wider role in our trade relations,” according to remarks translated from Portuguese.

The two nations have been sharing information and sought to collaborate on a range of issues concerning offshore drilling, including safety and oil-spill response, according to the White House.