Cable Viewer

Currently released so far... 12477 / 251,287

### Browse latest releases

2010/11 2010/12 2011/01 2011/02 2011/03 2011/04 2011/05
2010/11/28 2010/11/29 2010/11/30
2010/12/01 2010/12/02 2010/12/03 2010/12/04 2010/12/05 2010/12/06 2010/12/07 2010/12/08 2010/12/09 2010/12/10 2010/12/11 2010/12/12 2010/12/13 2010/12/14 2010/12/15 2010/12/16 2010/12/17 2010/12/18 2010/12/19 2010/12/20 2010/12/21 2010/12/22 2010/12/23 2010/12/24 2010/12/25 2010/12/26 2010/12/27 2010/12/28 2010/12/29 2010/12/30
2011/01/01 2011/01/02 2011/01/04 2011/01/05 2011/01/07 2011/01/09 2011/01/10 2011/01/11 2011/01/12 2011/01/13 2011/01/14 2011/01/15 2011/01/16 2011/01/17 2011/01/18 2011/01/19 2011/01/20 2011/01/21 2011/01/22 2011/01/23 2011/01/24 2011/01/25 2011/01/26 2011/01/27 2011/01/28 2011/01/29 2011/01/30 2011/01/31
2011/02/01 2011/02/02 2011/02/03 2011/02/04 2011/02/05 2011/02/06 2011/02/07 2011/02/08 2011/02/09 2011/02/10 2011/02/11 2011/02/12 2011/02/13 2011/02/14 2011/02/15 2011/02/16 2011/02/17 2011/02/18 2011/02/19 2011/02/20 2011/02/21 2011/02/22 2011/02/23 2011/02/24 2011/02/25 2011/02/26 2011/02/27 2011/02/28
2011/03/01 2011/03/02 2011/03/03 2011/03/04 2011/03/05 2011/03/06 2011/03/07 2011/03/08 2011/03/09 2011/03/10 2011/03/11 2011/03/13 2011/03/14 2011/03/15 2011/03/16 2011/03/17 2011/03/18 2011/03/19 2011/03/20 2011/03/21 2011/03/22 2011/03/23 2011/03/24 2011/03/25 2011/03/26 2011/03/27 2011/03/28 2011/03/29 2011/03/30 2011/03/31
2011/04/01 2011/04/02 2011/04/03 2011/04/04 2011/04/05 2011/04/06 2011/04/07 2011/04/08 2011/04/09 2011/04/10 2011/04/11 2011/04/12 2011/04/13 2011/04/14 2011/04/15 2011/04/16 2011/04/17 2011/04/18 2011/04/19 2011/04/20 2011/04/21 2011/04/22 2011/04/23 2011/04/24 2011/04/25 2011/04/26 2011/04/27 2011/04/28 2011/04/29 2011/04/30
2011/05/01 2011/05/02 2011/05/03 2011/05/04 2011/05/05 2011/05/06 2011/05/07 2011/05/08

### Browse by creation date

66 72 73 75 79 85 86 87 88 89 90 91 92 93 96 97 00 01 02 03 04 05 06 07 08 09 10
1966/12
1972/02 1972/08
1973/04
1975/03
1979/08
1985/03 1985/06
1986/05
1987/06
1988/01
1989/12
1990/01 1990/07 1990/08 1990/10
1991/05
1992/01 1992/06 1992/12
1993/10
1996/11
1997/12
2000/05 2000/06 2000/09 2000/11
2001/02 2001/03 2001/06 2001/07 2001/09 2001/10 2001/11
2002/01 2002/02 2002/03 2002/04 2002/07 2002/08 2002/09 2002/11
2003/01 2003/02 2003/03 2003/04 2003/05 2003/06 2003/07 2003/08 2003/09 2003/10 2003/11 2003/12
2004/01 2004/02 2004/03 2004/04 2004/05 2004/06 2004/07 2004/08 2004/09 2004/10 2004/11 2004/12
2005/01 2005/02 2005/03 2005/04 2005/05 2005/06 2005/07 2005/08 2005/09 2005/10 2005/11 2005/12
2006/01 2006/02 2006/03 2006/04 2006/05 2006/06 2006/07 2006/08 2006/09 2006/10 2006/11 2006/12
2007/01 2007/02 2007/03 2007/04 2007/05 2007/06 2007/07 2007/08 2007/09 2007/10 2007/11 2007/12
2008/01 2008/02 2008/03 2008/04 2008/05 2008/06 2008/07 2008/08 2008/09 2008/10 2008/11 2008/12
2009/01 2009/02 2009/03 2009/04 2009/05 2009/06 2009/07 2009/08 2009/09 2009/10 2009/11 2009/12
2010/01 2010/02

### Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z
Embassy Athens Embassy Asuncion Embassy Astana Embassy Asmara Embassy Ashgabat Embassy Apia Embassy Ankara Embassy Amman Embassy Algiers Embassy Addis Ababa Embassy Accra Embassy Abuja Embassy Abu Dhabi Embassy Abidjan Consulate Auckland Consulate Amsterdam Consulate Adana American Institute Taiwan, Taipei
Embassy Bujumbura Embassy Buenos Aires Embassy Budapest Embassy Bucharest Embassy Brussels Embassy Bridgetown Embassy Bratislava Embassy Brasilia Embassy Bogota Embassy Bishkek Embassy Bern Embassy Berlin Embassy Belmopan Embassy Belgrade Embassy Beirut Embassy Beijing Embassy Banjul Embassy Bangkok Embassy Bandar Seri Begawan Embassy Bamako Embassy Baku Embassy Baghdad Consulate Barcelona
Embassy Copenhagen Embassy Conakry Embassy Colombo Embassy Chisinau Embassy Caracas Embassy Canberra Embassy Cairo Consulate Curacao Consulate Ciudad Juarez Consulate Chennai Consulate Casablanca Consulate Cape Town Consulate Calgary
Embassy Dushanbe Embassy Dublin Embassy Doha Embassy Djibouti Embassy Dili Embassy Dhaka Embassy Dar Es Salaam Embassy Damascus Embassy Dakar Consulate Dubai
Embassy Freetown Consulate Fukuoka
Embassy Guatemala Embassy Gaborone Consulate Guayaquil Consulate Guadalajara
Embassy Helsinki Embassy Harare Embassy Hanoi Consulate Ho Chi Minh City Consulate Hermosillo Consulate Hamilton Consulate Hamburg Consulate Halifax
Iran RPO Dubai Embassy Islamabad Consulate Istanbul
Embassy Jakarta Consulate Jerusalem Consulate Jeddah
Embassy Kyiv Embassy Kuwait Embassy Kuala Lumpur Embassy Kinshasa Embassy Kingston Embassy Kigali Embassy Khartoum Embassy Kathmandu Embassy Kampala Embassy Kabul Consulate Kolkata
Embassy Luxembourg Embassy Luanda Embassy London Embassy Ljubljana Embassy Lisbon Embassy Lima Embassy Lilongwe Embassy La Paz Consulate Lahore Consulate Lagos
Mission USOSCE Mission USNATO Mission UNESCO Embassy Muscat Embassy Moscow Embassy Montevideo Embassy Monrovia Embassy Minsk Embassy Mexico Embassy Mbabane Embassy Maputo Embassy Manila Embassy Manama Embassy Managua Embassy Malabo Embassy Madrid Consulate Munich Consulate Mumbai Consulate Montreal Consulate Monterrey Consulate Milan Consulate Melbourne
Embassy Nicosia Embassy Niamey Embassy New Delhi Embassy Ndjamena Embassy Nassau Embassy Nairobi Consulate Naples Consulate Naha
Embassy Ouagadougou Embassy Ottawa Embassy Oslo
Embassy Pristina Embassy Pretoria Embassy Prague Embassy Port Of Spain Embassy Port Louis Embassy Port Au Prince Embassy Phnom Penh Embassy Paris Embassy Paramaribo Embassy Panama Consulate Peshawar
Embassy Quito Consulate Quebec
REO Basrah Embassy Rome Embassy Riyadh Embassy Riga Embassy Reykjavik Embassy Rangoon Embassy Rabat Consulate Rio De Janeiro Consulate Recife
Secretary of State Embassy Suva Embassy Stockholm Embassy Sofia Embassy Skopje Embassy Singapore Embassy Seoul Embassy Sarajevo Embassy Santo Domingo Embassy Santiago Embassy Sanaa Embassy San Salvador Embassy San Jose Consulate Strasbourg Consulate St Petersburg Consulate Shenyang Consulate Shanghai Consulate Sapporo Consulate Sao Paulo
Embassy Tunis Embassy Tripoli Embassy Tokyo Embassy The Hague Embassy Tel Aviv Embassy Tehran Embassy Tegucigalpa Embassy Tbilisi Embassy Tashkent Embassy Tallinn Consulate Toronto Consulate Tijuana
USUN New York USEU Brussels US Office Almaty US Mission Geneva US Interests Section Havana US Delegation, Secretary UNVIE Embassy Ulaanbaatar
Embassy Vilnius Embassy Vienna Embassy Vatican Embassy Valletta Consulate Vladivostok Consulate Vancouver
Embassy Windhoek Embassy Wellington Embassy Warsaw
Embassy Yerevan Embassy Yaounde
Embassy Zagreb

### Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ASEC AF AFIN AM AJ AG AS AEMR AMGT AORC APER AU ACBAQ AFGHANISTAN AR AE ADANA ADPM APECO AMED AX AL ADCO AA AECL AADP AMEX ACAO ANET AODE ASCH AY APEC AID AORG ASEAN ABUD AGAO AFSI AFSN AINF AGR AROC AO AFFAIRS ASIG ABLD ASUP AND ARM AQ ATFN AC ATRN ACOA AMBASSADOR AUC ASEX ARF AER AVERY AGRICULTURE AMG AFU AN AORL ALOW APCS AZ AMCHAMS ADM ACABQ AGMT ASECKFRDCVISKIRFPHUMSMIGEG AIT ACS
BR BK BA BRUSSELS BEXP BM BD BL BO BILAT BU BN BT BX BTIO BIDEN BG BE BP BY BBSR BC BTIU BWC BB BF BH BMGT
CO CASC CS CA CONDOLEEZZA CE CVIS CU CPAS CMGT COUNTER CH COUNTRY CJAN CG CIDA CJUS CI CY CD CDG CBSA CEUDA CR CM CLMT CAC CBW CODEL COPUOS CIC CW CBE CHR CFED CT CONS CWC CTM CDC CVR CF CIA CLINTON COUNTERTERRORISM CITEL CLEARANCE COE CN CACS CAN CB CSW CITT CARSON CACM CDB COM CV CAPC CKGR CBC CTR CNARC CROS CARICOM CL CICTE CIS
DR DHS DA DJ DEA DPRK DEPT DOMESTIC DOE DS DE DEFENSE DO DAO DCM DEAX DK DTRA DISENGAGEMENT DOD
EINV ETRD ECON EPET ENRG EAGR EC EFIN EAID ELTN EIND ELAB EAIR ECIN EUN EG EU ETTC ET EI EWWT EFIS EMIN ER EPA ENVI ENGR ETRC EXTERNAL ECPS EN ELN EINT ETRDEINVTINTCS ES EZ ETRO ETRDEINVECINPGOVCS EDU ETRN EFTA EAIG EK EUREM ECONCS ECONOMICS ENVR ELECTIONS EAP ENIV ECONOMY ESA EINN ECONOMIC EIAR EXBS ECA ECUN EINDETRD EUR EREL EUC ESENV ECONEFIN ECIP ENERG EFIM EAIDS ETRDECONWTOCS EUNCH EINVETC ENGY EINVECONSENVCSJA EUMEM ETRA EINVEFIN ETC ERD ENNP EFINECONCS ECINECONCS ERNG EXIM EURN EEPET
FR FREEDOM FTA FJ FARC FI FTAA FAC FBI FOREIGN FOI FM FAO FAS FINR FDA FOR FINANCE FMLN FO FISO
GTMO GG GM GV GOV GOI GL GH GA GY GT GAERC GR GF GCC GE GZ GTIP GLOBAL GANGS GERARD GAZA
HO HA HR HUMAN HK HU HILLARY HI HSTC HURI HYMPSK HUMOR HEBRON
IR IAEA IS IZ IN IT IO IAHRC ID IC IRAQI IWC ISLAMISTS IV ICAO INDO ITPHUM ITPGOV ITALIAN IPR ICRC INTERPOL IQ IBET IMO INR INTERNAL ICJ ICTY IRS ILO ISRAELI IEA INRB ITALY IL ITU ITRA IBRD IIP ILC IZPREL IMF IRAJ IA ITF IF INMARSAT ISRAEL ICTR IDP IGAD IEFIN IACI INRA INRO INTELSAT IRC IDA
JA JO JUS JP JOSEPH JM JAMES JOHNNIE JOHN
KS KN KTFN KTDB KTIP KIRF KPAO KDEM KCOR KE KMPI KSCA KZ KG KNUP KNNP KPAL KCRM KIPR KPKO KFLO KSEP KOMC KISL KNNPMNUC KWBG KFRD KUNR KWMN KSTC KFLU KOLY KMDR KJUS KSTH KAWC KU KWAC KNPP KERG KSEO KACT KHLS KGHG KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KDRG KTIA KVPR KV KIDE KICC KPRP KBIO KSUM KGIT KCFE KBTS KCIP KGIC KPAI KTLA KTEX KFSC KPLS KHIV KCSY KSAC KTRD KID KMRS KOM KSAF KRVC KR KMOC KNAR KHDP KSPR KBTR KOCI KJUST KNEI KAWK KGCC KMCA KBCT KREL KMFO KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KFTFN KVRP KIRC KCOM KO KLIG KAID KNSD KHUM KSEC KRAD KCMR KPWR KCHG KICA KPIN KESS KDEV KCGC KWWMN KPRV KPAK KWNM KWMNCS KRFD KVIR KSCI KDDG KIFR KHSA KCRS KRGY KCRCM KFIN KPOA KCFC KTER KREC KMIG KTBT KRCM KRIM KWMM KOMS KX KPAONZ KNUC KDEMAF
LE LY LG LH LI LTTE LAB LOG LA LT LO LU LABOR
MP MY MOPS MCAP MARR MNUC MUCN MTCRE MASS MAPP MIL MX MEDIA MO MPOS MU ML MA MERCOSUR MG MD MW MK MAS MT MI MOPPS MASC MR MTS MLS MILI MAR MTRE MEPN MTCR MEPI MQADHAFI MAPS MARAD MEETINGS MEPP MILITARY MZ MDC MC MCC MASSMNUC MRCRE MV MIK
NU NZ NATO NPT NL NI NAFTA NDP NIPP NP NG NRR NO NEW NE NH NR NA NS NSF NZUS NATIONAL NSG NC NT NAR NK NV NORAD NSSP NASA NATOPREL NPA NW NPG NSFO NGO NSC
OVIP OPIC OEXC OTRA OPDC OREP OAS OPRC OIIP OSCE OFFICIALS OMIG ODIP OFDP OECD OBSP OPCW OTR OSAC OSCI ON OCII OES OPAD OIC OFDA OHUM OVP OIE OCS
PGOV PINR PREL PHSA PTER PE PREF PHUM PK PARM PINS PM PL PO PA PBTS PBIO POL PARMS PROG PAK POLITICS PORG PTBS PNAT PUNE POLICY PDOV PCI PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PBT PP PS PG PY PTERE PGOF PALESTINIAN PKFK PSOE PEPR PPA PINT PMAR PRELP PSEPC PREFA PGOVE PINF PNG PMIL PGOC PFOR PCUL PLN PROP POLINT PGGV PHALANAGE PARTY PGOVLO PHUS PDEM PECON PROV PAS PHUMPREL PGIV PRAM PHUH PAO PSA PHUMPGOV PF PRL PHUMBA PEL PREO PAHO POGOV POV PNR PSI PINL PU PRGOV PAIGH POLITICAL PARTIES POSTS
QA
RS RCMP RICE RU REACTION REPORT REGION RIGHTS RO RW RF RM RFE RSP RP RIGHTSPOLMIL ROBERT RELATIONS ROOD RUPREL RSO
SOCI SN SY SNAR SENV SP SZ SCUL SA SO SW SMIG SU SENVKGHG SR SYRIA SF SI SC SWE SARS STEINBERG SG SIPRS ST SL SNARIZ SSA SK SPCVIS SOFA SEVN SIPDIS SAN SYR SHUM SANC SEN SPCE SNARCS SNARN SHI SH SAARC SCRS
TU TPHY TI TX TSPL TRGY TBIO TF TERRORISM TH TIP TC TSPA TW TZ TNGD TT TL TV TS TRSY TINT TN TURKEY TBID TD TP TAGS TK TR TFIN TO THPY
UK UNSC USTR UG UNGA UZ USEU US UN UNC USUN UP UY UNESCO USPS UNHRC UNO UNHCR UNCHR USAID UNVIE UAE UNMIK USOAS UNFICYP UV UNEP UNODC UNCHS UNIDROIT UNDESCO UNCHC UNDP UNAUS UNCND UNCSD UNICEF UNPUOS UNDC USNC UE
VT VZ VE VTEG VTPREL VM VI VTIZ VAT VC VN
WS WTO WTRO WTRQ WI WZ WHO WFP WWARD WHA WB WBG WIPO WITH WMO WEU WMD WHTI WA
XA XF XM XL XW XV XR XB XU XH XG XE XK XX XD XI XT XS XC XY XZ XTAG XQ
YE YM YI YMCS
ZI ZO ZU ZEALAND ZK ZR ZF ZP ZN ZA ZB ZOELLICK ZL ZANU ZJ

### Browse by classification

CONFIDENTIAL CONFIDENTIAL//NOFORN SECRET SECRET//NOFORN UNCLASSIFIED UNCLASSIFIED//FOR OFFICIAL USE ONLY

### Community resources

Follow us on Twitter Check our Reddit Twitter this Digg this page Contact us on IRC

courage is contagious

### Viewing cable 08SAOPAULO335, AMBASSADOR DISCUSSES BRAZILIAN OIL CONCESSION MODEL WITH DELFIM NETTO

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:

- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.

To understand the justification used for the classification of each cable, please use this WikiSource article as reference.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #08SAOPAULO335.

Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
08SAOPAULO335 | 2008-06-26 09:29 | 2011-01-20 00:00 | CONFIDENTIAL | Consulate Sao Paulo

`

    VZCZCXRO3989
    PP RUEHRG
    DE RUEHSO #0335/01 1780929
    ZNY CCCCC ZZH
    P 260929Z JUN 08 ZFF6
    FM AMCONSUL SAO PAULO
    TO RUEHC/SECSTATE WASHDC PRIORITY 8347
    INFO RUEHAC/AMEMBASSY ASUNCION PRIORITY 3443
    RUEHBR/AMEMBASSY BRASILIA PRIORITY 9482
    RUEHBU/AMEMBASSY BUENOS AIRES PRIORITY 3195
    RUEHCV/AMEMBASSY CARACAS PRIORITY 0764
    RUEHLP/AMEMBASSY LA PAZ PRIORITY 3854
    RUEHMN/AMEMBASSY MONTEVIDEO PRIORITY 2737
    RUEHSG/AMEMBASSY SANTIAGO PRIORITY 2443
    RUEHRG/AMCONSUL RECIFE PRIORITY 4149
    RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 8770
    RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
    RHMFISS/DEPT OF ENERGY WASHINGTON DC PRIORITY
    RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
    RHEHNSC/NSC WASHDC PRIORITY
    RHMFISS/CDR USSOUTHCOM MIAMI FL PRIORITY
    RUEAIIA/CIA WASHDC PRIORITY

` `

    C O N F I D E N T I A L SECTION 01 OF 02 SAO PAULO 000335

    SIPDIS

    STATE FOR WHA/BSC,WHA/EPSC, EEB/ESC
    USDOC FOR 4332/ITA/MAC/WH/OLAC/JANDERSON/ADRISCOLL/MWAR D
    DEPT OF TREASURY FOR JHOEK
    NSC FOR TOMASULO

    E.O. 12958: DECL: 03/14/2018
    TAGS: ECON ENRG EPET PGOV EINV EAGR BR

    SUBJECT: AMBASSADOR DISCUSSES BRAZILIAN OIL CONCESSION MODEL WITH DELFIM NETTO

    REF: A. RIO DE JANEIRO 138
    ¶B. RIO DE JANEIRO 135
    ¶C. 07 SAO PAULO 953
    ¶D. SAO PAULO 247

    Classified By: Consul General Thomas White; reasons 1.4 (b) and (d).

    ¶1. (C) SUMMARY: During a June 13 meeting with the Ambassador, former Minister of Finance Antonio Delfim Netto (strictly protect), who is currently working as a political and business consultant and widely believed to be an unofficial advisor to President Lula, discussed his views on Brazil's newfound oil reserves. Delfim Netto did not see any strong desire on the part of the GOB to nationalize existing fields or to substantially change the rules governing concessions (Ref A). Instead, Delfim Netto indicated that the GOB would support a continuation of the concession framework but indicated that royalties would increase. He stated that the GOB (through the National Energy Petroleum Council) would maintain existing royalty agreements for all fields currently under production, and that the National Petroleum Agency (ANP) would open bidding for the exploration rights on the new reserves to foreign competition. Delfim Netto told the Ambassador that foreign investment would be necessary to finance development of these reservoirs to ensure near term production. END SUMMARY.

    ¶2. (C) In a meeting on June 13 with the Ambassador, Delfim Netto said that the GOB and Petrobras do not share the same goals for developing reserves from the newfound deep-water petroleum discoveries. Many energy insiders believe Petrobras is stalling the bidding process in order to pull together the financial resources to win concessions for many of the pre-salt oil blocks that had been removed from the ninth round of oil block auctions in November 2007 (Refs B and C). (Note: Petrobras was privatized in 1997 and 63 percent of the company is now publicly traded on the NYSE and Bovespa. End Note.) Delfim Netto confirmed that the GOB wanted to move forward on the exploration of these reserves and that its goals and those of Petrobras have diverged.

    ¶3. (C) Despite the public rumors regarding changes to and potential abolishment of the concession model, Delfim Netto told the Ambassador that Brazil would keep the same concession model, but could increase the percent of royalties charged for the new reserves (Ref A); with which he agreed. He added that he supported charging Petrobras royalties. He told the Ambassador that he promoted the idea that Petrobras open up the energy market and that the GOB realizes it would be a necessary condition to finance the exploration of the new reserves.

    ¶4. (C) Likewise, Delfim Netto acknowledged that Petrobras was also a potential obstacle on biofuels issues. Given the inherent conflict of interest for Petrobras to manage bio-fuels initiatives, Delfim Netto told the Ambassador that Petrobras should and would be "removed from the equation." When asked if the GOB would support a spin-off of the Biofuels Unit within Petrobras, Delfim Netto thought it was assured.

    ¶5. (C) At the Ambassador's suggestion of high-level meetings between the two governments, Delfim Netto said he estimated that it would take 30 to 60 days for the GOB to solidify a new concession and royalty framework, and that after that point he believed USG engagement would be welcome.

    ¶6. (C) COMMENT: Delfim Netto's analysis of the divergence of interests between Petrobras and the GOB bears watching. Given the recent negative history of Bolivia's privatizations, it seems unlikely that the GOB would abandon the concession model and even more unlikely that it would choose to change the rules on existing concessions. Political and economic stability have been the cornerstones of Brazil's policies and largely led to Brazil obtaining investment grade status (Ref D). While some modification of exploration and concession rules may take place for these new "mega fields", it is doubtful the GOB would do anything to undermine the overall image of Brazil as a stable country in which to invest.

    ¶7. (C) Unlike Delfim Netto's view that the USG should hold off on intervening to establish these new rules, Brazil's Ministry of Mines and Energy, regulators, and US energy companies have suggested that it could instead be within this period for the USG to intervene. Indeed, Petrobras' interest in consolidating deep-sea drilling in the Gulf of Mexico and vertical integration in the US market could open an important window of opportunity for the USG. Furthermore, ANP has expressed interest in learning more about US small and medium sized energy companies operating in US states to develop a similar capacity in Brazil. They have, in fact, asked for USG assistance to travel to the US to meet with and further learn about this important part of the energy equation. Clearly, Brazil's energy sector offers new partnerships, opportunities, and increased energy security for the US. As Brazil begins to increase exploration of its newfound "pre-salt" reserves that many believe could be larger than the finds in the North Sea, the US could potentially capitalize on these new technologies to develop our own offshore exploration efforts. Early engagement may be crucial to ensuring that US firms will have opportunities in this market. END COMMENT.

    WHITE

`