[Federal Register Volume 76, Number 3 (Wednesday, January 5, 2011)]
[Pages 537-539]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-33248]

                                                Federal Register

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Federal Register / Vol. 76 , No. 3 / Wednesday, January 5, 2011 / 

[[Page 537]]


International Trade Administration

Eurasian Oil and Gas Suppliers Mission to Almaty, Kazakhstan 
Ankara and Istanbul Turkey

AGENCY: International Trade Administration, Department of Commerce.

ACTION: Notice.


Mission Description

    The United States Department of Commerce, International Trade 
Administration, U.S. and Foreign Commercial Service (CS) is organizing 
an industry-specific Oil & Gas Equipment and Services Mission to 
Kazakhstan and Turkey from June 20-24, 2011. Led by a senior Department 
of Commerce official, the mission will include representatives from a 
variety of U.S. firms specializing in the following product areas:
     Offshore/onshore oil and gas drilling and production 
equipment and services;
     Turbines, compressors and pumps for pipeline applications;
     Measurement and process control equipment for pipeline 
     Industrial automation, control and monitoring systems and 
other equipment and services for refineries, gas processing and 
petrochemical plants;
     Seismic processing and interpretation;
     Petroleum software development;
     Sulfur removal and disposal technologies;
     Well stimulation;
     Field abandonment services;
     Geothermal exploration, drilling, production and 
processing equipment and services; and
     Engineering and industrial construction companies.
    Mission participants will be introduced to international agents, 
distributors, and end-users whose capabilities and services are 
targeted to each participant's needs. This mission will contribute to 
National Export Initiative goals through increased sales of oil and gas 
equipment/services in Turkey and Kazakhstan.
    Participants will have an opportunity to meet with major 
international exploration and production companies and integrated 
service providers operating in Istanbul and Ankara, Turkey and Almaty, 
Kazakhstan. The mission will also include matchmaking with potential 
local partners and visiting sites of commercial interest. We are 
targeting 15 U.S. company representatives responsible for their 
corporate activity in Eurasia.

Commercial Setting--Turkey

    Turkey, the world's 17th largest economy, is a major consumer of 
oil and gas. Although oil and gas produced in Turkey currently meets 
only a small fraction of the country's demand, there are significant 
prospects offshore in the Black Sea, and onshore in the Thrace region 
of western Turkey, and the East and Southeast. Between 2002 and 2009, 
747 wells were drilled. In 2009 alone, $716 million was spent for oil 
and gas exploration and production in Turkey. As of today, only 20% of 
onshore prospects and 1% of offshore prospects have been explored. 
Chevron and ExxonMobil announced important exploration efforts in 2009 
and 2010 in the Western Black Sea Region. Companies offering 
technologies and services for exploration and production can also find 
a market in the geothermal sector: Turkey ranks No.1 in Europe and 7 in 
the world in terms of geothermal power potential.
    Turkey is a crucial corridor between the energy-rich Caspian and 
Middle East and Europe. The planned 3,300 km NABUCCO natural gas 
pipeline will link Caspian and Middle Eastern suppliers through Turkey 
to Central Europe, and will create major opportunities for U.S. 
companies. The total capacity of the pipeline will be 25 to 31 BCMA. 
Estimated investment costs including financing costs for the entire 
pipeline system will be well over $10 billion. Other potential pipeline 
projects include Italy--Greece--Turkey Interconnector (ITGI) and Trans 
Adriatic Pipeline (TAP).
    In addition to oil and gas exploration and production activities 
and pipelines, new refinery and petrochemical plants are planned over 
the next decade, with a projected increase of over 90% in refining 
capacity by 2019, to over 1.3 million BPD.
    Turkey's oil and gas market provides excellent opportunities for 
U.S. companies within the following product areas:
    1. Offshore and onshore oil and gas exploration and production 
equipment and services,
    2. 2-D and 3-D Seismic equipment and engineering services,
    3. Shale gas exploration and production equipment and services,
    4. Horizontal Drilling equipment and services,
    5. Petrochemical processing equipment and services,
    6. Geothermal energy exploration and drilling equipment and 
engineering services,
    7. Coal-bed methane production equipment and services,
    8. Compressors, turbines, measuring meters, SCADA systems, and 
pumps for pipelines,
    9. Pipeline construction equipment and engineering services,
    10. Refinery processing equipment and refinery auxiliary units,
    11. Oil and Gas Storage Systems.

Commercial Setting--Kazakhstan

    Kazakhstan has the Caspian Sea region's largest recoverable crude 
oil reserves and accounts for approximately two-thirds of the roughly 
1.8 million barrels per day (bpd) currently being produced in the 
region. The Government of Kazakhstan and foreign investors continue to 
focus heavily on the hydrocarbons sector, which so far has received 
approximately 60% of the estimated $58 billion in foreign direct 
investment in Kazakhstan since 1991, and makes up approximately 53% of 
its export revenue. Existing oil extraction sites offshore in the North 
Caspian, combined with onshore fields currently under development, mark 
Kazakhstan as a potentially major near-term oil exporter. Already its 
oil production has reached 1.4 million bpd, with daily output expected 
to total 2.6 million bpd by 2015. As a result, foreign investors are 
increasing their focus in its energy infrastructure, including oil 
transportation routes such as the Baku-Tbilisi-Ceyhan pipeline.
    Oil industry sources estimate that Kazakhstan could eventually 
attract up

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to $140 billion of foreign investment in its oil infrastructure. 
Industry experts and the U.S. Commercial Service in Almaty estimate 
that the current market for oil and gas field equipment and services 
will grow to $7.5 billion in 2010, and will continue growing at 15-20% 
annually over the next three years. Kazakhstan as yet has no experience 
in offshore production and operations. This experience gap offers many 
opportunities for U.S. service companies in rig work, support 
infrastructure, and environmentally sensitive technologies. The Caspian 
Basin's oil-bearing formations are generally quite deep (15,000 feet), 
under considerable pressure, and often contain a high degree of sulfur 
and other contaminants, making special drilling and processing 
equipment necessary. Additionally, U.S. oil and gas field equipment 
suppliers have the potential for solid growth over the next decade as 
new fields are brought on-stream and secondary recovery methods are 
introduced to existing deposits.
    Kazakhstan's oil and gas market provides excellent opportunities 
for U.S. companies within the following product areas:
    1. Oil and Gas Well Development;
    2. Field Operation;
    3. Offshore Oil and Gas Exploration/Exploitation Equipment;
    4. Gathering, Treatment, Transportation and Storage of Oil, 
Petrochemical Products and Natural Gas;
    5. Pumps, Fittings and Valves;
    6. Gas Detection and Monitoring Systems;
    7. Oil and Gas Field Chemicals;
    8. Pipeline Construction Equipment; and
    9. Pipeline Corrosion Controls.

Mission Goals

    The trade mission will assist representatives of American companies 
responsible for business activity in Eurasia with their efforts to 
identify profitable opportunities and new markets for their respective 
U.S. companies and to increase their export potential. The summary of 
results expected from the mission includes finding potential partners, 
agents and distributors, joint venture partners, and provide market 
knowledge for future expansion.

Mission Scenario

    In Kazakhstan, mission members will be presented with a briefing by 
the U.S. Embassy's Commercial Officer, the Commercial Specialist for 
the oil and gas sector and other key government and corporate 
officials. Participants will also take part in business matchmaking 
appointments with Kazakhstani private sector companies. In addition, 
they will meet with invited representatives from major oil consortia 
including Tengizchevroil (TCO), North Caspian Operations Company 
(NCOC), Karachaganak Petroleum Operating (KPO), KazMunayGas (KMG), and 
others during which they will learn how to get pre-qualified with these 
operators. The venue will be Almaty, Kazakhstan--the country's business 
    In Turkey, mission members will also be presented with a briefing 
by the U.S. Embassy's Commercial Officer, the Commercial Specialist for 
the oil and gas sector and other key government and corporate 
officials. Participants will take part in business matchmaking 
appointments with Turkish private sector companies, which would be 
potential candidates for agent/representative or distributor. Depending 
on the availability, potential buyers may also be scheduled for 
meetings. The venue will be Ankara, the capital of Turkey where the 
public sector is headquartered and Istanbul where headquarters of most 
of the private sector is located.
    U.S. participants will be counseled before and after the mission by 
the domestic mission coordinator. Participation in the mission will 
include the following:
     Pre-travel webinars on subjects ranging from industry 
briefings to business practices in Turkey and Kazakhstan.
     Pre-scheduled meetings with potential partners, 
distributors, end users, or local industry contacts in Istanbul and 
Ankara, Turkey;
     Transportation to and from all airports and all mission-
organized meetings;
     Meetings with key government decision makers and private 
sector firms;
     Participation in networking receptions in Turkey and 
Kazakhstan; and
     Meetings with CS Turkey's and CS Kazakhstan's energy oil 
and gas specialists in Istanbul and Ankara, Turkey and Almaty, 

Mission Timetable

    Mission participants will arrive in Almaty, Kazakhstan on Sunday, 
June 19, 2011 and the mission program will take place from June 20-24, 
2011. Departure to the United States or other onward destinations will 
be on Sunday, June 25, 2011.

Sunday, June 19, 2011--Almaty, Kazakhstan..............   Arrival in Almaty, Kazakhstan.
Day 1: Monday, June 20, 2011--Almaty, Kazakhstan.......   Agenda Review and Market briefings by U.S.
                                                          Embassy officials.
                                                          Matchmaking Meetings.
                                                          Networking Reception.
Day 2: Tuesday, June 21, 2011--Almaty, Kazakhstan......   Meetings with TCO, KPO, NCOC, KMG, and others.
                                                          Further Meetings.
                                                          Departure to Turkey.
Day 3: Wednesday, June 22, 2011--Ankara, Turkey........   Embassy Briefing.
                                                          Industry Briefing.
                                                          Evening Networking Reception at Ambassador's
Day 4: Thursday, June 23, 2011--Ankara, Turkey.........   Briefings by Petroleum Affairs General
                                                          Directorate and/or Turkish Petroleum (TPAO) and/or
                                                          1-1 matchmaking meetings.
                                                          Afternoon/Evening Departure to Istanbul.
Day 5: Friday, June 24, 2011--Istanbul, Turkey.........   One-on-one matchmaking meetings with potential
                                                          agents, distributors or partners.
                                                          Evening reception hosted by Consul General.
Day 6: Saturday, June 25, 2011--Istanbul, Turkey.......   Departure from Istanbul.

Participation Requirements

    All parties interested in participating in the Commercial Service 
Eurasian Oil and Gas Suppliers Trade Mission must complete and submit 
an application package for consideration by the Department of Commerce. 
All applicants will be evaluated on their ability to meet certain 
conditions and

[[Page 539]]

best satisfy the selection criteria as outlined below. A minimum of 15 
companies will be selected to participate in the mission from the 
applicant pool. U.S. companies already doing business with Turkey and 
Kazakhstan as well as U.S. companies seeking to enter these markets for 
the first time may apply.
    After a company has been selected to participate on the mission, a 
participation fee to the U.S. Department of Commerce is required. The 
participation fee for one representative is $3,160 for a small or 
medium-sized enterprise (SME) \1\ and $4,585 for large firms. The fee 
for each additional firm representative (SME or large) is $450.

    \1\ An SME is defined as a firm with 500 or fewer employees or 
that otherwise qualifies as a small business under SBA regulations. 
See http://www.sba.gov/contractingopportunities/owners/basics/whatismallbusiness/index.html. Parent companies, affiliates, and 
subsidiaries will be considered when determining business size. The 
dual pricing reflects the Commercial Service's user fee schedule 
that became effective May 1, 2008. See http://www.export.gov/newsletter/march2008/initiatives.html.

    Expenses for travel, lodging, most meals, and incidentals will be 
the responsibility of each mission participant. Delegation members will 
be able to take advantage of Embassy rates for hotel rooms.
    Conditions for Participation:
     An applicant must submit a completed and signed mission 
application and supplemental application materials, including adequate 
information on the company's products and/or services, primary market 
objectives, and goals for participation. If the Department of Commerce 
receives an incomplete application, the Department may reject the 
application, request additional information, or take the lack of 
information into account when evaluating the applications.
     Each applicant must also certify that the products and 
services it seeks to export through the mission are either produced in 
the United States, or, if not, marketed under the name of a U.S. firm 
and have at least 51 percent U.S. content of the value of the finished 
product or service.
    Selection Criteria for Participation:
    Selection will be based on the following criteria:
     Suitability of the company's products or services to the 
Eurasian Region oil and gas equipment and services market
     Applicant's potential for business in Turkey and 
Kazakhstan, including likelihood of exports resulting from the mission
     Consistency of the applicant's goals and objectives with 
the stated scope of the mission
    Diversity of company size, type, location, demographics and 
traditional under representation in business, may also be considered 
during the review process.
    Referrals from political organizations and any documents containing 
references to partisan political activities (including political 
contributions) will be removed from an applicant's submission and not 
considered during the selection process.

Timeframe for recruitment and Applications

    Mission recruitment will be conducted in an open and public manner, 
including posting on the Commerce Department trade missions calendar--
http://www.ita.doc.gov/doctm/tmcal.html--and other Internet websites, 
publication in domestic trade publications and association newsletters, 
direct outreach to internal clients and distribution lists, posting in 
the Federal Register, and announcements at industry meetings, symposia, 
conferences, and trade shows.
    Recruitment for the mission will begin immediately and conclude no 
later than April 15, 2011. The U.S. Department of Commerce will review 
all applications immediately after the deadline. Applications received 
after this date will be considered only if space and scheduling 
constraints permit. We will inform applicants of selection decisions as 
soon as possible after the deadline.

Contact Information

U.S. Commercial Service Domestic Contact

    Brendan Kelly, Tel: 713-209-3113, E-mail: [email protected]. 
Lisa Huot, Tel: 202-482-1841, E-mail: [email protected]trade.gov.

U.S. Commercial Service Almaty, Kazakhstan

    Jennifer Kane, Senior Commercial Officer or Azhar Kadrzhanova, 
Commercial Specialist, U.S. Consulate General--Almaty, 41 Kazybek bi 
Street, Almaty 050010, Kazakhstan, Tel.: +7 (727) 250-7612, Fax: +7 
(727) 250-0777, E-mail: [email protected] and 
[email protected].

U.S. Commercial Service Ankara, Turkey

    Michael Lally, Senior Commercial Officer or Serdar Cetinkaya, 
Senior Commercial Specialist, U.S. Embassy--Ankara, Tel: +90 (312) 457-
7203, Fax: +90 (312) 457-7302, E-mail: [email protected]  and 
[email protected].

U.S. Commercial Service Istanbul, Turkey

    Gregory Taevs, Principal Commercial Officer, Tel: +90 (212) 335 
9302, Fax: +90 (212) 335 9103, E-mail: [email protected].

Frank Spector,
Global Trade Promotion Programs, U.S. & Foreign Commercial Services.
[FR Doc. 2010-33248 Filed 1-4-11; 8:45 am]