VZCZCXRO1518
RR RUEHRG
DE RUEHBR #1335/01 2821755
ZNR UUUUU ZZH
R 081755Z OCT 08
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC 2617
RHEBAAA/DEPT OF ENERGY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
INFO RUEHSO/AMCONSUL SAO PAULO 2883
RUEHRI/AMCONSUL RIO DE JANEIRO 6728
RUEHRG/AMCONSUL RECIFE 8564
RHEHNSC/NSC WASHDC

UNCLAS SECTION 01 OF 02 BRASILIA 001335 
 
SENSITIVE 
 
SIPDIS 
 
ENERGY DEPARTMENT FOR ACTING DEPUTY SECRETARY KUPFER, 
ENERGY DEPARTMENT FOR A.BECK,G.WARD,C.GAY, R.DAVIS,A,CHIANG 
DEPT FOR M.ROONEY, F.CORNEILLE, R.SCHWARTZ, AMB. MORALES 
DEPT ALSO FOR M.MCMANUS, G.MANUAL, D.SCHNIER 
DOC FOR SECRETARY GUTIERREZ 
DOC ALSO FOR A.DRISCOLL, L.FUSSEL, W. BASTIAN 
 
E.O. 12958: N/A 
TAGS: PREL ENRG EINVKSCA BR IN
SUBJECT: NEXT MOVES IN BRAZILIAN ENERGY ENGAGEMENT 
 
REF: A) Brasilia 910, B) Rio 138, C) Rio 135, D) Brasilia 1122 
 
¶1. (SBU) Based on a conversation between Brazilian Ministry of Mines 
and Energy (MME) Minister Lobao and Ambassador Sobel on October 6, 
Deputy MME Minister Zimmermann is expected to come to the United 
State in late October, to be followed by a visit at a later date by 
Minister Lobao. The trip is envisioned to have elements of 
commercial engagement, energy cooperation, legislative 
consultations, and exploration of financing opportunities, as well 
as working towards the Summit of the Americas energy agenda, all 
designed to maximize our energy relations with Brazil which is 
poised to become a global energy leader.  Department of Energy (DOE) 
and MME have already been discussing ways to reinvigorate the energy 
working group established under the 2003 MOU signed by DOE and MME 
on broad energy cooperation, building on areas of cooperation 
previously identified during the August visit to Brazil of Acting 
Deputy Secretary of Energy Kupfer. Post requests Washington 
assistance to ensure that we take advantage of the strategic 
opportunity the Zimmermann and Lobao visits present. (see REFTEL D) 
END SUMMARY. 
 
¶2. (SBU) Ambassador Sobel met with Minister of Mines and Energy 
(MME), Edison Lobao, October 6 to discuss future plans for further 
deepening the bilateral energy relationship.  After visits by 
Department of Energy Acting Deputy Secretary Kupfer and Department 
of State Undersecretary for Economic, Energy, and Agricultural 
Affairs Reuben Jeffery during August and October respectively, and 
with the upcoming visit by Secretary of Commerce Gutierrez (October 
9 and 10), the Minister and his staff have had multiple 
opportunities to engage with high level U.S. officials to discuss 
energy issues between our two countries.  During Acting Deputy 
Secretary Kupfer's trip in August, the Minister and his staff 
engaged in an exchange with Kupfer and his delegation regarding 
potential future areas of coordination and developed a long list of 
attractive options for collaboration (ref D).  Both DOE DepSec and 
DOS U/S Jeffery also heard a great deal about energy-related 
commercial opportunities for U.S. firms in Brazil.  As the 
Ambassador and Lobao met to follow up on these visits and prepare 
for the Gutierrez visit, they discussed possible options for travel 
by Lobao to the U.S. to further engage on these areas of interest. 
 
¶2.  (SBU) Given all the possibilities for ways to advance the energy 
relationship with a trip to the United States, the Ambassador 
suggested that Lobao send his deputy and well-regarded energy 
expert, Marcio Zimmermann, to the United States first.  A Zimmermann 
visit could help reinvigorate and if necessary establish cooperation 
mechanisms so as to concretely determine what can be undertaken in 
the areas of interest identified during the Kupfer visit, given the 
funding situation in both nations, as well as make some industry and 
legislative contacts.  Lobao himself could then travel to the United 
States post-election to help solidify energy relations with the new 
administration and ensure that energy efforts remain a priority into 
2009 and beyond.  The Ambassador suggested that Zimmerman's visit to 
the U.S. might include: a meeting at DOE; a meeting with the U.S. 
Chamber of Commerce to include energy companies not currently active 
in Brazil; meetings with OPIC and EXIM to discuss opportunities for 
U.S. companies in Brazil to permit them to access funding sources; 
Department of Commerce meetings including meeting with mid-sized oil 
companies and meeting with the U.S. nuclear industry; a meeting with 
Congressional leaders, and meetings at State Department to include 
consultation on Summit of the Americas.   Lobao agreed with the 
proposal, suggested he might then travel in the spring once the new 
Administration was in place, or perhaps, at the Ambassador's 
suggestion, take advantage of the transition time in December to 
make initial contacts and incorporate participation in the Wilson 
Center's planned Brazil event on December 5.  Lobao indicated that 
he would be open to either option and preferred to determine the 
timing of his trip based on the outcome of Zimmermann's Washington 
visit. 
 
¶3.  (SBU) The Ambassador agreed and emphasized that it was 
particularly important that Zimmermann travel to the U.S. by the end 
of October to build on all the work done so far and allow for the 
establishment of a working group for the future.  He said also 
wanted to be sure that the visit included commercial discussions, 
particularly opportunities for small-to-medium sized U.S. oil 
companies.  Lobao will consider the timing of his trip after the 
return of his Deputy from Washington. 
 
BRASILIA 00001335  002 OF 002 
 
 
 
¶4.  (SBU) Separately, DOE International Office representative Rhia 
Davis, EST Counselor, and Econ Deputy, met with MME's International 
Affairs Advisor Rubem Barbosa to plan for a preliminary subject 
matter experts' discussion in advance of Lobao's and Zimmermann's 
trips.  As a result of the discussion, DOE and MME will work to 
explore implementation strategies for areas of energy cooperation 
identified during Kupfer's trip and of corresponding experts for a 
DVC discussion to be scheduled in the coming weeks.  The goal will 
be to identify the best items for fruitful cooperation and decide 
how to best address them.  An October Zimmermann visit should 
provide impetus to the effort and empower the working group to 
advance. 
 
¶5.  (SBU) COMMENT:  Brazil is poised to become a global energy 
leader.  The country is already the leading exporter of biofuels 
and, with the recent offshore discoveries, stands to become a 
country with one of the largest reserves of oil and gas in the 
world.  Post is eager to ensure that we lay the foundations to build 
as strong a bilateral energy relationship as possible through the 
transition and beyond.  Given concerns regionally and globally with 
U.S. dependence on energy suppliers that are less than friendly, 
unstable, or in some cases hostile, fully engaging bilaterally with 
Brazil as a friendly, democratic, increasingly engaged regional 
leader provides an attractive partner in addressing our energy 
security needs.  The relationship also offers options for energy 
cooperation in the region.  Much as our partnership in biofuels has 
served both countries' interests well, we believe broader and deeper 
energy engagement will be similarly productive.  Also, as a 
not-so-coincidental byproduct of our biofuels collaboration, we have 
seen an increase in Brazilian receptivity to working together in 
other areas as well.  Concretely expanding this energy partnership 
has the potential to deepen the overall bilateral relationship. 
Post requests the assistance of State, DOE, and DOC in ensuring that 
the visits by Deputy Secretary Zimmermann, and later Minister Lobao, 
take full advantage of this strategic opportunity. 
 
SOBEL