Petrobras – Investor Relations


Investor Relations

New investments in Bolivia

(Rio de Janeiro, December 18, 2007). – PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international energy company, announces that  it signed a joint announcement with YPFB, the Bolivian national oil company, foreseeing new investments to increase natural gas production in Bolivia. In collaboration with its partners, the company estimates it may invest $750 million to $1 billion, depending on the results achieved in new area exploration, as per the normative and economic conditions that are currently in effect, and established the general lines for joint project execution in areas reserved to YPFB, Carohuaicho, Astillero and Cedro, with the possibility of the incorporation of a Semi-Public Corporation.

The companies also signed a technical human resource qualification agreement for Bolivia’s oil industry.

In another agreement, Petrobras and YPFB defined that for volumes delivered to the internal market above 18% of the production derived from new projects; there will be a 50% price guarantee relative to the exports price.

YPFB and Petrobras also reached an agreement regarding the formula for the payment for the liquids contained in the natural gas Petrobras purchases via the GSA Agreement, for a value between $100 million and $180 million per year, pursuant to the Brasília Minutes dated February 14 2007, which Petrobras agreed to pay as of May 2 2007. The exchange agreement went into effect on this date.

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