Petrobras – Investor Relations


Investor Relations

Contracting insurance cover for the Bolivian Refineries

(Rio de Janeiro, June 25, 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 on June 22 2007 its subsidiary, Petrobras Bolívia Refinación (PBR) took out new insurance coverage with the La Boliviana Ciacruz de Seguros y Reaseguros S.A. insurance company for the operations at its two Bolivian refineries - Gualberto Villarroel in Cochabamba and Guillermo Elder Bell in Santa Cruz. This insurance policy has been issued irrespective of the refineries’ operator.

PBR has been obliged to renegotiate this new insurance cover independently of other Petrobras insurance coverage, and specifically for its Bolivian refineries, given that the previous policy would have ceased to be valid should any assets come to be operated by any entity other than Petrobras.

Petrobras contracts worldwide blanket insurance coverage for all operations at its refineries in various countries, which previously included the two refineries in Bolivia. Contractually, this coverage is automatically cancelled when Petrobras is no longer responsible for plant operations.

After no proposal was received that accepted a change in operator for the refineries on the occasion of the first price bidding round, a second round was concluded with the acceptance of the above policy’s conditions which comply with Petrobras’ corporate standards.

In short, the new insurance policy covers all risks of damage to the installations, machinery, equipment, civil works and product inventory as well as civil liability for risks caused to third parties and their properties.

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