(Rio de Janeiro, November 16, 2005). PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex:
XPBR/XPBRA], a Brazilian international energy company, announces that its subsidiary Petrobras International Braspetro B.V.
confirmed the successful bid of the Moruy II Block (Block), in the second (2nd) offshore exploration bidding round in the
Republic of Venezuela (Republic), namely Rafael Urdaneta Project Phase B, jointly with Teikoku Oil Co., Ltd. (Teikoku). The Exploration License is expected to be awarded at the end of November, 2005, thorough the approval process in the Republic.
The Block, 874km2 in extent, is located in the south eastern part of the Gulf of Venezuela, which is just to the north of oil prolific Maracaibo Lake and approx. 450km to the west of Caracas, the capital of the Republic. The working interest of the Block is to be owned 50% by Petrobras (Operator) and 50% by TEIKOKU. The term of the license, including 3-year initial exploration period with 1-year extension at its option is 30 years and we expect to invest approx US$ 20 million in the initial exploration period.
Petrobras and Teikoku has, through its subsidiaries, joint operations for gas exploration and development projects, i.e. San Carlos and Tinaco blocks in Venezuela (subject to the government approval) and Cuervito and Fronterizo blocks in Mexico, as well as for oil exploration and development projects, i.e. Blocks 18 and 31 in Ecuador (subject to the government approval). Accordingly, this is the fourth (4th) joint operation for Petrobras and Teikoku.
The conclusion of this operation is in line with Petrobras Strategic Plan objectives of consolidating its position as an integrated energy company with a strong international presence and a leader in the Latin American market.