(Rio de Janeiro, June 17, 2005). PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA], a Brazilian international energy company, announces that its Board of Directors has approved the financial terms required for the definitive transfer of the thermoelectric Power Plant Termoceará, located in the Pecém Industrial Complex, in the State of Ceará, to Petrobras.
The power plant has nominal capacity of 220 MW and is one of the three merchant plants with which Petrobras signed Consortium Contracts in 2001 and 2002, which included clauses establishing contingent liabilities for payment of taxes, rates and tariffs, operating costs and maintenance and capacity investments, in the event the plant was unable to generate sufficient revenues to cover these items.
The value of the operation to acquire the shares is US$ 137 million including cash payments and debt assumptions. The ownership of the Power Plant will be entirely transferred to Petrobras. In compensation Petrobras will be exempt from any current contingency payments arising from the Consortium Contract that will be terminated and will enjoy all benefits arising from the operation of the Power Plant from the date of the signing of the definitive documentation.
The parties are in the final phase of the elaboration of the legal documents necessary for the definitive closing of the operation, which is predicted for the 22 June.