This excerpt taken from the PBR 6-K filed Nov 16, 2005.
Acquisition of Gaseba Uruguay S/A
(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 Board of Directors approved the acquisition of 51% of the capital of Gaseba Uruguay - Grupo Gaz de France S/A (Gaseba Uruguay S/A), a natural gas distribution concession in Montevideo, Uruguay, from GDF International (GDFI).
Gaseba Uruguay S/A holds the concession for the distribution of natural gas, in a regulated market for consumers with a demand of less than 5,000 m3/day. The concession term runs to January 2025 (30 years) and covers the Province of Montevideo, with approximately 1,400,000 inhabitants.
The acquisition is still subject to the conclusion and the signing of a sale and purchase agreement between Petrobras and GDFI and the fulfillment of certain legal requirements particularly with respect to Gasebas minority shareholders, Uruguayan authorities approval and French governmental approval.
With this acquisition, Petrobras contemplates to enhance its Uruguayan natural gas business, which began in late 2004 with the acquisition of a controlling stake in Distribuidora Conecta, a gas concessionaire operating outside the Montevideo metropolitan area.
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.
Petróleo Brasileiro S.A PETROBRAS
Investor Relations Department
Raul Adalberto de Campos Executive Manager
Av. República do Chile, 65 - 4th floor
20031-912 Rio de Janeiro, RJ
(55-21) 3224-1510 / 9947
This document may contain forecasts that merely reflect the expectations of the Companys management. Such terms as anticipate, believe, expect, forecast, intend, plan, project, seek, should, along with similar or analogous expressions, are used to identify such forecasts. These predictions evidently involve risks and uncertainties, whether foreseen or not by the Company. Therefore, the future results of operations may differ from current expectations, and readers must not base their expectations exclusively on the information presented herein.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: November 16, 2005
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually oc cur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.