This excerpt taken from the PBR 6-K filed May 11, 2007.
Bolivia accepts Petrobras proposal for refinery sale
(Rio de Janeiro, May 10, 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 the government of Bolivia and YPFB have accepted Petrobras proposal for the sale of the Guillermo Elder Bell and Gualberto Villaroel refineries, both located in Bolivia.
Bolivias Hydrocarbons and Energy Minister, Carlos Villegas, sent Petrobras a letter in which he agrees to the general terms Petrobras set forth for the full sale of the companys stake in the refineries for US$112 million. The procedures for refinery control transference and the form of payment will be made formal in the upcoming days.
The value Petrobras proposed was calculated based on future cash flow, as estimated by an independent international financial institution in accordance with ordinary business practices. While the refineries were under Petrobras control, they generated positive cash flow, including dividend remittances.
The refinery value evaluation did not take the implications of the Supreme Decree, which affects the exports of reconstituted crude and white gasolines, into account.
Petrobras reasserts no change was made to the proposal it sent YPFB. It also reasserts Petrobras led the negotiations.
Petrobras, in line with its strategy of internationalizing and integrating its assets, invested in and modernized the industrial park, adapting to the Bolivian markets profile, and always focusing on profitability and on social and environmental responsibility.
While it owned the refineries, Petrobras guided its operations based on respect for the Bolivian laws and on the commitment to provide quality fuels, at the amounts required to keep its customers throughout Bolivia continuously supplied.
Contacts: PETRÓLEO BRASILEIRO S. A. PETROBRAS
Investor Relations Department I Raul Adalberto de Campos - Gerente Executivo I E-mail: email@example.com
Av. República do Chile, 65 22nd floor - 20031-912 - Rio de Janeiro, RJ I Tel.: 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: May 11, 2007
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