This excerpt taken from the PBR 6-K filed Mar 26, 2009.
Clarification on cost reduction plan
Rio de Janeiro, March 24 2009 PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international energy company, in response to Ofício GAE/CAEM 0460-09, wishes to clarify a report in Valor Econômico newspaper of March 23 2009 under the headline Petrobras adopts far-reaching plan to reduce costs.
The Company has made it widely known to the market at large that the capital expenditures in the revised Business Plan of R$ 174 billion for the 2009-2013 period, do not take into account the potential reduction in costs of goods and services supplied to the oil industry and anticipated as a reflection of the fall in international oil prices.
Additionally, it was announced that approximately 50% of the entire projects portfolio is at the opportunity evaluation, or conceptual or basic project stages, approval and contracting by the Company still pending. Petrobras envisages cost savings as a result of negotiations with suppliers in respect of investments to be finalized over the next few years.
As an example, on January 15 2009, Petrobras announced the cancellation of bidding for the P-61 and P-63 platforms in view of what were considered to be high prices in relation to current market conditions.
Petrobras wishes to reaffirm its growth targets and is working to ensure that cost reductions result in significant benefits to the Company and its shareholders.
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: March 26, 2009
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 occur. 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.