This excerpt taken from the PBR 6-K filed Jul 20, 2005.
Clarifications on the contract with GDK Engenharia
( Rio de Janeiro, July 19, 2005). PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA], a Brazilian international energy company, wishes to clarify that GDK Engenharia S.A was retained to build and assemble Platform P-34s industrial unit. The cost of the work amounted to about US$ 88 million and the platform, once concluded, is scheduled to begin operations next year in the Jubarte Field with a production capacity of 60,000 barrels/day.
In accordance with Decree 2745, this contract was the outcome of an Invitation to Bid, the processing of which took place between January and June 2004. In addition to GDK, the following companies were also invited to participate in the bidding process: ABB-Camargo Correa and Andrade Gutierrez Consortium; Construtora Norberto Odebrecht S.A.; Fels Setal S.A.; GDK Engenharia S.A.; Mauá Jurong S.A.; Mendes Júnior Trading e Engenharia S.A.; Promon Engenharia Ltda; Techint S.A.; Technip Engenharia S.A and UTC Engenharia S.A.
Four of these companies officially declined the invitation to bid, one failed to put in a bid, two formed a consortium, presenting a joint proposal, and three submitted individual proposals. Out of the four proposals received, three were approved on technical grounds by the Tender Bid Committee. The difference between GDKs bid and the company classified in second place was approximately US$ 10 million. The contract with GDK was signed on July 9 2004 for completion within a term of 510 days. The platform under construction is expected to leave the port of Vitória late this year.
GDK Engenharia has had a record of supplying services to Petrobras since 1994. Since that date, among the services for which Petrobras has retained GDK are: maintenance of industrial equipment; repair and expansion of property installations; construction and assembly of industrial structures for oil and gas; and maintenance construction, assembling and restoration of pipelines. The work involving the contract for supplying P-34 is an area in which GDK has a proven track record.
In 2001, contracts signed between Petrobras and GDK amounted in round figures to R$ 126 million, in 2002 to R$ 430 million, in 2003 to R$ 145 million, in 2004 to R$ 512 million and in 2005 to R$ 272 million.
The P-34 Platform contract has been audited by the Federal Audit Court (TCU) and no irregularity was identified.
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: July 20, 2005
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