Petrobras (PBR)

Commitment to sell the equity interest in an energy transportation company in Argentina

The Board of Directors of Petrobras Energia S.A. - PESA approved on August 4, 2006 the sign of the contract to sell 50% shareholding held by PESA in Citelec to Eton Park Capital Management. Citelec has an equity interest of 52,67% in Compañia de Transporte em Energia Eléctrica em Alta Tensión Transener S.A..

CITELEC was sold under a sale commitment undertaken with the Argentinean government when Petrobras Participaciones S.L. acquired the share control of Petrobras Energia Participaciones S.A. - PEPSA, the parent company of PESA. The sale process will be supervised by the Ente Nacional Regulador de la Eletricidad (ENRE) and approved by the Secretaria de Energia de la Nación. As of September 30, 2006, the sale process was in phase of approval.

The terms put forward by Eton establish payment of a fixed amount of US$ 54 million (equivalent to R$ 117.000 thousand) plus an additional amount related to the income from the integral tariff review determined for Transener and its subsidiary Empresa de Transporte de Energia Eléctrica por Distribuición Troncal de la Pronvíncia de Buenos Aires S.A. (Transba).

The contract with Eton Park Capital Management also establishes the transfer of the 22,22% equity interest held by PESA in Yacylec for USD 6 million (equal to R$ 13.045 thousand).

Commitment to sell the equity interest in an energy transportation company in Argentina

The Board of Directors of Petrobras Energia S.A. – PESA and Eton Park Capital Management signed contract to sell 50% shareholding held by PESA in Citelec. Citelec has an equity interest of 52,67% in Compañia de Transporte em Energia Eléctrica em Alta Tensión Transener S.A. and an interest of 22,22% in the company Yacylec S.A. The Board of Directors of Petrobras Energia S.A. – PESA approved on August 4, 2006 the sign of referred contract.

CITELEC was sold under a sale commitment undertaken with the Argentinean government when Petrobras Participaciones S.L. acquired the share control of Petrobras Energia Participaciones S.A. – PEPSA, the parent company of PESA.

The terms put forward by Eton establish payment of a fixed amount of US$ 54 million, equal to R$ 117.000 thousand, plus an additional amount related to the income from the integral tariff review determined for Transener and its subsidiary Empresa de Transporte de Energia Eléctrica por Distribuición Troncal de la Pronvíncia de Buenos Aires S.A. (Transba).

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