b) Lawsuits not provided for for Petrobras (PBR)

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PBR » Topics » b) Lawsuits not provided for

This excerpt taken from the PBR 6-K filed Nov 17, 2006.

b) Lawsuits not provided for

The chart on the following page shows the situation of the main lawsuits not considered as probable losses:


		Probability
Description	Nature	of Loss	Current Situation

Plaintiff: Porto Seguro Imóveis Ltda. PORTO SEGURO, a minority shareholder of PETROQUISA, filed a lawsuit against PETROBRAS, relating to alleged losses deriving from the sale of the equity interest held by PETROQUISA in several petrochemical companies in the National Privatization Programme. The Plaintiff filed the aforesaid lawsuit to obtain an order obliging PETROBRAS, as the major shareholder of PETROQUISA, to compensate the “loss” inflicted on the assets of PETROQUISA by the acts which approved the minimum sale price for its equity interest in the capital of the privatized companies.	Civil	Possible
			On March 30, 2004, the Rio de Janeiro Court of Appeal unanimously granted the new appeal brought by Porto Seguro, ordering PETROBRAS to indemnify PETROQUISA to an amount equal to US$2.370 million plus 5% as a premium and 20% attorneys’ fees.

			PETROBRAS filed a Special and Extraordinary Appeal before the High Court of Justice (STJ)and the Federal Supreme Court (STF), which were rejected. It then filed an Interlocutory Appeal against this decision before the STJ and STF.


			On May 06, 2005 the STJ granted the interlocutory appeal instructing the special appeal be entertained. Porto Seguro filed a Special Appeal against this decision, which was granted by majority vote on December 15, 2005, restoring the impediment on the special appeal brought by PETROBRAS.

			PETROBRAS filed an Interlocutory appeal against this latest decision, which was ruled on April 4, 2006 and which unanimously overturned a decision which restored the impediment on the Special Appeal brought by PETROBRAS, due to an impediment on one of the justices, determining another decision be pronounced. Special Appeal by PORTO SEGURO rejected under a judgment delivered on September 05, 2006. Judgment of the Special Appeal brought by AEPET is now pending. Based on the opinion of its attorneys, the Company does not expect an unfavorable final decision in this proceeding.

			If the award is not reversed, the indemnity estimated to PETROQUISA, including monetary correction and interest, would be R$ 9.619.656 thousand. As PETROBRAS owns 100% of PETROQUISA’s share capital, a portion of the indemnity estimated at R$ 6.348.973 thousand, will not represent a disbursement from PETROBRAS’S Group.

			Additionally, PETROBRAS would have to pay R$ 480.983 thousand to Porto Seguro and R$ 1.923.931 thousand to Lobo & Ideas by means of attorney’s fees.

This excerpt taken from the PBR 6-K filed Aug 19, 2005.

b) Lawsuits not provided for

The chart shows the situation of the main lawsuits not considered as probable losses and already disclosed to the market in the annual report for the year 2004:

Description	Nature	Probability of Loss	Current Situation
Plaintiff : Kallium Mineração S.A Suit for indemnities before the Courts of the State of Rio de Janeiro, for alleged losses and damages and business interruption, due to termination of agreement.	Civil	Remote	After the case was considered groundful by lower court, both parties lodged appeals which were dismissed. PETROBRAS is awaiting judgment of the appeal to the Supreme Court.
Plaintiff : Porto Seguro Imóveis Ltda Suit for damages resulting from the privatization of PETROQUISA subsidiaries	Civil	Possible	Porto Seguro filed motions for reconsideration which were judged by the 4th Civil Court of Rio de Janeiro, which handed down a ruling against PETROBRAS. In case the Company does not prevail, the estimated loss amounts to R$ 1.723.345 thousand. PETROBRAS is awaiting judgment of the Interlocutory Appeal converted into Special Appeal by the High and Supreme Courts.
Plaintiff : Rio de Janeiro State Federation of Fishermen Ordinary lawsuit before the courts of the State of Rio de Janeiro, for recovery of various damages due to the oil spillage which occurred in Guanabara Bay on January 18, 2000.	Civil	Possible	After the appeal to high and supreme court were dismissed PETROBRAS filed an interlocutory appeal, which was dismissed. An expert was appointed for purposes of settlement of the case by arbitration, which is in progress.
Plaintiff : Oil Workers Union (Rio de Janeiro, São Paulo and Sergipe) Labor suits claiming full incorporation into employee salaries of the official inflation indices in the years 1987, 1989 and 1990 (Bresser, Verão and Collor economic stabilization plans).	Labor	Remote	The proceedings filed by the Unions of Rio de Janeiro and Sergipe are in the phase of expert inspection for confirmation of the calculations for a ruling to settle the case to be handed down. In relation to the proceeding in São Paulo, the interlocutory appeal filed by the Union is pending judgment.
Plaintiff : Federal Revenue Service (SRF) Agency in Rio de Janeiro Assessment notice relating to Withholding Income Tax (IRRF)on remittances of payment for chartering of vessels.	Assessment Notice	Possible	Assessment of R$ 3.156.861 thousand confirmed by the lower administrative court. The appeal filed by PETROBRAS was dismissed by the high administrative court. PETROBRAS will file an appeal to the High Board of Tax Appeals.
Plaintiff : Rio de Janeiro State Treasury Secretary VAT (ICMS) - Sinking of P-36 Oilrig	Tax	Possible	At the lower court level (1st instance), the assessment was upheld. PETROBRAS filed a Voluntary Appeal, which is pending examination by the next court level. In order to make the appeal viable, a deposit was made in court, in the amount of R$43.661 thousand and bank guarantee in the amount of R$65.491 thousand.
Plaintiff : Macaé State Treasury Secretary Import Duties (II) and Excise Tax (IPI) - Sinking of P-36 Oilrig	Tax	Possible	Assessment considered groundful. PETROBRAS filed an appeal at the administrative level which is pending judgment. Through a writ of mandamus PETROBRAS obtained a ruling suspending the collection.

EXCERPTS ON THIS PAGE:

6-K	Nov 17, 2006

6-K	Aug 19, 2005

Petrobras (PBR)

PBR » Topics » b) Lawsuits not provided for

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