Petrobras (PBR)

Plaintiff: Porto Seguro Imóveis Ltda. 

Nature: Civil 

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 Program. The Plaintiff filed the aforesaid lawsuit to obtain an order obliging Petrobras, as the majority 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. 

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 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. Petrobras then filed an Interlocutory Appeal against this decision before the STJ and STF. 

In accordance with the decision published on June 05, 2006, Petrobras is now awaiting assignment of the agenda to re- examine the matter relating to the blocking of Petrobras’ Special Appeal before the STJ and STF. 

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 estimated indemnity to Petroquisa, including monetary correction and interest, would be R$ 11.340.953 as at December 31, 2007. As Petrobras owns 100% of Petroquisa’s share capital, a portion of the indemnity, estimated at R$ 7.485.029, will not represent actual disbursement from the Petrobras Group. Additionally, Petrobras would have to indemnify Porto Seguro, the plaintiff, R$ 567.048 as a premium and R$ 2.268.190 to Lobo & Ideas for attorney’s fees. 

Plaintiff: Federal Revenue Office of Rio de Janeiro 

Nature: Tax 

Tax deficiency notice relating to Withholding Income Tax calculated on remittances of payments for chartering vessels referring to the period of 1998 and 1999 to 2002. 

Petrobras appeals, the highest administrative level, which are pending judgment. 

Updated maximum exposure: R$ 4.200.736. 

Plaintiff: Federal Revenue Inspectorate in Macaé 

Nature: Tax
 
II and IPI – Sinking of the P-36 platform 

Lower court decision against Petrobras. 

A Voluntary Appeal has been filed which is pending judgment. Petrobras filed a writ of mandamus and obtained a favorable decision staying any tax collections until the investigations determining the reasons that caused the platform to sink have been concluded. The Federal Government / National Revenue Office have filed an appeal which is pending judgment. 

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 majority 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. 

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. 

In performance of the decision published on June 05, 2006, we are now awaiting assignment of the agenda to re-examine the matter relating to the blocking of Petrobras’ Special Appeal before the High Court of Justice and the Federal Supreme Court. 

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$ 10.903.441 thousand as at 30 September, 2007. As Petrobras owns 100% of Petroquisa’s share capital, a portion of the indemnity estimated at R$ 7.196.271 thousand, will not represent a disbursement from Petrobras’s Group.

 Additionally, Petrobras would 

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.

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$2.370 million plus 5% as a premium and 20% attorneys’ fees. 
Petrobras filed a Special and Extraordinary Appeal before the High Court of Justice (STJ) and the Federal Supreme Court (STF), which were rejected. It then filed an Interlocutory Appeal against this decision before the STJ and STF. 
In performance of the decision published on June 05, 2006, we are now awaiting assignment of the agenda to re-examine the matter relating to the blocking of Petrobras’ Special Appeal before the High Court of Justice and the Federal Supreme Court. 
Based on the opinion of its attorneys, the Company does not expect an unfavorable final decision in this proceeding. 
If the award is not reversed, the indemnity estimated to Petroquisa, including monetary correction and interest, would be R$ 10.457.787 thousand as at 30 June, 2007. As Petrobras owns 100% of Petroquisa’s share capital, a portion of the indemnity estimated at R$ 6.902.139 thousand, will not represent a disbursement from Petrobras’s Group.