This excerpt taken from the PBR 6-K filed Dec 19, 2007.
New investments in Bolivia
(Rio de Janeiro, December 18, 2007). PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international energy company, announces that it signed a joint announcement with YPFB, the Bolivian national oil company, foreseeing new investments to increase natural gas production in Bolivia. In collaboration with its partners, the company estimates it may invest $750 million to $1 billion, depending on the results achieved in new area exploration, as per the normative and economic conditions that are currently in effect, and established the general lines for joint project execution in areas reserved to YPFB, Carohuaicho, Astillero and Cedro, with the possibility of the incorporation of a Semi-Public Corporation.
The companies also signed a technical human resource qualification agreement for Bolivias oil industry.
In another agreement, Petrobras and YPFB defined that for volumes delivered to the internal market above 18% of the production derived from new projects; there will be a 50% price guarantee relative to the exports price.
YPFB and Petrobras also reached an agreement regarding the formula for the payment for the liquids contained in the natural gas Petrobras purchases via the GSA Agreement, for a value between $100 million and $180 million per year, pursuant to the Brasília Minutes dated February 14 2007, which Petrobras agreed to pay as of May 2 2007. The exchange agreement went into effect on this date.
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: December 18, 2007
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