This excerpt taken from the PBR 6-K filed Nov 3, 2008.
Pasadena Refinery Put Option
Rio de Janeiro, October 31 2008 - PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international energy company, informs that, an interim award issued in connection with the arbitration process brought to the International Centre for Dispute Resolution between its wholly-owned subsidiary Petrobras America Inc. (PAI) and Astra Oil Trading NV (Astra), which own the Pasadena Refining System Inc. PRSI, located in Texas, issued on October 24 2008, established the validity of the put option exercised by Astra against PAI, for the ownership interests in PRSI.
In addition, the interim awards held that the put option exercised by Astra affiliates against PAI, for the ownership interests in PRSI Trading Company LP, an entity formed to market, sell, and distribute crude oil and refined products for the refinery, was also effective.
If the final decision keeps the same interim resolution PAI and its affiliates will buy out Astras ownership interests, therefore, remaining with 100% of the companies´ stake.
The put option exercise price decision is reserved for further proceedings.
Notwithstanding the lack of a price determination, PAI and Astra are working together to transition all operational, managerial and financial responsibilities to PAI immediately.
Este documento pode conter previsões que refletem apenas expectativas dos administradores da Companhia. Os termos antecipa, acredita, espera, prevê, pretende, planeja, projeta, objetiva, deverá, bem como outros termos similares, visam a identificar tais previsões, as quais, evidentemente, envolvem riscos ou incertezas previstos ou não pela Companhia. Portanto, os resultados futuros das operações da Companhia podem diferir das atuais expectativas, e o leitor não deve se basear exclusivamente nas informações aqui contidas.
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: October 31, 2008
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.