This excerpt taken from the PBR 6-K filed Sep 14, 2006.
Petrobras enters into agreement to explore the Argentinean Sea
(Rio de Janeiro, September 13, 2006). PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international energy company, announces that the subsidiarys Petrobras Energía, entered into an agreement yesterday with companies Energía Argentina (Enarsa) and Repsol YPF to organize a consortium whose purpose will be the exploration, development and commercialization of oil and natural gas in deep waters of the Argentinean continental shelf. Petrobras Energía will integrate the consortium with a participation of 35%, being the operator of the area, while Enarsa and YPF will have a 35% and 30% participation respectively.
The consortiums area of exploration will be located at approximately 250 kilometers from the city of Mar del Plata, in the province of Buenos Aires, with depths varying between 200 and 3.000 meters.
Petrobras Energía and YPF will be responsible, proportionally to their participation, for the funds necessary to finance the corresponding investment at Enarsa in this stage. If there is any commercial discovery, Enarsa shall reimburse Petrobras Energía and YPF for the investments carried out, related to their participation.
This project will benefit from the acknowledged leadership and technological capacity of Petrobras in the exploration and production in deep and ultradeep waters, in Brazil and abroad.
Last January, Petrobras Energía had already entered into an agreement with Enarsa, YPF and Petrouruguay, to explore, develop and commercialize oil and natural gas at the offshore areas of ENARSA 1 (E1) and CCM2, also in Argentinean Sea.