This excerpt taken from the PBR 6-K filed Oct 5, 2007.
Petrobras is the highest bidder in 26 blocks in the US Gulf of Mexico Lease Sale
(Rio de Janeiro, October 4, 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 acquired 26 blocks, on October 3rd, in Lease Sale 205, offered by the Minerals Management Service (MMS), the United States regulating agency that manages offshore oil and gas activities. Petrobras is among the top 10 companies based on total number of winner bids, with investment of US$ 108.1 million, offered for blocks located in the central and eastern Gulf of Mexico, in one of the most competitive lease sales experienced in the region.
A total of 73 oil and gas companies competed in the sale and bid for blocks, mainly those located in deep and ultra-deep waters. Out of these 26 blocks, Petrobras ensured 100% participation in 22 blocks where it will perform as Operator. The remaining 6 blocks were acquired in partnership with Devon Energy, from which 2 will be operated by Petrobras and 4 by the partner, where each company will hold 50% participating interest.
According to the auction rules, the MMS still needs to confirm the winner bids. After this confirmation, the blocks will be added to Petrobras exploratory projects portfolio, totaling 338 blocks, being 200 operated by the company.
As in the lease sale in August 2007, when 34 blocks were acquired, Petrobras sought to consolidate its position in the areas which are the main focus of its activities in the Gulf of Mexico, highlighting deep and ultra-deep waters in the quadrants of Walker Ridge, the Mississippi Canyon, Green Canyon, Garden Banks, Keathley Canyon and Lloyd Ridge, allowing the expansion of the portfolio with quality exploratory prospects.
The participation in the Lease Sale 205 is aligned with the demands of Petrobras Strategic Plan, which outlines strong international growth with investments in priority areas such as the American sector of the Gulf of Mexico. As a result, Petrobras is following the industry model, and underlines once again its willingness to compete and to invest in all environments which will capitalize on both its technologies and knowledge, and that offer added stability and profitability to its investments. Thus, Petrobras strengthens its position as one of the leaders of exploration in deep and ultra-deep waters in the region, where it is associated with other oil and gas companies.
Petrobras has participation in three of the most important discoveries in the Lower Tertiary reservoirs in the Cascade, Chinook and Saint Malo fields, located in the Walker Ridge Quadrant. Cascade and Chinook fields are operated by Petrobras, who will be the pioneering company, not only in producing this reservoir in ultra-deep waters, but also in the use of an FPSO (Floating Production, Storage and Offloading) platform, which is planned to be on stream in 2010.
The main contracts necessary for the beginning the production development projects of these fields will be signed still in 2007.
Contacts: PETRÓLEO BRASILEIRO S. A. PETROBRAS
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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: October 04, 2007
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