This excerpt taken from the PBR 6-K filed Aug 19, 2005.
Petrobras is the highest bidder in the us Gulf of Mexico lease sale
(Rio de Janeiro, July August 21 18, 2005). PETRÓLEO BRASILEIRO S/A PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA], a Brazilian international energy company, announces that Petrobras America, subsidiary of Petrobras in the USA, presented the higher number of winner proposals in the bid promoted by the Minerals Management Service. The company presented proposals for 57 blocks, being the highest bidder for 53 blocks, in a total amount of US$ 30.1 M. With this result, Petrobras ensured 100% of participation, and the condition as Operator, in a set of blocks comprising eight prospects with high potential for oil and gas reserves, from which 3 are in ultradeep waters, 4 in the west part of the US Gulf of Mexico, and 1 in deep waters in the Garden Banks quadrant.
The success in the current bid addresses the priorities established by Petrobras in its Strategic Plan, including deep and ultradeep waters in the Gulf of Mexico, among the focus areas for participation in the exploratory activities abroad. At the same time, the Company consolidates its position as one of the leaders in the exploration activities in Gulf of Mexico ultradeep waters, where it is associated with giant worldwide oil industry companies, with participations in 3 major discoveries in that region, and in an already producing field.
In the set of blocks acquired, 1 is near to the Cottonwood discovery, located in the GB 244 block, in water depth of700 m, where the first well operated by Petrobras in deep waters in the Gulf of Mexico is being drilled. Depending on the results of this well, first oil may happen in 2007. The inclusion of this new block in the projects portfolio, in the Garden Banks quadrant, will allow higher sinergy through the joint development of future discoveries.
The current bid allowed the extension of Petrobras participation in other area the company has interest, the region located in the western region of the US Gulf of Mexico, in the Corpus Christi, Padre Island and Mustang Island quadrants. The Company chose such quadrants as priority, with a differentiated view about the geological perspectives, where there are a number of structures not yet tested that, potentially, may contain large oil and gas reserves. The drilling of the first well in this region is planned for the next year.
Petrobras America estimates investing near US$ 150 M this year and, until 2010, approximately US$ 1.7 B, expecting a production over 100 thousand barrels of oil per day in the beginning of the next decade.
Petróleo Brasileiro S.A PETROBRAS
Investor Relations Department
Raul Adalberto de Campos Executive Manager
Av. República do Chile, 65 - 4th floor
20031-912 Rio de Janeiro, RJ
(55-21) 3224-1510 / 9947
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: August 18, 2005
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