This excerpt taken from the PBR 6-K filed May 15, 2006.
Petrobras Repudiates Bolivian Government Declarations
(Rio de Janeiro, May 11, 2006). PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international energy company, informs that during the meeting held yesterday in La Paz in the presence of the ministers of Mines and Energy for Brazil, Silas Rondeau, and of Hydrocarbons for Bolivia, Andrés Soliz-Rada, Petrobras and YPFB agreed that to comply with the provisions contained in the Supreme Decree (DS) 27801, certain regulations must be respected and clarifications obtained as to contractual and operational conditions. It was also agreed that possible losses due to the nationalization of Petrobras' assets in Bolivia will be subject to compensation to be negotiated. Any proposals for the revision of the price of natural gas acquired by Petrobras from YPFB will be discussed in the framework of the natural gas supply agreement (GSA).
Petrobras is surprised by recent statements accusing it of illegalities in its Bolivian business, made immediately following the publication of the joint communiqué with the details of the points of agreement reached in La Paz last night. In view of these reports, the Company wishes to publicly clarify that:
In view of this, Petrobras declares its indignation with respect to the accusations that, at any time, it might have deliberately conducted its business outside the law, whether in Bolivia or in any other country where it operates.
Petróleo Brasileiro S.A PETROBRAS
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: May 12, 2006
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 oc cur. 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.