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This excerpt taken from the PBR 6-K filed May 13, 2005. Petrobras seals acquisition of Eletrobolt thermal generator (Rio de Janeiro, May 12, 2005). – PETRÓLEO
BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex:
XPBR/XPBRA], a Brazilian international energy company, announces that it has
concluded the process for the acquisition of Sociedade Fluminense de Energia –SFE, owner
of the Eletrobolt thermoelectric power generating plant located in Seropédica,
state of Rio de Janeiro. The power plant has nominal capacity of 388 MW and is one of
the three merchant plants with which Petrobras signed Consortium Contracts in 2001 and
2002, which included clauses establishing contingent liabilities for payment of taxes,
rates and tariffs, operating costs and maintenance and capacity investments, in the
event the plant was unable to generate sufficient revenues to cover these items.
The previously agreed payment structure provided for 30 fixed monthly payments totaling US$159 million and a final US$30 million payment at the end of the seventh year. Petrobras renegotiated the payment terms with the 17 commercial banks at that time the owners of SFE, paying US$65.1 million for the shares in SFE and assuming debt of US$98.9 million. Concomitant with the acquisition of SFE, Petrobras signed documentation extinguishing the Consortium Contract, relieving it of any obligation to make the contingent payments provided for therein and leaving it free to benefit from any gains from the plant's operations. The conclusion of these negotiations is part of the Company's strategy for the power sector, which provides for limiting any increase in its thermal generation capacity to the conclusion of projects already being executed or to acquisitions that signify reductions in contingency payments. http: //www.petrobras.com.br/ri/english
Contacts:
Petróleo Brasileiro S.A – PETROBRAS
Investor
Relations Department
Raul Adalberto de Campos– Executive Manager E-mail: petroinvest@petrobras.com.br 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 Company’s 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.
SIGNATURE
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, 2005
FORWARD-LOOKING
STATEMENTS
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. | ||||||||