This excerpt taken from the PBR 6-K filed Dec 14, 2007.
Petrobras starts biodiesel marketing process for 2008
(Rio de Janeiro, December 13, 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 PETROBRAS and its Alberto Pasqualini Refinery (REFAP) subsidiary, located in Canoas (RS), will start marketing 380 million liters of biodiesel to Brazilian diesel distributors. This process will lead to the actual introduction of this renewable fuel in the Brazilian energy matrix, as determined by the National Biodiesel Production and Use Program.
Yesterday (12/12), electronic sales were made for the REFAP coverage areas, in the state of Rio Grande do Sul, and for the Midwestern and Northern Regions, where PETROBRAS performs. Thus far, the distributors have acquired 157 million liters, 97% of the volume offered in these areas and adding up to some R$300 million in negotiations. Auctions are scheduled for today aimed at companies located in Southeastern and Northeastern Brazil, for a total volume of 152 million liters of biodiesel.
Pursuant to Law # 11.097, dated 01.13.2005, as of January 1 2008, all of the diesel fuel marketed in Brazil must contain 2 % biodiesel.
The biodiesel that is being sold was acquired by REFAP and PETROBRAS in the National Petroleum Agency (NPA) actions held last November 13 and 14 to supply the demand foreseen for the first half of 2008.
PETROBRAS and REFAP are selling biodiesel to all Brazilian diesel distributors, pursuant to the Biodiesel regulatory mark, via its PETRONECT subsidiary, which provides material and service marketing services to Petrobras Systems companies via a single Web-based electronic negotiation portal.
In order to comply with the above-mentioned legislation, a study was carried out to optimize biodiesel distribution logistics among Brazils diesel fuel distributors. The study analyzed the supply of the 15 biodiesel-producing units that won the two most recent biodiesel acquisition auctions, held last November, to attend to the 2% biodiesel addition to diesel fuel in a transparent, isonomic manner to all public and private agents.
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: December 14, 2007
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