This excerpt taken from the PBR 20-F filed Jun 30, 2005.
PIFCo may be limited in its ability to pass on its financing costs.
PIFCo is principally engaged in the purchase of crude oil and oil products for sale to Petrobras, as described above. PIFCo regularly incurs indebtedness related to such purchases and/or obtain financing from us or third-party creditors. At December 31, 2004, approximately 15.5% of PIFCos indebtedness was floating-rate debt denominated in U.S. dollars. All such indebtedness has the benefit of our standby purchase obligation or other support. PIFCo has historically passed on its financing costs to us by selling crude oil and oil products to us at a premium to compensate for its financing costs. Although we intend to continue this practice in the future, we cannot assure you that we will. PIFCos inability to transfer its financing costs to us could have a material adverse effect on PIFCos business and on its ability to meet its debt obligations on the long term.