This excerpt taken from the PBR 6-K filed Nov 16, 2005.
Successful bid in Venezuela
(Rio de Janeiro, November 16, 2005). PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA], a Brazilian international energy company, announces that its subsidiary Petrobras International Braspetro B.V. confirmed the successful bid of the Moruy II Block (Block), in the second (2nd) offshore exploration bidding round in the Bolivarian Republic of Venezuela (Republic), namely Rafael Urdaneta Project Phase B, jointly with Teikoku Oil Co., Ltd. (Teikoku). The Exploration License is expected to be awarded at the end of November, 2005, thorough the approval process in the Republic.
The Block, 874km2 in extent, is located in the south eastern part of the Gulf of Venezuela, which is just to the north of oil prolific Maracaibo Lake and approx. 450km to the west of Caracas, the capital of the Republic. The working interest of the Block is to be owned 50% by Petrobras (Operator) and 50% by TEIKOKU. The term of the license, including 3-year initial exploration period with 1-year extension at its option is 30 years and we expect to invest approx US$ 20 million in the initial exploration period.
Petrobras and Teikoku has, through its subsidiaries, joint operations for gas exploration and development projects, i.e. San Carlos and Tinaco blocks in Venezuela (subject to the government approval) and Cuervito and Fronterizo blocks in Mexico, as well as for oil exploration and development projects, i.e. Blocks 18 and 31 in Ecuador (subject to the government approval). Accordingly, this is the fourth (4th) joint operation for Petrobras and Teikoku.
The conclusion of this operation is in line with Petrobras Strategic Plan objectives of consolidating its position as an integrated energy company with a strong international presence and a leader in the Latin American market.
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: November 16, 2005
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