This excerpt taken from the PBR 6-K filed Dec 12, 2007.
Urucu-Manaus gas transporter granted BNDES funding
(Rio de Janeiro, December 12, 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 the National Economic and Social Development Bank (BNDES) granted funding, worth R$2.49 billion, to the Transportadora Urucu-Manaus S.A. special purpose company (SPC), in charge of building the 383-km long, 20-inch in diameter natural gas transportation pipeline to connect Coari to Manaus, and of building distribution branches to serve seven municipalities located along the gas pipelines course. The funds will also be used to build the 279-km, long 10-inch nominal diameter liquefied petroleum gas (LPG) pipeline that will connect the Arara Pole, in Urucu, to the Solimões Terminal, in Coari, State of Amazonas.
The natural gas will be used initially for thermoelectric power generation in the city of Manaus, substituting for the fuel oil generators that are currently used for this purpose. Later, it will also supply the regions industrial, vehicle, commercial, and residential sectors.
The gas pipeline will have two delivery points in Manaus, seven distribution branches totaling 126 Km in length, to deliver gas to municipalities located near the gas pipeline, and two intermediary gas-compression stations. The project also foresees the re-adaptation of an existing 18-inch nominal diameter pipeline between Urucu and Coari, which will be interconnected to the 20-inch one, allowing for natural gas production outflow.
The gas pipelines initial flow capacity will be 5.5 million cubic meters of natural gas per day, and is expected to go online in December 2008.
With regard to socioenvironmental responsibility, a collaboration agreement was signed with the Amazonas State Government to develop sustainable programs, coordinated by the Sustainable Development Department (SDD), aiming at creating actions capable of mitigating and compensating for the gas pipelines environmental impacts. The gas pipeline construction is hoped to generate upwards of 3,000 direct jobs in the state of Amazonas.
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 12, 2007
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