20035-900 - Rio de Janeiro - RJ - Brazil
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PRESS RELEASE
Petrobras takes over control of Petrolera Santa Fe
(Rio de Janeiro, October 24, 2002). - PETROLEO BRASILEIRO S.A. - Petrobras, (BOVESPA: PETR3/PETR4, NYSE: PBR/PBRA, LATIBEX: XPBR/XPBRA), Brazil's largest oil and gas, petrochemicals, and energy company, announces that it completed the acquisition of, and assumed control of, Petrolera Santa Fe, the Argentine subsidiary of Devon Energy Corporation (NYSE: DVN).
This transaction, consistent with Petrobras’ announced strategy of international expansion, contemplated a price of US$89,550,000, which payment was made today.
Petrolera Santa Fe is dedicated to the exploration, development and production of oil and gas reserves in Argentina. During 2001, Petrolera Santa Fe produced approximately 6,040 barrels of crude oil per day and approximately 642,000 cubic meters of gas per day from its Sierra Chata, Refugio Tupungato, Atamisqui and El Tordillo fields. Additionally, Petrolera Santa Fe is the concessionaire of the El Mangrullo field, yet to enter into production. Petrobras, based on SPE criteria, estimated Petrolera Santa Fe’s proved reserves as of December 31, 2001 at 84.7 MMboe (millions of barrels of oil equivalent).
With this transaction, Petrobras increases its portfolio of upstream investments by incorporating Petrolera Santa Fe’s assets to its current production assets in the province of Salta and its exploration assets in the Neuquen basin. Together with the recent acquisition of the control of PECOM, this acquisition is expected to generate synergies and to allow Petrobras to consolidate its position as an important player in the Argentine market.
As expressed recently by Petrobras’ CEO Francisco Gros: “The acquisition of Petrolera Santa Fe is another step in the consolidation of Petrobras’ international expansion and in establishing its presence in the Latin American energy sector”.
Petroleo Brasileiro S. A. – Petrobras is one of the world’s largest integrated oil & gas companies, with business in a wide range of activities, including exploration, production and transport of oil & gas, oil refining, distribution and marketing of gas, oil and its oil products, and energy generation. Petrobras is based in the city of Rio de Janeiro and has operations in Brazil and in the rest of Latin America. It also has operations in the Gulf of Mexico and West Coast of Africa. According to the consolidated financial statements for year 2001, Petrobras is the largest company in Brazil and the third largest industrial corporation in Latin America.
J. P. Morgan Securities advised Petrobras in this transaction.
Rio de Janeiro, October 24, 2002.
PETRÓLEO BRASILEIRO S.A. - PETROBRAS
| PETROLEO BRASILEIRO S.A - PETROBRAS | THOMSON FINANCIAL/CARSON |
|---|---|
| Investor Relations Department | Isabel Vieira (New York) |
| Luciana Bastos de Freitas Rachid - Executive Manager | (212) 701-1823 |
| E-mail: lrachid@petrobras.com.br | isabel.vieira@thomsonir.com |
| Carlos Henrique Dumortout Castro - Manager | Valter Faria (Brazil) |
| E-mail:carloshdc@petrobras.com.br | (11) 3848-0887 ext. 202 |
| Av. Republica do Chile, 65 - 4th floor | valter.faria@thomsonir.com.br |
| 20031-912 - Rio de Janeiro, RJ | |
| (55-21) 2534-1510 |
|
PETRÓLEO BRASILEIRO S.A--PETROBRAS
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| By: |
/S/
JOÃO PINHEIRO NOGUEIRA BATISTA
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|
João Pinheiro Nogueira Batista
Chief Financial Officer and Investor Relations Director
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