Petrobras Reasserts its Interest in Producing Oil in Mexico

During a meeting held this morning, in Brasilia, Mexico's president-elect, Felipe Calderon, and Petrobras' President, Jose Sergio Gabrielli de Azevedo, discussed a few possibilities to boost the Company's activities in that country.

Gabrielli reasserted Petrobras' interest in working in Mexico as a deepwater oil and gas producer, in addition to developing projects outside of the country in partnership with Pemex, the Mexican national oil company. He considered the meeting "quite positive."

The Brazilian company's operation in Mexico is currently limited to a gas production service-rendering agreement, and to an agreement of cooperation with the Mexican national oil company.

One of the themes that were discussed was deepwater oil exploration and production, an activity Petrobras is a leader in and in which it already performs in the American side of the Gulf of Mexico, and in other countries. Calderon also showed interest in getting to know the Brazilian experience in using ethanol and biodiesel as fuels.

Mexico's president-elect also asked for details about the current Brazilian oil industry legislation, regarding the impact recent changes have had on Petrobras' activities and management, as well as about several types of shared production agreements practiced around the world.

Petrobras' International Area director, Nestor Cervero, Petrobras Mexico's General Manager, Milton Costa Filho, and Brazil's Ambassador to Mexico, Ivan Cannabrava, participated in the meeting. Mexico's ambassador to Brazil, Andres Valencia Benavides, and the leading Mexican government transition team coordinators composed the Mexican entourage.