Petrobras to Defend Its Rights for Block CM-273

Petrobras considers that the withdraw of block CM-273 from the list of blocks that will be offered in the Ninth Bidding Round, next November, is evidence of the National Petroleum Agency's acknowledgement of the company's rights over the block.

The company filed an Ordinary Suit in the Rio de Janeiro Federal Court last September 14 seeking to have its rights over the discovery made in old block BC-400 acknowledged. In the Courts, Petrobras will defend the position that the NPA's decision, denying Petrobras the right over this discovery, was illegal. In fact, this decision goes against the Petroleum Law, which requires the NPA observe the industry's best practices.

The drilling procedures for well 1-BRSA-230-RJS, where the discovery was made, were kicked-off on June 30 2003, well within the concession period for the old BC-400 block. In agreement with the oil industry's best practices worldwide, Petrobras believes that since the well started being drilled within the block's exploration phase, the company is entitled to its outcome.

In a document that appears in the records of the administrative process filed within the agency itself, the NPA's technical area itself recommended Petrobras' rights over the discovery of the 1-BRSA-230-RJS well be recognized. The company will continue defending its rights in the Judiciary.