Petrobras Participates in Feasibility Study of US Oil Shale Development

Petrobras has signed an agreement with Oil Shale Exploration Company (Osec) and Japanese investment and trading company Mitsui & Co. Ltd pursuant to which each has agreed to jointly conduct a feasibility study with regards to the oil shale development project in Utah in the United States.

Petrobras will undertake a technical, economical and environmental commercial feasibility study testing its oil shale technology called Petrosix on mineral resources controlled by Osec in Utah. Mitsui will provide advice concerning project management and promotion. Under this agreement, based on the result of the feasibility study and certain other conditions, Petrobras and Mitsui each obtained the right to acquire a 10% to 20% stake each in the project from Osec.

The Petrosix oil shale processing technology is a proprietary retort technology, developed by Petrobras, with more than 30 years of successful commercial operation at Petrobras Unit in Sao Mateus do Sul, Parana State, while complying strict environmental regulatory legislation.

The Osec oil shale project in the state of Utah encompass a lease of a oil shale property from the Bureau of Land Management (BLM) for oil shale research, development and demonstration and a recently purchased more than 22,000 acres of privately owned oil shale property in the Green River Basin of Utah. The combined lease and owned property provides Osec with ownership or rights to more than 30,000 acres of oil shale property, with a discovered resource base in the range of 3 billion barrels, according to Norwest Corporation estimates.

Petrobras extensive experience in shale oil production, combined with Mitsui's broad background in natural resources, and commodities and Osec pursue in developing oil shale in Utah since 2005, may be a great combination to demonstrate and to develop the largest untapped energy resource in the country containing sufficient reserves to satisfy the present energy needs for the next 100 years in the U.S.