Petrobras Pushes Forward with Business Plan to Implement 500 Projects

Today, in London, Petrobras' president, Jose Sergio Gabrielli de Azevedo, reasserted that the company will execute all projects featured in the 2009-2013 Business Plan. "We will implement upwards of 500 projects, ensuring investments and generating jobs at the lowest possible cost," stressed the president.

In a round being held with investors in the United States and in European countries since last week, Petrobras' president and CEO divulged the 2009-2013 Business Plan with total investments foreseen at $174 billion. And he reasserted the need to reduce the costs of all projects to make sure they are completed.

"The preparation of the Plan took the prices that were in effect in the last quarter of 2008 into account, in a scenario that was quite different from the one we currently have," said the president. "It is not feasible for any company to keep prices at the same levels as in 2008. The economy has changed."

Gabrielli mentioned that some 500 projects foreseen in Petrobras' Business Plan are in distinct execution phases. Some are under construction, others are being hired and, finally, there are those the Company's engineering department is developing.

Projects that are still in their conceptual phases -- 35% of the total -- are those that offer the best cost-reduction opportunities. "The market foresees a 30% variation upwards or downwards for any project that is in its initial study phase, and that is certain to happen."

Petrobras wants platforms, but is not considering acquiring companies

President Jose Sergio Gabrielli de Azevedo highlighted the need Petrobras has with regard to drilling rigs it ordered in 2008. He also clarified allegations that the Company might capitalize the companies that are manufacturing the rigs. "We need the drills to carry our projects out," emphasized the president. But we are not considering acquiring companies that are experiencing financial difficulties."

Yesterday, in London, when questioned about the possibility of capitalizing these companies, the president said that "if a manufacturer were in financial trouble, Petrobras could study the matter. But it would only do so under a very special set of circumstances. Petrobras is not currently considering this possibility."