Petrobras Amends Natural Gas Purchase Agreement with YPFB

Petrobras signed an amendment to the gas purchase & sale agreement with Yacimientos Petrolíferos Fiscales Bolivianos (YPFB). The amendment is a result of the agreement between the two companies, announced on February 2007, which considers the payment for the liquid hydrocarbon fractions of the natural gas imported from Bolivia after May 2, 2007, that increases the calorific content above 8900 kilocalories (kcal) per cubic meter (m3).

The amendment termination date is the same of the original contract and the monthly payments will be calculated based on the international market price, considering an annual minimum amount of US $100 million and maximum of US $180 million.

Regarding the payments related to the period before the execution of this agreement, it was already calculated the 2007 payment amount of US $100 million and the other payments will be calculated after an agreement about the gas volume imported and its calorific content.

Petrobras reiterates the information that the gas sale agreements, already executed with distribution companies in Brazil, will not be amended.