2005

US$ 910 million Financing for PDET Project Concluded

Mar. 3. 2005
Marubeni Corporation

PETROLEO BRASILEIRO S.A. - Petrobras, Brazil's largest oil, gas, petrochemical and energy company, announced today the signing of contracts worth US$910 million for financing the PDET project.

The loans are comprised of a US$ 491.4 million term loan facility to be provided by Japan Bank for International Cooperation - JBIC, and a US$ 327.6 million term loan facility to be provided by a pool of commercial banks and insured by Nippon Export and Investment Insurance - NEXI. The balance of required funds will be provided by project partners.

Mizuho Corporate Bank, Limited, as Lead Arranger and Book Runner, arranged the financing, and 12 international financial institutions in aggregate participated in the commercial bank facility. The participating banks consist of ABN AMRO Bank N.V., Deutsche Bank AG (as Lead Arrangers); Citibank, N.A., UFJ Bank Limited, The Hongkong and Shanghai Banking Corporation Limited, Bayerische Hypo-und Vereinsbank AG, Banco do Estado de Sao Paulo S.A.-BANESPA, Australia and New Zealand Banking Group Limited, WestLB AG (as Arrangers); Calyon Corporate and Investment Bank, and The Sumitomo Trust & Banking Co., Ltd. (as Lead Managers).

The PDET project envisages the construction and installation of offshore oil transportation infrustructure, including a fixed platform, two mono-buoys, platform interconnections through sub-sea oil lines, and other ancillary equipment. PDET will gather crude oil from five Campos Basin platforms for transportation by tanker to Petrobras' coastal terminals, or for direct export to other countries. This project is an integral part of Petrobras' domestic oil production growth strategy, as the project will increase the flow capacity from the Campos Basin by up to 630,000 barrels a day. PDET is forecast to start commercial operations by December 2006.

Japan plays a key role in providing support to this project. Major Japanese trading firms, Mitsubishi Corporation and Marubeni Corporation, are principal shareholders in the project. Japanese governmental financial institutions, JBIC and NEXI, in cooperation with commercial lenders, financially support the project for the purpose of executing Japan's external economic policy and cooperation. The PDET project is expected to promote Japanese investment in Brazil, and to further strengthen the long-lasting relationship between these two countries.

Outline of PDET Project

  Project Cost: US$ 910 million
  Oil Flow Capacity: 680,000 bbl/day
  Commencement of Operation: December 2006
  Equity Partners: Mitsubishi Corporation (60%)
  Marubeni Corporation (40%)
  Operator: PETROLEO BRASILEIRO S.A. - Petrobras

Outline of Finance

  Aggregate Total Amount: US$ 910 million

  Lenders:
Japan Bank for International Cooperation US$ 491.4 million

Commercial Banks US$ 327.6 million

Lead Arranger and Book Runner Mizuho Corporate Bank, Ltd.

Lead Arrangers ABN AMRO Bank N.V.
Deutsche Bank AG

Arrangers Citibank, N.A.
UFJ Bank Ltd.
The Hongkong and Shanghai Banking Corporation Ltd.
Bayerische Hypo-und Vereinsbank AG
Banco do Estado de Sao Paulo S.A.-BANESPA, Australia and New Zealand Banking Group Ltd.
WestLB AG

Lead Managers Calyon Corporate and Investment Bank
The Sumitomo Trust & Banking Co., Ltd

Equity Partners US$ 91 million

  Insurance Provider Nippon Export and Investment Insurance

Top of Page