Petrobras request for more subsalt appraisal time rejected

Petrobras was denied an extension term for its planned appraisal of offshore blocks BM-S-8, BM-S-9, BM-S-10, BM-S-11, and BM-S-21, all in Brazil's Santos basin, according to a company announcement.

Offshore staff

RIO DE JANEIRO -- Petrobras was denied an extension term for its planned appraisal of offshore blocks BM-S-8, BM-S-9, BM-S-10, BM-S-11, and BM-S-21, all in Brazil's Santos basin, according to a company announcement.

This decision does not affect the scheduled activities for exploring and developing subsalt hydrocarbons in the areas, Petrobras says.

Brazil's National Petroleum Agency (ANP) had approved the company's appraisal plans for these blocks per a previous announcement, but had rejected a request for more time. The earlier veto of the extension term had been preliminary, but is now ratified and considered final by the ANP.

As mentioned by a press release dated May 14, the company's strategic plan considered the completion of all commitments Petrobras took on with the ANP within terms already defined, ratified now by the ANP decision.

Considering the approvals that have already been granted and the facts known thus far, Petrobras believes there is no risk of having to return the concession areas, that it will fulfill the obligations it took on, and that there will be no impact on its strategic plan.

05/22/2009

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