Petrobras enters into agreement with YPFB
Bolivian natural gas imports to the Brazilian market
Petrobras announces that today it entered into an agreement with YPFB, in accordance with its negotiation agenda, aimed at resolving differences as to the performance of the Bolivian natural gas import contract (Gas Supply Agreement – GSA) to the Brazilian market.
The agreement provides clarification regarding the different interpretations of the GSA through payments and compensations from one party to the other, including the execution of a natural gas supply contract to enable the operation of thermoelectric power plant – UTE Cuiabá until December 2016.
Its impact on Petrobras third quarter 2014 results is estimated to be US$ 268 million negative; however, its effect on Petrobras 2014 full year results is expected to be positive US$ 128 million.
The agreement is advantageous, because in addition to the short term benefits for both parties, it also allows for the evolution of a positive agenda that includes incentives for the exploration and production of Bolivian natural gas by guaranteeing the preferential allocation to the Brazilian market of any natural gas found by Petrobras, through its own exploratory efforts, in Bolivia.