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PETROBRAS: PRIVATE INVESTMENT SOUGHT

Jan. 17, 1994

Petroleos Brasileiro SA is seeking private Brazilian and foreign participation in 271 projects worth $40 billion ahead of any constitutional change to end its monopoly in Brazil. Included are possible joint ventures in exploration, production, and refining. Topping the list are JVs to develop natural gas fields in the Urucu area of Amazonas state to provide fuel for electric power plants in the Amazon region, projects budgeted at $2 billion.

Petroleos Brasileiro SA is seeking private Brazilian and foreign participation in 271 projects worth $40 billion ahead of any constitutional change to end its monopoly in Brazil.

Included are possible joint ventures in exploration, production, and refining. Topping the list are JVs to develop natural gas fields in the Urucu area of Amazonas state to provide fuel for electric power plants in the Amazon region, projects budgeted at $2 billion.

Another candidate is the proposed Bolivia Brazil natural gas export line, for which Petrobras has earmarked $4 billion. Petrobras would retain a 51% share in any such JV company.

Although Brazil's congress is still debating amending the constitution to end the cash strapped state firm's monopoly, Petrobras says everything is on the table now for forming JV companies. Another option is for private investors to finance a project and be paid with oil or project profits.