Execution of Agreement: Pasadena Refinery

abarrelfullabarrelfull wrote on 02 Jul 2012 14:28
Tags: n-america petrobras refinery usa

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Petróleo Brasileiro S.A. – Petrobras announces that executed today an agreement that terminates all the existing lawsuits between its subsidiaries and the companies of the Belgian group Transcor/Astra, holding of Astra Oil Trading NV (Astra). The lawsuits stem from the period of partnership between Astra and Petrobras America Inc. (PAI), a subsidiary of Petrobras, in the Pasadena Refining System, Inc. (PRSI), owner of the Pasadena Refinery in Texas and the Trading Company.

The agreement also ends the legal issue concerning the arbitration process that had recognized Astra’s put option for PAI’s ownership interest (50%) at PRSI and Trading Company.

PAI will pay the amount of the put option set by a report dated April 10, 2009, issued during the arbitration mentioned above, plus interest and other expenses, totaling US$ 820.5 million. This amount had been provisioned in Petrobras’ financial statements, remaining the amount of approximately US$ 70 million to be written down in the company’s second quarter 2012 results.

With this agreement, the parties receive full and general release regarding all the lawsuits, one of which confirms the amount of the shares set by the arbitration report cited above, therefore confirming PAI’s 100% control at PRSI and Trading Company.

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