Rio de Janeiro, April 22nd, 2015 – Petróleo Brasileiro S.A. – Petrobras complies with Official Letter nº 139/2015/CVM/SEP/GEA-1, which requests the following clarifications:
Official Letter nº 139/2015/CVM/SEP/GEA-1
“In reference to news released on 04.19.2015 in the newspaper O Globo entitled: “Billionaire and Covered Up Expenses on COMPERJ”, containing the following statements:
“According to the Brazilian Federal Audit Court – TCU, from Company´s database, Petrobras has covered up expenses of US$ 8.1 billion on Rio de Janeiro´s Oil Complex (Comperj) from its investors and Brazilian Public Authorities, including from US Public Authorities.
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Petrobras has covered up information on its expenses on Comperj, according to the Brazilian Federal Audit Court (TCU), whose auditors spent 2014 second semester verifying the project accounting and concluded that: “It is not possible to identify precisely the total investments”, as those accomplished as necessary to the undertaking conclusion. Petrobras informed that has no comments on the matter.
According to auditors, Company has not faithfully released financial information on the work. All information available are “conflicting” and do not reflect “total investments already assumed” – emphasizing that there is no “formal concern” on releasing the actual data on Comperj to investors, to Ministry of Mines and Energy and Ministry of Planning, and to Securities Commission in Brazil and USA.
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On the inconsistency, TCU requested the investment worksheets on Comperj on May. The Auditors stated another reality: “According to Petrobras´ Corporate Strategy, the set of necessary works to operate Train 1 refining (first unit) totalizes US$ 21.6 billion, and these investments would be already undertaken, executed.” Files dated from December 2012.
It means that, three years before, entering into Comperj´s first refining already summed up US$ 21.6 billion; in other words, 59,2% more than those company had informed to investors and Public Authorities in 2014.
According to TCU, this difference of US$ 8.1 billion on released expenses is from management misunderstanding disseminated by the Sipe´s database – Brazilian acronym for “Investments Selectivity from Strategic Plan”. It is figure provider used on official documents. Its financial records on the Project in Itaboraí are “disconnected”, “inconsistent” and “incomplete”, according to the court.
When concluded, Comperj´s refinery will be able to process 165 thousand oil barrels per day. Considering variations on data sent to TCU and SEC, it is possible to conclude that Petrobras´ production in Itaboraí could cost US$ 80 thousand or US$ 130 thousand per each refined oil barrel. The difference of US$ 48 thousand expresses the lack of explanation.
[…]”
Clarification
Comperj´s Program has three projects: Train 1 Refining, Train 2 Refining and Petrochemicals.
The amount of US$ 21.6 billion refers to all necessary projects to start up operations on Train 1 Refining and related investments to part of the necessary shared Infrastructure to implement Train 2 Refining and Petrochemicals projects.
The amount of US$ 13.5 billion, in reference to the 2014-2018 Business and Management Plan release (PNG 14-18), accounted only for the Train 1 Refining, and did not include implementing investments referred to part of the shared infrastructure for Train 2 refining Projects and Petrochemicals.
Therefore, the amount of US$ 8.1 billion represents the difference between the estimated investment value in 2012 (US$ 21.6 billion) and the released value on PNG 2014-2018 to Train 1 Refining Project (13.5 billion), whose bases are not comparable, since they have different scope estimates, and took place in different moments.
Note that Petrobras has provided clarification on Comperj´s expenses to the Brazilian Federal Audit Court (TCU).
Brazil Energy Insight 
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