(Petrobras, 3.Dec.2018) — Petrobras, following up on the release published on Apr. 30, 2018, reports that today it executed contractual instruments related to a new agreement negotiated with Centrais Elétricas Brasileiras S.A. (“Eletrobras”) and its subsidiaries Amazonas Energia (“AmE”) e Amazonas Geração e Transmissão (“AmGT”) for the resetting of guarantees and settlement of defaulted debts, as well as amendments to the gas supply contracts for power generation in the scope of the State of Amazonas.
The main contracts concluded today under the agreement are:
– Amendment to the Debt Acknowledgment Agreement executed in 2014, for the resetting of guarantees by Eletrobras, originally planned, in the amount of R$ 3.826 billion;
– Amendment to the Debt Acknowledgment Agreement executed in 2018 between AmE and Petrobras, referring to the default of the gas supply that occurred after the negotiation of 04/30/18 in the amount of R$ 571.8 million, 100% guaranteed by Eletrobras, amount already provisioned in the financial statements;
– Amendment to the gas supply contract, in order to regulate, among other clauses, the implementation of an Escrow Account and a Payment Account, to guarantee and operate the payment of the future gas supply under the contracts.
In addition, subject to the success in the AmE privatization auction and to the effective transfer of share control, the Agreement also provides for (i) the assumption by Eletrobras of debts already acknowledged by AmE, in the amount of R$ 3.069 billion; and (ii) the termination of the collection lawsuit filed by Petrobras against AmE, Eletrobras and Cigás, also subject to other events, including the acceptance by Petrobras of the guarantees to be presented by AmE’s new controlling shareholder.
It is also worth mentioning that in the context of the negotiations and the resulting contractual instruments, Petrobras has reserved its right to seek payment of the costs related to ship or pay obligations, as agreed in previous amendments of the gas supply contracts.
Petrobras understands that the present negotiation reinforces its guarantees, improves its collection procedure and ensures the continuous search for its rights.
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