In Re: Methyl Tertiary Butyl Ether ("MTBE") Products Liability Litigation

Filing 4213

ORDER OF DISMISSAL: After having considered the Stipulation and Request by Petrobras America Inc. for Dismissal, the Court hereby ORDERS, ADJUDGES, AND DECREES that Plaintiff Commonwealth of Puerto Rico's claims against Petrobras America Inc. are hereby DISMISSED, subject to any appeal of the July 16, 2013 Opinion and Order and/or the December 30, 2013 Opinion and Order referenced in the Stipulation as well as this Order. If the Court's July 16, 2013 Opinion and Order, December 30, 2013 Opinion and Order, and this Order are affirmed on appeal, or become final because an appeal is not filed, the dismissal of the above claims against PAI shall be with prejudice. Each side shall bear its own costs. IT IS SO ORDERED. (Signed by Judge Shira A. Scheindlin on 5/21/2015) (Attachments: # 1 Exhibit A, # 2 Exhibit B-1, # 3 Exhibit B-2, # 4 Exhibit C, # 5 Exhibit D)Filed In Associated Cases: 1:00-cv-01898-SAS-DCF, 1:07-cv-10470-SAS(ajs)

COMMONWEALTH OF PUERTO RICO
DEPARTMENT OF STATE
SAN JUAN, PUERTO RICO

CERTIFICATE OF AUTHORIZATION TO DO BUSINESS IN
PUERTO RICO
THIS IS TO CERTIFY THAT: ·

No.12,233·F
PETROBRAS AMERICA INC.

is a profit corporation organized under the laws of Delaware duly authorized to
do business in Puerto Rico since August 7, 2002 at 9:35 a.m.

IN WITNESS WHEREOF, the undersigned by
virtue of the authority vested by law, hereby
issue this certificate and affixes the Great Seal
of the Commonwealth of Puerto Rico, in the
City of San Juan, today August
two thousand two.

~~,;~
Assistant Director
Corporate Registry

GFR/Jar
1ODO OOOF 457-407

EXHIBIT A

7'h

of the year

COMMONWEALTH OF PUERTO RICO
DEPARTMENT OF STATE
SAN JUAN, PUERTO RICO

CERTIFICATE OF AUTHORIZATION TO DO BUSINESS IN
PUERTO RICO
•..

THIS IS TO CERTIFY THAT::. .
.·,.
.

No.12,233·F

. i.

· · ·.-, ·

PETRQBRAS A'iviERlC:A INC.

,. ,_,,";il~~J~f:~~,~ "' :k' • ·-=~

.

,.::: .-;;·:~;/:~;-~.~-'_:·. -_:_.:?n~:~;'t~~q~-~~t1.~~··~\. ·

'

is a profit corporation orgaRized under the laws of Delaware duly authorized to
do business in Puerto Rico since August 7,:.2002 at 9.:3·s·a.m.

IN WITNESS WHEREOF, the undersigned by
..........

!

·l

virtue of the authority··vested by law, hereby
issue this certificate and affixes the Great Seal
of the Commonwealth of Puerto Rico, in the
City of San Juan, today August
two thousand two.

~~,;~
Assistant Director
Corporate Registry

GFR/Jar

1000 OOOF 457-407

ih of the

year

.USO OFICIALSOLAMENTEPA
.LA SECCION OEFOJOCOPIAS

Estado Libre Asociado de Puerto Rico
Departamento de Hacienda

Numero de solicitud

Negociad/v·Pr5C:(!~ vanillas

Numero(s) de serie

SOLICITUD DE CERTIFICACION DE
RADICACION Y CO PIA DE PLANILLA
(Veanse instrucciones al dorso)

Informacion General
Clase de planilla o declaraci6n que solicita:

$5

lKI
D

0
0

0
D

lndividuo
Fiduciario
$5
0
o Sucesi6n
D Copia de planilla (s1mpre)
$5
D Sociedad
D Copia de planilla (protocolar) $7 0
Fecha de organizacic
r=P-ro-p~6~s~it_o_d~e-e-s-ta_s_o_l_ic-it-ud_:________~~~~~~---------------------------~
---- 1---- 1--

D

lnstituciones
financieras
[KI Otro (especifique)

~':'

0

r0 r

Contribucion sabre ingresos
Caudal relicto y donaciones
Certificaci6n de cancelaci6n
de gravamen (Relevo)
Arbitrios

Tipo de Contribuyent•

Asistencia econ6mica (por
eie~lo, subsidio de renta)
~

c~ -

.S

·

0
0

Trimestrales
Otros - - - - - - -

Herencia

0

lnmigraci6n

r:N Corporaci6n
Fecha de incorporaci
_ _1 _ 1_
_

Tribunal

Periodo contributive y cantidad de capias o certificaciones que solicita: Si es una declaraci6n, favor indicar el (los) mes(es)
Dia
Mes
Afio
Dia
Mes
Afio Cantldad trimestre(s)
I
I
a
I
I
I
a
I
a
I
I
I
I
a
I
I
·I
a __
I
I

[~

-

Num. seguro social o identificaci6n patron

·7tv ~

c.

2

-s r;; ;- >

Direc i ·)flj)OStal del contribuyente o solicitante

/"' ()

13 o K

_>;,"' JVc.---

I

'3 6 3 5

JC1/2.

Se acompaiia Ia cantidad de$

bG

tJtJ 9

2, t2

>&

3£' 6 b

tJ

Complete solo si el contribuyente es un individuo y solicita certfficaci6n de p
Estado civil
Nombre del c6nyuge
0 Soltero D Casado 0Separado
El contribuyente vive:

Si

D

No

0

lndique Ia fecha de fallecimien_to:

lngresos

Contribuyente

C6nyuge
... 't.''

Empleado de gobiemo ...........................................................................................
Empleado de empresa privada ..............................................................................
Trabajo por cuenta propia ..................................................................................... 1----loo-t----t----.....__,____
lndicar profesi6n u ocupaci6n ................................................................................ 1 - - - - - - - - , . - - t - - - - - - - - - ,
Salario o ingreso del periodo contributive mas reciente ........................................ $
00 $
Complete solo si esta solicitando copia de plan ilia de caudal relicto y donaciones o certfficaci6n de cancelaci6n de gravamer
Fecha de fallecimiento o donaci6n

Numero del caso o relevo

Declaraci6n y Firma
Declare bajo las penalidades de perjurio que esta solicitud ha sido examinada por mi, y Ia infonnaciz: sta solicitudes cierta. correcta
e~

~

completa.
Firma del contribuvente

ft{o ._.

Fecha de solicitud

4 ----·---

Firma del solicitante

ESTADO LIBRE ASOCIADO DE PUERTO RICO
DEPARTAMENTO DEL TRABAJO Y RECURSOS HUMAN OS
ADMINISTRACI6N DEL DERECHO AL TRABAJO
SECCION DE CONTRIBUCIONES
UNIDAD DE DETERMINACION DE PATRONOS
505 AVE. MUNOZ RIVERA, SAN JUAN PR 00919
TELEFONOS: [phone]- [phone]- FAX: [phone]

CERTIFICACION

LA UNIDAD DE EMPLEO: PETROBRAS AMERICA, INC.
NUMERO SEGURO SOCIAL: 76-0235183
NO APARECE REGISTRADA COMO PATRONO, POR LO QUE NO TIENE DEUDA
PENDIENTE EN ESTE NEGOCIADO, PARA LOS PROGRAMAS DE SEGURO POR
DESEMPLEO E INCAPACIDAD.
EN SAN JUAN, PUERTO RICO, 2DE AGOSTO DE 2002.

ALVILDA MARIN
DIRECTORA

SECCION DE CONTRIBUCIONES

C•.

ECR2423

DEPARTA

·To DE HACIENDA

FEe·
HORA

NEGOCIADO DE RECAUDACIONES
CERTIFICACION DE DEUDA
NL
CUENTA: 001 760-23-5183 PETROBRAS AMERICA INC
10777 WESTHEIMA RD
SUITE 1200
HOUSTON TX 77042CERTIFICO QUE LA PERSONA 0 CORPORACION
ARRIBA MENCIONADA NO FIGURA EN NUESTRO
SISTEMA PRITAS COMO CONTRIBUYENTE

AL

~~~-~~-~~~-:~~:~:G;;::J_~-- __\~_: _____________ _
I~~

COLECTOR DE RENTAS

SU REPRESENTANTE AUTORIZADO

NOTA: ESTA CERTIFICACION NO ES VALIDA SIN LA FIRMA AUTORIZADA
Y EL SELLO DEL DEPARTAMENTO DE HACIENDA

05-08-2002
10:59

Modelo AS-53
Mayo 1997

USO OFICJAL

02-0778

Num.
Ccrtificaci6n

GOBIERNO DE PUERTO RICO
CENTRO DE RECAUDACION DE INGRESOS MUNICIPALES

CERTIFICACION NEGATIVA
Hacemos constar que Petrobras America, Inc. con numero de Segura Social o
pat:ronal 760-23-5183 no figura radicando planillas de propiedad mueble o no posee
propiedad irunueble en nuestro sistema contributive computadorizado.

Sin embargo, Ia informacion suministrada puede ser afectada par cualquier investigaci6n
o intervenci6n de cuenta que se haya iniciado o este por iniciarse a este contribuyente.
Emitida hoy, !_de agosto de 2002.
Preparada par:

l

/}
/
ltaztu'-!Wa::;J ~~
~-~u::~:rIvette Matias Ramos
Auxiliar Administrative
Centro Regional de Central

Aprobada por:

·los Martinez
Gerente Regional o Director de
Servicios Operacionales o su
Representante Autorizado

COMMONWEALTH OF PUERTO RICO
DEPARTMENT OF STATE
SAN JUAN, PUERTO RICO

CERTIFICATE OF AUTHORIZATION TO DO BUSINESS IN
• • • • • • • •••• t

PUERTO RfCO

.....

THIS IS TO CERTIFY THAT:

:"'

. ·;-;;···

No.12,233 ..F

PETROBRAS AMERlCA INC.

is a profit corporation organized under the laws of Delaware duly authorized to:
do business in Puerto Rico.since August 1,· 2002 at 9:35a.m.

IN WITNESS WHERSOF, the undersigned by

virtue of the· authority vested by law, hereby.
issue this certificate and affixes the Great Seal
of the Commonwealth of Puerto Rico, in the
City of San Juan, today August
two thousand two.

~~rf~
Assistant Director
Corporate Registry

GFR!Jar
1000 OOOF 457-407

..

-

•.·
-~---··

..

~;

7th of the year

PAGE

1

'lfie '.]'irst State

I, HARRIET SMITH WINDSOR, SECRETARY OF STATE OF THE STATE OF
DELAWARE, DO HEREBY CERTIFY "PETROBRAS AMERICA INC. 11 IS DULY
INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE AND IS IN
GOOD STANDING AND BAS A LEGAL CORPORATE EXISTENCE SO FAR AS THE
RECORDS OF THIS OFFICE SHOW, AS OF THE'FIRST DAY OF AUGUST, A.D.
2002.

(
Harriet Smith Windsor, Secretary of State

2140907
020489111

8300

AUTHENTICATION: 1914819
DATE: 08-01-02

PETROBRAS AMERICA, INC.
INSTRUCTIONS FOR FILING
2002 CORPORATE ANNUAL REPORT
SIGNATURES

The original of the report should be signed and dated
by both the President or Vice-President and the
Treasurer or Assistant Treasurer - in the
spaces
provided on page 3.
These signatures must be affixed in the presence of an
authorized notary who should complete and sign the
notarization statement as indicated. .

DUE DATE

On or before July 14, 2003.

HOW TO FILE

The signed and notarized original of the report and
attachffients should be sent in time to be received by
the above due date to:
Department of State
P.O. Box 9023271 .
San Juan, Puerto Rico 00902
We suggest that you consic;ier sending the report by
Certified Mail - Return Receipt Requested.

ANNUAL FEE

[8]

(ONLY MARKED ITEMS APPLY)

A P.R.
Internal Revenue Voucher
(Modelo
SC-848)
("Recibo de Pago") for $100 representing the annual
filing fee should be attached (YELLOW COPY ONLY) to
the report prior to filing.
This voucher can be
purchased from any Collector's office in Puerto Rico.
The number qnd date of purcha.se of this vouche+ should
be entered on page 1 of the report in the spaces
provided in the upper· left corner.
In case you don't have access to purchase the Voucher
in Puerto Rico, you can attach to the Report a
Certified Check payable to the "Secretary of the
Treasury" in the amount of $10.0, representing the
filing fee.

Estado Libre ASociado de-Puerto Rico
Commonwealth ofPuerto Rico
Departamento de Estado
Department of State

INFORME ANUAl DE. CGRPORACJDNSS
. CORPORATE ANNUAL REPORT .

Afio . z!l!iz
YE3ar

Num.. seguro social patronal:

760;23s183

Emp!oyersocit:JI·seoarity-no:
Comprq!>ante il!rtnero~.
Voucher number:

--~·---·- Registro n(imeto: 1·~--- Fecha: --~Registry number;

·

· Date:

Tipo de Corp·oraci6n: ___,domesfica _!:.. foranea _';!..;.. con fines Jucrativos -~sin fines lucrativos
domestic

foreign

Volumen del·negocio: Sobrepasa un miUon CS"
Volume of business:
Exceeds one million dollars

noffor profit

profitable

No sobrepasa un milton

.CS"Jt

Doe8 not exceed one million dollars

Nombre de Ia corporaci6n: _P_E_TR_o_e_RA_·..,.sAM_·_eu~._cA..:.,_:JN c..
_______,..________

Name of the corporaUon:

·

Ditecci6n de Ia oficina designacfa:

10777We~tlrelmer.RoadSIJ.i!e

1200

(i=isl.ca y postal}

Address ofthe. designated office:
(Physical and mailing)

·

~---~,----~~-------------------------

Nornbre d~l agente residente :·

Name Oftet:iideht agent:
Direcci6n fisica y p:ostaJ·d.el age.nfe·re~icfejjte·: Reicl!a.r:d!'k ~alaf, p;~.c. 2946;S~ FrailqlSCQ st
Physical andmaidnq address ofthei:esldentager:it .~an,~arirPFt:npaos ·· · ·
·

Rev, 12-02

N.om.bre; posici6n1 direcciiin postal y fec!la. !'le
funclones, a· Ia (~chad~ r~dlcacl(')n t'!el !nforme.

eXpira:cion: def cargo ·de los

dlrectores Em

.

Name, posmon,, mailing address and date of expiration of the term d the dir-ectors holding office
at the time this report is filed.

Nombre

--

Posicion

[)i.teccfon

Fecha de
·exj:>iracion

See Ust.Attacl1ed

Nombre, posici6n, dlrecci6n po.stal y fecha de. explr;;~ci6n del cargo de los· oficialesen
funciones a-la·fe-cha de-radicacf6n derlnforme,
Name, position, mailing address and·date ofexpiratlon of the term of the officers holding office· at
the time this repotfls flfed.

Nombre

Posicl6ii

Direcci6n

· Fechade

·expiraci6n
See U~t Attached

Estado de·.Situacion :s
(Balc,mce sheet)

SEE STATEMENT ATTACHED

1 AUDITORIA pqR U~ C,PNT~R:J:>UJ3UCO AUT'ORIZADO
CERTIFIEDPUBUC.ACCPUNTANTAUDIT

Si' el volilmen de: negoclo de:~ cprporae1.6n sobtepasara un .mrii6n (~;OClOJJI!iO)' .de p6lat:E!S, .el .est.ado de

sit;Uacion .qiJe flP!lli)P,;ifia 1!,_~:-imi?~~ ~iilij fl.~!Jra-:ae.:est~ir debidamel'ite.-ailrflfado por JJ.n ecmta.d.c-r Pi11lli®
lic¢ncia-ei'i:etatadQ";J!Jbre A~oi:iai:Ja,ae-r.uettO Rieo, que·ncts-ea;nJ'-accionlstl· nl empleado ~ Ia·

:Autorizado:~n

corporai:icin, jbiito

can Ia op.iiiipri':c:orrespondiente:tieiiicbo·:~niadorPiifillqo·AotciiZad~

.

..

Wheh the .vofume:af"buslne:ss· ofJhis:PDtPoratlop ex_ceed_s:one•mlillon~(1~oqP,:Wb}if~lfarS; ~· fir(i;inp~ati_Wemeptproyj(Jed
"hereWith sh811 /:ie duly audited.oy:a Oertlfied P.ubllc Acccunfant /icehSfJd by the commopw~alth. ofP.uertd Rico,.whois
neitf!er a itockholder n.or employ~· of such :ccrporptfon, tcigetfiei- with .iha coitffspcifldirlg opinldrf of.srJch: :Ceitltiec! ·PUblic

AccounmnL

Rev.12-02

·

..

DECLARACION JURADA
SWORNSTATEMENT.

EN TESTIMPNIO DE '-<_0 CUAL, nosotros,
(Presidente o
Vicepresidente}, Y.
(Tesorero o Subtesorero), declaramos que
Ia informacl6n contenlda en este lnfonne Anual es correcta. Hoy, _
de
de
20_.
IN WITNESS WHEREOF, we,
_ (President or VIcePresident), iill!f. __
(Treasurer or Asslstant-Treasurerj, do
hereby declare that. the Information contained In the foregoing Annual Report is correct. This_
of - - - - - - • 20_.

----------------------Tesorero o Subtesorero

Presidente o Vicepresldente
President or Vice-President

Treasurer or Assistant-Treasurer

Affidavit nlim.: _ _ _
Affidavit no.:

JURADO Y SUSCRITO ANTE Mf POR:
SWORN AND SUBSCRIBED TO BEFORE ME BY:

---Y----------------and
de las slguientes circunstancias personates:_..._______ - - - - - - - - - - - _ _ _ _ _ _ _ _ _ _ _(mayoria de edad, profesi6n, veclndad y puesto que ocupa en Ia
corporaci6n), a qulenes conozco personalmente.
the
following
personal
circumstances:
Of
~--,--~=---:-:--.,-~.,.....,-=-----=--,---:--~---::-:-----(legal age, profession, residents

of, and positfon they hold in the corporation), whom Jpersonally know.

Dada e n - - - - - - - - - - ' ' Puerto Rico, hoy,~- de
In

_ _ _ _ _ _,Puerto Rico, on

SELLO NOTARIAL
NOTARIAL SEAL

Rev. 12-02

de 200_.
_, 200_.

NOTARlO PUBLICO
NOTARY PUBUC

PricewaterhouseCoopers LLP
254 Munoz Rivera Avenue
BBVTower, 9th Floor

Hato Rey PR 00!118
Telephone [phone]
Facsimile (787) 766 1 094

Report of Independent Auditors
On Balance Sheet Filed with the Department of State

. We certify that the Petrobras

Amer~ca,

Inc.'s operations in Puerto ~co for the year ended

December 31, 2002, had been inactive and had neither assets nor liabilities within Puerto
Rico.
This report is intended solely for the information and use of the board of directors and
management.ofthe Company and the Department of State ofthe Commonwealth ofPuerto
Rico and is not intended to be and should not be used by anyone other than these specified
pa.rti:es.

By~<(_ ?~
License No. 1358

July 8, 2003

PETROBRAS AMERICA, INC.
ACCOUNT NO. 76-0235183
REGISTRY NO. 12233-F
2002 CORPORATE ANNUAL REPORT
List of Officers and Directors

Officers
Renata Bertani -President
10777 Westheimer Road, Suite #1200
Houston, TX 77042
Homero Ventura- Finance Manager
10777 Westheimer Road, Suite #1200
Houston, TX 77042
Ivan Pereira d~ Sa- Commercial Manager
·10777 Westheimer Road, Suite #1200
Houston, TX 77042

Directors
Jose M. Camargo- Director
Av. Republica do Chile, 65- RJ- Brazil
Joao C. Figueira- Director·
Av. RepubHca do Chile, 65 -RJ -Brazil
Renata Bertani -Director
10777 Westheimer Road, Suite #1200
Houston, TX 77042
Romero Ventura- Secretary
10777 Westheimer Road, Suite #1200
Houston, TX 77042

PricewaterhouseCoopers LLP
PO Box 363566

Sanjuan PROD936~3566
"Telephone {787) 754- 9090
Facsimile (787) 766 1 094

April14, 2003

Department of State
P.O. Box 9023271
San JUBil, Puerto Rico 00902

Dear Sirs:
PETROBRAS AMERICA, INC.
ACCOUNT NO. 76-0235183
FILE NO. 12233-F
On behalf of the above taxpayer, we .respectfully request an extension of time until July 14, .
2003, within which to file the Corporate Annual Report for the year 2002. The extension is
necessary due to delays in assembling the information required to complete the report.
Please acknowledge receipt of this letter by date stamping the attached copy. If you have any

questionst please contact Jose S_alvatella or me.

Hector Bernier·
cc: Mr. Alvaro Hiroshi Tutia..:.. Petrobras America, Inc:

, .'

iNCOME

.

'

iiJJ ERNST & YouNG

i!!l Ernst & Yo~Jng UP'
1 000 Scotia bank Plaza
273 Ponce de Leon Avenue
Hate Rey, Puerto Rico Q0917-1969

IS

Phone: [phone]
Fax:
[phone]
Fax:
[phone]
www.ey.com

Report of IndepelfdEmt Auditors

To the Management ofPetrobras America, Inc.
We have audited the accompanying ·statement of net assets of Petrobras America,
Inc.- Puerto Rico Operations (a division ofPetrobras America, Inc.), as of December 31,
2003, and the related statements of income, changes in net assets, and cash flows for the
year then ended. These financial statements are the responsibility of the division's
management. Our responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statement~ are free of material
misstatement An audit includes consideration of internal control over financial reporting
as a basis for designing audit procedures that are appropriate :in the circumstances, but not
for the purpose of expressing an .opinion on the effectiveness of the Company'·s intemal
control over financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on l:!, test basis, evidence supporting the amounts and disclosures :in
the financial statements, assessing the accounting principles used and significant
estimates made 'by management, and evaluating the overall financial statement
. presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all
material respects, the financial position ofPetrobras America, Inc. -Puerto Rico
Operations (a division ofPetrobras America, Inc.) at December 31 2003, and its income
and cash flows for the year then ended in conformity With accounting principles generally
accepted in the United States.

~M<d-t
41 ••

February 7, 2005
2004067

b'-I.'P

By:~~

Victor M. Alvear, CPA ·
Lic.No.1864

PETROBRAS AMERICA INC. ~PUERTO RICO OPERATIONS
(a Division of Petrobras America Inc.).
STATEMENT OF NET ASSETS
December 31, 2003

ASSETS
Current Assets
Accounts Receivable:
Non affiliates
Inventories
Total Current Assets
TOTAL ASSETS

$ 42,468,379
10,537,005
53,005,384
$ 53,005,384

LIABILITIES AND NET ASSETS
Current Liabilities
Accounts Payable and Accrued Liabilities:
Affiliates
Nonaffiliates
Tax Payable

$ 35,425,755
489,005
1,268,990

Total Current Liabilities

37,183,750

Total Liabilities

37,183,750

Investment From PAl
Accumulated Earnings
Total Net Assets

14,221 ,408
1,600,226
15,821,634

TOTAL LIABILITIES AND NET ASSETS

$

53,005,384

PETROBRAS AMERICA INC.- PUERTO RICO OPERATIONS
(a Division of Petrobras America Inc.)
STATEMENT OF INCOME
Year Ended December ·31, 2003

Revenues
No. 6 Residual Fuel Oil

$ 233,096,258

Costs
No. 6 Residual Fuel Oil
Gross Profit

226,589,858
6,506,400

Operating Expenses
Duties
Freight
Unloading Inspection Expense
Storage Expense
Bond Insurance

416,930
317,251
140,806
2,224,081
202,500

Total Operating Expenses

3,301,568
3,204,832

Net Operating Profit

233,526
102,090
335,616

General & Administrative Allocation
Consultants/Professional Fees
Income Before Income Taxes

2,869,216

Provision for Income Taxes
Net Income

1,268,990
1,600,226

$

•

:

0

..

PETROBRAS AMERICA INC.- P.UERTO RICO OPERATIONS
(a Division of Petrobras America Inc.)
STATEMENT OF CHANGES IN NET ASSETS
Year Ended December 31, 2003
0

Investment From
PAl
Balance - December 31, 2002

$

(382,259)

Accumulated
Earnings

$

$

14,603,667

Net funding from PAl

(382,259)
14,603,667

1,600,226

Current year earnings
Balance - December 31, 2003

Total

$

14,221,408

$

1,600,226

1,600,226

$ 15,821,634

'l.

PETROBRAS AMERICA INC. - PUERTO RICO

OPERATIONc--~-----­

(a Divisio.n of Petrobras America Inc.)
STATEMENT OF CASH FLOWS

Year Ended December 31, 2003

Operating activities
Net Income
Adjustments to reconcile net incoem to net cash provided by
operating activities:
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable:
Nonaffiliates
(Increase) decrease in inventories
Increase (decrease) in accounts payable :
Affiliates
Nonaffiliates
Increase (decrease) in tax payable
Net cash used in operating activities

$

(42,468,379)
(1 ,745,493)
26,251,984
489,005
1,268,990
(14,603,667)

Financing activities
Net proceeds from PAl

14,603,667
14,603,667

Net cash provided by financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

Additional dosclosures:
Cash paid for interest
Cash paid for income taxes
Non-cash financing and investing activities:
Additions to accounts payables-affiliates included
in payments to PAl

1,600,226

$

$
$

$

..
PETROBRAS AMERICA INC.- PUERTO RICO OPERATIONS
(a Division of. Petrobras America Inc.)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003
1. ORGANIZATION

Petrobras America Inc. (PAl), a U. S. Corporation and a wholly-owned subsidiary of
Petrobras International Braspetro B.V. in Netherlands, was formed on October 15,
1987 to acquire, own and operate rights-of-way and operating rights for the purpose
of conducting oil and gas exploration and development activities on the Outer
Continental Shelf of the United States of America. In 1990, PAl expanded its business
activities to include the purchase of petroleum industry equipment, spare parts and
similar related products (procurement activities) for sale to the Parent or its affiliates
and to include the purchase and sale of crude oil and refined products from and to
foreign companies and companies in the United States.
On August 7, 2002, PAl registered with Puerto Rico Department of State and was
authorized to do business in Puerto Rico as a foreign corporation. In December
2002, PAl was selected as the supplier of No. 6 residual fuel oil to the Puerto Rico
Electric and Power Authority (PREPA) on a one-year contract with automatic renewal
of one year. In addition to making direct sales to PREPA, PAl also engages in indirect
sales to PREPA through another customer, Fuel and Marine Marketing LLC (FAMM).
PAl purchases the No. 6 residual fuel oil from its parent and/or other affiliates and
stores the inventory in oil tanks located in the premises of the Commonwealth Oil
Refining Company (CORCO), a location designated as a Foreign Trade Zone (FTZ). PAl
does not maintain employees or offices in Puerto Rico.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accounts of the Company are maintained on the accrual basis of accounting In
accordance with accounting principles generally accepted in the United States of
America.
The accompanying financial statements present, on a historical cost basis, the assets,
liabilities, revenue and expense related to the Puerto Rico Operations of Petro bras
America Inc. (the Division) as of December 31, 2003. These statements are presented
as if the Division had existed as a separate entity during the period presented.

1

PETROBRAS AMERICA INC. - PUERTO RICO OPERATIONS
(a Division of Petrobras America Inc.)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003
The Division incurs certain common c~sts which relate to both the Division and other
Petrobras America Inc. operations, and management·has made allocations of these
costs to the Division.
Total Equity reflects Petrobras America Inc.'s historical cost basis investment in the
Division, accumulated earnings and losses of the Division and intercompany activity
with Petrobras America Inc. which are not settled on a current basis.
The Division is part of Petrobras America Inc. and has no separate legal status or
existence. Its resources and existence are at the disposal of corporate management.
The Division's assets are legally available for the satisfactions of debts of the entire
corporation, not solely those appearing on the accompanying balance sheet, and its
debts may result in claims against assets not appearing thereon.
Cash
All cash and cash equivalents are transferred to Petrobras America Inc. through the
investment account on a current basis and are excluded from assets on the
accompanying statements. The Division is part of a centralized cash management
system of Petrobras America Inc., whereby ali cash disbursements of the Division are
funded by, and ali cash receipts are transferred to, Petrobras America Inc.
Allowance for Doubtful Accounts
The Division routinely assesses the recoverabllity of all material trade and other
receivables to determine their collectibility. The Division accrues a reserve on a
receivable when, based on the judgment of management, it is probable that a
receivable will not be collected and the amount of any reserve may be reasonably
estimated. As of December 31, 2003, the Division had no allowance for doubtful
accounts.
Concentrations of Credit Risk
Substantially all of the Division's accounts receivable for nonaffiliates are due from
either PREPA or FAMM. To date, this concentration has not had a material adverse
effect on the financial position of the Division.
Inventories
Inventories consist of No. 6 residual fuel oil, which is valued at the lower of cost,
determined using weighted-average cost, or market.

2

'

e

PETROBRAS AMERICA INC.- PUERTO RICO OPERATIONS
(a Division of Petrobras America Inc.)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003
Functional Currency
The U. S. dollar is the functional currency for the Division. All transactions are
denominated in U. S. dollars.
Revenue Recognition
Sales revenue is recognized as fuel is sold at a determinable price, when delivery has
o~curred, title has transferred and the collectibility of the revenue is probable.
Use of Estimates
The financial statements, which are prepared in conformity with generally accepted
accounting principles, include amounts that are based, in part, on management's
best estimates and judgments.
3. INVENTORIES
At December 31, 2003, inventories pertaining to Puerto Rico Operations consisted of
the following:
2003
No. 6 Residual Fuel Oil...................................

$ 1O,S37,005

The fuel oil inventories in Puerto Rico is maintained at storage facility owned by
Commonwealth Oil Refining Company (CORCO).
4. INCOME TAXES
A reconciliation of the United States statutory income tax amount to the effective
amount is shown below:
For the year ended
December 31 , 2003
Statutory income tax ................................... ..
$
1,004,226
Additional taxes related to Puerto Rico
statutory tax ............................................... _ _ _ ____,2::..:8:..=9:.L,7:....:9::...:0::....__
$
1,294,016

3

..

PETROBRAS AMERICA INC. - PUERTO RICO OPERATIONS
(a Division of Petrobras America Inc.)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003
5. EQUITY
Petrobras America Inc. - Puerto Rico operations has been administered and fully
funded by the Petrobras America Inc. (PAl) in Houston, Texas. Since the Puerto Rico
operations hold neither separate cash account nor identifiable cash balance, all cash
related transactions are booked through Investment From PAl, which is disclosed in
the Equity section of the Balance Sheet.
6. RELATED PARTY TRANSACTIONS
Transactions related to Puerto Rico operations by the Company with its Parent and
affiliated companies for the year ended December 31, 2003 were as follows:
2003
Purchase of No. 6 Fuel Oil ........................ .

$ 228,335,351

7. SUBSEQUENT EVENT
The current PREPA Fuel Purchase Contract ended in December 2004, PAl did not
renew the contract with PREPA for 2005.

4

:

7i: Lu~nad
~oo~ PR. AnntW-~

t&Aa.l! hfll
Estado Libre Asociado de Puerto Rico
Commonwealth of Puerto Rico
Departamento de Estado
Department of State
INFORME ANUAL DE CORPORACIONES
CORPORATE ANNUAL REPORT

I
Ano~

Year

I
I

I
Num. seguro social patronal: ___.:...;76-0::....::.:2:.::;35::.:1:.::8'3=-

I

Employer social security no.
Comprobante numero:
Voucher number.

--=----

Reglstro nlimero: 12233-F
Registry number:

Fecha: - - - - Date:

Tipo de Corporacion: _ _ domestica _x foriinea _x connnestucrativos
__
__
domestic

foreign

profitable

___ slnflneslucrativos
net fer profit

Volumen del negocio: Sobrepasa un mill6n_x
__ No sobrepasa un millen _ _
Volume of Business:

exceeds one million

dollars

Does .not exceed one million doUars

Nombre de Ia corporaci6n: PetrobrasAmedca.lnc.- Puerto Rico Operations
Name Df the corporation:
Dlreccl6n de Ia oflcina designada:
(F£slca y postal)

. :.1: .:0m:. :. . :. . :. W:.:es:: .:l: .: he::.:lm.: .:e: . r.:. :R: : oa:: d:L;S:::u~lte:..1!!2::::00::....__~---------•
.:..:H::::oU:::s::::to::!.n..:;TX~77:..::0:::::42::,__ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

Address of the designated office:
(Physical and mailing)

:..;H::::ou:::st:::e::!.n..::TX~77.:...:..::::D4::::2=-------------------

Nombre del agente residente:

Ivan Reichard, Esq.

.:.1::.:om~.:..:W:..::es::.:lh:::e:::lrn:::e::..r.:..:R::.:ea:.=d!...:,S::u::::lte:..1:..:2:::.:00::....__ _ _ _ _ _ _ _ _ _ __

Name of the resident agent

Direcci6n fisica y postal del agente residente: Reichard & catar. P.s.c. 2946 San Francisco Street
Physical and mailing address otthe resident agent: . ;:;s:.; ;an::.:J:. :ua:: .:n.:. :P. :.R.:. :o:. : o: :.:so:. : s_ _ _ _ _ _ _ _ _ __
Reichard & Calaf, P.S.C. 2946 San Francisco Street San Juan PR 00909

Rev.12·02

I

·I

I

I
I

I
;

Nombre, posicl6n, dfreccl6n postal y fecha de explr&cion del cargo de los directores en
funciones, a Ia fecha de radicacion del informe.
Name. mai/Tng address and date of explratfon of the term of the directors holding office
at the time this report is field.
Nombre

Posicion

Direcci6n

Fecha de
expiracion

See Ust Attached

'

i

I
,__

I

I

I
l

Nombre, poslcl6n, direccion postal y fecha de explracl6n del cargo de los of!cjales en
funciones, a Ia fecha de radlcaci6n del inform e.
Name, maifing address and date of expiration of the term of the officers holding office at
the time this report is field.
Nombre

Posicion

Dlrecclon

Fecha de
_e)(p_iracion

See Ust Attached

Estado de situaci6n

1

(Balance sheet)

See Statement Attached

1

AUDITORIA POR UN CONTADORA P0BUCO AUTORIZADO

CERTIFIED PUBLIC ACCOUNT AUDIT

Sl el volumen de negoclo de esta corporaclon sobrepasara un millen (1,0DD,DDO) de d6Jares, el estado de
sltuaclon que acompaiia a este fnforme annual habra de estar debldamente audltado per un Contador Pt1blico
Autorlzado con Hcencia en el Estado Libre Asooiando de Puerto Rico, que no sea nf accionlsta nl empleado de Ia
Cotporaclon, junto con Ia opinion correspondlente de dicho Con!ador Pt1bllco Autorizado.
When the volume of business of this carporaUon exceeds rme ml/lon (1,000,000) dollars, the fin aneTa/ statement provided
Herewllh shall de duly audiled by a Certified Public Acc:ountanll/censf.'ld by the Commonweellh of Puerto Rico, who Ts
Neither a stackhalder nor employee of such corporation, logetharwlth the coJTespandlnq opinion of such Certified Public
Accountant.

ReV.12·02

I

I
I

I

I

PETROBRAS AMERICA INC.
ACCT # 76-0235183

i

I
-ATTACHMENT TO -- ··
2004 PUERTO RICO PERSONAL PROPERTY TAX

I
f

I

LIST OF OFFICERS AND DIRECTORS

OFFICERS
Renato Bertani
President
10777 Westheimer, Suite 1200, Houston, TX 77042
Gustavo Barbosa
Finance Manager
10777 Westheimer, Suite 1200, Houston, TX 77042

Date of expiration of the term
Continuing until succeeded

DIRECTORS
Joao Figueira
A v. Republica do Chile, 65 - RJ- Brazil
Nestor Cervero
Av. Republica do Chile, 65 - RJ- Brazil
Renate Bertani
10777 Westheimer, Suite 1200, Houston, TX 77042
Date of expiration of the term
Continuing until succeeded

T:\Groups\Corporate\TAX\PUERTO RICO TAX & CONTRACT\2004 PUERTO RICO TAX\OFFICERS & DIR

I
!

f

f

•

I

DECLARACION JURADA
SWORN STATEMENT

I

EN TESTIMONIO DE LO CUAL, nosotros,
(Presldente o
Vlcepresidente}, y
.
{Tesorero o Subtesorero), declaramos ql!e
Ia informaci6n contenida en este lnforme A..nual es oorrect!l. Hqy, _de
de
20

IN WITNEss WHEREOF, we,
f~eNt;.io
(President or VicePresident), .Ell!!
fl i /;]' /... i maN
(Treasure or Assistant-Treasure), do ..
hereby declare that the information contained ln. the foregoing Annual Report is correct. This
tit

per fun i

f

~A~

of

...L!f.

,20!15

~

Tesorero o Subtesorero
Treasure or Assistant-Treasure

Presldente o Vlcepresidente
President or Vice-President

i

I
!

Affidavit num.:
Affidavit no.: - - - -

I

l

I

h

JURADO Y SUSCRITO ANTE Mf POR
SWORN AND SUBSCRIBED TO BEFORE ME BY:

ReN~ru Bettaoi

v.--~P~~il~ir_·~~~lm_o_~----~··
51. Vfet~~rs pyes1d e nt- Resicl ent

I

!

and

de )as stguiente circunstancias personales:

TN US, A.

I
i

J

- - - - - - - - - - {mayor[a de edad, profesi6n, veclndad y puesto que ocupa en Ia
corporaci6n), a quienes conozco personalmente.

Dada en - - - - - - - - - ' Puerto Rico, hoy,

In

HoiH?D N

1

SELLO NOTARIAL
NOTARIAL SEAL

TX

, PvBrlo Rico, on

14

de ~DO __ •

de

"ihJug ,

200

.QS.

u.~~~e.~
NOTARIO PUBLICO
NOTARY PUBLIC

CHRISTINE A. MillER
1/N COMMISSION EXPIRES

June 15, 2009

Rev.12·02

. i

'

I

I

'

I

PETRO:BRAS AMERICA, INC.- PUERTO RICO OPERATIONS
INSTRUCTIONS FOR FILING
2004 CORPORATE ANNUAL REPORT

-SIGNATURES

The original oftlte report should be signed and dated by both the President orVice President
and the Treasurer or the Assistant Treasurer in the spaces provided on page 3.
These signatures must be affixed in tl1e presence of an authorized notruy who should complete and sign
the notarization statement as indicated.

DUE DATE

On or before JULY 14,2005.

HOW TO FILE

The signed and notarized original of the report and attachments should be sent in time to be received
by U1e above due date to:
Department of State
P.O. Box9023271
San Juan, P.R. 00902

We strongly suggest tltntyou send the return by Certified Mail-Return Receipt Requested.
ANNUAL FEE

A P.R. Internal Revenue Voucher for $100 ("Recibo de Pago'') representing tlte annual filing fee

should be attached to the report prior to filing. Tltis voucher can be purchased from ml)'
Collector's office in Puerto Rico.
Tlte number and dale of purchase of tltis voucher sl10uld be entered on page 1 of the report in the
spaces provided in the upper left corner.
In case you don't have access to purchase tlte Voucher in Puerto llico, you can attach to the Report
a Certified Check payable to tlte "Secretary of the Treasury" in the amount of $100,
representing the filing fee.
OTHER

- The corporation's audited Balance Sheet as of December, 31, 2004 and accompanying certification
bearing the original stamp of the Puerto Rico Sociely of CPA should be attached to Ute report prior to
filing.
- A scltedule listing Ute name, address and date of expiration of tenn of each officer and director of The
corporation should be attached to the original report before filing. An additional copy sl10uld be fliiiUslted
to us for our files.
-In the case tltat the report is notarized outside of Puerto Rico a "County Clerk Certificate" certifYing
that the notary is authorized by tl1e County should be included with the report prior to filing.

(

,,

PrlcewaterhouseCooB.W.s LLP
254 Mufioz Rivera
BBVA Tower, 9th Floor
Hald Rey PR 00918
Telephone [phone]
Facsimile (787). 766 1094

April 8: 2005
Department of State
P.O. Box 9023271
San Juan, Puerto Rico 00902

Dear Sirs:

PETROBRAS AMERICA, INC.
ACCOUNT NO. 76-0235183
FILE NO. 12233-F
On behalf of the above taxpayer, we respectfully request an extension of time lll;ltil July 14,
2005, 1¥ithin which to file the Corporate Annual Repo1t for the year 2004. The extension is
necessary due to delays in assembling the information required to complete the report.
.
.
Please aclmowledge receipt of this. Jetter by date stan1ping the attached copy. If you have any
questions, please call us.

cc: Mr. Elau Lau- Petro bras America, fuc

INCOME

iJI tf?.NST & YOUNG

Ji;

Ernst & Young ttl'

!G Phone: !7871 759-3212

1000 Scoliabank Plaza
273 Ponce de Leon Avenue
Halo Rey, Pueno Rico 00917-1989

Fax:
t787J 7r,3-0B08
Fm<:
ti87J 753-0813
www.ey.com

I

Report ofindependent Auditors

I

To the Management of Petrobras America Inc.
We have audited the accompanying statement of net assets ofPetrobras America
Inc.- Puerto Rico Operations (a division ofPetrobras America Inc.), as of December 31,
2005 and 2004, and the related statements of operations, changes in net assets, and cash
flows for the two years then ended. These financial statements are the responsibility of
the division's management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes consideration of internal control over financial reporting
as a basis for designing audit procedures that are appropriate in .the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the Company's internal
control over financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and disclosures in
the :financial statements, assessing the accounting principles used and significant
estimates made by management, and evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.

I
I
I

i

In our opinion, the financial statements referred to above present fairly, in all
material respects, the financial position ofPetrobras America Inc. -Puerto Rico
Operations (a division of Petrobras Am:erica Inc.) a~ December 31, 2005 and 2004, and its
results of operations and cash flows for the two years then ended in conformity with
accounting principles generally accepted in the United States.

I
I

I

I
I

I

!

I

;

2129909
June 13, 2006

By:~{);. :LA
Arturo I.

Ondina~

Uc.No.2567

A member iirm of Ernst & Young Global limited

i

'

I

i

I

I

PETROBRAS AMERICA INC.- PUERTO RICO OPERATIONS
(a Division of Petrobras America Inc.)
BALANCE SHEET
December 31, 2005 & 2004

I

I

2005

2004

ASSETS

I
I
I

Current Assets
Accounts Receivable:
Nonaffiliate.s
Inventories

1

$

$ 38,964,593

12,003,054

Total Current Assets
TOTAL ASSETS

293,51 0
293,510

$

50,967;647

293,510

$ 50,967,647

LIABILITIES AND EQUITY
Current Liabilities
Accounts Payable and Accrued Liabilities:
Affiliates
Nonaffiliates

$ 35,733,287

$

129,734

502,168

Total Current Liabilities

129,734

36,235,455

Total Liabilities

129,734

36,235,455

l ,802,915
(1 ,63 9,1 39)
163,776

Investment From PAl
Accumulated Earnings
Total Equity
TOTAL LIABILITIES AND EQUITY

$

293,51 0

15,475,215
(743,023)
14,732,192

$ 50,967,647

7110/2006 3:50PM

PETROBRAS AMERICA INC.- PUERTO RICO OPERATIONS
(a Division of Petro bras America Inc.)
STATEMENTS OF OPERATIONS
For Years Ended Decembef"31, 2005 and 2004

2005
Revenues
No. 6 Residual Fuel Oil

$

Costs
No. 6 Residual Fuel Oil
Gross Profit

2004

11,787,558

$

239,117,307

12,003,045
(215,487)

387,644
129,734
108,643
23,573
750

Operating Expenses
Freight
Storage Expense
Unloading Inspection Expense
Duties
Bond Insurance
Other Operating Expense
Insurance Premium

232,336,856
6,780,451

4,926,847
2,483,981
706,652
388,812
203,250
23,674
18,056

84
650,428

Net Operating Loss

8,751,272

{865,915)

Total Operating Expenses

(1 ,970,821)

17,201
13,000
30,201

General & Administrative Allocation
Consultants/Professional Fees

297,108
75,320
372,428

(896,116)

Loss Before Income Tax Benefit

(2,343,249)

Income Tax Benefit
Net Loss

$

(896, 116)

$

(2,343,249)

'

'

PETROBRAS AMERICA INC. - PUERTO RICO OPERATIONS

(a Division of Petrobras America Inc.)
_

STATEMENT OF EQUJ1Y

For Years Ended December 31, 2005 and 2004

Investment From
PAl
Balance - December 31 , 2003

$

1,600,226

$ 15,821,634

1 ,253,807
(2,343,249)

1 ,253,807

$

15,475,215

.$

(743,023)

$

(896, 116)
$

1,802,915

$

(1 ,639, 139)

14,732,192
(13,672,300)
(896, 116)

(13,672,300)

Net distributions to PAl
Net Loss
Balance- December 31, 2005

Total

(2,343,249)

$

Net funding from PAl
Net Loss
Balance- December 31, 2004

14,221,408

Accumulated
Earnings

$

163,776

..
(

PETROBRAS AMERICA INC. - PUERTO RICO OPERATIONS
(a Division of Petrobras America lnc.)
STATEMENT OF CASH FLOWS
For Years Ended December 31, 2005 and 2004

2005
Operating activities
Net Loss
Adjustments to reconcile net loss to net cash provided by
operating activities:
Changes in operating assets and liabilities:
(increase) decrease in accounts receivable:

$

(896,116)

2004
$

(2,343,249)

38,671,083
12,003,054

2,234,796
(1,466,049)

(35,733,287)
(372,434)
13,672,300

307,532
13;163
(1,253,807)

Financing activities
(Distributions to)/funding from PAl

(13,672,300)

1,253,807

Net cash used in flnanclng activities

(13,672,300)

1,253,807

Non affiliates
(Increase) decrease in Inventories
Increase (decrease) in accounts payable;
Affiliates
Non affiliates
Net cash provided by In operating activities

Net Increase (decrease) In cash and cash equivalents
Cash and cash equivalents at beginning of year·
Cash and cash equivalents at end of year

$

$

Additional dosclosures:
Cash paid for Income taxes

$

$

1,562,500

(

PETROBRAS AMERICA INC. - PUERTO RICO OPERATIONS
(a Division of Petrobras America Inc.)
NOTES TO FINANCIAL STATEMENTS
December 31, 2005 and 2004

The Division incurs certain common costs which relate to both the Division and other
Petro bras America Inc. operations, and management has made allocations of these
costs to the Division.
Total Equity reflects Petrobras America Inc.'s historical cost basis investment in the
Division, accumulated earnings and losses of the Division and intercompany activity
with Petrobras America Inc. which are not settled on a current basis.
The Division is part of Petrobras America: Inc. and has no separate legal status or
existence. Its resources and existence are at the disposal of corporate management.
The Division's assets are legally available for the satisfactions of debts of the entire
corporation, not solely those appearing on the accompanying balance sheet, and its
debts may result in claims against assets not appearing thereon.
Cash
All cash and cash equivalents are transferred to Petrobras America Inc. through the
investment account on a current bas.is and are excluded from assets on the
accompanying statements. The Division is part of a centralized cash management
system of Petrobras America Inc., whereby all cash disbursements of the Division are
funded by, and all cash receipts are transferred to, Petrobras America Inc.
Allowance for Doubtfu!"Accounts
The Division routinely assesses the recoverabi!ity of all material trade and other
receivables to determine their collectibi!Ity. The Divisiqn accrues a reserve on a
receivable when, based on the judgment of management, it is probable that a
receivable will not be collected and the amount of any reserve may be reasonably
estimated. As of December 31, 2005 and 20Q4, the Division had no allowance for
doubtful accounts.
Concentrations of Credit Risk
Substantially all of the Division's accounts receivable from non affiliates are due from
either PREPA or FAMM. To date, this concentration has not had a material adverse
effect on the financial position of the Division.

I
l

i

'
1

I

i

Inventories
Inventories consist of No. 6 residual fuel oll, which is valued at the lower of cost,
determined using weighted-average cost, or market.

2

I

I
I

(

PETROBRAS AMERICA INC.- PUERTO RICO OPERATIONS
(a Division of Petrobras America Inc.)
NOTES TO FINANCIAL STATEMENTS
December 31 2005 and 2004
Functional Currency
The U.S. dollar is the functional currency for the Division. All transactions are
denominated in U. S. dollars·.
Revenue Recognition
Sales revenue Is recognized as fuel is sold at a determinable price, when delivery has
occurred, title has transferred and the collectibility of the revenue is probable.
Use of Estimates
The financial statements·, which are prepared in conformity with generally accepted
accounting principles, include amounts that are based, in part, on management's
best estimates and judgments.
3. INVENTORIES
For years ended December 31, 2005 and 2004, invento:ies pertaining to Puerto Rico
Operations consisted of the following:
·
2005

No. 6 Residual Fuel Oil. ........... ..

2004

$ 12,003,054

$

The fuel oil inventories in Puerto Rico are maintained at storage facility owned by
Commonwealth Oil Ref!ning Company (CORCO).

I
i

i'

I

I

I

4. INCOME TAXES
For years ended December 31, 2005 and 2004, a reconciliation of the United States
statutory income tax expense (benefit) to the effective amount is shown below:
2005
$ (313,641)
(90,507)
404,148

Statutory income tax .................. .
Additional taxes related to Puerto
Rico statutory tax ................... ..
Valuation Allowance

2004
$ (820,137)
(236,668)
l 056,805

$

3

$

I
I

PETROBRAS AMERICA INC. - PUERTO RICO OPERATIONS
(a Division of Petrobras America Inc.)
NOTES TO FINANCIAL STATEMENTS
December 31, 2005 and 2004
The Company recorded a valuation allowance against the 2004 and 2005 net
operating losses. These net operating losses will expire in 2011 and 2012
respectively.
5.

EQ~ITY

Petrobras America Inc. - Puerto Rico operations has been administered and fully
funded by the Petrobras America Inc. (PAl) in Houston, Texas. Since the Puerto Rico
operations hold neither separate cash account nor identifiable cash balance, all cash
related transactions are recorded through Investment from PAl, which is disclosed in
the Equity section of the Balance Sheet.
6. RELATED PARTY TRANSACTIONS
Transactions related to Puerto Rico operations by the Company with its Parent and
affiliated companies for year ended December 31, 2005 ~nd year ended December
31, 2004 were as follows:

2005
Purchase of No. 6 Fuel Oil. .............. .

$

2004

$ 197,337,711

I

I
'

4

I

I

Estado Libre Asociado de Puerto Rico
Commonwealth of Puerto Rico
Departamento de Estado
Department of State
INFORME ANUAL DE CORPORACIONES CON FINES DE LUCRO
PROFITABLE CORPORATE ANNUAL REPORT
Aiio
Year

2005

Registro numero: 12233-F
Registry number:
Nombre de Ia corporaci6n: Petrobras America, Inc.- Puerto Rico Operations
Name of the corporation:
Tipo de Corporaci6n:

X

domestlca

- - - - foranea
foreign

domestic

Num. seguro social patronal:
Employer social security no.

76-0235183

Comprobante niimero:
Voucher number:
Volumen del negocio: Sobrepasa un mi116n
X
Volume of Business:
Exceeds one million dollars

No sobrepasa un mi116n
Does not exceed one million dollars

l 0777 Westheimer Road, Suite 1200

Direccion de Ia oficina designada: Houston TX 77042
(Ffsica y postal)
I 0777 Westheimer Road, Suite 1200
Address of the designated office:
Houston TX 77042
(Physical and mailing)
Nombre del agente residente:
Name of resident agent

Ivan Reichard, Esq.

Direcci6n fisica y postal del agente residente: Reichard & CalaJ; P.s.c. 2946 San Francisco Street
Physical and mailing address of the resident agent s:c:an.:;..:.;Ju..;.an:..:..:...:PR~oo""9.:..:09'------------­
Reichard & CaJat; P.S.C. 2946 San Francisco Street San Juan PR 00909

Rev. 02-06

·'

Nombre, posicion, direccion postal y fecha de expiraci6n del cargo de los directores en
funclones, a Ia fecha de radicacion del informe.
Name, position, mailing address and date of expiration of the tenn of the directors holding office
at the time this report is filed.
Nombre

Direcclon

Posic16n

Fecha de
explracl6n

See Statement Attached

Nombre, posicion, direcci6n postal y fecha de expiraci6n del cargo de los oficiales en
funciones a Ia fecha de radicacion del informe.
Name, position, mailing address and date of expiration of the tenn of the officers holding office at
the time this report is nled.
Nombre

Dlrecc16n

Poslcl6n

Fecha de
expiracl6n

See Statement Attached

Estado de situacion 1
(Balance sheet)

See Statement Attached

1 AUDITORIA POR UN CONTADOR PUBLICO AUTORIZADO

CERTIFIED PUBLIC ACCOUNTANT AUDIT
Si el volumen de negocio de esta corporaclon sobrepasara un millon (1,000,000) de doiares, el estado de
situaci6n que acompaiia a este informe anuai habra de estar debidamente auditado por un Contador Publico
Autorlzado con iicencia en el Estado Libre Asociado de Puerto Rico, que no sea ni accionista ni enipleado de Ia
corporacion, junto con Ia opinion correspondiente de dicho Contador Publico Autorizado,
IIVhen the volume of business of this corporation exceeds one million (1, 000, 000) dollars, the financial statement provided
herewith shall be duly audited by a Certified Public Accountant licensed by the Commonweallh of Puerto Rico, who is
neither a stockholder nor employee of such corporation, tooether with the corresoondinq opinion of such Certified Public
Accountant.

Rev.01..()6

PETROBRAS AMERICA, INC.- PUERTO RICO OPERATIONS
ACCOUNT NO. 76-0235183
RGISTRY NO. 12233-F
2005 CORPORATE ANNUAL REPORT

LIST OF OFFICERS AND DIRECTORS

OFFICERS
Renato Bertani - President
10777 Westheimer, Suite 1200, Houston, TX 77042
Gustavo Barbosa- Chief Financial Officer
10777 Westheimer, Suite 1200, Houston, TX 77042

Date of expiration of the term
Continuing until succeeded

DIRECTORS
Joao Figueira
Av. Republica do Chile, 65 - RJ - Brazil
Nestor Cervero
Av. Republica do Chile, 65 - RJ - Brazil
Renato Bertani
10777 Westheimer, Suite 1200, Houston, TX 77042
Date of expiration of the term
Continuing until succeeded

DECLARACION JURADA
SWORN STATEMENT
EN TESTIMONIO DE LO CUAL, nosotros,
(Presidente o
Vicepresidente), y
(Tesorero o Subtesorero), declaramos que
·.,a informaCion contenida en este lnforme Anual es correcta. H:>y, _--_de
e
20
IN WITNESS WHEREQF, we,
President), and
4iz~

N

1\)

e'r to. n.

(President or Vice(Treasurer or Assistant-Treasurer), do

]
Y

(J •

he1Jjare that the information contained in the foregoing Annuel RepOrl/s =reef. This
of

,

~

~.

i.~

/,;1 rJ,

~/!YL_
/

Presidente o Vicepresidente

•

Tes7f:::o o Subtesorero

(f.O. Ttsurer or Assistant-T<eosurer

President or Vice-President

Affidavit num.:
Affidavit no.: - - - -

JURADO Y SUSCRITO ANTE Mi POR:
S1(0RN AND S~SCRIBED TO BEFORE ME BY:

t2e t-luY);

Kenodv

Y

and

de las siguientes cincunstancias personales:

Re<:d-:ni ~ U, s. A·
'

8 u~-+a vo

BavboSCA-

-~6:....o:.;;t:.......:.~.J-Ie....!O.~I·.=.S_·_R_'f...:e:...~_•.:::d~e~n'-.:.t!....-·-----

(mayona de edad, profes1on, vec1ndad y puesto que ocupa en Ia

corporacion), a quienes conozco personalmenle.

Of

Gu~f<a \[O Bo r bo21

the

4Fj ~ 1·s

following

personal

circumstances:

Residen 't t?'[ US A

O/d1
(legal age, profession, residents
of, and position they hold in the corporation), whom I personally know.

Dada en

In

, Puerto Rico, hoy,

de

1-{ou~~~N: zy. ~i ~C£-

SELLO NOTARIAL
NOTARY SEAL

NOTARJO PUBLICO
NOTARY PUBLIC

_

de

-

JODI L KNIGHT
MY COMMISSION EXPIRES

JuiJ\115, 2009

PETROBRAS AMERICA, INC.- PUERTO RICO OPERATIONS
ACCOUNT NO. 76-0235183
RGISTRY NO. 12233-F
2005 CORPORATE ANNUAL REPORT

An examination of the financial statements of the company by an independent certified public
accountant for the year ended December Q1. 2005 is presently in process. Upon completion of the
examination, the required financial statements and the Accountant's Report thereon will be

submitted.

CHASE

Customer Copy

fOR YOUR PROTECTION SAVE THIS COPY

OFFICIAL CHECK

557368706
07/13/2006

Texas

Remitter Petrobras America Inc.

$ ************600.00 ***
Pa~ To The
Oraer Of

Secretary of the Treasury
Dept of State, San Juan P.R.
Drawer: JPMORGAN CHASE BANK, N.A.

NON NEGOTIABLE
....................................-.................................................................... .
TERMS
KEEP THIS COPY FOR YOUR RECORD 'i:":if:THE TRANSACTION. TO REPORT A LOSS OR FOR ANY OTHER INFORMATION
ABOUT THE INSTRUMENT, CONTACT THE INSTITUTION FROM WHICH YOU RECEIVED THE INSTRUMENT.

Date

07/13/2006

Remitter Petrobras America Inc.

Texas

Pay:

SIX HUNDRED DOLLARS AND 00 CENTS

$ ************600.00 ***
Secretary of the Treasury
Dept of State, San Juan P.R.

Pay To The
Oraer Of

Drawer: JPMORGAN CHASE BANK, N.A.

-~~6d~-~---·---------------------Jnlegrale~::menl

~ ':':J;

fssued by
Systems Inc., Englewood, Colorad!O,
To Citibank, N.A., Buffalo, NY
1..!.J ~··M
•

0

••

•

••

•

•

•

...

Vendor :1000199

Your Reference

0

•••••••

-

••

•

•

••

•

•

••

••

••

...

••

-

•••••

~

••

•

Document :20000075fl6 Date: 07/12/2006

Our Reference

JPMORGAN CHASE
1900005488
PAY FOR CASHIER CHECK (DEPT. OF STATE)
Sum total

-

Date
07/12/2006

Gross amount
600.00

600.00

I

·.

PETROBRAS AMERICA, INC. -PUERTO RlCO OPERATIONS
INSTRUCTIONS FOR FILING
2005 CORPORATE ANNUAL REPORT

SIGNATURES

The original of the report should be signed and dated by both the President or Vice President
and the Treasurer or the Assistant Treasurer in the spaces provided on page 3.
These signatures must be affixed in the presence of an authorized notary who should complete and sign
the notarization statement as indicated.

DUE DATE

On orbefore.July, 14,2006.

HOW TO FILE

The signed and notarized original of the report and attachments should be sent in time to be received
by the above due date to:
Department of State
P.O. Box 9023271
San Juan, P.R. 00902
We strongly suggest that you send the report by Certified Mail-Return Receipt Requested.

ANNUAL FEE

A P.R. Internal Revenue Voucher for $100 ("Recibo de Pago ") representing the annual filing fee
should be attached to the report prior to filing. This voucher can be purchased from any
Collector's office in Puerto Rico.
The number of this voucher should be entered on page 1 of the report in the
spaces provided in the upper ]eft comer.
~

ck

In case you don't have access to purchase the Voucher in Puerto Rico, you can attach to the Report
a Certified Check payable to the "Secretary of the Treasury" in the amount of$] 00,
representing the filing fee.
OTHER

- The corporation's audited Balance Sheet as of December, 31, 2005 and accompanying certification
bearing the original stamp of the Puerto Rico Society of CPA should be attached to the report prior to
filing.
-In the case that the report is notarized outside of Puerto Rico a "County Clerk Certificate" certifYing
that the notary is authorized by the County should be included with the report prior to filing.

PricewaterhouseCoopers LLP
"~
0 v HI00
II

,- p•J10·2 I
-o rifl • ...

254 Munoz Rivera
BBVA Tower, Suite 900
Hato Rey, PR 00918
Telephone [phone]
Facsimile [phone]

April 4, 2006
Department of State
P.O. Box 9023271
San Juan, Puerto Rico 00902

Dear Sirs:
PETROBRAS AMERICA, INC. -PUERTO RICO OPERATIONS
ACCOUNT NO. 76~0235183
FILE NO. 12233-F
On behalf of the above taxpayer, we respectfully request an extension of time until July 14,
2006, within which to file the Corporate Annual Report for the year 2005, The extension is
necessary due to delays in assembling the information required to complete the report.
Please ac ewledge receipt of this etter by date stamping the attached copy. If you have any
questi , please· call us.
~--

cc: Mr. Elau Lau- Petro bras America, Inc.

03/28/2005

15:10

2125575065

AUFRICHTIG STEIN

PAGE

18

(''
EST ADO UBRE ASOCIADO DE PUEATORICO
ADMINISTRACION DE SERVICIOS GENERALES
Reglstro Onleo de Lloltadores

i

I
I

Dlri)B891Qda CClll$$pond011cl0
a Ia JldmlnlstracJora

CERTIFICAOO 05 ELEGIBII..IDAO
LICITADOR;
Nlim. de Licitador:

I

PE'IROBRAS AMERICA INC.
7243

f

I

Segu:ro Social Pab:onal: ,!.7.:;!:60~-;:23;,;·;;;5;:;,;18:::;3~-"':1!""',_=~------------10777 Westheimer :§uite 1200
Direccion Pos tal:

!

!

Houston TX 77042
Telefono:

713·781-9798

Nfun. de Fax:

713-781-3570

E-Mail:

[e-mail]

Persona Autorizada a Finnar Ia O:furta: .:;M.::arc=.::io:;..:,;M::a:2galhae==~s-----------Titulo que Ostenta:
Oil Manager

Registro vigente desde 3 de noviembtc de 2004

hasta 3

!i!e noviembte de 2005

I

£LEGIB1LIDAD:

EI Licitador tiene sus doeum.entm'l1 sl dia y estJi elegible para Ia adjndfeaclon de subastas co.mpras bajo contra to, y
expedicion de ordenes de compra hasta el ;J,Z de abrll de 2005.

Sera responsabilidad del Licitador :mankiner todos .IDS documentos al dis. dlEJlJlt!<: el aiio de rcgistro. Adcmas cad a
Agencia Ejecutiva o Co:tporac.ion Publica sera re!pO:nsable de~rifi~~!~~licitador antes de adjudicar
subasfrul y emitir 6rdenes de compra.
.<:_,~ / '
0
~
\.

~ Rir.,~de febre~o ~ 2005
o
e )
!.

Y PARA QUE ASI CONSTE cxpido la presente en San Juan,

OJ,mdliar
Area de Adqulslclones

o su Representante Aotorizado

I
\

f.J..7
~

~i\•

t

,/'

:~ ,~e -,,"'

,.:y?o·\·J

!

J

Patcntc Municlpll!. Cettificaci6n de .Radlcucion de Planillos Propi~ Mucble, Certlficscion de Deuda
ueble, Cettificaci6n de Deuda. 'Propied3d
InmucbTc 6 Ccrti.ficnt:i6n Neg~~trve, Cct1ificncion de~ Rndicacian de PIIIIITITIIS de contribt!ci6n sobte Jngrcsoo ultimos s nl'io~, Ccrtilienci6n do Ucuda Contributiva,
Ccrtilicacion de l'Oiiu dol Fando del ScgtJI'O del C:Smdc. Ccnifi=i6n de Dalda del Fondo del Segui'Q del Estado1 CC1115cnc;l6n de Dcuda del Depnttnmento del
Trabajo de Scguro de Incapacidad y Dcscmpleo, Certllicnci6n de D¢uda del Segurn Social Chofcril. Cctf:flcado de Cumplimlento 'on Ia Ley Gcrn::ml de
CotpOlllcionell (Good Standing), Ccnifieocitln de Deuda de 14 Administroclon psm cl Sustcnta de Menores ~ "1 CBSo de: ncgoc!o lndlvidllal (AsumQ),
1

!

I

I

i'
i
I

i

I

G~~···

!'····' ~~;;~'~' "'
.. ,~(l·.:·';~~:r.i\C:'·0~
£':?
t:.~>•ZI .~r·':l
~~~· ·
C-..~
' -;-

.f.. ,r, • ,-· [\.\)

i

'

i
L