Brazil Petrobras appeals decision to pay expenses of mining company

05 April 2013 20:40  [Source: ICIS news]

CAMPINAS, Brazil (ICIS)--Brazil state-owned oil producer Petrobras said it is appealing a decision by the country’s Upper Tribunal of Justice (STJ) that the company must pay the expenses incurred by a mining company in the research of a potash mine in the state of Sergipe, Petrobras said on Friday.

The STJ determined that Petrobras must pay the expenses that Kalium Mineracao S/A had incurred during the 1970s while researching the site.

Petrobras did not disclose any details about the amount of the expenses.

According to Petrobras, during that time, the company had informed the National Petroleum Council about the conflict between the exploration of potash at the site and the exploration of oil reserves that existed in the region.

Through a decree, Petrobras created a subsidiary, Petrobras Mineracao, to explore the site.

Later, Kalium sued Petrobras, asking for an indemnification for the alleged non-fulfillment of obligation Petrobras had in the contract.

Petrobras said it will appeal the STJ’s decision to Brazil's Supreme Court (STF).


By: Leo Siqueira
+1 713 525 2600



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