Milbank Acts as Lead Counsel in $910,000,000 Financing for Petrobras’ PDET Oil Project
Milbank Represents Mitsubishi and Marubeni in Major Offshore Oil Transport Project in Brazil
NEW YORK, NY, March 4, 2005 – Brazil’s federal energy company Petróleo Brasileiro (“Petrobras”) has signed contracts totaling US$ 910,000,000 for the development and financing of the PDET oil transport project in the Campos Basin off Brazil. The project, sponsored by Mitsubishi and Marubeni, involves the development of fixed offshore oil platforms, mono-buoys and sub-sea oil lines that will gather oil from five Campos Basin platforms for either use in Brazilian refineries or directly for export. The financing was provided by Japanese government financial institutions (JBIC), international banks (led by Mizuho Corporate Bank) with NEXI coverage, and Mitsubishi and Marubeni.
The international law firm Milbank, Tweed, Hadley & McCloy LLP acted as lead counsel and represented the project sponsors and equity investors Mitsubishi Corporation and Marubeni Corporation of Japan. The Milbank team was led by global project finance partner Dan Bartfeld, lead associate Daniel Michalchuk, and associates Edward Kayukov, Roland Estevez and Melinda Creasman.
Milbank’s Dan Bartfeld, who has particular expertise in Latin American energy projects, commented, “The PDET project is a landmark transaction for Brazil’s oil industry, and marks a highpoint in relations between Japanese investors and Petrobras. We worked with Petrobras, Mitsubishi, Marubeni, Mizuho and JBIC over several years to structure a financing package that meets the needs of all the parties involved.”
About the PDET Project:
The $910,000,000 financing for the PDET project will ultimately result in facilities that increase the oil flow capacity from the Campos Basin by up to 630,000 barrels a day. The project is forecast to start commercial operations in December 2006. The commercial bank lenders that are insured by NEXI include Mizuho Corporate Bank (as lead arranger), ABN Amro Bank, Deutsche Bank, Citibank, UFJ Bank, HSBC, Hypo Vereinsbank, Santander/BANESPA, ANZ Banking Group, West LB, Calyon and Sumitomo Trust.
About the Company:
Petróleo Brasileiro S.A. (“Petrobras”), Brazil’s federal energy company, is the country’s largest industrial corporation. Publicly held, but government controlled, the company’s stock is traded on the New York Stock Exchange (NYSE: PBR/PBRA [ADR]) as well as on Bovespa and Latibex; the government owns 32% and controls 56% of its voting shares. Petrobras engages in exploration for oil and gas and in production, refining, purchasing, and transportation of oil and gas products.
About the Project Sponsors:
Mitsubishi Corporation (TSE: 8058) (UK: MBC) (US: MSBHY) is one of the world’s most diverse enterprises, and Japan’s largest sogo shosa, or trading company. Mitsubishi Corporation has decades of experience doing business around the world and is a leader in international trade. The company’s seven business groups are: new business initiatives, IT & electronics, fuels, metals, machinery, chemicals and living essentials, and its activities include project coordination, sourcing of raw materials, capital investments and development of sales channels.
Marubeni Corporation (TSE: 8002) was established in 1858, and is a core company of Marubeni Group, one of Japan’s leading general trading houses. Operations encompass domestic import, export and offshore trade. Activities range from the development of natural resources to the retailed marketing of finished products. Marubeni Group has been establishing and enhancing its worldwide information and communications business and continues to invest in the development of comprehensive IT services.
About Milbank:
Active in Latin America for many years, Milbank has played a prominent role in many of the region’s most innovative and complex transactions, from project financings and restructurings to securities offerings and IPOs. The firm has been cited for its role in a number of award winning “first of its kind” transactions in virtually every country on the continent, spanning a number of industry sectors such as power & energy and satellite & telecom. At year-end 2004 Milbank was ranked by Dealogic as the #1 legal advisor in Latin America.
Milbank’s Global Project Finance Department is one of the largest and most experienced among the world’s major law firms. Renowned for its leadership, Milbank has pioneered some of the most innovative project financing techniques, and consistently ranks among the top international law firms by industry trade publications such as Infrastructure Journal, Privatisation International, Project Finance International, The American Lawyer and Euromoney’s Project Finance Book of Lists.
In 2004, Milbank closed $21 billion of project finance deals, a record eight of which were named Euromoney’s Project Finance magazine’s “DEALS OF THE YEAR”, and consistent with its global leadership, Milbank has also been named “INTERNATIONAL FIRM OF THE YEAR” by Legal Week, a leading legal industry publication. Two of the award winning deals were in Latin America:
Milbank Represents Mitsubishi and Marubeni in Major Offshore Oil Transport Project in Brazil
NEW YORK, NY, March 4, 2005 – Brazil’s federal energy company Petróleo Brasileiro (“Petrobras”) has signed contracts totaling US$ 910,000,000 for the development and financing of the PDET oil transport project in the Campos Basin off Brazil. The project, sponsored by Mitsubishi and Marubeni, involves the development of fixed offshore oil platforms, mono-buoys and sub-sea oil lines that will gather oil from five Campos Basin platforms for either use in Brazilian refineries or directly for export. The financing was provided by Japanese government financial institutions (JBIC), international banks (led by Mizuho Corporate Bank) with NEXI coverage, and Mitsubishi and Marubeni.
The international law firm Milbank, Tweed, Hadley & McCloy LLP acted as lead counsel and represented the project sponsors and equity investors Mitsubishi Corporation and Marubeni Corporation of Japan. The Milbank team was led by global project finance partner Dan Bartfeld, lead associate Daniel Michalchuk, and associates Edward Kayukov, Roland Estevez and Melinda Creasman.
Milbank’s Dan Bartfeld, who has particular expertise in Latin American energy projects, commented, “The PDET project is a landmark transaction for Brazil’s oil industry, and marks a highpoint in relations between Japanese investors and Petrobras. We worked with Petrobras, Mitsubishi, Marubeni, Mizuho and JBIC over several years to structure a financing package that meets the needs of all the parties involved.”
About the PDET Project:
The $910,000,000 financing for the PDET project will ultimately result in facilities that increase the oil flow capacity from the Campos Basin by up to 630,000 barrels a day. The project is forecast to start commercial operations in December 2006. The commercial bank lenders that are insured by NEXI include Mizuho Corporate Bank (as lead arranger), ABN Amro Bank, Deutsche Bank, Citibank, UFJ Bank, HSBC, Hypo Vereinsbank, Santander/BANESPA, ANZ Banking Group, West LB, Calyon and Sumitomo Trust.
About the Company:
Petróleo Brasileiro S.A. (“Petrobras”), Brazil’s federal energy company, is the country’s largest industrial corporation. Publicly held, but government controlled, the company’s stock is traded on the New York Stock Exchange (NYSE: PBR/PBRA [ADR]) as well as on Bovespa and Latibex; the government owns 32% and controls 56% of its voting shares. Petrobras engages in exploration for oil and gas and in production, refining, purchasing, and transportation of oil and gas products.
About the Project Sponsors:
Mitsubishi Corporation (TSE: 8058) (UK: MBC) (US: MSBHY) is one of the world’s most diverse enterprises, and Japan’s largest sogo shosa, or trading company. Mitsubishi Corporation has decades of experience doing business around the world and is a leader in international trade. The company’s seven business groups are: new business initiatives, IT & electronics, fuels, metals, machinery, chemicals and living essentials, and its activities include project coordination, sourcing of raw materials, capital investments and development of sales channels.
Marubeni Corporation (TSE: 8002) was established in 1858, and is a core company of Marubeni Group, one of Japan’s leading general trading houses. Operations encompass domestic import, export and offshore trade. Activities range from the development of natural resources to the retailed marketing of finished products. Marubeni Group has been establishing and enhancing its worldwide information and communications business and continues to invest in the development of comprehensive IT services.
About Milbank:
Active in Latin America for many years, Milbank has played a prominent role in many of the region’s most innovative and complex transactions, from project financings and restructurings to securities offerings and IPOs. The firm has been cited for its role in a number of award winning “first of its kind” transactions in virtually every country on the continent, spanning a number of industry sectors such as power & energy and satellite & telecom. At year-end 2004 Milbank was ranked by Dealogic as the #1 legal advisor in Latin America.
Milbank’s Global Project Finance Department is one of the largest and most experienced among the world’s major law firms. Renowned for its leadership, Milbank has pioneered some of the most innovative project financing techniques, and consistently ranks among the top international law firms by industry trade publications such as Infrastructure Journal, Privatisation International, Project Finance International, The American Lawyer and Euromoney’s Project Finance Book of Lists.
In 2004, Milbank closed $21 billion of project finance deals, a record eight of which were named Euromoney’s Project Finance magazine’s “DEALS OF THE YEAR”, and consistent with its global leadership, Milbank has also been named “INTERNATIONAL FIRM OF THE YEAR” by Legal Week, a leading legal industry publication. Two of the award winning deals were in Latin America:
- El Cajon Hydro project (Mexico): The $735 million project financing was the largest deal in Mexico in 2004 and among the largest IPPs ever project financed in Latin America. El Cajon was also named Project Finance International’s “LATIN AMERICAN DEAL OF THE YEAR”.
- Veladero Mining project (Argentina): The $250 million mine financing was the first project financing in Argentina since the economic crisis, the first ECA transaction in Argentina since the crisis, and the first political risk insurance program for Argentina since the crisis. Veladero was also named Project Finance International’s “MINING DEAL OF THE YEAR”.
The award-winning deals are a testament to the depth of Milbank’s project finance expertise, which ranges from power generation, power transmission and distribution, pipelines, oil and gas and petrochemicals, telecommunications and space, waste disposal and recycling, water treatment, mining and natural resources, pulp/paper, transportation, to other types of infrastructure.
Milbank, Tweed, Hadley & McCloy LLP is a global law firm headquartered in New York, with offices in Washington, DC, Los Angeles, Palo Alto, London, Frankfurt, Munich, Tokyo, Hong Kong and Singapore. Milbank is a recognized leader in mergers and acquisitions, capital markets and corporate finance, project finance, acquisition finance and other major fields of legal practice. Milbank has English, German and U.S. law capabilities, and provides a full range of services to many of the world’s leading financial, industrial and commercial enterprises, as well as governments, institutions and individuals.
Contact
Dan Bartfeld
Milbank
One Chase Manhattan Plaza
New York, NY 10005-1413
T: 212 530 5185
F: 212 822 5185
dbartfeld@milbank.com