August 22, 2008

CVRD wins nine gas exploration license in ANP auction

Companhia Vale do Rio Doce announced that it won for BRR 31 million, the right to explore nine gas exploration blocks in different regions in Brazil in the public auction promoted by Agência Nacional does Petróleo, Gás Natural e Biocombustíveis, the Brazilian regulatory agency for the oil industry.

CVRD aims to use the natural gas resulting from this exploration effort to meet its energy consumption needs.

In the Santos basin, off the Brazilian Southeastern Coast, CVRD will explore three blocks
1. S-M-791
2. S-M-792
Through the consortium CVRD (30%), Petrobras (40%) and Maersk Oil (30%)
3. S-M-731
Through the consortium CVRD (40%) and Petrobras (60%)

In the Pará – Maranhão basin, the Company won the right to explore four blocks
1. PAMA-M187
2. PAMA-M188
3. PAMA-M222
4. PAMA-M223
Through the consortium CVRD (30%), Petrobras (40%) and Ecopetrol SA (30%)

In the Brazilian Northeastern region, in the Parnaíba basin, CVRD will explore two blocks,
1. PN-T66
2. PN-T86
Through the consortium CVRD (20%), Petrobras (40%) and Devon Energy Corporation (40%)

CVRD as a major energy consumer, it is seeking to diversify and optimize its energy grid through increased use of thermal coal, renewable fuels and natural gas.