Brazil’s Petrobras Buys Termocearí¡ Electric Plant

MDU Resources Group, Inc. announced today that its Brazilian partnership with EBX Capital Partners, MPX Holdings, has signed a term sheet with Brazilian state-controlled energy firm Petrobras, suspending arbitration proceedings and providing a framework in principle to sell its MPX Termoceará, Ltda. generating plant to Petrobras.

The term sheet provides for the sale to Petrobras of MPX Termoceará for US $137 million, (including $5 million currently in a court deposit) subject to possible adjustment based on Petrobras due diligence.


MPX and Petrobras have agreed to immediately suspend all arbitration and judicial proceedings between them relating to Termoceará pending completion of the sale.


“MPX Termoceará has been a solid investment overall for our corporation, our shareholders and all of our stakeholder interests. The sale of the facility will also benefit those groups,” said Martin A. White, chairman, president and chief executive officer of MDU Resources.


The sale is contingent on the parties entering into a definitive purchase agreement, the satisfactory completion of a due diligence review and audit of MPX Termoceará and certain other matters. It is anticipated that the sale would be completed by mid-year 2005.


“The parties have actively worked together to reach a mutually acceptable resolution of this issue,” said Paul Gatzemeier, president and chief executive officer of Centennial Energy Resources LLC, the independent power production unit of MDU Resources.


“While we have agreed to sell our interest in Termoceará, we are continuing to pursue other international opportunities.”


MPX Termoceará, of which MDU Resources owns 49 percent, is a 220-megawatt electric generating facility in northeastern Brazil. The facility was permitted, developed and constructed beginning in 2001.


MDU Resources Group, Inc., a member of the S&P MidCap 400 index, provides value-added natural resource products and related services that are essential to energy and transportation infrastructure.


MDU Resources includes natural gas and oil production, construction materials and mining, domestic and international independent power production, electric and natural gas utilities, natural gas pipelines and energy services, and utility services.


MDU Resources
www.mdu.com


Business Wire

Tags:

You May Also Like

Brazilian author and actor Gianfrancesco Guarnieri

Brazil Says Farewell to the Man Who Tricked the Generals with Allegories

Gianfrancesco Guarnieri, the man who for ever changed the direction of the Brazilian theater ...

Social Activism Makes Brazil’s Petrobras Member of UN Committee

Petrobras, the first and only Latin American company that is a member of the ...

Brazilian Black Entrepreneurs to Get a Boost from Government

Brazil’s Special Secretariat of Policies for the Promotion of Racial Equality (Seppir) and the ...

Brazil’s Trade Surplus Keeps Shrinking Due to Growing Imports

The Brazilian balance of trade is running a surplus (exports minus imports) of US$ ...

Brazil Builds a Bridge Between Haiti and the Caribbean

Brazil’s Minister of Foreign Relations, Celso Amorim, traveled Sunday, May 15, to Jamaica and ...

Colors of Paradise

Landscape architect Burle Marx bought a ranch in Rio in 1949 to store his ...

Brazil Opposition Wants OAS Mission to Check on Venezuela’s Political Prisoners

Venezuela will have to wait a little longer for Brazilian approval to get inside ...

Brazil V. Venezuela: The Inevitability of Latin American Polarization

For any political scientist, economist and historian who may not be entirely familiarized with ...

When Brazilian Jazz Came to the US

Little did jazz guitarist Charlie Byrd and his friend saxophonist Stan Getz know that ...

Canada Firm Bets on Brazilian Diamonds

Canada-based Braz Diamond Mining Inc. now controls Brazil’s largest known diamondiferous kimberlite. The company ...