I do know that the Federal Senate has approved, and I, Ramez Tebet, President, in the terms of art. 48, item 28, of the Rules of Procedure, promulgated the following

RESOLUTION # 34, DE 2001

Authorizes the temporary elevation of the debt limit of Petrobrás Transport S.A. (Transpetro) at another R$ 1,010,000,000.00 (one billion and ten million reais).

The Federal Senate resolves:

Art. 1º It is the Petrobrás Transport S.A. (Transpetro) authorized, in the terms of art. 52, incisser VII, of the Federal Constitution, and of Resolution No 96 of 1989, reinstated by Resolution No. 17, 1992, both of the Federal Senate, to raise, temporarily and in exceptional character, its borrowing limit by a further R$ 1,010,000,000.00 (one billion and ten million reais) for the purpose of:

Art. 1º It is the Petrobrás Transport S. A (Transpetro) authorized, in the terms of art. 52, incisser VII, of the Federal Constitution, and of Resolution No 96 of 1989, reinstated by Resolution No. 17, 1992, both of the Federal Senate, to raise, temporarily and in exceptional character, its borrowing limit in R$ 1,389,160,000.00 (a billion, three hundred and eighty-nine million, one hundred and sixty thousand reais), for the purpose of: (Redaction given by Resolution No. 6, 2003)

I-take on debt from Petrobrás S.A. on 26 (twenty six) ships mortgaged to the Merchant Marine Fund, managed by the National Economic and Social Development Bank (BNDES), in guarantee of financing contracts for its construction, worth R$ 595,000,000.00 (five hundred and ninety and five million reais) ;

II-hire financing for acquisition of 4 (four) new tankers, within the framework of the Navega Brasil Project ;

III-run investment program, where it contemplate acquisition of headquarters for the company as well as computer equipment and telecommunications.

Art. 2º The credit operation mentioned in the inciso I of the art. 1º characterizes by accounting transfer of assets and liabilities between Petrobrás S.A. and its subsidiary Petrobrás Transport S.A. (Transpetro) with the following characteristics:

I-transfer of 26 (twenty-six) ships from Petrobrás S.A. for Petrobrás Transport S.A. (Transpetro) ;

II-transfer of debt relative to the 26 (twenty-six) ships cited in the inciso I of Petrobrás S.A. for Petrobrás Transport S.A. (Transpetro), which are mortgaged to the Merchant Marine Fund, managed by the National Economic and Social Development Bank (BNDES), in guarantee of financing contracts for its construction.

Art. 3º The credit operation mentioned in the inciso II of the art. 1º will present the following basic financial characteristics:

I-lender: Merchant Navy Fund, managed by the National Bank for Economic and Social Development (BNDES) ;

II-amount: R$ 379,000,000.00 (trezents and seventy-nine million reais) ;

II-amount: R$ 758,160,000.00 (seven hundred and fifty-eight million, one hundred and sixty thousand reais) ; (Redaction given by Resolution No. 6, 2003)

III-deadline: 20 (twenty) years ;

IV-deficiency: construction period of the vessel or 4 (four) years, whatever is smaller ;

V-interest: 4% a.a. (four percent a year) further currency correction by the U.S. dollar ;

VI-amortization: constant amortization system (SAC).

Art. 4º The credit operation mentioned in the inciso III of the art. 1º will present the following basic financial characteristics:

I-modality: leasing to be hired together with the private financial system ;

II-amount: R$ 36,000,000.00 (thirty and six million reais) ;

III-term: not more than 6 (six) years ;

IV-interest: not higher than 15% a.a. (fifteen per cent a year).

Art. 5º The authorisation granted by this Resolution is to be exercised within 540 (five hundred and forty) days, counted from the date of its publication. (Vide art. 2º of Resolution No. 6, 2003)

Art. 6º This Resolution shall enter into force on the date of its publication.

Federal Senate, on December 13, 2001

SENATOR RAMEZ TEBET

President of the Federal Senate

Attachment (s)