2.2.0.7 false Note 15 - Commitments and Contingencies 00914 - Disclosure - Note 15 - Commitments and Contingencies true false false false 1 USD false false Dollars Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 $ 2 Notes to Financial Statements [Abstract] 0 pbra_NotesToFinancialStatementsAbstract pbra false na duration No definition available. false false false false false true false false false false false false 1 false false false false 0 0 false false false xbrli:stringItemType string No definition available. false 3 Note 15 - Commitments and Contingencies 1 us-gaap_CommitmentsAndContingenciesDisclosureTextBlock us-gaap true na duration No definition available. false false false false false false false false false false false false 1 false false false false 0 0 <div style="PADDING-RIGHT: 0%; PADDING-LEFT: 0%; WIDTH: 100%"> 15. Commitments and Contingencies Petrobras is subject to a number of commitments and contingencies arising from its normal course of business. Additionally, the operations and earnings of the Company have been, and may be in the future, affected from time to time in varying degrees by political developments and laws and regulations, such as the Federal Government's continuing role as the controlling shareholder of the Company, the status of the Brazilian economy, forced divestiture of assets, tax increases and retroactive tax claims, or environmental regulations. The likelihood of such occurrences and their overall effect upon the Company are not readily predictable. a) Litigation The Company is a defendant in numerous legal actions involving civil, tax, labor, corporate and environment issues arising from its normal course of business. Based on the advice of its internal legal counsel and managements best judgment, the Company has recorded accruals to provide sufficiently for losses that are considered probable and reasonably estimable. At September 30, 2010 and December 31, 2009, the respective amounts accrued by type of claims are as follows: <div align="left"> <table style="FONT-SIZE: 7pt; WIDTH: 100%; FONT-FAMILY: 'Arial'" cellspacing="0" border="0"> <tr> <td width="74%"></td> <td width="1%"></td> <td width="12%"></td> <td width="1%"></td> <td width="12%"></td> </tr> <tr valign="bottom"> <td align="left"> </td> <td> </td> <td align="right"></td> <td> </td> <td align="right"></td> </tr> <tr valign="bottom"> <td align="left"> </td> <td> </td> <td style="BORDER-BOTTOM: #000000 1px solid" align="right">September 30, 2010</td> <td> </td> <td style="BORDER-BOTTOM: #000000 1px solid" align="right">December 31, 2009</td> </tr> <tr> <td colspan="5"> </td> </tr> <tr valign="bottom"> <td align="left">Labor claims</td> <td> </td> <td align="right">138</td> <td> </td> <td align="right">71</td> </tr> <tr valign="bottom"> <td align="left">Tax claims</td> <td> </td> <td align="right">247</td> <td> </td> <td align="right">94</td> </tr> <tr valign="bottom"> <td align="left">Civil claims</td> <td> </td> <td align="right">503</td> <td> </td> <td align="right">272</td> </tr> <tr valign="bottom"> <td align="left">Commercials claims and other</td> <td> </td> <td align="left"> </td> <td> </td> <td align="left"> </td> </tr> <tr valign="bottom"> <td align="left">contingencies</td> <td> </td> <td style="BORDER-BOTTOM: #000000 1px solid" align="right">65</td> <td> </td> <td style="BORDER-BOTTOM: #000000 1px solid" align="right">63</td> </tr> <tr> <td colspan="5"> </td> </tr> <tr valign="bottom"> <td align="left">Total</td> <td> </td> <td style="BORDER-BOTTOM: #000000 3px double" align="right">953</td> <td> </td> <td style="BORDER-BOTTOM: #000000 3px double" align="right">500</td> </tr> <tr> <td colspan="5"> </td> </tr> <tr valign="bottom"> <td align="left">Current contingencies</td> <td> </td> <td style="BORDER-BOTTOM: #000000 1px solid" align="right">(32)</td> <td> </td> <td style="BORDER-BOTTOM: #000000 1px solid" align="right">(31)</td> </tr> <tr> <td colspan="5"> </td> </tr> <tr valign="bottom"> <td align="left">Long-term contingencies</td> <td> </td> <td style="BORDER-BOTTOM: #000000 1px solid" align="right">921</td> <td> </td> <td style="BORDER-BOTTOM: #000000 1px solid" align="right">469</td> </tr> </table> </div>   </div> <div style="PADDING-RIGHT: 0%; PADDING-LEFT: 0%; WIDTH: 100%"> As of September 30, 2010 and December 31, 2009, in accordance with Brazilian law, the Company had US$1,533 and US$1,158, respectively, into federal deposit accounts to provide for certain claims until they are settled. These amounts are reflected in the balance sheet as restricted deposits for legal proceedings and guarantees. The principal proceedings, disclosed previously as a possible loss, this quarter are classified as a probable loss, due to the development of the legal case or agreements in progress, as follows: a.1) ICMS Sinking of Platform P-36 In 2001, Platform P-36 was imported by Petrobras through temporary admission in accordance with the special regime for imports and exports (REPETRO) which suspends taxation and, therefore, on this occasion state taxes were not due. With the sinking of the platform, the State of Rio de Janeiro initiated actions for collection of the suspended ICMS through tax foreclosure proceedings as it understands that there will no longer be return of the platform. In February 2010, with an unfavorable decision at the last level of appeals in the Superior Court of Rio de Janeiro, Petrobras began to evaluate the legal aspects of the suit and the economic aspects of the use of the benefits of tax amnesty established in State Law 5647, of January 18, 2010, which permits elimination of fines and an expressive decrease in other charges, as well as the possibility of payment with court order debts. Petrobras adhered to the payment conditions of the aforementioned State Law, fixing the total amount agreed upon with the State of Rio de Janeiro in the amount of US$265. In May 2010 Petrobras paid the amount of US$185. The remaining balance of US$80, has been provided and will be paid in court order debts. In addition, the State of Rio de Janeiro has analyzed tax benefits related to other projects and negotiations with the Company. </div> <div style="PADDING-RIGHT: 0%; PADDING-LEFT: 0%; WIDTH: 100%"> a.2) Triunfo Agro Industrial S.A and others During the year 2000, Triunfo Agro Industrial and Others filed a suit against Petrobras, claiming losses and damages as a result of the annulling of a credit assignment transaction excise tax (IPI) premium. The hearing by the Superior Court of Rio de Janeiro, in the second instance, was unfavorable to Petrobras and approval was denied for the appeal lodged by the Company. Appeals will be filed against this decision in the higher courts in Brasilia. Parallely to the filing of the aforementioned appeals, on September 28, 2010 Petrobras filed a rescissory action with the Superior Court of Rio de Janeiro. Based on its legal counsels advice, the Company has assessed risk of loss to be possible. The maximum estimated exposure as at September 30, 2010, is around US$278, which has been provided. a.3) Notice of infraction National Agency for Petroleum, National Gas and Biofuel ANP On July 1, 2010, the Company received a notice that a suit had been filed by ANP, in the amount of US$131, for the alleged miscalculations of the special participation tax basis in the Barracuda and Caratinga fields. On July 15, 2010, Petrobras filed its defense with ANP. ANP presented a new official letter, with a review of the amount for the official notification, as it understands that part of the leasing agreement would not consist of a financing transaction. At September 30, 2010, the maximum estimated exposure is around US$49, which has been provided. On October 28, 2010, Petrobras paid the first installment of a total of 30, with respect to this liability. </div> <div style="PADDING-RIGHT: 0%; PADDING-LEFT: 0%; WIDTH: 100%"> a.4) Processes for small amounts The Company is involved in a number of legal and administrative proceedings with expectations of possible losses, whose total as at September 30, 2010, is broken down as follows: US$65 for civil actions, US$548 for labor actions, US$503 for tax actions and US$112 for environmental actions. b) Environmental matters The Company is subject to various environmental laws and regulations. These laws regulate the discharge of oil, gas or other materials into the environment and may require the Company to remove or mitigate the environmental effects of the disposal or release of such materials at various sites. The Companys management considers that any expenses incurred to correct or mitigate possible environmental impacts should not have a significant effect on its operations or cash flows. </div> 15. Commitments and Contingencies Petrobras is subject to a number of commitments and contingencies arising from its normal course of business. false false false us-types:textBlockItemType textblock Includes disclosure of commitments and contingencies. This element may be used as a single block of text to encapsulate the entire disclosure including data and tables. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 14 -Paragraph 3 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 5 -Paragraph 9, 10, 11, 12 false 1 2 false UnKnown UnKnown UnKnown false true