MORE: Odebrecht Denies Wrongdoing in Petrobras Contract

Co. “vehemently denies any irregularity in the contracts signed with Petrobras, which were won legitimately,” according to e-mailed response today to questions from Bloomberg News. * Odebrecht was not notified of any questions stemming from an internal Petrobras audit of contract, company says * The reduction in the scope of the contract was due to Petrobras’ disinvestment abroad, Odebrecht says in e-mail * NOTE: Petrobras internal audit reveals irregularities in contract with Odebrecht, O Globo reports today * Link to article: http://glo.bo/1jOxJFP * Petrobras renegotiated contract signed in Oct. 2010 to reflect updated portfolio of assets and need for services at subsidiaries outside Brazil, Petrobras said in an e-mailed response today to questions from Bloomberg News. * Contract renegotiation in Jan. 2013 considered internal audit, Petrobras said via e-mail * Original contract allowed co. to request services in 9 countries up to maximum limit of $825.7m, according to Petrobras * Renegotiated contract reduced number of countries to 4; total est. value of contract cut to $481.7m, Petrobras said * Co.’s contracts are constantly evaluated by internal audits; recommendations are carefully analyzed, according to Petrobras * NOTE: Petrobras overpaid in contract with Odebrecht, O Estado de S. Paulo reported Nov. 10 NSN MW22SF6K50XW <GO>

To contact the reporter on this story: Matthew Malinowski in Brasilia at mmalinowski@bloomberg.net

To contact the editor responsible for this story: James Attwood at jattwood3@bloomberg.net

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