Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães - Petrobras at a glance- (disponível em inglês)

1

PETROBRAS AT A GLANCE

Theodore M. HelmsExecutive ManagerInvestor [email protected]

Marcos V. G. SilvaInstitutional Investors CoordinatorInvestor [email protected]

June / July 2008

P-51

2

The presentation may contain forecasts about future events. Such forecasts merely reflect the expectations of the Company's management. Such terms as "anticipate", "believe", "expect", "forecast", "intend", "plan", "project", "seek", "should", along with similar or analogous expressions, are used to identify such forecasts. These predictions evidently involve risks and uncertainties, whether foreseen or not by the Company. Therefore, the future results of operations may differ from current expectations, and readers must not base their expectations exclusively on the information presented herein. The Company is not obliged to update the presentation/such forecasts in light of new information or future developments.

Cautionary Statement for US investorsThe United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation, such as oil and gas resources, that the SEC’s guidelines strictly prohibit us from including in filings with the SEC.

Forward Looking Statements Disclaimer

3

Petrobras Overview

4

Brazilian Constitution Amended

Nov 1995

PetrobrasNYSE Listing

August 2000

First PublicAuction of OilExploration Areas

June 1999

Full

Deregulation

January 2002

Brazil Self-Sufficient in Oil

April 2006

Petrobras: An Investment Grade, Publicly Traded, Major International Oil Company

• Incorporated in 1953 as government monopoly for all hydrocarbon activities in Brazil

• Originally established as a refinery of imported crude oil

• Became net exporter in 2006

• 60% of total equity capital (common and preferred) is now publicly traded

• Government maintains controlling interest with 55% of voting shares

• Market cap of approximately $260 billion, NYSE Listed, quarterly disclosure in US GAAP

• Foreign currency ratings from Moody’s of Baa1, Standard & Poors (BBB), and Fitch (BBB) (3, 1, and 1 notch above sovereign, respectively)

Upgraded to Investment Grade Issuer

October 2005

Crossed the$100 billion dollar Market Cap mark

2006

2MM bpd, $200MM market cap, Discovery of new oil frontier 2007

5

53.6% 61.6%44.4% 40.6% 40.1% 39.9%

46.4% 18.0%25.1% 23.1% 20.7% 21.9%

10.3% 9.9% 8.0%

30.3%

7.9%

10.9% 31.2%26.4%20.3%9.5%

Oct/1992 Jul/2000 After Aug/00offering

After Jul/01offering

Dec/2003 May/08

Governm ent (1) (%) Bovespa Brazil Bovespa Foreign ADRs

(1) Includes BNDES / BNDESPAR

Foreign38.2%

Free Float 46.4 38.4 55.6 59.4 59.9 60.1

Bovespa29,8%

Diversified Shareholder Base• 60% of the economic value of Petrobras in private hands, but Government maintains control w/55% of voting

shares• More than 500,000 investors in Brazil and abroad• NYSE Listed, quarterly disclosure in US GAAP

6

For Year Ended 2005 2006 2007 Net Revenues 56.3 72.3 87.7 EBITDA 17.6 22.9 25.3 Capex 10.4 14.9 21.0 Total Debt(1) 21.2 21.3 21.9 Cash & Cash Equivalents 9.9 12.7 7.0 Net Debt 11.3 8.7 14.9 Total Equity 32.9 44.3 65.2 Total Assets 78.6 98.7 129.7

Notes:1 Includes capital leases2 For tthe year ended December 31, 2006. Excludes losses in gas and energy, corporate results and eliminations

Summary Financials (US$ billion) Income from Operations(2)

Corporate Organization and Key Operating Results

Exploration & Production

Downstream(Supply)

Gas & Energy

Biofuels

Distribution

Petrochemicals

Downstream16%

Domestic E&P81%

Distribution3%

International

7

284 259218 207

468

160204

145

51

0

100

200

300

400

500

ExxonMobil

Petrobr as Shel l BP Chevron Total Eni Conoco Repsol

2007 Proven Reserves (SEC)

Market Value as of June 06, 2008

2007 Oil & Gas Production

2007 Refining Capacity

World Class Integrated Public Energy Company

(Bln boe) (‘000s bpepd)

17.6

11.7 11.7 11.2

22.5

10.110.8

6.52.4

0.0

5.0

10.0

15.0

20.0

25.0

ExxonMobil

BP Shell Petrobras Chevron Conoco Total Enl Repsol

1,039

1,7362,3012,3162,3242,593

3,2683,771

4,180

0

1,000

2,000

3,000

4,000

ExxonMobi l

BP Shel l Chevron Conoco Total Petr obr as Eni Repsol

(US$Bln)(‘000s boepd)

7481,039

2,1152,1672,5982,7302,769

3,953

6,299

01,000

2,000

3,000

4,0005,000

6,000

7,000

Exxo nM ob il

She ll B P C ono co Tot al P e trobrasC hev ro n R e pso l En i

Source: Company Filings, Company Website Source: Company Filings

Source: Company Filings, FactSetSource: Company Filings, Company Website

8

Downstream OperationsUpstream Operations

- Proved Domestic Reserves of 13,92 Billion BOE (SPE)- - Southeast Basins responsible for more than 80% of Brazil’s

oil production- - 2007 domestic oil average daily Production of 1,792 k bpd

Balanced Vertical Integration

11 refineries in Brazil- 2007 domestic throughput of 1,795 k bpd - 2007 oil products domestic consumption of 1,725 k

bpd

9

Upstream Overview

10

Proven Reserves (SPE) evolution in Brazil

13,92

3.8

6,0

11,01

11

Oil Production Development and Targets

10 bpd

3

G3467G3467

ONSHORE OFFSHORE <= 300m OFFSHORE > 300m TARGET

0

500

1.000

1.500

2.000

2.500

3.000

Year

Thou

sand

bpd

1950

2421

2812

12

12.5212.35 13.0412.00

0.880.88

1.021.23

2003 2004 2005 2006 2007

Production(0.70 billion boe)

13.02 13.23 13.75


Reserves Replacement

Index

(174%)


Index

(131%)



Index

(170%)

12.60

....along with a organic reserves replacement

Internal Reserves Replacement Ratio (SPE)

The goal it to keep a minimum 100% Replacement Ratio



Index

(124%)

13.92

13

Onshore

Offshore (0-300m)

Offshore (300-1500m)

Offshore (>1500m)

Proven Reserves by Category

Long-Term Record of Increasing Reserves

85%

6%9%

Non-Assoc. Gas

Assoc. Gas

Oil and Condensate

56%

23%

11%10%

By Depth

< 31o API Heavy /Intermediate

> 31o API Light

74%26%

By Gravity

Oil vs. Gas

Worldwide Proved Reserves of Petrobras(Reviewed and Certified by DeGolyer and MacNaughton since 2001)

Note: Reflects both SEC and SPE (Society of Petroleum Engineers) method and includes both Brazilian and international reserves.

9.8 9.310.5

11.6 11.8 11.8 11.5 11.7

2000 2001 2002 2003 2004 2005 2006 2007

SEC SPE (inc. SEC)

Bill

ion

BB

LS

15.014.914.914.5

12.1

10.710.4

8%

92%Bra zi lInte rnat io nal

By Location

15.0

14

E&P - rapidly growing production profile

2 .8 122 .4 2 1

6 4 3

6 3 7

515

2 8 5151

18 3

809 869 1 , 004 1 , 132 1 , 271 1 , 336 1 , 500 1 , 540 1 , 493152 163

179197

221 232252 250 265

1, 7921, 778

716

1 , 684

273277

134

274

12616335

445360

45473825

161 168142

109

10 9 11 1016

20 24 23 85 9496 101

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007O il and N GL - B razil N a tural Gas - B razilO il and N GL - Inte rnat io nal N a tural Gas - Interna t io na l

Thou

sand

boe

d

885 1,0081,090 1,238

1,5051,565 1,636

1,810 2,036 2,020 2,217

8.3% p.y.

2,298

3,494

4,153

8.7% p.y.

7.7% p.y.

* Includes non consolidated production

*

*

2012 Target

2015 Forecast

2,300

15

2,421

1.792

1.950*2,191

2,2962,374

1,600

1,800

2,000

2,200

2,400

2,600

2007 2008 2009 2010 2011 2012

Rio de JaneiroEspadarte Mód II

100.000 bpd6/jan/07

Rio de JaneiroEspadarte Mód II

100.000 bpd6/jan/07

Main Projects in Brazil – 2007-2012Main Projects in Brazil – 2007-2012

RoncadorP-52

180.000 bpdNov ember 2007

RoncadorP-52


RoncadorP-54


RoncadorP-54


Piranem a30.000 bpd10/oct/07

Piranem a30.000 bpd10/oct/07

Cidade de VitóriaGolf inho Mód. 2


Cidade de VitóriaGolf inho Mód. 2


Marlim LesteP-53

180.000 bpd2008

Marlim LesteP-53

180.000 bpd2008

Marlim Sul Módulo 2P-51

180.000 bpd2008

Marlim Sul Módulo 2P-51

180.000 bpd2008

Cidade NiteróiJabuti (FPSO)100.000 bpd

2008

Cidade NiteróiJabuti (FPSO)100.000 bpd

2008

Parque das Conchas

100.000 bpd

2009

Parque das Conchas

100.000 bpd

2009

Frade100.000 bpd

2009

Frade100.000 bpd

2009

Cachalote & Baleia Franca

FPSO Capixaba

100,000 bpd

2010

Cachalote & Baleia Franca

FPSO Capixaba

100,000 bpd

2010

Marlim SulMódulo 3 –

P-56100.000 bpd

2011

Marlim SulMódulo 3 –

P-56100.000 bpd

2011

Espadarte

Módulo 3

100.000 bpd

2012

Espadarte

Módulo 3

100.000 bpd

2012

Jubarte

P-57

180.000 bpd

2012

Jubarte

P-57

180.000 bpd

2012

Obs.: This curve does not include Tupi’s Pilot System Production

* Target may vary +/- 2.5%

TupiEWTUp to

30.000 bpd2009

TupiEWTUp to

30.000 bpd2009

Tupi

Pilot Sy stem

Up to 100.000 bpd

2010

Tupi

Pilot Sy stem

Up to 100.000 bpd

2010

Roncador

Module 4

P-62

100.000 bpd

2012

Roncador

Module 4

P-62

100.000 bpd

2012

16

Mauá-JurongNiterói/RJ2012ContractedOil:100.000 bpd

Gas: 6MM m3/diaRoncadorP-62

Mauá-JurongNiterói/RJ2009Under constructionGas: 15MM m3/diaMexilhãoPMXL-1

Atlântico SulSuape/PE

Rio Grande/RS2013Hull contracted. Basic

project under revision.Oil: 180.000 bpdGas: 6MM m3/diaRoncadorP-55

ProsafeKeppels - Cingapura2S08Under constructionOil: 35.000 bpd

Gas: 10 MM m3/diaCamarupimCidade SãoMateus*

2011

2011

2S08

2S08

2S08

Start-up

Oil: 180.000 bpdGas: 2MM m3/dia

Oil:100.000 bpdGas: 6MM m3/dia



Oil: 100.000 bpdGas: 3,5 MM m3/dia

Capacity

Brasfels -FSTP Keppel & Technip

Angra/RJ

Under construction(P-51 Clone)Marlim SulP-56

SBMShipyard N/AContractedJubarteP-57

QuipRio Grande/RSUnder construction Marlim LesteP-53

Nuclep/BrasfelsAngra/RJUnder constructionMarlim SulP-51

ModecSipem - DubaiUnder constructionJabutiFPSO Cidade

de Niterói*

ShipyardStatusFieldUnits

E&P: UPCOMING UNITS

* Leased

17

3.3 3.0 3.4 4.3 5.7 6.6 7.7 8.73.3 4.0 5.1 6.49.0 11.1 11.7

16.2

24.4 24.8 28.8

38.2

54.4

65.172.5

96.9

0.00

20.00

40.00

60.00

80.00

100.00

2001 2002 2003 2004 2005 2006 2007 1Q08

US

$/bo

e

Lifting Cost Gov. Take Brent

8.5 10.714.7 17.7 19.4

Lifting Costs including Government Participation

24.9

7.0

18

15.20 14.45 14.66 15.22 15.16

18.92 20.58 23.2625.76 28.04

0

10

20

30

40

50

1Q07 2Q07 3Q07 4Q07 1Q08

Lifting Cost (R$) Gov. Part.(R$)

7.20 7.33 7.65 8.60 8.66

9.04 10.62 12.4814.56 16.16

88.796.9

74.968.857.8

0

10

20

30

40

1Q07 2Q07 3Q07 4Q07 1Q080

20

40

60

80

100

120

Lifting Cost (US$) Gov.Part. (US$) Brent

US$/barrel R$/barrel

20.1317.95

37.9235.03

23.16

40.98

24.82

43.20

Lifting Cost in Brazil

16.24

34.12

Lifting Cost relatively stable both in Dollar and Reais terms despite higher oil prices and continued ramp up of new production units. Government participation increased as a reflect of higher international crude oil prices.

19

Distribution of the Realization Price of a Barrel of Domestically Produced Oil ($)

$ pe

r B

arre

l Rea

lizat

ion

Pric

e

$3.22 $3.04 $3.48 $4.28 $5.73 $6.59 $7.70$2.15 $2.15 $1.46 $2.06$2.20

$2.89$4.42$2.07

$2.54$3.84

$5.01

$6.88$8.36

$9.74

$3.29$3.42 $5.14

$6.44

$9.00

$11.05

$11.69

$4.26$5.34

$8.42

$9.29

$13.25

$15.93

$18.67

$(10.00)

$-

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

2001 2002 2003 2004 2005 2006 2007

Lifting DD&A Exploratory costs SG&A R&D Other Other COGS Income Tax Government take Net Income

Regulatory framework lets government and companies profit from higher oil prices.

20

Distribution of the Realization Price of a Barrel of Domestically Produced Oil (%)

% S

hare

of

Real

izat

ion

Pric

e

18.2% 14.9% 14.5% 14.6% 14.2% 13.8% 13.8%

11.7% 12.4%

16.0% 17.0% 17.0% 17.5% 17.5%

18.6% 16.8%

21.4%21.9% 22.3% 23.2% 21.0%

24.1% 26.2%35.1% 31.6% 32.9% 33.4% 33.5%

-20.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

2001 2002 2003 2004 2005 2006 2007

Lif ting DD&A Exploratory costs SG&A R&D Other Other COGS Income Tax Government take Net Income

21

Royalties and Special Participation

Royalties

• Rates vary according to the area (from 5% to 10% per producing field) and are established in each concession contract. The reference price is published for each field, according to the characteristics of the oil / gas, by the Brazilian regulator – ANP.

Special Participation

• Progressive tax (from 10% to 40%) applied over the operating income from oil and gas production. Tax depends on the year of production, daily production and location (Land, Offshore Shallow Water or Offshore Deep Water).

3,506 3,8901,1311,576

1,954

2,989

3,850 3,729

1,200 1,422 1,716 2,573

01,0002,0003,0004,0005,0006,0007,0008,000

2002 2003 2004 2005 2006 2007

Royalties Special Participation

US$

Mill

ion

*

2,3312,998

3,670

5,562

7,356 7,619

* Values in BR GAAP converted to USD by historical forex rate

22

Special Participation – Progressive Tax

10% 20%30% 35%

First Year of

Production

Second Year of

Production

Third Year of

Production

After the ThirdYear of

Production

40%

20 25 30 35

16.7 21.7 26.7 31.7

13.3 18.3 23.3 28.3

10 15 20 25

Dai

ly p

rodu

ctio

n (t

hous

and

m3 /d

ay)

6.3

conv

ersi

on F

acto

r

15

11.7

8.3

5

Special Participation frame for deep water shelves:

Tax Rates

23

Exploration Perspectives

24

Main Discoveries - 2002/2007Main Discoveries - 2002/2007

CamposProducible Heavy Oil & Light Oil

SantosLight Oil & Natural Gas

Espirito SantoLight Oil & Natural Gas

Sergipe-AlagoasLight Oil

Proven Reserves...............: 3,80 B Proven Reserves...............: 3,80 B boeboeProb.&Poss. Res...............: 4,50 B Prob.&Poss. Res...............: 4,50 B boeboeUnder Evaluation (2007).: 4,70 Under Evaluation (2007).: 4,70 B B boeboe

~ 13.0 billion boer (2002-2007)

25

Oilfields discovered/defined in 2002-2007 in the Southeastern offshore basins

26

152 Million Yearsago

Earth developmentEarth development

27

Earth Planet as today

Earth developmentEarth development

28

Pre Salt ProvincePre Salt Province

Tested WellsHC Campu s

Explo ratory B lock’s

Pre Salt R eservoirs

29

Recent Oil/Gas discoveries 2006-2007 - Cluster BlocksRecent Oil/Gas discoveries 2006-2007 - Cluster Blocks

Pre-salt Cluster

15,000 km2

Tupi: 5 a 8 bi boe

Production to date: 7 bi boeActual Production: 1.6 MMboepdProducing Wells: 542 Area: 7,000 km2

30

Santos Basin Pre-Salt Seismic Section

31

BM-S-21(Caramba)

BM-S-24(Jupiter)

BM-S-8(Bem-te-Vi)

BM-S-10(Parati)

BM-S-11(Tupi)

BM-S-22

BM-S-9(Carioca)

BM-S-17

BM-S-42

31

BM-S-50

BM-S-52(Corcovado)

(Yara)

(Guará)

Wells Being Drilled

Wells Drilled

Pre Salt – Santos BasinPre Salt – Santos Basin

32

1 Oil Production

Capacity

1Riser to export Gas

1000 thous. m3Flare Capacity

Wells

2.170 mWater Depth

28 – 42 º API

30,000 bpd

Oil Range

Capacity to Process Oil

FPSO – Leased*

1st Oil: March/2009

* Leased from BW Offshore

Extended Well Test -TupiExtended Well Test -Tupi

33

Capacity

5 oil production (+4 extra)2 water injection (+3 extra)

1 gas injection (+1 extra)Wells

20 – 30 º APIOil degree

100 mil bpd60 mil bpd

Water InjectionWater Production

2.145 mWater Depth

4 million m3 /d

100,000. bpd

Capacity of Gas Compression

Capacity to Process Oil

1st Oil: Dec./2010

Tupi Pilot System– Production UnitTupi Pilot System– Production Unit

34

UTGCA

UGNRPBC

TEFRAN

TUPI Area

URG

PMXL

PMLZ-1

170 Km

248 Km

212 Km

145 Km

To service the Pilot

Gas Pipeline for Tupi’s Pilot SystemGas Pipeline for Tupi’s Pilot System

PlannedExisting

Under Construction

35

Consortia for the Pre-salt blocks in Santos Basin

2 blocks 100% Petrobras

3 Appraisal Plans approved

5 blocks with partners, Petrobras operates

1 block as non-operating partner

Jupiter

Caramba

TupiParatiCariocaBem-te-vi

ANP Name

BR (60%), BG (40%)BM-S-52BR (60%), BG (20%), REPSOL (20%)BM-S-50BR (100%)BM-S-42BR (80%), PETROGAL (20%)RJS-652 AreaBM-S-24

ESSO (40%), AMERADA (40%), BR (20%)BM-S-22BR (80%), PETROGAL (20%)SPS-51 AreaBM-S-21BR (100%)BM-S-17BR (65%), BG (25%), PETROGAL (10%)RJS-628 AreaBM-S-11BR (65%), BG (25%), PARTEX (10%)RJS-617 AreaBM-S10BR (45%), BG (30%), REPSOL (25%)SPS-50 AreaBM-S-9BR (66%), SHELL (20%), PETROGAL (14%)BM-S-8

ConsortiumAppraisal PlanBlock

36

Pre-salt discoveries in Espírito Santo State (Campos Basin)

GaseneGasene

77 km

Catuá

Jubarte

Cachalote

Ostra

Abalone

Argonauta

Náutil usFranca

Azul

Anã

Pirambú

Caxar éuMangangá

20 km

N

S

4-ESS-149 1-ESS-122

1-ESS-116

3-ESS-110HPA

4-ESS-135

1-ESS-119

BLA

BAZ

CTU

1-ESS-125

3-ESS-175

1-ESS-103

6-CHT-4

4-ESS-172

4-ESS-172-ES 4-ESS-175-ES

1-ESS-103A-ESJUB

BFR

CHT

MGG

NAU

PRB

CXR

Well tests showed high productivities in the pre-salt reservoirs.

37

63

28

+ 28 new units to be leased

From 2013 to

2017

12179628Total per year

5

18

5

2007

6

• Pride South Atlantic• O. Yorktown• Pride Mexico • Borgny Dolphin• Ocean Concord• Falcon-100

Start Up 2008

35

•Delba V•Delba VI•Scorpion•Delba VII•Delba VIII•Norbe IX•Schahin 1•Schahin 2•Norbe VIII•Petroserv•Etesco 8•Sevan Brasil

Start Up 2012

23

•Delba IV

Start Up 2011

2215Cumulative

•Gold Star•Schahin I•Norbe VI•Delba III•SSV Victoria•West Orion

•Lone Star•Schahin III•Petrorig II•Sevan Driller•West Taurus•West Eminence•Dave Beard

≥ 2000m

•Olinda Star•Ocean Worker

1000-1999m

•Petrobras XIV0-999m

Start Up 2010Start Up 2009Water Depth

New Rigs & Drilling Unit Contracting

• Stena Drillmax e Dep Water Millennium are not being considered since they are being negotiated in the Spot Market

38

TOTAL:

794 exploration wells

40% overall success ratio

2007 59%

1998/2007~ 560,000 km 2D seismic~ 140,000 km2 3D seismic

Exploration Activity (1998 - 2007) Wells & Seismic

• Espírito Santo 55 wells offshore• Campos 205 wells offshore• Santos 80 wells offshore• Other Basins

335 wells onshore103 wells offshore

0%

100%

200%

300%

400%

2003 2004 2005 2006 2007

Reserve Replacement Ratio (SPE/ANP Criteria)

39

Exploratory Wells 2008-2012

Exploration: US$ 13.8 billion

Exploration: US$ 13.8 billion

Potiguar (88)onshore: 70offshore: 18

SEAL& REC & TUC (90)onshore: 70offshore: 20

Bahia Sul (26)

Esp.Santo (85(85))onshore: 45onshore: 45offshore: 40offshore: 40

Campos (74)(74)

Santos (80)(80)

Solimões (23)Ceara & Potiguar

AP (8)

Pelotas (2)(2)

São Francisco (4)

Petrobras

Other Companies

Equatorial Margin (12)

40

E&P Concessions in Brazil

Petrobras & Partners

Other Companies

Active concessions

Jan/2007

Exploration Blocks 64 80 144 218 362

Exploration EP´s 5 5 10 0 10

Production 285 20 305 29 334

Concessions Total Brazil100%

W.I Parnerships TotalOther

Companies

Petrobras Concessions

354 105 706Total 459 247

Exploration Blocks 64 80 144 218 362

Exploration EP´s 5 5 10 0 10

Production 285 20 305 29 334

Concessions Total Brazil100%

W.I Parnerships TotalOther

Companies

Petrobras Concessions

354 105 706Total 459 247

Note: number of concession contracts (not considering the concessions from the 9th Bidding Round)

41

Downstream Overview

42

237 257330 340 386 432249 282 281 28184 96 129 173728 779

9021105

116

138

198228

287

345

208 217

120 95

0

500

1000

1500

2000

2500

3000

2007 2010 2015 2020

LPG Gasoline Naphta Jet Fuel Diesel Fuel Oil Others

Domestic Oil Products Market

Thous. bpd

2,337

1,918

2,732

2,039

2.76% p.y.

43

Maintaining Balanced integration between Refining and Production

2,167

Total Refining Capacity (‘000s. bpd)Domestic Oil Production (‘000s. boed)

1,792

2,412Year 2012

2011: New Refinery in

Brazil to add 200 ‘000s. Bpd cap.New Refinery in

Texas expanded & upgraded

28%

13%

18%

4%

8%

8%

21%

Fuel QualityConversion

ExpansionHSETransportationPipelines

Others 6,112

2,264

2,270

1,083

5,353

3,938

8,619

Total Downstream Spending of $29.6 Billion

44

1.9501.792 2.191 2.296 2.374 2.421

22

23

24

25

26

27

28

29

30

2007 2008 2009 2010 2011 2012-4.000

-3.000

-2.000

-1.000

0

1.000

2.000

3.000

Average Processed API Average Produced API Domestic Production

• Increasing the capacity of processing low API degree oil.

• In 2012 our refineries will have the capacity to process most of our heavy oil produced

Thous. b/dAPI

Deg

ree

How Petrobras is dealing with these challenges?

45

319450

352 370 390

105

109

94 118 148

209

125

2003 2004 2005 2006 2007 2012

424

233 181263 335 353

213228

260246 262

454

141

2003 2004 2005 2006 2007 2012Oil Oil Products

446 409523

581 615559

446488

334

595538

Net Exports of Oil and Oil Products

Exports (‘000s barrels/day) Imports (‘000s barrels/day)

46

Corporate Targets – Downstream

2,061 2,6591,795

251348

348

92

78

90

-200300

80013001800

23002800

33003800

2007 2012 2015 0102030405060708090100

Throughput - Brazil Throughput - International Domestic Crude Oil as a % of total

2,0462,409

3,007

47

Average Realization Price - ARP

20

40

60

80

100

120

Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08

A R P B raz i l ( U S$/ b b l) A verage B rent Price( U S$/ b b l) A R P ( U S$/ b bl wit h V ol . So ld in B R l)

104.25

96.90

93.90

1Q08Average

96.77

88.69

89.08

4Q07Average

68.86

57.75

71.50

1Q07Average

• Up to 4Q07, ARP in Brazil affirmed our policy of aligning the domestic prices with international prices in the mid/long term;• From 4Q07, due to a sustained increase in international prices, the spread between prices in Brazil and in USA led to the readjustment of diesel (15%) and gasoline (10%) prices effective as of may 2nd.

48

Complexo Petroquímico do Rio de Janeiro - COMPERJ

•Total Investment: US$ 8.4 billion (Petrobras Investment US$4.6 billion);• Throughput capacity: 150 thousand heavy oil barrels (Marlim oil from Campos Basin);• Start Up: 2012• Refining and Petrochemical Integrated Complex that through the use of new technologies process heavy oil to obtain oil products and first and second generation petrochemical products.

• Total Investment: US$ 4.1 billion (Petrobras Investment US$2.4 billion);• Throughput capacity: 200 thousand heavy oil barrels (60% Petrobras oil / 40% PDVSA oil);• Focusing diesel and LPG production maximization, the new refinery will aim the growth of oil products demand in the Northeast.

•The Northeast Region, which responds for 19% of oil products demand and holds only one refinery in Bahia, will no longer be a fuel importer (either from refineries in Brazil or abroad);• Costs reduction: oil products transportation are more expensive than for crude oil;• Start Up: 2011

Downstream Business Strategy

New Refinery in Pernambuco

49

Downstream Business Strategy – Northeast Region

Refinery in Rio Grande do Norte

Premium Refinery in Ceará

• Petrobras will deploy its 12th refinery in the state of Rio Grande do Norte.

• New plant to produce gasoline and improve the quality of other oil products (Jet fuel, Diesel and LPG) produced in existing facilities in Guamaré.

• Capacity: 80,000 bpd. Start-up scheduled for 2010.

• Petrobras will study, together with Ceará State, the possibility of installing a Premium refinery;

• Capacity: 300,000 bpd;

• The refinery’s first operation phase is scheduled to start in 2014.

• Petrobras will study, together with Maranhão State, the possibility of installing a Premium refinery;

• Capacity: 600,000 bpd;

• The refinery’s first operation phase is scheduled to start in 2013.

Premium Refinery in Maranhão

50

Downstream Business Strategy

Refinery in the USA• Petrobras has acquired 50% of the Pasadena Refinery System Inc. (PRSI), located in Texas, USA;

• Capacity of 100,000 bbl/day, will be upgraded to handle up to 70,000 bbl/day of heavy oil and feedstock;

Refinery in Japan

• Petrobras signed the purchase document of 87.5% interest in theJapanese Company Nansei Sekiyu Kabushiki Kaisha (NSS)- with total value of approximately US$ 50 million

Acquisition includes: a refinery with capacity of 100 thousand bpd, that process light crude oil and high quality

products, a crude oil and products terminal with storage capacity of 9.6 million barrels, three piers with

capacity to receive product vessels of up to 97 thousand deadweight tonnage (dwt),a mono buoy for Very Large Crude vessels (VLCC) of up to 280 thousand dwt.

The use of terminal capacity is planned to boost the commercialization of biofuels in Japan and other Asian markets and complement current trading of crude oil and products into Asian market of approximately 100,000 bpd.

51

Petrochemical Overview

52

Petrochemical: capturing synergies

• Packages• Bags• Bottles• Etc.

Production

• Oil • Gas

1st Generation

• Ethane• Benzene• P-Xilene• Propane

2nd Generation

• Styrene• Ethylene Glycol• Polyethylene• PTA• Polypropylene

3rd Generation

Other Partners

• Expanding operations in 1st and 2nd generation processes and capturing synergies related to the production of oil, gas, refining and petrochemicals;• Developing new technologies for the chemical industry: evolution of fluid catalytic cracking (FCC) and biodegradable polymers and biopolymers.

53

Current petrochemical structure in Brazil

Braskem

1,280 kta ethane530 kta propane

1,265 kta PE560 kta PP

6.8% PETROQUISA44.6% Grupo Odebrecht

44.9% Others

300 kta PP

40% PETROQUISA60% Braskem

RIOPOLÍMEROS (RIOPOL)

540 kta PP16.7% PETROQUISA

33.3% UNIPAR33.3% SZPQ

16.7% BNDES

PETROQUÍMICA TRIUNFO85.04% PETROQUISA

14.6% PETROPLASTIC0.7% TRESUARY

160 kta PE

550 kta PE180 kta PP

COPESUL

37.3% PETROBRAS62.7% Braskem

1,200 kta ethane600 kta propane

40.0% PETROBRAS60.0% Braskem

SUZANO PETROQUÍMICA (SZPQ)

IPIRANGA PETROQUÍMICA (IPQ)

685 kta PP76.6% PETROBRAS

23.4% others

POLIETILENOS UNIÃO (PU) +DOW

274 kta PE 100% UNIPARUNIÃO DIVISÃO QUÍMICA (UDQ)

100% UNIPAR210 ktacumene

PETROUÍMICA PAULÍNIA (PPSA)

500 kta ethane250 kta propane

17.44% PETROQUISA51.4% UNIPAR

8.4% SZPQ22.76% OTHERS

PETROQUÍMICA UNIÃ0 (PQU)

54

Structure of petrochemical industry, upon final consolidation

500 th.tpy ethane

250 th.tpy propylene

210 th.tpy cumene814 th.tpy PE

685 Kta PP

Sociedade Petroquímica

40.0% PETROBRAS/PETROQUISA60.0% UNIPAR

Benefits to Petrobras and the Brazilian Petrochemical industry:

Petrobras becomes a significant minority shareholder in each complex;

Integration, scale, and synergies Ensures competitiveness of the Brazilian petrochemical industry;

Expands financing and investment capacity for expansion

2,480 th.tpy ethane

1,130 th.tpy propylene

1,975 th.tpy PE

1,040 th.tpy PP

Braskem

25.0% PETROBRAS/PETROQUISA37.2% Grupo Odebrecht

37.8% Others

55

International Overview

56

International - Overview

Hous ton

Colombia

Argentina

Angola

United Kingdom.

USA

BRAZIL

Bolivia Rio de Janeiro

NigeriaVenezuela

EcuadorPeru

Mexico

Tanzania

Iran

EXPLORATION AND PRODUCTIONTRADING

HEAD OFFICE

REFININGREPRESENTATIVE OFFIC E

New York

Tokyo

Beijing

Singapore

Libya

Mozambique

Uruguay

Turkey

Core Areas:

• Refining

• Add value to Brazilian heavy oil exports

• E&P: West Africa & Gulf of Mexico:

• Apply deep water and deep well drilling technology.

• Latin America:

• Leadership as an integrated energy company

Senegal

Jordan

Pakistan

India

Portugal

Paragay

Okinawa

57

International – Investment Breakdown

32%

19%

19%

9%6%

15%

USA Under Ev aluationArgentina NigeriaAngola Others

70%

3%

1%

1%

25%E&P RTCP G&E Distr. Corp.

10.5

3.70.5

4.9

1.7

2.8

2.7

1.4

0.9

112285

515151

183

108

2007 2012 Target 2015 ForecastOil and NGL Natural Gas

Thou

s. b

oed

70% will be directed to

E&P

2008-12 PeriodUS$ 15 billion

58

- US regulators approved Petrobras plans to bring first FPSO (*) to the US Gulf of Mexico

- Technologies new to US Gulf of Mexico, including disconnectable turret buoy, allowing the vessel to move offsite during hurricanes, and transportation via shuttle tanker

(*) FPSO – Floating, Production, Storage and Offloadingfacility. Petrobras has an extensive experience in the use of FPSO with fifteen units currently under operation offshore Brazil.

CascadeCascade

ChinookChinook

FPSOShuttle Tanker

FSHR

Tree

ControlUmbilical Power

Umbilical

Flowline

Gas ExportPipeline

ManifoldCascadeCascade

ChinookChinook

FPSOShuttle Tanker

FSHR

Tree

ControlUmbilical Power

Umbilical

Flowline

Gas ExportPipeline

Manifold

Cascade-Chinook Development

- Petrobras America operated fields - Water Depth ~ 2,500 meters (8,200 feet)

SOURCE: PETROBRAS AMERICA INC

59

International – West Africa

2,000m

1,000m

2,000m

1,000m

Operator of new Block OPL 315 with stake of 45%

Start up / Production Peak:AGBAMI (PB 13%, Operator: Chevron):

- First oil: 2008 / Peak: 250,000 bpd in 2009 (total)Petrobras stake: 32,500 bpdAKPO (PB 20% - Operator: Total):

- First oil: 2008 / Peak: 175,000 bpd in 2009 (total)Petrobras stake: from 70,000 to 100,000 bpd

6 blocks (1 in production)

Operator in prolific Block 18 with 30% stake (First oil: 2010)

60

Gas and Energy Overview

61

Participation of the Natural Gas in the Brazilian Energy Matrix

Source: MME, BEN 2006

• In 16 years, natural gas participation in the energy matrix increased 370%, boosted by the ramp up of Campos Basin production and Gasbol pipeline.

Increasing demand for Natural Gas

4.7%

9.4%

2.0%

1970 1980 1989 1990 1998 1999 2000 2002 2004 2006

Campos Basin

Gasbol

62

Million cu.m/day

Natural Gas Supply Vs. Demand

1998Termeletric Industrial Other Uses*

134

•Other uses: vehicle, residential / commercial, refineries e fertilizer plants•Source: Petrobras and MME

E&P

Bolivia

LNG

0

20

40

60

80

100

120

140

160

2000 2007 20122012

25,3

18,4

49,2

10,9 16,1 5,572,9

30,0

Average Demand Average Supply

31,1

12,51,91,7

9,40,50,9

134

48,0

42,1

43,9

63

Domestic Natural Gas Supply Curve

28.0

45.7

64.171.1 71.3 70.8

0

10

20

30

40

50

60

70

80

2007 2008 2009 2010 2011 2012

Parque das Conchas

Parque das Conchas

Marlim LesteP-53

Marlim LesteP-53

FradeFrade

RoncadorP-52

RoncadorP-52

RoncadorP-54

RoncadorP-54

Marlim SulMódulo 2

P-51

Marlim SulMódulo 2

P-51

Rio de JaneiroEspadarte Mód IIRio de Janeiro

Espadarte Mód II

Cidade NiteróiJabuti(FPSO)

Cidade NiteróiJabuti(FPSO)

Cidade de VitóriaGolfinho Mód. 2

Cidade de VitóriaGolfinho Mód. 2

Marlim SulMódulo 3 - P-56

Marlim SulMódulo 3 - P-56

Albacora(water

injection)

Albacora(water

injection)

Barracuda

(infill drilling)

Barracuda

(infill drilling)

Espadarte

Módulo 3

Espadarte

Módulo 3

Jubarte

P-57

Jubarte

P-57

Peroá-CangoáPeroá-Cangoá

Urucu Urucu

CanapuCanapu

MexilhãoMexilhão

Uruguá -TambaúUruguá -Tambaú

Non-associeted natural gas

Associated natural gas

CamarupimCamarupim

LagostaLagosta

Million m3d

Bacia Campos Bacia Campos

ManatiManati

PirapitangaPirapitanga

64

Vitória

PlataformsPlataforms of of UNUN--BC and UNBC and UN--RIORIO

REDUCREDUC

CabiúnasCabiúnasCampinasCampinas

Upgrade of Upgrade of UTGC to 20 MM UTGC to 20 MM m3/dm3/d

Ubu

Belo Belo HorizonteHorizonte

CaraguatatubaCaraguatatubaRio de JaneiroRio de Janeiro

CaraguatatubaCaraguatatuba

GuararemaGuararema

Lagoa Parda

Customization of Customization of UPGN UPGN CubatãoCubatão to 25 to 25 MM m3/dMM m3/d

GaroupaGaroupaNamoradoNamorado

EnchovaEnchova

Peroá/CangoáPeroá/Cangoá

MerluzaMerluza

LagostaLagosta

P-51 Marlim Sul Módulo 2

Golfinho Módulo 2

P-52 Roncador Módulo 1AP-54 Roncador Módulo 2

MexilhãoMexilhão UruguáUruguá

TambaúTambaú

CanapuCanapu

P-53 Marlim Leste

TOTAL SOUTHEASTEND OF 2010:55 MM m3/d(+ 39,2 MM m3/d)

Upgrade of Upgrade of CabiúnasCabiúnas/ REDUC/ REDUCto 23 MM m3/dto 23 MM m3/d

MarlimMarlim LesteLeste –– MóduloMódulo 2 (2 (JabutiJabuti))

Upgrade of UTGCA to 15 Upgrade of UTGCA to 15 MM m3/dMM m3/d

CamarupimCamarupim

CubatãoCaraguatatuba

ESSESS--168168

ESSESS--160160

200820082008

200820082008

200820082008

200920092009

201020102010Cabiúnas

CacimbasParque das Conchas

UPGN UPGN CapixabaCapixaba SouthSouth25 MM m25 MM m3/d/d

PLANGAS TargetsPLANGAS Targets20082008 -- 40 MM m40 MM m33/d/d2010 2010 -- 55 MM m55 MM m33/d/d

Natural Gas supply extension in SoutheastNatural Gas supply extension in Southeast

65

LNG - Infra-Estrutura & LicencingLNG - Infra-Estrutura & Licencing

VT1: Golar WinterCompany: Golar LNG Ltd.To be delivered in: apr/ 2009

VT2: Golar SpiritCompany: Golar LNG Ltd.Delivered in: may /2008

Projects being developed

Pacem 7mm cu.m/d – jul/2008 Guanabara Bay 14 mm cu.m/d sep/2008

66

Existing pipelines

Pipelines in construction

Manaus

Belém

Recife

Cacimbas – Catu (GASENE)

Caraguatatuba – Taubaté

Brasília

Catu – Carmópolis – Pilar

Gasduc III

Gaspal II / Gasan II

Urucu-Coari-Manaus

Gasbel IIJaperi-Reduc

Pilar-Ipojuca

Açu-Serra do Mel

LNG Terminals Expansão de Capacidade

Gasbol SulNatural Gas Production

Salvador

Network Extension

2003 – 5,282 km

2006 – 5,324 km

2007 – 6,481 km

2008 – 7,511 km

2009 – 9,031 km

+ 3,749 km+ 3,749 km

Investment: US$ 4.5 bi between 2008-2012(includes LNG Regas.)

Natural gas pipelines network

67

Renewables

68

Renewable Energy and Biofuels (2008-2012)Renewable Energy and Biofuels (2008-2012)2008-2012 Investments 2012 Target

Biodiesel Plants Availability of 938 Thousand m3/year

H-Bio (Bio-Refining) Vegetable oil Processing 1.6 million m³/year

Installed Capacity of Generation of Electric Power from 365 MW

Renewable Sources

Ethanol pipelinesExport of 4.7 billion m³/year of

Ethanol

Aeolic Energy29%

46%

21%

4%

Biofuels

Pipelines and Ethanol Pipelines

Others

H-Bio

US$ 1.5 billion Investments

•Total avoided GHG emissions: 3.93 MM tons CO2 equivalent

Ethanol Project Vessel

Solar EnergyOther Sources of

Renewable Energy

Guamaré Biodiesel Plant

Begun operation of the First Ethanol Lignocellulosis Pilot Plant, in Brazil.

The pilot phase is focused on the optimization of the production process of the bio ethanol (second generation fuel which diminishes environmental impacts)

Semi- Industrial bio ethanol plant: Forecast 2010

Lignocellulosis

69

RAW MATERIALProduction / ha

(kg)Quantity of Ethanol/ ha

Energy out/ Energy

in

SUGAR CANE 85,000 7.080 liter 8,3

CORN 10,000 4.000 liter 1,3 - 1,8

Raw Material ComparisonRaw Material Comparison

851370180

6197

597,626390

• Total country• Native Amazon Forest• Secondary Amazon Forest and Others • Native Forests• Pasture• Temporary Crops• Permanent Crops• Available land • Available land with low impact (*)

Area (MMha)

Type (Land use in Brazil)

Source: FAO, 2002 and EMBRAPA (*)

Current Market Distribution of World ethanol consumption

Today the ethanol consumption is 2,6% of gasoline MKT Increasing ethanol to 10% of gasoline will

represent 118 Billion Lt (more than 2 million barrels per day)

70

Original drivers were energy security and economic attractiveness;

Today environmental benefits are also a consideration.

CNG

ETHANOL

GASOLINE

Source: MME, BEN 2006

120000

140000

1976 1980 1984 1988 1992 1996 2000 2007

In this period, ethanol utilization avoided 675 million tons CO2 emissions.

1972

Brazil is the 1st country to reap benefits from Ethanol

Fuel demand for Otto Cycle Vehicles

160000

10000

80000

60000

40000

20000

01000

BEP

Accumulated effective economy:1,2 Billion boe ~ US$ 61 bi

70

Ethanol

71

Petrobras Investments to Export Ethanol

New Ethanol Pipeline (1.150 Km)

New Water Way for Ethanol

New Pipeline (1412 km)

New Ethanol Pipeline (919Km)

São Paulo Marine Terminal

Rio de JaneiroMarine Terminal

Replan – Ilha Dág ua Pipeline (Current flow)

Tietê- Par aná Water way

Senador C anedo – São Sebasti ão Pipeline

Replan – Bras ília Pipeli ne (OSBRA)

Replan – Guarar ema Pipeline

Existing Pipeline

Future Pipeline

Existing T ermi nal

Future T er minal

Exportation

Target: Export 4.75 MM cu.m/year in 2012

Large storage capacity necessary to regulate supplyPipelines reduce transport costs; improve energy efficiency

Ethanol collection, storage and distribution centers are spread out through producing and

consuming regions

Large scale marine terminals improve efficiency

72

Financial Considerations

73

Profitability Profitability

To grow production and oil and

gas reserves sustainably,

being recognized for excellence in

E&P operations

To expand integrated

operations in refining,

commercialization, logistics and

distribution with a focus on the

Atlantic Basin

Develop and lead the

Brazilian natural gas market and operate on an

integrated basis in the gas and electric energy markets with a focus on South

America

Expand operations in

petrochemicals in Brazil and

South America on an integrated basis with the PETROBRAS Group’s other

businesses

Operate on a global basis in biofuels

commercialization and logistics,

leading the domestic production of biodiesel and

expanding participation in the ethanol segment

Expand operations in target markets for oil, oil products, petrochemicals, gas and energy, biofuels and distribution, being a world benchmark as an integrated energy company

Corporate Strategy

IntegratedIntegratedGrowthGrowth

Gas & EnergyE&P Downstream (RTC) Distribution Petrochemicals Biofuels

Operational, management, technological and human resources excellence

Commitment to sustainable developmentSocial and Environmental Social and Environmental

ResponsibilityResponsibility

Corporate Strategy

74

104.486.7Projected Net Cash Flow (Including Dividends)

1416Return on Capital Employed (ROCE) (%)

2025Net Debt/ Net Debt + Shareholders’ Equity (Leverage) (%)

112.483.5Projected Investments for 2008-2012

2008 – 40.002009-2011 – 35.00

2.50

2007-2011 Plan

2.18FX rate (R$/US$)2008 – 55.002009 – 50.002010 – 45.00

2011-2012 – 35.00

Brent for Funding (US$/bbl)

2008-2012 PlanIndexes

(*) PPP – purchase power parity

Petrobras’ Business Plan

75

6%4%

1%2%26%

58%

2%

65.1

29.6

6.74.3

2.62.6

Investment Plan by Business Segment

2008-12 PeriodUS$ 112.4 billion

E&P RTC G&EPetrochemical Distribution Corporate Biofuel

1.5

• US$ 65.1 billion directed to E&P:

• Exploration: US$ 13.8 billion

• Production: US$ 51.3 billion

13%

87%

Brasil Internacional

97.4

15.0

Note: Includes International

76

Investments – Segments breakdown

25,9

14,3

5,6

6,8

0,8

1,4

US$ Million

2007 (US GAAP) 2007 (BR GAAP) Budget 2008*

Exploration & Production 9.448 20.813 25.902

Supply 4.488 10.536 14.312

Gas & Energy 3.223 4.817 5.636

International 2.864 6.574 6.828

Distribution 327 1.670 781 Corporate 628 875 1.406 Total Investments 20.978 45.285 54.865

R$ Million

*Forecast R$/US$ = 1,80 (average)

*R$/US$ = 1,7713 (date12/31/2007)

77

CFFO(including W.C.)

Capex

Dividends

Consolidated Cash Flows74.3 BN 2003-2007

Source: Petrobras and Bloomberg

Strong returns have enable company to grow without increasing debt

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

2003 2004 2005 2006 2007

Historical ROCEU.S. GAAP

Operating Income and Assets by Segment -2007

(US GAAP – US$ Millions)

7,5961,83810,61514,48048,529PP&E (inc. Dep.)

291

446

Distri-bution

Int’lGas & Energy

Downstream (Brazil)

E&P(Brazil)

1,1446,0239,37113,558O/w Construction in Progress

(815)(834)2,78514,072Net Op. Inc.

Sources Uses

Inc. Debt

78

25%

34%

30% 30% 29% 29%

-

2.000

4.000

6.000

8.000

10.000

12.000

14.000

2002 2003 2004 2005 2006 200710%

15%

20%

25%

30%

35%

40%

45%

50%

Net Income Dividend Dividend as % of Net Income

Shareholder Remuneration

• According to the Brazilian Corporate Law, shareholders are entitled to a mandatory dividend of 25% of the annual net income.• In the last years, Petrobras has been paying an average of 29 to 30%.

79

Total Shareholder Return versus the oil industry

Total Shareholder's Return

15.8%

7.5%

6.0%

6.0%

7.6%

95.7%

36.1%

123.8%

44.5%

79.2%

30.2% 31.5%39.5%

22.8%34.1%

0%

20%

40%

60%

80%

100%

120%

140%

2003 2004 2005 2006 2007

Shares increase Dividends Amex Oil Index (*)Source: Bloomberg * includes dividends for comparison purposes

111,5%

43,6%

85,2%

50,5%

131,4%

PBR’s yield surpassed Amex Oil in the last 5 years

80

Capital Structure and Credit Metrics

(US$ MM)

2007 2006 2005 Cash and Cash Equivalents 9,871 12,688 6,987 Total Debt 21,895 21,338 21,177

Net Debt 14,908 8,650 11,306

Shareholders Equity 65,179 44,299 32,917 Net Income 13,138 12,826 10,344 EBITDA 25,333 22,923 17,638 Net Debt / Book Capital 18% 16% 26% Net Debt/ Market Capital 6% 8% 15% Net Debt / Boe Production (X) 15.4 10.3 13.9 Net Debt / Proved Reserves (X) 1.1 0.8 1.0 Reserves/Production (Years, SPE Criteria) 18.9 18.9 19.6

81

2007 2006 2005

Cash Flow from Operating ActivitiesNet Income 13,138$ 12,826$ 10,344$ Depreciation 5,544$ 3,673$ 2,926$ Other (inc.W.C.) 3,982$ 4,578$ 1,845$

CFFO 22,664$ 21,077$ 15,115$

Net Cash used in Investing ActivitiesCapex and other (20,768)$ (14,470)$ (10,376)$ Acquisitions (1,551)$ (416)$ -$ Puchase Marketable Seceurities (1,707)$ 205$ 169$

Total Investments (24,026)$ (14,681)$ (10,207)$

Cash Flow From Financing ActivitiesAmortizations (6,670)$ (4,167)$ (2,652)$ Additions to Debt 4,542$ 2,957$ 2,131$ Dividends and other (3,860)$ (3,144)$ (2,104)$

Net from Financing (5,988)$ (4,354)$ (2,625)$

Increase (decrease) in cash and cash equivalents (7,350)$ 2,042$ 2,283$ 1,649$ 775$ 732$

Year ended December 31

Effect of exchange rate changes on cash and cash equivalents

Cash Flow

82

Investment final considerations

Operational Strengths Financial Strengths

World class energy company, dominant in a market with diverse and abundant opportunitiesLong term record of increasing reserve baseSuperior production growth leading to net exportsGrowing refinery complexity improving marginsInternational pricing environment

Investment grade ratings (Baa1/BBB-) from Moody’s and S&PSEC registrant; quarterly US GAAP disclosure, SOX compliantPublicly-traded entity; NYSE listedDiversified and stable funding sourcesGrowth plan self-financingAttractive relative value versus Republic of Brazil and other high grade energy issuers

83

Thank You

Petrobras at a Glance - Results and Perspectives

For more information, visit our website: http://www.petrobras.com.br/ri/english

Investor Relations

Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães - Petrobras at a glance- (disponível em inglês)