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    Latibex 22 nov 07 Latibex 22 nov 07 Presentation Transcript

    • PETROBRAS OVERVIEW 9º FORO LATIBEX One-on-one meetings Almir Barbassa CFO and Investor Relations Officer Carlos Henrique Dumortout Castro Investor Relations Manager 1
    • Disclaimer 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 investors The 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. 2
    • Vision 2020 and Characteristics Vision 2020 We will be one of the five largest integrated energy companies in the world and the preferred choice among our stakeholders Vision 2020 Characteristics Our operations will be notable for: • Strong international presence • World scale prominence in biofuels • Operational excellence in management, technology and human resources • Profitability • Benchmark in social and environmental responsibility • Commitment to sustainable development 3
    • Business Segment Strategy Corporate Strategy Commitment to sustainable development Social and Environmental Integrated Growth Profitability Responsibility Expand operations in target markets for oil, oil products, petrochemicals, gas and energy, biofuels and distribution, being a world benchmark as an Corporate Strategy integrated energy company To grow To expand Develop and lead Expand operations in Operate on a global production and oil integrated the Brazilian petrochemicals in Brazil basis in biofuels and gas reserves operations in natural gas market and South America on commercialization and sustainably, being refining, and operate on an an integrated basis logistics, leading the recognized for commercialization, integrated basis in with the PETROBRAS domestic production excellence in E&P logistics and the gas and electric Group’s other of biodiesel and operations distribution with a energy markets businesses expanding focus on the with a focus on participation in the Atlantic Basin South ethanol segment America Operational, management, technological and human resources excellence Downstream Biofuels E&P Distribution Gas & Energy Petrochemicals (RTC) 4
    • Macroeconomic Assumptions Indexes 2007-2011 2008-2012 GDP – World (% p.y.) – PPP(*) 4.2 4.3 GDP – Latin America (% p.y.) – 3.7 3.9 PPP GDP – Brazil (% p.y.) 4.0 4.0 FX rate (R$/US$) 2.50 2.18 Linked to international Linked to international Oil Products Prices market prices, without market prices, without changes in relative prices changes in relative prices (*) PPP – purchase power parity 5
    • Oil prices: Brent curves 55 Price curve BP 2008/12 50 45 35 40 35 35 35 35 Price curve BP 2007/11 2008 2009 2010 2011 2012 BP – Business Plan 6
    • Investment Plan by Business Segment 2008-12 Period 58% US$ 112.4 billion 13% 65.1 15.0 1.5 97.4 29.6 2.6 2.6 1% 2% 4.3 6.7 87% 26% 2% 4% 6% Brasil Internacional E&P RTC G&E Petrochemical Distribution Corporate Biofuel • US$ 65,1 billion directed to E&P: • Exploration: US$ 11.6 billion • Production: US$ 53.5 billion Note: Includes International 7
    • Investment Plan US$ billion Petrobras Petrobras Difference Business Segment 2007-11 2008-12 (%) E&P 49.3 65.1 32 RTC 21.9* 29.6 29 G&E 7.3* 6.7 -2 Petrochemical 3.3 4.3 30 Distribution 2.3 2.6 13 Biofuels 0.7 1.5 114 Corporate 1.8 2.5 39 Total 87.1 112.4 29 The forecast indicates annual average capital investment of US$ 22.5 billion for the period 2008 - 2012. * 2007-2011 Plan included biofuels investments. 8
    • Investment Plan Of the 34% increase in total capital spending, US$ 13.3 billion (or 16%) was due to the inclusion of new projects New Projects • Exploration & Production: • Exploration • Enhanced Recovery from Mature Fields • Support and Infra-structure • Plangás • Refining, Transportation and Distribution: New Projects Projetos Novos FX Rate Change Others • Plangás Downstream 13.267 Alteração da US$ 13,267 mi Outros • Petrochemical Taxa de Câm bio US$ 4,224 mi -2,435 -2.435 • New units COMPERJ 4.224 Melhoria do Better • 5% increase in CAPEX due to grau de degree of change in FX Rate premise Definição Definition 2.835 2,835 • 13% increase in costs, in Costs Increase Aum ento de alignment with industry pressures US$ Custo mi 10,912 10.912 * PN 2007-11 83.571 83,571 * 2008-2012 Amounts 9
    • Sources and Uses – BP 2008-2012 (US$ 123.8 Billion) (US$ 123.8 Billion) 19.4 11.4 (15,7%) (9,2%) 104.4 112.4 (90,8 %) (84,3%) 2004-2010 Debt Amortization Financing CAPEX Cash Flow In the BP 2007-11, required financing was 13% 10
    • Main Financial Indicators Average Average Indicators BP 2007-2011 BP 2008-2012 Return on Capital Employed (ROCE) (%) 16 14 Long Term Funding (US$ billion per year)* 3.1 3.9 Cash Balance (end of the year) (US$ billion) 3.5 3.1 Net Debt/ Net Debt + Shareholders’ Equity 25 20 (Leverage) (%) Free Operating Cash Flow (US$ billion) 1.5 1.4 11
    • E&P - rapidly growing production profile 3 5 0 0 1Y 3 0 0 0 g ro wth in L1 9 % p.y. 2,298 Thousand boed 2,217 2 5 0 0 2,036 2,020 1,810 2 4 3 1,636 2 5 9 2 0 0 0 1,565 5 8 2 4 6 2 6 2 1,505 6 8 2 7 7 7 3 2 5 0 2 7 4 1,238 2 5 2 2 6 5 15 0 0 1,090 7 6 2 3 2 2 2 1 1,008 5 5 885 5 8 19 7 4 7 17 9 10 0 0 3 5 16 3 15 2 1. 6 8 4 1. 7 7 8 13 4 1. 5 0 0 1. 5 4 0 1. 4 9 3 1. 2 7 1 1. 3 3 6 1. 13 2 5 0 0 8 6 9 1. 0 0 4 7 16 8 0 9 0 19 9 5 19 9 6 19 9 7 19 9 8 19 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 Oi l and NGL - B r az i l Nat ur al Gas - B r azi l Oi l and NGL & Nat ur al Gas - I nt er nat i onal 12
    • Total Production – Oil, NGL and Natural Gas - Targets 6.8% p.y. Thousand boed 4,153 7.2% p.y. 3,494 1 8 3* 515* 1 5 1* 285 * 643 2,298 2,217 637 2,020 101 96 94 142 163 274 277 168 265 2, 812 2, 421 1, 778 1, 684 1, 493 2004 2005 2006 Target 2012 For ecast Oi l + NGL Br az i l N at ur al Gas B r az i l 2015 Oi l + N GL I nt er nat i onal N a t ur a l Ga s I nt e r na t i ona l * Includes non consolidated production 13
    • Self-Sufficiency in Oil - Brazil Thousand bpd 2500 2421 2374 2400 2296 2300 2191 2200 2100 2050 2170 2000 2101 1875 2039 1900 1968 1922 1800 1852 1700 2007 2008 2009 2010 2011 2012 Production Demand 14
    • Main Projects Rio de Janeiro Rio de Janeiro Espadarte Mod II Espadarte Mod II 100.000 bpd 100.000 bpd 6/Jan/07 6/Jan/07 Espadarte Espadarte Piranema Piranema Cidade Niterói Cidade Niterói Marlim Sul Mod. 3 Mod. 3 30.000 bpd 30.000 bpd Albacora Albacora Marlim Sul Jabuti Jabuti 2,600 September 2007 September 2007 (Water Mod. 3 -- P-56 Mod. 3 P-56 100.000 bpd (FPSO) (FPSO) (Water 100.000 bpd Injection) Injection) 100.000 bpd 100.000 bpd 100.000 bpd 100.000 bpd 2012 2012 Cidade de Vitória Cidade de Vitória 23.000 bpd 23.000 bpd 2011 2011 2008 2008 Golfinho Mod. 2 Golfinho Mod. 2 2010 2010 2,400 100.000 bpd 100.000 bpd Marlim Sul Marlim Sul Frade Frade October 2007 October 2007 Mod. 2 Mod. 2 100.000 bpd 100.000 bpd 2,421 P-51 P-51 2009 2009 2,374 Roncador Roncador 2,296 Jubarte Jubarte Thousand bpd 180.000 bpd 180.000 bpd 2,200 P-52 P-52 2008 2008 P-57 P-57 180.000 bpd 180.000 bpd October 2007 October 2007 2,191 180.000 bpd 180.000 bpd Barracuda Barracuda 2,000 2012 2012 2,050 Parque das Parque das (Infill Brilling) (Infill Brilling) Conchas Conchas 50.000 bpd 50.000 bpd 1,840/50 100.000 bpd 100.000 bpd 1,800 Marlim Leste Marlim Leste 2010 2010 Roncador P-53 P-53 2009 2009 Roncador P-54 180.000 bpd 180.000 bpd P-54 180.000 bpd 2008 2008 180.000 bpd 1,600 October 2007 October 2007 1,400 2007 2008 2009 2010 2011 2012 Main Changes in relation to PN 2007-11: P-55 from 2011 to 2013; P-56 from 2013 to 2011; P-57 from 2010 to 2012 15
    • Main Projects for the Period 2013 - 2015 To sustain oil production growth, several projects will be implemented between 2013 and 2015. Thousand bpd 2900 • Roncador P-55 2,812 2800 • Papa-Terra • Maromba 2700 • Cachalote e Baleia Franca • Baleia Azul 2600 • Caxaréu • Pirambu 2500 • BMS-11 Tupi 2,421 2400 2300 2200 2012 2015 16
    • E&P Brazil Production Curve - PN 2008-2012 2.500 2.374 2.296 2.191 2.050 Production Net 596 2.000 1.875 1.778 Increase 1.778 Thousand bpd 1,533 1.500 1.615 Production Natural Decline 937 1.443 1.256 1.000 1.055 845 500 Total installed capacity in the period = 1,533 mbpd - 2006 2007 2008 2009 2010 2011 17
    • Corporate Targets Internal Replacement Proven Reserve Rate (SPE) Discoveries in Exploratory Blocks: • Maromba, in the Campos Basin; Discoveries in exploratory blocks incorporated • Camarupim Catuá, in the Espírito Santos Basin - Offshore; to already existing production fields Araracanga in the Solimões Basin; • Mexilhão, in the Rio de Janeiro E&P Business Unit; • Jaçanã and Pintassilgo in the Rio Grande do Norte Basin; • Baleia Azul and Golfinho in the Espírito Santo E&P • Tangará in the Recôncavo Basin; Business Unit. • Saíra, Seriema and Tabuiaiá , in the Espírito Santos Basin – Onshore. 13.23 13.75 Revisions in existing fields in 2006 1.22 • Mainly in Marlim and Albacora, in the 12.53 Campos Basin E&P Business Unit; • Roncador and Marlim Sul, in the Rio de Production Janeiro E&P Business Unit. (0.70 billion boe) 2006 Internal Replacement 1.22 = 174 % 0.70 2005 2006 18
    • Domestic Lifting Costs in U.S.$’s vs. Real US$/bbl R$/bbl 20% 9 71% 16 14.20 14.66 7.65 13.80 8 6.59 14 12.30 7 5.73 12 6 10 5 4.28 8 4 6 3 2 4 1 2 0 0 2004 2005 2006 3Q07 2004 2005 2006 3Q07 Accounting Data in Reais only maintained since 2004 • From 2003 to 3Q07 USD lifting cost was severely affected by FX behavior. 19
    • Finding cost vs. Brent – long term success ratio Brent Finding costs - SPE 1 ($/boe) 70 65 0.9 0.9 60 54 0.8 0.7 50 0.56 Low Finding Cost… 0.6 38 40 0.53 0.5 29 0.47 28 0.4 30 0.4 0.33 0.35 0.3 0.36 24 23 20 0.3 18 0.2 14 10 0.1 0 0 55% 1998 1999 2000 2001 2002 2003 2004 2005 2006 50% 49% FC Brent 46% 39% 32% 24% …Great Success Ratio 23% 20% 1998 1999 2000 2001 2002 2003 2004 2005 2006 20
    • New Discoveries – Pre-salt Section BM-S-11 Block (Tupi) • 28º API light oil was found below the salt layer in a new exploratory frontier of the Santos Basin. • Further investments will be required for a full evaluation of the oil volume in the discovered reserve Caxaréu Field • The discovery well 4-ESS-172-ES has located reservoirs saturated with light oil (approximately 30° API) under a thick layer of salt. • It has shown to have excellent productivity in a formation test. Pirambu Field (Espírito Santos Basin) • The 4-ESS-175-ES well found deeper reservoirs saturated with light oil (nearly 29° API) positioned on the pre-salt section. • Results confirm the potentiality of this producer interval. 21
    • Tupi Area Caxaréu and Pirambu BMS-9 and BMS-10 TESTED WELLS BMS-11 (Tupi) 22
    • Long-Term Record of Increasing Reserves Proven Reserves by Category Worldwide Proved Reserves of Petrobras Oil vs. Gas By Depth Assoc. Gas Non-Assoc. 7% 11% Gas 9% 10% 23% 16,0 14,9 14,9 15,0 14,5 Oil and Condensate 14,0 84% 56% 12,1 Reserves (in billion BO E) Onshore 12,0 10,7 10,4 Offshore (0-300m) 10,0 Offshore (300-1500m) 8,0 Offshore (>1500m) 6,0 4,0 By By Gravity 2,0 location 0,0 11% 2000 2001 2002 2003 2004 2005 2006 Year 26% 74% 89% Note: Based on SPE method and reflect both Brazilian and international reserves Brazil > 31o API Light Reviewed and Certified by DeGolyer and MacNaughton since 2001 International < 31o API Heavy/Intermediate 23
    • Historic and Planned Exploration Investments US$ 2.76 billion/y Average (2008-12) 3000 Accumulated investments 1954/2005: US$ 21 billion 2500 US$ 1.12 2000 billion/y U$ million US$ 880 1500 million/y US$ 536 1454 million/y 1163 1030 956 909 1000 840 814 833 725 549 505 566 571 448 393 533 500 0 1991 1995 1998 2002 2007 2012 24
    • Exploration Activity (1998 - 2006)Wells & Seismic TOTAL: • Espirito Santo 45 wells offshore 681 exploration wells • Campos 190 wells offshore 31% overall success ratio • Santos 75 wells offshore 2005 55% • Other Basins 265 wells onshore 2006 49% 110 wells offshore 400% 300% Seismic 200% Average 206% for 2002-2006 ~ 550,000 km 2D seismic 100% ~ 130,000 km2 3D seismic 0% 2003 2004 2005 2006 Reserve Replacement Ratio (SPE/ANP Criteria) 25
    • Petrobras’ Current Exploration Portfolio EXPLORATORY AREA Santos Santos 152.8 thousand km2 39.4 mil km22 39.4 mil km Campos Campos Other (*) 13.1 mil km22 Pará Maranhão-Barreirinhas 13.1 mil km 4% 3% 25% Sergipe Alagoas 5% Potiguar-Ceará 6% 8% Santos Bahia Sul 9% Campos 6% 10% Espírito Santo Solimões 11% 11% São Francisco Foz do Amazonas Espírito Espírito Santo Other Basins* Santo 10.1 mil km22 10.1 mil km 40 % of the concession areas in Campos, Espírito Santo e Santos basins. Other basins: Pelotas (2%), Ceará (0.8%) and Recôncavo (0,2%) * 26
    • Petrobras’ Drilling Rigs 2003 2004 2005 2006 Total Total Total Brazil Intern. Total Onshore 25 47 41 19 22 41 Offshore 41 43 46 44 5 49 Total 66 90 87 63 27 90 Owned Rigs: 31 Leased: 56 • Petrobras’ leasing contracts are long term, averaging a 5 years length; • In 2006, 15 offshore drilling rigs were owned by Petrobras; • In August 2005, Petrobras renewed 24 drilling rigs contracts. • In July 2006, Petrobras signed contracts worth R$ 10.5 billion for the charter of six drilling units: • 4 rigs will operate in water depths of up to 2,000 meters (seven-year term contract, renewable for further seven years); • 2 rigs will operate at depths down to 2,400 meters (units chartered for 5 years, renewable for the same period); • In September 2006, the Company contracted two ultra-deepwater rigs for its drilling operations in the Gulf of Mexico. The contracts have 5 and 6 years term. 27
    • Royalties • Monthly payment due from concessionaires for the exploration and production of oil and natural gas; • Rates vary, according to the area, from 5% to 10% (per producing field) and are established in each concession contract; • Production Volume x Reference Price (published by the regulator, the National Petroleum Agency - ANP), in relation to each field 9,000 8,000 7,630 R$ Million 7,000 6,366 6,000 5,020 5,000 4,372 4,000 3,509 3,000 2,000 1,000 0 2002 2003 2004 2005 2006 28
    • Special Participation – Progressive Tax • Special Participation is the progressive tax applied over the net income from production. • Tax depends on the year of production, daily production and location (Land, Offshore Shallow Water or Offshore Deep Water) • Bellow, the characteristics of the special participation for deep water shelves: 40% 30% 35% 10% 20% Tax Rates Daily production (thousand m3/day) First Year of 15 20 25 30 35 Production 6.3 conversion Factor Second Year of 11.7 16.7 21.7 26.7 31.7 Production Third Year of 8.3 13.3 18.3 23.3 28.3 Production After the Third Year of 5 10 15 20 25 Production 29
    • Distribution of the Realization Price of a Barrel of Domestically Produced Oil (%) 100.0% 90.0% 80.0% % Share of Realization Price 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 2001 2002 2003 2004 2005 2006 Lifting DD&A Exploratory costs SG&A R&D Other Other COGS Income Tax Government take Net Income 30
    • Distribution of the Realization Price of a Barrel of Domestically Produced Oil ($) $50.00 $45.00 $40.00 $35.00 $ per Barrel Realization Price $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $- 2001 2002 2003 2004 2005 2006 Lifting DD&A Exploratory costs SG&A R&D Other Other COGS Income Tax Government take Net Income 31
    • Vertical Integration Upstream Operations Downstream Operations Domestic Reserves SPE (as of 12/31/2006) 11 refineries in Brazil - Proved Reserves of 13,75 Billion BOE - 8 in the south/ southeast region - Reserve / Production 19,5 years - Installed capacity of 1,986 k bpd - Campos Basin accounts for more than 80% of Brazil’s oil production 32
    • Domestic Oil Products Market Thousand bpd 3000 . 2,732 2 .9 3 % p. y 2,337 345 2500 2,039 138 287 1,824 2000 228 116 153 95 1105 110 1500 902 779 706 1000 173 129 76 96 281 282 281 241 500 386 432 333 340 204 217 237 257 0 2006 2010 2015 2020 LPG Gasoline Naphta Jet Fuel Diesel Fuel Oil Others 33
    • Downstream Investments US$ 29.6 billion investments in the Downstream area 21% US$ million 28% Fuel Quality 8,619 Conversion 3,938 Expansion 5,353 8% HSE 1,083 Transportation 2,270 Pipelines 2,264 8% Others 6,112 13% 4% 18% Includes Downstream International investment (US$ 3.513 million) 34
    • The production flow of liquids in 2012 shows the high degree of integration among the business segments in the Brazil and abroad. Thousand bpd International Production Brazil 114 Oil Products Consumption 285** 2.421 in Brazil ** 2.170 256* 29 296 158 1.853 Oil Purchase Throughput in Abroad 23 Brazil 2.061 5 Throughput Abroad 208 348 Oil Products Imported Oil Exports *** 256 (*) Includes non-consolidated production International Oil and Products Sales (**) Biodiesel Portion not included (***) Liquid Exports of Oil Products 762 35
    • Corporate Targets – Downstream Refining Costs 3.69 2.83 2.59 2.29 2.24 US$/bbl 1.90 1.73 1.30 2005 2006 9M07 Target 2012 Refining Cost - Brazil Refining Cost - International 36
    • Business Strategies New Refinery in Pernambuco •Total Investment: US$ 4.1 billion (Petrobras Investment US$2.4 billion); • Throughput capacity: 200 thousand heavy oil barrels (60% Petrobras oil / 40% PDVSA oil); • Focusing diesel and LPG production maximization, the new refinery will aim the growth of oil products demand in the Northeast. •The Northeast Region, which responds for 19% of oil products demand and holds only one refinery in Bahia, will no longer be a fuel importer (either from refineries in Brazil or abroad); • Costs reduction: oil products transportation are more expensive than for crude oil. Refinery in the USA • Petrobras has acquired 50% of the Pasadena Refinery System Inc. (PRSI), located in Texas, USA; •The refinery, which already has a capacity of 100,000 bbl/day, will be upgraded to handle 70,000 bbl/day of heavy oil and feedstock (including Marlim field’s production); • Planned expansion to 200,000 BPD. After the revamp project all products will match USA highest standards. Refinery in Japan • Petrobras has acquired 87.5% of the Japanese Company Nansei Sekiyu Kabushiki Kaisha (NSS), located in Japan, for the value of approximately US$ 50 million; •The refinery, which already has a capacity of 100,000 bbl/day, 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) and a mono buoy for Very Large Crude vessels (VLCC) of up to 280 thousand dwt. 37
    • Corporate Targets – Downstream Throughput (Brazil and Abroad) and Processing of Domestic Oil Production in Brasil (Thousand bpd) 3,007 3,500 94 2,409 92 92 3,000 1,997 348 90 2,500 90 88 348 86 2,000 205 84 1,500 82 80 2,659 2,061 80 1,000 1,792 78 500 76 0 74 2008 2012 2015 BP 2008-12 - Throughput - International (thousand bpd) BP 2008-12 - Throughput - Brazil (thousand bpd) Domestic Crude Oil as a % of Total 38
    • Corporate Targets – Distribution BR Participation in the Brazilan Market (%) 41 36 31 24 2006 2012 BR Participation in Total Brazilian Market (%) BR Participation in the Brazilian Automotive Market (%) 39
    • Main Projects: Petrochemical Segment Main Projects COMPERJ – Basic Petrochemicals Unit COMPERJ – Thermoplastic Resin ( Polyethylene, Polypropylene and PET) COMPERJ - Intermediate (Styrene, PTA and Ethylene glycol) Petroquímica SUAPE (PTA) Companhia Integrada Têxtil de Pernambuco – CITEP (POY) Companhia de Coque Calcinado de Petróleo International Petrochemical Projects Petroquímica Paulínia - Polypropylene Total investments: US$ 4.3 billion 40
    • Business Strategies 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 41
    • Domestic Natural Gas Market* 160 Million m3/day 134 134 140 120 y. 31.1 LNG p. 43.9 .4 % 100 19 30.0 Bolívia 80 46.3 42.1 60 E&P** 40 16.2 72.9 20 48.0 24 0 6.1 2006 2012 Supply 2012 Thermoelectric Industry Other (*) considering maximum dispatch of every thermoelectric power plant • Other: vehicular, residential / commercial, refineries and fertilizer units. (**) Adjusted to STD Heat Value (9,400 Kcal/kg) 42
    • Main Projects: E&P Brazil Natural Gas Urucu Urucu Sales Start-up Sales Start-up Uruguá -- Uruguá Peroá-Cangoá 80 Peroá-Cangoá Phase 2 Phase 2 2008 2008 Tambaú Tambaú Nov 2007 2010 2010 Nov 2007 Bacia Campos Bacia Campos Mexilhão Mexilhão 2008 2008 2009 2009 70 Manati Manati Canapu Canapu 15/jan/2007 15/jan/2007 2008 2008 71,1 71,3 70,8 Rio de Janeiro Rio de Janeiro 60 Espadarte Mod II Espadarte Mod II Camarupim Camarupim 2008 64,1 Albacora Marlim Sul Marlim Sul Espadarte Espadarte 6/jan/07 6/jan/07 2008 Albacora Mod. III -- P-56 Mod. III P-56 Mod. III Mod. III Frade Frade (Water (Water Piranema Piranema Injection) 2011 2011 50 Sep 2007 45,7 2009 2009 Injection) 2012 2012 Millon m3/day Sep 2007 2010 2010 Cidade de Vitória Jubarte Jubarte Cidade de Vitória Parque das Parque das Golfinho Mod. II Golfinho Mod. II Conchas Conchas Barracuda P-57 P-57 40 Oct 2007 Oct 2007 Lagosta Lagosta 2008 2008 2009 Barracuda 2012 2009 (Infill Drilling) (Infill Drilling) 2012 Cidade Niterói Cidade Niterói 28 Jabuti 2010 2010 30 Jabuti (FPSO) (FPSO) Pirapitanga Pirapitanga 2008 2008 Mod. II Mod. Roncador Roncador 2012 2012 Marlim Sul Marlim Sul 20 P-52 P-52 Mod. II Mod. II Oct 2007 Oct 2007 P-51 P-51 Roncador 2008 2008 Non Associated NG 10 Roncador P-54 P-54 Marlim Leste Marlim Leste Oct 2007 Oct 2007 P-53 P-53 Associated NG 2008 2008 0 2007 2008 2009 2010 2011 2012 Main Changes in relation to PN 2007-11: P-55 from 2011 to 2013; P-56 from 2013 to 2011; P-57 from 2010 to 2012 43
    • Main Projects: Gas & Energy US$ million Main Projects Gas Pipelines: Gasene, Northeast and Southeast Network, Urucu-Coari-Manaus and Gasduc III LNG – Liquified Natural Gas Thermo-Electrics: Cubatão, Três Lagoas, Canoas and Termoaçu Wind Power Generation G&E in Argentina and Other Countries Total investments US$ 6.7 billion 44
    • Corporate Targets – G&E 3 Domestic Natural Gas Sales – G&E* (million m /day) 82 p.y. 6 ,2 % 57 2008 2012 BP 2008-12 - Domestic Natural Gas Sales – G&E (million m3/day) * Does not include Petrobras consumption 45
    • Natural Gas supply in Southeast 2006 - 2008 New investments will reduce the country’s dependence on imported gas. • Supply will raise from the current 15.8 million to 40 million m3 per day in 2008 in the Southeast. • Development of two new oil and gas fields in Espírito Santo; • Increase of natural gas supply from the Marlim field (Campos Basin); • Expansion of gas production in the Merluza field (Santos Basin). • Demand reallocation • Refineries, Distributors and flex-fuel thermoelectric plants (LNG, diesel and alcohol) 46
    • Natural Gas supply extension in Southeast 2006 - 2008 PLANGAS 2008 targets Cacimbas Peroá/Cangoá Lagoa Parda Belo Horizonte Barra do Riacho Terminal Espírito Santo Vitória Basin Camarupim Canapu Ubu Golfinho 2 Cacimbas fence Cabiúnas Campinas P-52 (RO) 18 MM m3/d Rio de Janeiro P-54 (RO) (+16,7 MM m3/d) Garoup Guararem Namorado a JABUTI a Caraguatatuba Ilha d’Água / Ilha REDUC Enchova P-51 (MLS) RPBC Comprida Terminals Cabiúnas fence Campos Basin 19,5 MM m3/d (+6,3 MM m3/d) Merluza Lagosta Cubatão fence Santos Basin 2,5 MM m3/d Total Southeast 08: 40 MM m3/d (+1,5 MM m3/d) Additional: (+ 24,5 MM m3/d) 47
    • Flexible LNG Project Facilitates the adjustment of the offer to the market’s characteristic: Flexible Offer (with guarantee) to the thermoelectric plants. More efficient than Diesel in the thermo plants; Mitigates the risk of failing to supply the gas due to abnormalities; Diversifies the sources of imported gas; Projects under evaluation: (up to 31 MM m3/d of re-gasification) FSRU Floating Storage and Regasification Unit 48
    • Corporate Targets – G&E Power Sales – PETROBRAS (TOTAL Brazil + International) (Average MW) 6,000 5,439 5,000 976 4,000 3,070 3,000 118 3,741 2,000 2,234 1,000 718 722 0 2008 2012 BP 2008-12 - Expansion Opportunities in Thermoplants (Average MW) BP 2008-12 - Thermoplants and Co-generation - Brazil (Average MW) BP 2008-12 - International (Average MW) BP 2008-12 - PETROBRAS (TOTAL Brazil + International) (Average MW) 49
    • International - Overview United Kingdom. New York USA Houston Portugal Turkey Tokyo Jordan Beijing Libya Iran Pakistan Mexico Trinidad & Senegal Saudi Arabia Tobago Nigeria Venezuela India Colombia Equatorial Guinea Tanzania Singapore Ecuador BRAZIL Angola Mozambique Peru Bolivia Rio de Janeiro Uruguay Core Areas: HEAD OFFICE Argentina • Refining REPRESENTATIVE OFFICE • Add value to Brazilian heavy oil exports REFINING TRADING • E&P: West Africa (Nigeria and Angola) & Gulf of Mexico: EXPLORATION AND PRODUCTION • Apply deep water and deep well drilling technology. UNDER EVALUATION • Latin America: • Leadership as an integrated energy company 50
    • Successful Discoveries, Production in Cottonwood, Development in the Lower Tertiary UNITED STATES New Orleans Houston COULOMB NORTH COTTOWOOD CASCADE CHINOOK ST. MALO DISCOVERIES 2002 - Cascade Gulf of Mexico - Petrobras 2003 - Chinook & St. Malo 2004 - Coulomb North participates in 338 blocks, and 2005 - Cottonwood MEXICO operates 200. 51
    • International - Main Projects in the Gulf of Mexico Cottonwood Chinook Cascade (Development) (Under Evaluation) (Under Evaluation) • Petrobras (100%) - operator • Petrobras (67%) - operator • Petrobras (50%) - operator • Total (33%) • Devon (50%) Saint Malo Blackbeard, Megamata (deep gas) (Under Evaluation) Andromeda (WGoM), Alsace (GBanks) • Petrobras (25%) • EXPLORATION WELLS •Petrobras (20% to 100%) • Unocal (20%) - operator • Chevron (13%) • Various partners (Exxon, Newfield, BP, • BHPBilliton, Dominion, Carrizo, Hess, • Encana (6%) • Kerr McGee • Devon (23%) LONG TERM COMMITMENTS • Exxon (4%) Two drilling units on long term contracts • ENI (1%) 52
    • U.S. Gulf to become important source of international growth for Petrobras By 2013 production is expected to reach 130 thousand boed. US regulators approve Petrobras plans to bring first FPSO to the Gulf of Mexico 2005 2006 2013 Same technological concepts successfully applied in Brazil Petrobras America to invest $5 BN (60% E&P) 2008-2012 CASCADE AND CHINOOK • First FPSO Deployment • First Oil: 2009 • Hurricane factor: Run! 53
    • International – West Africa Start up / Production Peak: Operator of new Block OPL AGBAMI: 315 with stake of 45% - First oil: 2008 / Peak: 250,000 bpd in 2009 (total) AKPO: - First oil: 2008 / Peak: 175,000 bpd in 2009 (total) Petrobras stake: from 70,000 to 100,000 bpd 1,000m 2,000m 6 blocks (1 in production) Operator in prolific Block 18 with 30% stake 54
    • Main Projects: Biofuels US$ 1.5 billion Investments 4% 21% 29% 46% Biodiesel Pipelines and Ethanol Pipelines Others H-Bio 55
    • Corporate Targets – Biofuels Biodiesel Available Capacity 3 (thousand m /year) 2,500 2,705 3,000 2,000 2,500 2,000 1,500 1,254 1,500 1,000 844 1,000 1,182 500 938 500 329 0 0 2008 2012 2015 BP 2008-12 - Biodiesel Available Capacity (thousand m3/ year) Dopmestic Biodiesel M arket (thousand m3/ year) 56
    • Business Strategies Future Markets for biodiesel Law 11.097/2005 – established minimal percentage for biodiesel mix in diesel 2008 2005 to From 2013 to 2012 on 2007 (2% demanding) (5% demanding) (2% allowable) (5% allowable) Brazilian market Brazilian market Brazilian market 0 - 840 million litters 0,8 - 2,5 billion litters 2,5 billion litters 57
    • Bio-diesel production facilities 3 Projects Being Implemented Quixadá Capacity: 171 thou m3/year (~1 million bpy) CE Investments (2008-12): US$ 40 million (*) Inputs Family Agriculture: castor, cotton, and palm. Complementary: soy. BA Jobs Generation: Candeias Construction: 1,200 direct and 400 indirect Operation: 105 direct MG Montes Raw material production:70,000 families Claros Start up: 4 Q/2007 semi-arid region All Petrobras Biodiesel has Social Fuel Seal (*) Total Investment – US$ 158 million 58
    • Corporate Targets – Biofuels Ethanol Exports (Thousand m3) 5.000 4.750 4.000 y. p. 3.000 5% 45, 2.000 1.000 500 0 2008 2012 BP 2008-12 - Ethanol Exports (Thousand m3) 59
    • A New Opportunity for Business Ethanol global market – 46.5 Billions Liters North and Central Europe America 9.8% 37% Brazil 35% South America Asia 38% 16.2% • Today the ethanol consumption is 2.6% of gasoline MKT • 10% of ethanol in gasoline will represent 118 Billions Lt 60
    • Raw Material Comparison Energy Production / ha Quantity of out/ Energy RAW MATERIAL (kg) Ethanol/ ha in SUGAR CANE 85,000 7.080 liter 8,3 CORN 10,000 4.000 liter 1,3 - 1,8 Area Type (Land use in Brazil) (MMha) • Total country 851 • Native Amazon Forest 370 • Secondary Amazon Forest and Others 180 • Native Forests 6 • Pasture 197 • Temporary Crops 59 • Permanent Crops 7,6 • Available land 263 • Available land with low impact (*) 90 Source: FAO, 2002 and EMBRAPA (*) 61
    • Ethanol Logistic to Export Ethanol Export Petrobras target: 4.75 Million m3 in 2012 Marine Terminal Rio de Janeiro Marine Terminal São Paulo • Petrobras, Mitsui and Camargo Correa signed an Memorandum of Understanding (MOU) to study the economic viability of a pipeline for ethanol exports. • A pipeline network connecting the interior of the states of São Paulo and Goias to marine terminals in Rio and SP. 62
    • H-BIO - a complementary use of vegetable oil 2007 • H-BIO in 4 refineries (by year end)– using up to 256 thousand m3/year of vegetable oil • Equivalent to 15% of Diesel imports • REGAP pre-operation license (ANP). Definitive license in two months. 2008 • H-BIO in 3 more refineries • Using up to 425 thousand m3/year of vegetable oil • 15.1 % of total soy oil export • Equivalent to 25% of Diesel imports Main advantages: • No waste • Simple logistics • Improves diesel quality • Flexible vegetable oil source * Of total of Soybean oil exported, 2288 thousand m³ is crude oil, and 535 thousand m³ is refined oil ** Estimated volume of imported diesel in 2006 = 1.709 thousand m3 Sources: Abiove and Petrobras 63
    • 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 • Investment Grade: Baa1 (Moody’s), BBB- (S&P) and BBB- (Fitch) 9.5% 20.3% 10.9% 26.4% 31.2% 32.0% Foreign 46.4% 10.3% 39,7% 18.0% 9.9% 8.0% 7.7% 25.1% 23.1% Bovespa 20.7% 20.4% 28,1% 53.6% 61.6% 44.4% 40.6% 40.1% 39.9% Oct/1992 Jul/2000 After Aug/00 After Jul/01 Dec/2003 Sep/07 offering offering Governm ent (1) (%) Bovespa Brazil Bovespa Foreign ADRs Free Float 46,4 38,4 55,6 59,4 59,9 60,2 (1) Includes BNDES / BNDESPAR 64
    • Final Comments Vertical Integration Comparison Majors Average * 4,661 3,136 2,776 National Oil Companies Average ** 1,632 1,629 4,307 2011: Petrobras New Refinery will add 200 thous. bpd capacity 2,557 2010: Pasadena Refinery revamp concluded – processing 70 2,156 thous. bpd of heavy oil Product Sales (thous. bpd) 2,217 Refining (thous. bpd) 3,500 Production (thous. boed) Year 2012 * Majors: BP, Exxon, Total, Royal Dutch Shell, Chevron, Conoco and Repsol-YPF Source: PIW Intelligence, 2005 ** NOC: PEMEX, PDVSA, Saudi Amraco, KPC, Pertamina and Sonatrach 65
    • Results Announcement 3rd Quarter 2007 (Brazilian Corporate Law) 66
    • DOMESTIC OIL AND NGL PRODUCTION • Domestic Oil and NGL production slightly higher Δ = 0.45% 1,789 1,797 compared to the 2Q07; Thous. bpd • Expected growth lower than expected due primarily to scheduled stoppages and delays in the delivery of some production projects; 2Q07 3Q07 67
    • DOMESTIC OIL AND NGL PRODUCTION: MAIN PROJECTS IN 2006 AND 2007 FPSO - Capixaba P - 34 FPSO – Cidade do Rio de Janeiro P - 50 Golfinho Jubarte Espadarte Albacora Leste 100,000 bpd 60,000 bpd 100,000 bpd 180,000 bpd May 06 December 06 January 07 April 06 New Systems Δ +203 thous. bpd Existing Systems* 1,796 1,763 Δ -170 thous. bpd Δ +33 thous. bpd Jan-Sept 2006 Jan-Sept 2007 Unity 9M06 (thous. bpd) 9M07 (thous. bpd) Change P-50 (Albacora Leste) 31 148 117 FPSO-Capixaba (Golfinho) 20 38 18 P-34 (Jubarte) - 40 40 FPSO-Cidade do Rio de Janeiro (Espadarte) - 28 28 Total New Systems 203 * Natural decline and production stoppages 68
    • MAIN OIL PROJECTS IN DE ÓLEO PRINCIPAIS PROJETOS THE 4Q07 PARA O 4T07 Golfinho Module 2 • Capacity: 100 thous. bpd Roncador Module 2 • Capacity : 180 thous. bpd • Wells: • Wells : • 4 Producers •11 Producers • 3 Injectors • 6 Injectors • Moored platform • Platform is being moored at the Roncador Field • Fist Oil: Nov. 2007 • Fist Oil: Dec. 2007 • 2 wells in 2007 • 1 well in 2007 FPSO Cidade de Vitória • Production peak: 1H08 P-54 • Production peak: 2H08 Roncador Module 1A Fase 2 • Capacity: 180 thous. bpd • Wells: • 18 Producers • 11 Injectors • 2 gas lift manifolds • 1 self-supported rigid riser • Moored platform • First oil: Nov. 2007 P-52 • 2 wells in 2007 • Production peak: 2H08 69
    • MAIN OIL PROJECTS IN 2008 Marlim Sul Module 2 Marlim Leste • Capcity: 180 thous. bpd • Capacity : 180 mil bpd • Wells: • 10 Producers • Well: • 9 Injectors • 14 Producers • 7 Injectors • First Oil: Jun. 2008 • First Oil: Dec. 2008 P-51 P-53 Jabuti 11.1% 2,000 Thous. bpd • Capacity: 100 thous. bpd 1,800 • Wells : • 8 Producers • First Oil: Dec. 2008 FPSO Cidade de Niterói 2007E 2008E • New projects will add 460 thousand barrels/day of capacity; • These projects, along with those that will come online in the end of 2007, will contribute to reach the 2 million target in 2008. 70
    • MAIN GAS PROJECTS IN THE 4Q07 AND 2008 Peroá Fase 2 Installed Capacity Phase 1: • 3 million m3/d of gas • 3 producing wells in operation Additional capacity in Phase 2: • 5 million m3/d of gas • 3 new producing wells • Fist gas in Phase 2: Nov. 2007 Peroá Platform Camarupim • Capacity: 10 million m3/d of gas • Wells: • 3 producers • First gas: Dec. 2008 FPSO Cidade de São Mateus 71
    • REFINING IN BRAZIL AND SALES IN THE DOMESTIC MARKET Thous. bpd % 89 90 1,9 50 90 91 89 79 85 78 78 77 80 78 1,781 1,796 1,806 1,8 0 0 1,765 1,753 1,746 1,711 1,709 70 1,696 1,646 1,6 50 60 1,50 0 50 3 Q0 6 4 Q0 6 1Q0 7 2 Q0 7 3 Q0 7 D o mest i c o il p r o d uct s p r o d uct io n Oil p r o d uct s sales vo lume Pr imar y p r o cessed inst alled cap acit y - B r az il ( %) D o mest ic cr ud e o il as % o f t o t al • Strong increase in the sales volume as a result of economic growth and seasonability. However the increase in the domestic production was not enough to attend such demand, making it necessary to increase the import of oil products. 72
    • Downstream - Conversion Projects (Coking Units) Objective: • Increase production of light oil products instead of fuel oil. • Allow the processing of heavy oil from Campos Basin with no additional production of fuel oil. • Profitability increase. • New delayed coking projects will allow the additional production of 47 thousand barrels/day of REDUC diesel, while decreasing the fuel oil production by Status: Work in progress 61 thousand barrels/day. Startup: 2008 Increase in National Oil Processing due to coker projects (2008-2020 average) Capacity: 31.5 thous. bpd REVAP Project Increase Status: Work in progress REDUC – Coke 9,000 bbl/d Startup : 2009 REVAP – Coke 8,000 bbl/d Capacity : 31.5 thous. bpd REPAR - Coke 14,000 bbl/d REPAR Status : Work in progress Startup : 2010 Capacity: 31.5 thous. bpd 73
    • Results drivers - Margins 7 4 .9 WTI Cracking USGC 6 8 .8 $10.5 Aver. 3Q06 Aver. -41% Aver.3Q 30,00 5 9 .7 2Q07 07 5 7 .8 $11.8 6 4 .4 US$/barrel 25,00 $8.5/bbl $14.9/bbl $8.8/bbl 20,00 5 7 .0 4 8 .7 15,00 10,00 4 7 .8 5,00 0,00 Mar-06 Jun-06 Set-06 Dez-07 Mar-07 Jun-07 Set-07 4T06 1T07 2T07 3T07 Brent (average) Average Sales Price • Compared to the 2Q07, international refining margins declined substantially; • During 3Q07 there was a substantive increase in oil prices, improving E&P results. This increase, however, together with stability in oil product prices (in Reais), was responsible for the sharp decrease in refining margins. Source: Petrobras 74
    • AVERAGE REALIZATION PRICE - ARP 3Q06 2Q07 3Q07 100 Aver. Aver. Aver. 81.1 85.6 82.4 80 72.3 81.1 78.2 74.9 69.5 60 68.7 40 20 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 A R P B r asi l ( U S$/ b b l) A ver ag e B r ent Pr i ce ( U S$/ b b l ) A R P U SA ( U S$/ b b l w/ sales vo l. i n B r asi l ) • Petrobras continuously monitors international price trends in order to maintain its pricing aligned in the medium / long term. 75
    • INCOME STATEMENT 3Q07 VS 2Q07 2Q07 3Q07 44.469 6.4% Net Revenues 41.798 27.264 11.3% COGS 24.489 R$ million 13.061 -8.0% EBITDA 14.190 10.272 -10.9% Operational Profit 11.535 5.528 -18.7% Net Incom e 6.800 • Net Revenues increased compared to the previous quarter mainly due to higher sales volumes of oil products; • Costs negatively affected by higher expenditure with oil and oil products imports; • Operational and net results were impacted not only by the decrease of refining margins, but also by higher expenses (next slide). 76
    • OPERATIONAL EXPENSES ANALYSIS 3Q07 VS 2Q07 2Q07 3Q07 1,635 Sales Expenses 13.3% 1,443 General and 1,555 R$ million Administrative 1,498 3.8% 453 Exploratory Costs 391 15.9% Pension and Health 1,147 Plan 452 153.8% 1,404 Others 1,239 13.3% • Operational Expenses were particularly affected by the increase of expenditures with the Pension Plan (Petros). Such expenses (R$ 695 million) were due to commitments related to the Petros Agreement and are not recurrent; • The increase in sales expenses was a result of substantially higher sales volumes. 77
    • LIFTING COSTS INCLUDING GOVERNMENT PARTICIPATION 74.9 30 68.8 80 40 37.75 37.92 34.12 35.03 59.7 57.8 20.13 60 30 20 17.59 17.95 16.25 22.29 23.26 R$/barrel US$/barrel 18.92 20.58 40 12.48 10.35 10.62 20 9.04 10 20 10 7.24 7.20 7.33 7.65 15.46 15.20 14.45 14.66 0 0 4Q06 1Q07 2Q07 3Q07 0 4Q06 1Q07 2Q07 3Q07 Lifting Cost (US$) Gov. Take (US$) Brent Lifting Cost (R$) Gov. Take (R$) • Government take and lifting costs highly correlated to Brent prices 78
    • CHANGE IN QUARTER REVENUES (3Q07 VS 2Q07) Exploration & Production – Operating Profit Change– R$ million 1,789 Domestic Production of Oil, NGL and Condensate (thous. bpd) 1,797 986 637 420 1.527 44 11.436 10.024 2Q07 Oper. Profit Price Effect on Volume Effect on Avrg Cost Effect Volume Effect on Oper. Exp. 3Q07 Oper. Profit Net Revenue Net Revenue on COGS COGS • Better E&P result is due to higher oil prices and slightly higher production. 79
    • CHANGE IN QUARTER REVENUES (3Q07 VS 2Q07) Downstream – Change in Operating Profit – R$ million 916 1.936 338 3.358 776 7 1.893 2Q07 Oper. Price Effect on Volume Effect Avrg Cost Volume Effect Oper. Exp. 3Q07 Oper. Profit Net Revenue on Net Effect on on COGS Profit Revenue COGS • Despite the increase in sales volume, the Downstream result was directly affected by lower refining margins. There was a strong increase in acquisition prices for oil and oil products and imported volumes, with stable ARP in Reais. 80
    • NET INCOME CHANGE – R$ million (3Q07 VS 2Q07) 1,789 Domestic Oil, NGL and Condensate – thousand bpd 1,797 2,671 2,775 6,800 1,159 184 389 214 5,528 2Q07 Net Revenues COGS Oper. Exp. Fin. Exp and Taxes Minority Inter. 3Q07 Net Income Non Oper. and Particip. in Income Equity Income • Despite the elevated operating revenues in the quarter, which increased due to economic growth and seasonality, the high costs of the downstream segment led to lower refining margins, which, together with the increase of expenditures with the pension plan Petros, resulted in a net income below the previous quarter. 81
    • INVESTMENTS R$ million Jan-Sep 2007 % 2006 % % • Direct Investments 26,060 87 20,264 90 29 Exploration and Production 14,295 48 11,404 51 25 Downstream 4,607 15 2,800 13 65 Gas and Energy 1,057 4 1,203 5 (12) International 4,867 16 3,923 17 24 Distribution 702 2 477 2 47 Corporate 532 2 457 2 16 • Special Purpose Companies (SPC) 4,205 14 2,072 9 103 • Ventures under Negotiation 341 1 300 1 14 • Structured Projects - - 1 - - Exploration and Production - - 1 - (100) Total Investments 30,606 100 22,637 100 35 • By 09.30.2007, total capital spending reached R$ 30,606 million, representing an increase of 35% over the year to date amount for the similar period in 2006. 82
    • LEVERAGE Petrobras’ Leverage Ratio 24% R$ million 09/30/2007 06/30/2007 (1) Short Term debt 10,519 10,720 (1) 20% 19% Long Term Debt 28,230 29,100 18% 18% 17% 16% 17% Total Debt 38,749 39,820 Cash and Cash Equivalents 14,216 17,854 (2) Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Net Debt 24,533 21,966 Net Debt/Net Capitalization • 12% increase in net debt during the quarter as a consequence of the reduction of cash/cash equivalents in long term bonds (R$2,909 million), to counterbalance the liabilities with Petros. (1) Includes debt from leasing contracts (R$ 1.632 million on September 30, 2007 and R$ 1,980 million on June 30, 2007) (2) Total debt less cash and cash equivalents 83
    • SHAREHOLDER’S RETURN 120% Total Shareholder's Return 111.5% 15.8% 100% 91.5% 85.2% 5.8% 80% 6.0% 60% 79.2% 50.5% 95.7% 85.7% 43.6% 6.0% 40% 7.5% 44.5% 39.5% 30.2% 31.5% 20% 28.0% 36.1% 22.8% 0% 2003 2004 2005 2006 9M 07 Shares Increase Dividends Amex Oil Index (*) Source: Bloomberg (PBR) * includes dividends for comparison 84
    • QUESTION AND ANSWER SESSION Visit our website: www.petrobras.com.br/ri For more information contact: Petróleo Brasileiro S.A – PETROBRAS Investor Relations Department E-mail: petroinvest@petrobras.com.br Av. República do Chile, 65 – 22o floor 20031-912 – Rio de Janeiro, RJ (55-21) 3224-1510 / 3224-9947 85