1. Bank of America Merrill Lynch
2009 Energy Conference
November, 2009
Pre-Salt Reservoir
Hugo Repsold Junior
E&P Strategy and Portfolio Management
1

2. DISCLAIMER
The presentation may contain forecasts CAUTIONARY STATEMENT
about future events. Such forecasts merely FOR US INVESTORS
reflect the expectations of the Company's
management. Such terms as "anticipate", The United States Securities and Exchange
"believe", "expect", "forecast", "intend", Commission permits oil and gas companies,
"plan", "project", "seek", "should", along with in their filings with the SEC, to disclose only
similar or analogous expressions, are used proved reserves that a company has
to identify such forecasts. These predictions demonstrated by actual production or
evidently involve risks and uncertainties,
whether foreseen or not by the Company. conclusive formation tests to be
Therefore, the future results of operations economically and legally producible under
may differ from current expectations, and existing economic and operating conditions.
readers must not base their expectations We use certain terms in this
exclusively on the information presented presentation, such as oil and gas
herein. The Company is not obliged to resources, that the SEC’s guidelines
update the presentation/such forecasts strictly prohibit us from including in
in light of new information or future filings with the SEC.
developments.
2

3. PETROBRAS E&P OVERVIEW
VALUE CREATION THROUGH EXPLORATION
DELIVERING ACTUAL GROWTH
CLOSING REMARKS
3

4. PETROBRAS E&P OVERVIEW
4

5. OVERVIEW OF DOMESTIC E&P
Reserves (at December 31, 2008)
Proven reserves of 14.09 billion boe
(SPE) or 10.27 billion boe (SEC)
Reserve life of 18.9 years (SPE) and
13.8 (SEC)
Internal Reserve Replacement of 123%
(SPE) and 27% (SEC)
Production (2008)
2,176 thousand boed (1,855 thousand
bpd oil)
5-year CAGR of 5.6% (5.9% oil)
F&D Cost
US$ 10.63/boe (2006 – 2008)
Lifting Cost
US$ 9.26/boe (2008)
Exploratory Area (2008)
155.0 thousand km² (Petrobras +
Partners)
256 thousand km² (Other Companies)
Total: 411 thousand km².
5

6. PETROBRAS’ OVERVIEW
UPSTREAM EFFECTIVE STRATEGY 2009-2013
Discover and develop
resources in Brazil and
internationally, maintaining
a reserves-to-production
ratio of 15 years
Develop an integrated Delineate and develop
global natural gas network the pre-salt cluster and
to supply Petrobras’ new oil provinces in
markets Southeast Brazil
Apply innovative
Increase production in
deepwater expertise in
Brazil and abroad,
new high-potential
optimizing the use of
frontier provinces in Brazil
existing infrastructure
and abroad
6

7. DOMESTIC E&P PROFILE
2008 Production 2008 Proven Reserves (SPE)
15% 9% 10%
14% 13% 23%
58% 58%
2,176 thousand boed 14.09 billion boe
Onshore Shallow water (0-300m) Deep water (300-1500m) Ultra-deep water (> 1500m)
Current Exploratory Area
155 thousand km2 40% 51% of the concession areas are
37%
located in deep / ultra-deep waters.
14% 9%
7 Source: Petrobras

8. DOMESTIC PROVEN RESERVES PROFILE
Proven Reserves as of Dec/2008 (SPE)
(14.09 billion boe)
Oil + Condensate
< 22º API
22º 85%
(heavy)
22 – 31 º API 10% 5%
50% (intermediate)
29%
15% 6% Associated Gas
Non-Associated Gas
Gas > 31 º API (light)
45%
Undeveloped 55%
Proven Reserves
Developed
Proven Reserves
8 Source: Petrobras

9. VALUE CREATION THROUGH EXPLORATION
EXPLORATORY APPROACH AND RESULTS
• High Exploratory Success Index
• Worldwide Leadership in Deepwater Exploration
• High Reserves Incorporation Rates and Potential
• Continuous New Exploratory Frontiers Opening
Accurate Exploratory Risk Assessment
Efficient Knowledge Management Long Term Strategic Vision
Creativity and Risk Assumption Culture
9

10. Value creation through exploration
Consistently delivering reserve growth
16.000 14,895 14,913 15,023 15,010 15,085
14,505
14.000
12,131
12.000 10,650
10,365
10.000
14.230
8.000
14.127
14.181
14.100
13.807
11.426
6.000
10.095
10.024
9.807
9.554
4.000
2.000
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Reserves
Replacement Index 150% 151% 337% 437% 156% 102% 114% 98% 109% 124%
124%
Proved reserves in billions of boe (barrels of equivalent oil)
10

11. ENHANCING RESERVES
Santos Pre-Salt announced recoverable volumes including the
transfer of rights, can more than double Brazilian reserves.
million boe ~ 30-35 bn boe
35,000
+5,000
30,000
Higher estimates
25,000 +5,400
20,000 Lower estimates
10,600
15,000
10,000
5,000
14,093
0
2008 Proven Santos and Campos Basins Transfer of Proven Reserves*
Reserves* Pre-Salt Rights with +
(Tupi, Iara, Guará and Whale’s Compensation Santos and Campos Basins
Park)** Pre-Salt
(Tupi, Iara, Guará and Whale’s Park)**
*SPE Criteria +
Transfer of Right
** include Petrobras and Partners
11

12. PURSUING NEW PROJECTS WHILE MAXIMIZING
PRODUCTION FROM EXISTING ASSETS
Petrobras Total Production (x 1000 boe/d) 5,729
223
7.5% p.y. 409
1.177
3,655
5.6% p.y. 8.8% p.y. 131
2,758 210
634
2,400 103
2,217 2,297 2,301
142
1,810 2,037 2,020 101 110 100
1,635 96 124 463
22 85 94 142 126
24 35 163 277 273 321
161 168 274 3.920
44
252 251 265
232 2.680
1.855 2.050*
1.684 1.778 1.792
1.500 1.540
1.493
1.335
2001 2002 2003 2004 2005 2006 2007 2008 2009 ..... 2013 ..... 2020
Oil production - Brazil Gas production - Brazil Oil production - International Gas production - International
* Consider +- 2,5%
12

13. NEW PRODUCTION UNITS
Project Start up Type Oil and Gas Capacity Shipyard Leased
Uruguá-Tambaú 25,000 bpd
1Q/10 FPSO Modec
Cidade de Santos 10.0 MM m3/d
Mexilhão 2Q/10 Fix 15 MM m3/d Mauá Jurong
Cachalote/Baleia Franca 100,000 bpd
2Q/10 FPSO SBM
FPSO Capixaba 3.2 MM m3/d
Tupi Pilot 100,000 bpd
4Q/10 FPSO Cosco (China) Modec
Cidade de Angra dos Reis 5.0 MM m3/d
Marlim Sul Mod. 3 - P-56 (P- 100,000 bpd Brasfels-Keppel
2H/11 SS
51 Clone) 6.0 MM m3/d Angra
180,000 bpd
Jubarte Mod. 2 - P-57 2H/11 FPSO SBM Cingapura
2.0 MM m3/d
100,000 bpd
Papa Terra - P-61 2H/13 TLWP Bid in progress
1.0 MM m3/d
150,000 bpd
Papa Terra - P-63 2H/13 FPSO Bid in progress
1.0 MM m3/d
120,000 bpd
Guará Pilot 2H/13 FPSO Bid in progress
5.0 MM m3/d
Atlântico Sul
180,000 bpd
Roncador Mod 3 - P-55 2H/13 SS (Suape) and Rio
6.0 MM m3/d
Grande
13

14. MANAGING LIFTING COSTS
R$/barrel US$/barrel
121.37
114.78
51.14 54.40 54.91 58.79
41.48 38.86 44.40
34.80 36,.9 34.24
22.39 16.33 21.28 31.08 30.27
21.20 20.06 18.11 14.69 19.50
16.34 17.61 19.09 17.91 17.58 9.87 6,87 10.78
9.88 10.21 8.24 7,82 8.72
2Q08 3Q08 4Q08 1Q09 2Q09 2Q08 3Q08 4Q08 1Q09 2Q09
Lifting Cost Gov. Take Lifting Cost Gov. Take Brent
• In the 2Q09, the increase in oil prices and the strengthening of the Real caused an
increase in lifting costs in US. Dollars;
• Reflecting the influence of the exchange rate, lifting costs were flat when expressed in
Reais.
14

15. THE PRE-SALT REGION
The big blue area represents the expected Pre-salt location, with great potential for oil
presence
Currently, there is a production acceleration program in Jubarte (Whales’ Park) and an
extended well test in Tupi (Santos Basin)
• Total Area: 149,000 km2
• Area Under Concession: 41,772 km2 (28%)
• Area Not Under Concession: 107,228 km² (72%)
• Area With Petrobras Interest: 35,739 km2 (24%)
15

16. PRE-SALT ACCOMPLISHMENTS TIMELINE
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
2000-2001: BIDs 2 and 3:
Acquisition of Santos Basin Pre-
Salt blocks 11 exploratory wells drilled to
date by Petrobras as operator:
100% success rate in Santos
2001-2004: Largest seismic
Basin Pre-Salt Cluster
acquisition and interpretation in the
world
2005-2006: 1st wildcat well: Parati
2009: Santos Basin Pre-Salt First
Oil: Tupi EWT (May 1st)
16

17. PRE-SALT ACCOMPLISHMENTS TIMELINE
2008 2009 2010 2011 2012 2013 2014 2015 2016
Phase 0:Information gathering, appraisal
wells, small scale production (EWTs)
Last Updates 2009:
• 5 Rigs currently working in the cluster:
• 3 are drilling new wells –TUPI NORDESTE +
TUPI SUL P1 wells for EWT/Pilot in BMS-11 +
ABARÉ OESTE in BMS-9;
• 2 are doing Formation Tests – IARA and GUARÁ;
• 2 new rigs will be allocated to the pre salt cluster
shortly.
17

18. 10 NEW FPSOS
2012 2013 Phase 1A 2017 2020
…
Phase 1B
Phase 1A - Projects
Phase 1a: 1st phase of definitive development,
Phase 1B - Projects
• Use of consolidated or rapidly-consolidating
technologies to achieve production targets • 2nd phase of definitive development
• Generate cash-flow to support Phase 1b
• Significant production increase
First 2 FPSOs to be chartered (2013-2014)
• Oil Production: 120,000 bpd • Innovation acceleration
• Gas Compression: 5 M m³/d
Additional 8 FPSOs (2015-2016) • Massive use of new technologies specially
• Construction of the hulls at the Rio Grande
tailored for Pre-Salt conditions
Shipyard
• All identical units, serial manufacturing
• Process plant under study:
− Oil Production: 150,000 bpd
− Gas Compression: 5.5 M m³/d
− Water-Alternating-Gas injection
capability
18

19. WELLS DRILLED AND TESTED IN SANTOS
BASIN PRE SALT CLUSTER BLOCKS
BLOCK PROSPECTS WELL TESTED/
BMS-8 TESTING
BEM-TE-VI SPS-52 X
BMS-9
CARIOCA SPS-50 X
GUARÁ SPS-55 X
IGUAÇU SPS-60
ABARÉ OESTE SPS-66 *
BMS-10
PARATI RJS-617 X
BMS11
TUPI RJS-628 X
TUPI RJS-646 X
IRACEMA RJS-647
IARA RJS-656 X
TUPI P1 RJS-660 *
TUPI NE RJS-662 *
BMS21
CARAMBA SPS-51
BMS-22
ESSO-2
ESSO-3
BMS-24
JUPITER RJS-652
19 * on drilling

20. DEADLINE FOR DECLARING COMMERCIALITY
2010 2011 2012 2013 …
Bem-Te-Vi
(09/08/2010) firm
activities
(31/12/2012)
contingent
activities
Tupi Parati
(31/12/2010) (31/05/2011)
Carioca
(11/11/2011)
Guará
(11/11/2012)
Caramba
(31/12/2012)
Iara
(31/12/2013)
20

21. ESPÍRITO SANTO PRE SALT
o
nt UTG Cacimbas Infrastructure in-place: diversified and flexible portfolio;
Sa
Linhares
Rio Doce Cangoá
MG Peroá P-34 at Jubarte field, first pre-salt production (Sep/08):
ito
UPGN Lagoa Parda
excellent results/light oil (30ºAPI);
pír
24” – 66 km
Aracruz 25 MM m3/d
Es
Terminal Barra do Riacho
Camarupim
FPSO Seillean started in dec/08 an extended well test
Canapu
for the Cachalote (CHT) field;
Golfinho
VITÓRIA
2 wells were reallocated from FPSO Capixaba to
Carapó
Vila Velha FPSO Cidade de Vitória;
UTG Sul Capixaba
Sul-Norte Capixaba
Gas pipeline
Developing new discoveries in the Ring Fence of
Guarapari Sul Capixaba
Gas pipeline 12 a 24” – 160 km
12” – 83 km 7 a 15 MM m3/d Golfinho using FPSO Cidade de Vitória;
Anchieta 4,5 MM m3/d
Presidente Marataizes
FPSO Capixaba (100 Mb/d) moved from Golfinho field
Kennedy
ARG
CHT Baleia Franca and is being adapted to produce in Cachalote
JUB OST
RJ Baleia Azul
NAU (CHT)/Baleia Franca (BFR) in 1H10;
ABA
CXR
PRB
Baleia Azul first definitive production unit by 4Q12;
Catuá
Natural gas production transported via pipeline.
Whales Park*
21 *Whales Park comprehends the fields: Jubarte, Cachalote, Baleia Franca, Baleia Azul and Baleia Anã

22. Delivering actual growth
People as the main foundation of our results
No Employees Petrobras University
* Novas Contratações
22

23. NEW REGULATORY MODEL
Production Transfer
Sharing of Rights with
Agreement compensation
Pre-salt
Petrobras 100% and
Petrobras Operator
Strategic
Other companies
Areas
Up to 5 billion boe
Trough Bidding
Process
Other Areas Current
Concession Model
There will be no regulatory changes in the areas under concession, including
the pre-salt area already granted
23

24. PRODUCTION SHARING AGREEMENTS
Production sharing agreements
Petrobras will operate all blocks under this regime, with a minimum stake of 30%
Consortium between Petrobras, Petro-sal and the winning bidder will be managed by the
Operational Committee
Petrobras will be able to participate in the bidding process to increase its stake
The winning bidder will be the
Companies company that offers the highest
percentage of “profit oil” for the
Profit Brazilian Government
Oil Petrobras will have to follow
Government the same percentage offered
by the winning bidder
The Brazilian Government will not
assume the risks of the activities,
Cost except when it decides to invest
Oil directly
Prior to contracting, the Government
will evaluate the potential of the areas
and may contract Petrobras directly
24 Graphs are showing only hypothetical values

25. OPERATOR’S ROLE AND INDUSTRY PRACTICES
OPERATOR
Responsible for conducting exploration and production activities providing critical
resources: technology (usage and development), human resources and
equipments
Access to strategic information
Production and costs control
Technological access and development
PETROBRAS: defined as the exclusive operator of all areas under the
production sharing agreements
25

26. AGENT’S ROLE OF PRODUCTION SHARING AGREEMENTS
NATIONAL ENERGY POLICY COUNCIL - CNPE
Bidding schedule and national content
Blocks for exclusive contracts and blocks for bidding
Technical and economical parameters of the contracts
Definition changes (increase) for the areas called pre-salt
Areas to be classified as strategic
National Petroleum Agency - ANP
Promote bids, regulate and supervise
Analyze and approve production sharing agreements
Approve the contracts of Unitization
Adapt and standardize the applicable rules under different regimes
Advising Ministry of Mines and Energy in blocks ring fences delimitation
PETRO-SAL
Will reduce information asymmetry between the Brazilian Government and oil companies, aiming to
reduce cost oil
Will not assume risks nor invest
Contract management of production sharing agreements
Will not execute E&P activities
26

27. E&P TRANSFER OF RIGHTS WITH COMPENSATION
Government may transfer to Petrobras, for compensation, without bidding, the
rights to explore and produce oil in the pre-salt areas not under concession.
These areas may or may not be contiguous
Transfer of rights limited to a maximum produced of 5 billion boe. Petrobras
will be the owner of produced volumes
Oil values shall be determined by technical reports prepared by qualified
third parties contracted by the government (ANP) and Petrobras, taking
into account best industry practices
The transaction includes a clause of reappraisal of reserves value
If the value of appraisal rises, Petrobras will pay the difference to the
Government. If price falls, the contrary will happen
Royalties will be paid by Petrobras and distributed according to the Law nº
9.478/97. No special participation payment is expected
27

28. PETROBRAS’ CAPITALIZATION
The value of capitalization could be:
• Minimum: the same value of the transfer of rights with compensation
• Maximum: up to 3 times this value
Petrobras will receive
cash from minority
Petrobras’ increase shareholders
in capital
Petrobras will pay the
(to be approved by transfer of rights with
Appraisal of the ESM) compensation to the
reserves in R$ federal govt
• Brazilian Government could pay the capital contribution to Petrobras with
public debt issuances, priced at market value
• Petrobras may pay the Brazilian Government the transfer of rights with
compensation, using the same securities arising from the capitalization
28 Graphs are showing only hypothetical values

29. Thank You.
29