Brazil is emerging as a new hotspot for oil production. Petrobras has discovered large pre-salt oilfields offshore Brazil and has ambitious plans to increase production. Production is expected to grow from 2.9 million barrels per day in 2010 to over 5 million barrels per day by 2020, making Brazil one of the largest producers. Petrobras has a fully integrated value chain in Brazil and is focusing on developing local suppliers and technology to support its growth plans. The discoveries are expected to boost the Brazilian economy and make the country less reliant on imported oil.

1. BRAZIL AS THE NEW HOTSPOT
José Sergio Gabrielli de Azevedo
1
Petrobras CEO
May 25th, 2011

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

3. GROWING PRODUCTION FULLY SUPPORTED BY
DISCOVERIES
Petrobras Total Production (000 b/d)
4.5% p.y.
5,382
7.6% CAGR
3,907 2 00
12 3
2,583 12 8 1. 10 9
1,809 2,217 10 1 176
623
22 96
14 4
35 16 3 334
252 274
2,980 3,950
1,50 0 1, 6 8 4 2 ,0 0 4 241 1,078
Pre‐Salt
2002 2005 2010 ... 2014 ... 2020
Oil Production - Brazil Gas Production - Brazil Oil Production - International Gas Production - International
Petrobras Total Reserves (bln boe) ‐ SPE Criteria
5,000
Higher
• 18th consecutive years of fully replacing Estimates
the production (229% in 2010) 9,600
• R/P ratio 18.4 years (SPE Criteria) Lower estimates
8,100 29,000‐31,000
14,913 15,986
12,131
Proven Reserves 2002 Proven Reserves 2005 Proven Reserves 2010 Potential Recoverable (Lula, Transfer of Rights Total Resource Base
Cernambi, Iara, Guará and
Whales Park)
3

4. BRAZIL AS A LARGE AND GROWING EMERGING MARKET
2009 Total Oil Consumption by Country (mmbo/d)
Above 3mmbo/d Between 2‐3 mmbo/d
18.7
10
9
8
7
6
5
Brazil is world’s tenth‐largest oil
4 8,63 0,09
0,07
0,99 0,67
consumer.
3 0,03
2 4,40 0,42
3,02 2,47 3,18 2,70 2,61 2,42
1 1,93 2,33 2,20 1,94 1,83 1,74 1,61 1,58
‐
Saudi Arabia
South Korea
United Kingdom
Russian Federation
Brazil 2020
Brazil 2014
Brazil 2009
China
India
Canada
Italy
US
Germany
Japan
Mexico
Iran
France
* * *
Hydrated Ethanol Oil Products (Includes blend of Ethanol and Biodiesel)
Biodiesel Note: Brazil is the only country in the world that uses Hydrated Ethanol as a substitute of gasoline
Total Oil Consumption mb/d (index)
130
125
Brazil oil consumption growing at 120 Brazil
2.38% p.y.; 115 US
OECD oil consumption growing at ‐ 110
OECD
0.04% p.y. 105
World
100
95
1999 2001 2003 2005 2007 2009
Source: BP Statistical Review 2010, PFC Energy
Note: * Petrobras Estimates for 2014 and 2020 ** Petrobras figures for 2009 44

5. MORE OIL FROM FEWER PRODUCERS
IEA World Energy Outlook 2010 5

6. MAIN FLOWS - LONG COURSE (OIL and OIL PRODUCTS)
Europe
USA Africa – Med.
India
Caribbean
AG
F Far East
WA
Chile
Argentina
WAF: West Africa (Nigeria) Import
AG: Persian Gulf (Saudi Arabia and Iraq) Export
Far East: (Singapore and China)
International trades
Caribe : Saint Lucia and Dutch West Indies Source: Petrobras 2010
6

7. MAIN FLOWS ‐ COASTAL NAVIGATION
Manaus Vila do Conde Belém
Coari Fortaleza
São Luis
Suape
Salvador
Aratu
Rio de Janeiro Macaé
Angra dos Reis
São Sebastião B.Campos
Santos
Paranaguá
Petroleum São Francisco do Sul
Clean and dirty Porto Alegre
products
LPG
Source: Petrobras 2010 7

8. OILFIELDS DISCOVERED/DEFINED IN 1984-2009
IN THE SOUTHEASTERN OFFSHORE BASINS
8

9. INTEGRATED VALUE CHAIN
Business Plan 2010‐2014
US$ 224.1 Bn Opportunities:
2%1%2%1% Economic Growth
8% Internacional Geopolitical stability
E&P 5%
RTM Hydrocarbon potential
G&P
Biofuels
Petroquímica
Challenges:
Marketing 53%
Critical resources (goods and
Biofuels 33%
Corporative Brasil
services, human resources)
95%
Financing
Energy Integration
Our main lines: Key Statistics and market position (2010)
Exploration and RTM (incl.
Retail Gas and Power International Biofuels
Production Petrochemicals)
• 15.3 Bn boe of • 12 refineries • 7,306 service • 14,246 km of • 25 countries • 3 new biodiesel
1P(SPE) stations pipelines • 0.7 Bn boe of 1P(SPE) plants
• 2.0 mm bbl/d • 245 mil boed of
• 2.3 mm boed •38.8% market share •Participation in 20 of • Ethanol: new
refining capacity production
production 27 discos of gas in markets
• 11.2 mm t/y Brazil • 281 mil bbl/d refining
•98.5% of Brazilian • Responsible for
capacity
production nominal • 5,944 MW of 10% of Brazilian
petrochemical Electricity Generation •Petrochemical, Gas ethanol exports.
• 20% of deepwater
capacity2) and Power activities
production capacity
9

10. LONG HISTORY OF TECHNOLOGICAL AND OPERATIONAL
LEADERSHIP IN DEEPWATER
1977
Enchova
410ft 1988
125m Marimbá
1,610ft
491m
1994
Marlim
3,370ft 1997 2009
1,027m Marlim Sul 2003 Lula
5,600ft Roncador 7,125ft
1,707m 6,180ft 2,172m
1,884m
Deepwater Production Offshore Production Facilities
2009 Gross Global Operated¹
Petrobras 45
Anadarko Other Shell 15
3% 10% PBR
StatoilHydro 15
20%
BG ExxonMobil 13
4%
BP 12
Total Chevron 12
7%
Anadarko 10
ExxonMobil Total 9
Chevron
13%
7% CNOOC 8
ConocoPhillips 8
ENI/Agip 5
Statoil
Shell Others 100
12%
12%
BP
0 20 40 60 80 100
12%
FPSO Semi Spar TLP Other
Petrobras operates 20% of global deepwater production
Source: PFC Energy
Note: (1) These 15 operators account for 98% of global deepwater production in 2009. Minimum water depth is 1,000 feet (about 300 meters) 10

11. PRE-SALT SUPERGIANTS DISCOVERIES:
LOGISTICAL SYNERGIES
Logistical Synergies:
Pre‐salt giant oil fields discovered close Logistical Synergies:
Logistical Synergies
to the market Analogy with the U.S.
Source of the base map: Google 11

12. PRE-SALT SUSTAINABILITY
Ex: Commitment to give Local
content
environmental friendly destination
to the carbon dioxide produced
More equipment
from Pre‐Salt reservoirs, ... Expanded
availability
supply capacity
Increased
flexibility New suppliers
Environmental
Lower prices
Financial Ex:
• Lula Pilot breakeven in the US$ 35‐
45/bbl oil price range.
• Consortia sanctioned procurement
of 13 FPSOs
Social
Strengthen Brazilian Create jobs and Reinforce internal
economy income market
12

13. STRATEGIC SUBJECTS
CHALLENGE
The local content is part
Maximize
of National Petroleum
Local Agency evaluation
Content
Strategic Subjects
Qualification Industrial Policy Industry Performance
Technological Industrial
Financing Regulation Sustainability Competitiveness
Qualification Capacity
Safety,
Professional Foster micro and
Tax Policy Environment
Qualification small companies
and Health
Prominp Projects Portfolio
E&P MT Downstream GP&Pipelines O&G IND Environment Technology
13

14. PRODUCTIVE DEVELOPMENT POLICY
Phase I Phase II Phase III
Increasing Supply Chain
Technological
Demanding Stimulation
• Industry • Productive • Professional
Reactivation chain Qualification
consolidation
• Shipyard • Research and
Consolidation Technological
Development
• Supply network
establishment
International
Local Content > Local Content competitive level
14

15. STRATEGIC VIEW OF NAVAL SUPPLY CHAIN: DEVELOPMENT AND SUSTAINABILITY
Industry Consolidation
Fund for Vessels
Fiscal stimulus Construction
Offshore Naval
packages in the (FGCN ‐ Fundo
Industry
supply chain for Garantidor da Competitiveness
naval industry Construção
Naval)
Legal Outline Technological Outline
o Decree nº 6.704/2009: Federal Excise Tax
(Imposto sobre Productos Industrializados—IPI)
suspension for goods to naval industry
Cias
o Law nº. 11774/2008: PIS/PASEP e COFINS Ricino – Rede de
percentage reduction to zero on equipments Inovação para Research Institutes
destined to naval construction. Competitividade
da Indústria
o Fund for Vessels Construction ‐ Law nº. Naval e Off‐Shore
11.786/2008, with recourses of R$ 5 billon.
Government
15

16. SHIPYARD PROFILE INDUSTRY
National Shipyards ‐> 269 projects under construction
• Including:
• * 14 Production Platforms
• 2 Jack‐ups
• 26 PROMEF 1
• 23 PROMEF 2
• 39 ships regarding EBN1 and EBN2
* P-55; P-56 ;P-58 P-61 ;P-62; P-63; P-66; P-67; P-68; P-69; P-70; P-71; P-72; P-73
Source: Sinaval 2010 and Petrobras
180
80 Brazilian shipbuilding capacity
70 Rio de Janeiro Rio Grande do Sul Pará
Steel (thousand tons / year)
São Paulo Pernanbuco
60
Santa Catarina Ceará
50
40
30
20
10
0
En Rio els
Br Eisa
S ss D
At Gr jaí
Ri It B
ag e
X á
en e
it
pe ça
Ac M ú
D e ip
Al sil
a
M e
vi s
nt de
W ure el
, l
ri
ul
on Oi
S T au
NA Son
M c
TW
M ão ind
i‐R av
es
Ca SR
av
tro
ua
o Ina
Sh
La igu
a
Su ian
o a
S
F
lâ an
ils n
av N
Br
rp
as
ico
Ri
Source: Sinaval Source: Sinaval - April 2010 16

17. SHIPPING EVOLUTION
167.6 169.1
157.6
146.7
127.4 132.8 7,657 7,808
Million of tons 123.3 7,441
7,050
175 178
5,823
Numbers 5,411
5,267 148
130
Number of ships 110 110 116
13.5 14.6
11.5
10.1
Million of tons 8.1 8 8.4
2003 2004 2005 2006 2007 2008 2009
Average Fleet Size DWT (average contracted) Stopovers Cargo shipped
Source: Petrobras (AB‐LO/TM/IETM) 17

18. BRAZILIAN SHIPBUILDING INDUSTRY IN NUMBERS
60000 Direct Labor 5 6 112
50000 46661
42000
40000
40000 30 x
30000
19 0 0 0
20000 14 0 0 0
12 5 0 0
6500 7500
10000 4900
19 0 0
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010*
Source: Sinaval
MMF** disbursements in R$ billion
3
2.6
2,5
2
2 x 2
1,5 1.3
1.1
1
0.7 0.7
0.6
0.5
0,5 0.3 0.3
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010*
Source: Sinaval
*Position in Oct/2010 **Merchant Maritime Fund 18

19. LOCAL CONTENT
LOCAL CONTENT
Platforms Procurement
Under Construction:
P‐55: Estaleiro Atlântico Sul – PE (hull) /QUIP‐ RS (modules)
Recently built platform:
P‐57: BrasFels – RJ
Capacity: 180 thous. boe/day
Value: US$ 1.2 billion
Delivered two months ahead of schedule
Under Construction:
P‐56 and P‐61: Brasfels (RJ)
P‐62: Jurong (ES)
FPSO Cidade de Paraty: Brasfels (RJ)
FPSO Cidade de São Paulo: Brasfels (RJ)
Under Construction:
P‐63: QUIP (RS)
8 FPSOs (Pre‐salt ‐ P‐66; P‐67; P‐68; P‐69; P‐70; P‐71; P‐72; P‐73 ): Ecovix – Rio Grande (RS)
P‐58: Estaleiro Rio Grande –RS , UTC Engenharia S/A – RJ e EBE – RJ.
o P‐57 was delivered in 32 months, two months ahead of schedule and under competitive costs as compared
to international prices. Reduction in construction time and cost;
o 2 Jack‐ups under construction (P‐59 and P‐60) in São Roque (BA)
o Inclusion of 900 new suppliers per year in Petrobras' Corporate Vendor List;
o 13 new shipyards currently under construction, raising the total number to 50*;
o Index of local content rose from 57% in 2003 to 74% in 2010.
*Source: Sinaval – Executive Summary ‐2011, Jan. 19

20. NEW VESSELS AND PURCHASE OF NEW EQUIPMENTS
Petrobras critical resources demand will drive Brazilian and international industry
Delivery Plan (to be contracted)
Current Situation Accumulated Value
Critical Resources (Dec/10)
By 2013 By 2015 By 2020
Drilling Rigs Water Depth Above 2.000 m 15 34 32 (1) 53 (2)
Supply and Special Vessel 287 423 479 568
Production Platforms SS e FPSO 44 53 63 84
Others (Jacket and TLWP) 79 81 83 85
Production
Supply Vessel Drilling Rigs
Platform (FPSO)
26 RIGS CONTRACTED, 28 MORE TO BE BUILT BY 2020:
o Until 2013: 13 rigs contracted before 2008 and 1 rig relocated from international operations (1);
+12 new rigs contracted in 2008 , through international bidding;
o 2013-2020: Bidding process in progress, to contract 28 rigs to be built in Brazil. EAS won the
bid for the first package – building and freighting 7 rigs in Brazil.
(1) The rig reallocated from international operations, expire in 2015, so it is not considered in
the 2020 accumulated value.
(2) The long term demand (2020) will be adjusted according new evaluation for demand. 20

21. SUPPLY AND SPECIAL VESSEL (DEC, 2010)
Fleet in Operation = 287 vessels Ships Procurement (NEW BUILDING)
Type of Ship Qtd
• 146 ships until 2017 (AHTS, PSV, OSRV)
AHTS • 40 already bidden
66
Anchor Handling Tug Sypply • 60 ships until 2014 (UT, LH, P)
• 31 already bidden
TS
1
Tug Supply
OSRV
16
Oil Recovery
LH
23
Line Handling
PSV
112
Platform Supply Vessel
SV
6
Supply Vessel
UT / P
Fast SupplyVessel 36
RSV / DSV/
SESV/PLSV/OCV/WSSV 27
(SPECIAL VESSELS)
21

22. DRILLING RIGS
o Approval for procurement/charter of the first round of 7 rigs to be
constructed in Brazil:
o Deliveries beginning in 2015
o Local content specification of 65%
Petrobras fleet (units operating by year)
12 o 14 rigs scheduled for 2011: 12 to
operate in a water depth equal or
greater than 2.000 m, with the fleet
16 totaling 60 units;
o Bidding process for 28 units still
6 under way;
o 7 rigs to start‐up in 2012
11
Up to 900m (3000´) From 900 to 1500m (5000´)
From 1501 to 2286m (7500´) Over 2286m
22

23. CREATED IN 2004 THE PROMEF WAS DEVELOPED WITH 3 ASSUMPTIONS:
1. Build ships in Brazil.
To be Hired
Promef 2 ‐> 8 Products
2. Achieve the minimum local
content (65% ‐ 1st phase, 70%
2nd phase)
US$ 4.2 Billion
2010‐14
Conclusion Schedule
20 18
3. Offer to shipyards the
proper conditions to
conquer their 15
competitiveness 12
10
10
5 4
5
0
2011 2012 2013 2014 2015
Suezmax Aframax Panamax Products Suezmax DP Aframax DP Products GLP Bunker
Note: Other investments Promef
Waterway - Tietê-Paraná And Promef 1 ‐ 23 tankers Promef 2 – 26 tankers
Dockdues
23

24. EBN1 and EBN2: 39 SHIPS
SHIPTYPE SIZE Number of Ships DELIVERY
Product Carrier DPP 40,000 to 45,000 DWT 3
Product Carrier CPP 40,000 to 45,000 DWT 3
Product Carrier DPP 30,000 DWT 2 Jan 2011 until
EBN 1
Product Carrier CPP 30,000 DWT 2 Dec 2014
BUNKER GT < 2,000 tons 6
LPG Carrier 7,000 CBM 3
Product Carrier CPP 60,000 to 80,000 DWT 5
Product Carrier DPP 60,000 to 80,000 DWT 1
Product Carrier CPP 40,000 to 45,000 DWT 4
Jan 2013 until
Product Carrier DPP 40,000 to 45,000 DWT 4 EBN 2
Dec 2017
Product Carrier DPP 18,000 DWT 2
LPG Carrier 12,000 CBM 2
LPG Carrier 8,000 CBM 2
24

25. TECHNOLOGY PARTNERSHIPS
Expansion of CENPES makes it one of the
largest research center in the world
Petrobras´s partnerships with 120 universities and
research centers has created one of the greatest
concentrations of energy research in the world
In the Technological Park of the Rio de Janeiro Federal
University, four R&D centers for major equipment and
services suppliers is currently under construction :
Petrobras Investments in
HSE, IT and R&D (2010‐14) • Schlumberger • FMC Technologies
US$ 11.4 Billion • Baker Hughes • Usiminas
29% Others companies are schedule to come to Brazil to
develop technological centers:
46% • Cameron
1.9 •TenarisConfab
0.2 • General Electric
• Vallourec & Mannesman
0.9 • Halliburton
• IBM • Weatherford
25% • Technip • Wellstream
HSE IT R&D
25

26. STRATEGIC PARTNERSHIPS
50 THEMATIC NETWORKS WITH 80 INSTITUTIONS
ANP
Technical
CENPES Scientific
Partner Partner
(manager) Committee
institution 1 institution 5
Partner Partner
institution 2 Partner institution 4
MCT institution 3
FINEP
CNPq
RESEARCH - Physical and Human Infrastructure UNIVERSITIES
INSTITUTES - Human Resources Training
- R & D Projects
SUPPLIERS - Technology Services INCUBATORS
26

27. LONG TERM HR CHALLENGES
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Business Plan 2008 – 2012
28 Drilling Rigs
146 Supply Boats
New Stationary Production Units
Promef II
Freight 19 vessels
Refinery Premium II
Refinery Premium I
Comperj and RNEST replanning
New projects
78,402
Qualified
Professionals 212,638
New Demands
BP 2010-14
27

28. There are tremendous opportunities for
oil and gas equipment suppliers and
service companies in Brazil
Thank you.