1. PETROBRAS
PETROBRAS OVERVIEW
AND 3Q06 RESULTS
Hélder Moreira Leite
Investor Relations Manager
helder@petrobras.com.br
Theodore Helms
NY Office General Manager
helms@petrobras.com.br
Marcos Vinícius Guimarães
Investor Relations Coordinator
marcosvin@petrobras.com.br November 2006
1

2. PETROBRAS
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

3. PETROBRAS
Diversified Shareholder Base
• More than 400,000 investors in Brazil and abroad
• 60% of the economic value of Petrobras in private hands
• Almost 40% of the stocks with international investors
9.5%
10.9% 20.3% 26.4% 31.2% 31.5% Foreign
46.4% 10.3% 39,8%
18.0% 9.9% 8.0% 8.3%
25.1% 23.1% Bovespa
20.7% 20.4%
28,7%
53.6% 61.6%
44.4% 40.6% 40.1% 39.8%
Oct/1992 Jul/2000 After Aug/00 After Jul/01 Dec/2003 Sep/06
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 3

4. PETROBRAS
Vertical Integration Comparison
Majors Average *
4,793
3,176
2,735
National Oil Companies Average **
1,579
1,630
4,329
2011: Petrobras
New Refinery will add 200
thous. bpd capacity 2,296
2010:
Pasadena Refinery revamp
concluded – processing 70
2,114
thous. bpd of heavy oil
Product Sales (thous. bpd)
2,217
Refining (thous. bpd)
3,400 Production (thous. boed)
Year 2011
* Majors: BP, Exxon, Total, Royal Dutch Shell, Chevron, Conoco and Repsol-YPF *** 2004 figures, except for Petrobras (2005)
** NOC: PEMEX, PDVSA, Saudi Amraco, KPC, Pertamina and Sonatrach Source: PIW Intelligence and Petrobras
4

5. PETROBRAS
Investment Plan
Business Plan 2007-2011
US$ 87.1 billion
56% 14%
49.3 U
S$
12
49,3 .1
bi
31.0
23,0 US$ 75.0 bi
1.8
1,8
2.3 3.3 23.0
3% 2,2 3,3 7,5 26%
7.5
1.0
3% 1.0
4% 12.4
9% 86%
E&P Downstream G&E Brazil International
Petrochemical Distribution Corporate
Note: Includes International
5

6. US$ milhões
-
Pe
tr
50
100
150
200
250
300
350
400
ob
Pe ra
t s*
Market focus
ro
US$ 340 milhões
* All firms ADR programs
br
as
(o BP
rd
in US$ 251 milhões
PETROBRAS
ár
io
s)
CV US$ 234 milhões
RD
*
CV US$ 233 milhões
RD No
ki
(c a
om US$ 209 milhões
Am Am m
er er on
ic ic )
a a US$ 172 milhões
M M
ov ov
il il*
(s
er US$ 151 milhões
ie
BH s
L)
P US$ 150 milhões
Pe Bi
lli
9M06 daily average
tr to
ob
ra n
s Ce US$ 116 milhões
(p m
re ex
fe
re US$ 112 milhões
nc
ia
is
)
US$ 106 milhões
To
ta
l
Top ADR: turnover (trade volume) in NYSE
US$ 105 milhões
Ta El
iw a n
an RD
US$ 103 milhões
Se Sh
m el
ic l*
US$ 93 milhões
on
du
ct
or
US$ 90 milhões
Source: Bloomberg
6

7. PETROBRAS
Main Projects contributing to the production growth in 2006
FPSO Cidade do
P-50 FPSO Capixaba P-34 Rio de Janeiro
Albacora Leste Golfinho Mod. 1 Jubarte Phase 1
Espadarte Mod. II
Capacity 180,000 bpd Capacity 100,000 bpd Capacity 60,000 bpd
Cap.: 100,000 bpd
April 2006 May 2006 November 2006
December 2006
In 2006, two platforms, P-50 and FPSO Capixaba, have started operating. Until the
end of the year, other two platforms will start-up operation, adding a production
capacity of 440 thousand bpd to the country.
• P-50 is currently producing 164,000 bpd and should reach its production peak by the end of the year.
• FPSO Capixaba is producing 35.000 bpd and should reach its full capacity in 2007.
• P-34 is being tested on the ocean and its start-up is scheduled to November.
• The start-up of FPSO Rio de Janeiro was anticipated form 2007 to December 2006.
7

8. PETROBRAS
Main Oil and NGL E&P Projects in Brazil – 2007-2011
Additional 2007 2008 2009 2010 2011
Capacity
(bpd) 480,000 280,000 280,000 180,000 280,000
Parque
Parque
2.600 das Conchas
das Conchas
Cidade de Vitória
Cidade de Vitória 100,000 bpd
100,000 bpd
Golfinho Mod. 2
Golfinho Mod. 2 Frade
Frade 2011
2011
100,000 bpd
100,000 bpd ESS-130
ESS-130 100,000 bpd
2.368
2.400 100,000 bpd
Thousand bpd
May/2007
May/2007 Golfinho Mód. 3
Golfinho Mód. 3 2009
2009 2.374
(FPSO)
(FPSO)
Roncador
Roncador 100.000 bpd
100.000 bpd Jubarte
Jubarte
2.200 P-52
P-52 2008
2008 Roncador
Roncador
2.195 Phase 2
Phase 2
180,000 bpd
180,000 bpd P-55
P-55
P-57
P-57
Dec/2007
Dec/2007 Marlim Leste 180,000 bpd
180,000 bpd
Marlim Leste 180,000 bpd
180,000 bpd
2.000 P-53
P-53 2010 2011
2011
2.061 2010
180,000 bpd
180,000 bpd
1.979 2009
2009
Piranema
Piranema Marlim Sul
Marlim Sul
1.800 Module 2
20,000 bpd
20,000 bpd Module 2
Apr/2007
Apr/2007 P-51
P-51
180,000 bpd
180,000 bpd
Roncador
Roncador
1.600 2008
2008
P-54
P-54
180,000 bpd
180,000 bpd
Oct/2007
Oct/2007
1.400
2007 2008 2009 2010 2011
8

9. PETROBRAS
Petrobras’ Drilling Rigs
2003 2004 2005
Total Total Brazil International Total
Onshore 25 47 22 19 41
Offshore 41 43 42 4 46
Owned Rigs: 31
Total 66 90 64 23 87
Leased: 56
• Petrobras’ leasing contracts are long term, averaging a 5 years length;
• In 2005, 18 offshore drilling rigs were owned by Petrobras;
• In August 2005, Petrobras renovated 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.
9

10. PETROBRAS
Natural gas domestic supply
Million m3/day
Roncador
SPS25 RJS633 Cavalo (P-55)
80 ESS164
2008
2009 2010 Marinho
2010
2011
Urucu
Natural gas Mexilhão 70
70 sales
2007
2009
70.6
Roncador Golfinho 65.2 Parque das
60 (P-54)
2007
Mod 2
2007
Canapu
2008 Tambaú/Uruguá
Conchas
2011
2010
Peroá- Frade
50 Cangoa 2009
Jubarte Fase 2
NG non associated
NG associated
(P-57)
Phase 1 49.4 Marlim Leste
(P-53) 2010
2006 Marlim Sul
40 Manati
ESS130 Mod 2
2009
2008 (P-51)
2006 2008
34.1
30 Piranema Peroá-
Cangoa
27.5 2006
Roncador Phase 2
20 Jubarte
(P-52)
2007
2007
Albacora
Albacora (P-34)
Complemental
Leste 2006 Espadarte
10 (P-50) Mod. 2
2007
2007
2006 Golfinho Mod 1
2006
0
2006 2007 2008 2009 2010 2011
10

11. PETROBRAS
Investment Plan – Downstream
US$ 23.1 billion in the downstream ...of which US$ 14.2 billion in refining
segment…
14% 24%
19%
US$ 3.4
US$ 3.2 US$ 2.7
12% US$ 2.8 61%
US$ 14.2
US$ 4.4 US$ 3.7
0
3.
$
26%
US
13% 31%
Refining Expansion
Pipelines & Terminals Transport Product Quality
Ship Transport Conversion
Petrochemical HSE, Maintenance and Other
11

12. PETROBRAS
Additional refining capacity
New Refinery in Pernambuco
• Investment: US$ 2,5 billion;
• Throughput capacity: 200 thousand heavy oil barrels (50%
Petrobras oil / 50% 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.
New Refinery in the USA
• Petrobras has acquired 50% of the Passadena Refinery System
Inc. (PRSI), located in Texas, USA;
•Total Investment: US$ 370 million;
•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);
• The upgraded refinery will be ready in four years. After the revamp project all products will match
USA highest standards.
12

13. PETROBRAS
Natural Gas supply extension in Southeast 2006 - 2008
New investments will reduce the country’s dependence on imported gas.
• Production 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 Flexibilization
• Refineries, Distributors and flex-fuel
thermoelectric plants ( LNG, diesel
and alcohol)
13

14. PETROBRAS
PLANGÁS – Dec. 2008
Cacimbas (20 MM m3/d)
Peroá (10 MM m3/d)
Lagoa parda
Belo Horizonte
Vitória
Pólo Golfinho
ESS-164
ESS-
+16,3 MM m3/d (*)
Ubu Golfinho + Canapu
Pq. Baleias +
Pq.
BC10
Campinas
Cabiúnas Total Southeast:
Garoupa ESS-130
ESS-
Caraguatatuba
Rio de Janeiro 40 MM m3/d
Namorado
Enchova
(+ 24,2 MM m3/d)
REDUC Pampo
RPBC
Plataformas da
UN-BC e UN-RIO
UN- UN-
Tambaú
+6,4 MM m3/d (*)
Mexilhão Uruguá
Merluza - II Merluza
•Development of new fields in Espírito Santos field
Lagosta
(BM-S-3/ BM-S-7,
(BM- BM- (1-ESS-164 and 1-ESS-130)
SPS-25)
SPS-
+1,5 MM m3/d (*) • Increase in Marlim supply (Campos Basin)
(*) Schedules under evaluation • Merluza production expansion (Santos Basin)
(*) Additional to the current supply
14

15. PETROBRAS
Renewable Energy and Biofuels
2007-2011 Investments 2011 Target
Biodiesel Plants Availability of 855 Thous. m3/year
Processing 425 Thous. m3/year
H-Bio (Bio-Refining)
of vegetable oil
Alcohol pipelines
3.5 million m3 Ethanol Exports
Alcohol Vessel Project
Wind Power
240 MW Installed Capacity of Power
Photovoltaic
Generation from Renewable Sources
Other Renewable Energy Sources
Investments of US$ 0.7 billion in development of renewable energy sources
and biofuels
* 2010 Target 15

16. PETROBRAS
International Investments
Total CAPEX: US$ 12.1 billion Targets
0,8%
1,7%
0,8% 568
1,7%
Thous. boed
E&P
185
Refining and
Marketing 259
262
Petrochemical 24,8%
94 96 383
Gas & Energy
70,2% 168 163
Distribution
2004 2005 2011 Target
Corporate
Oil and NGL Natural Gas
Core Areas:
• Refining
• Add value to Brazilian heavy oil exports
• E&P: West Africa (Nigeria and Angola) & Gulf of Mexico:
• Apply deep water and deep well drilling technology.
• Latin America:
23 countries • Leadership as an integrated energy company
16

17. PETROBRAS
American Sector of Gulf of Mexico
• New frontier, new province E&P
• New frontier, mature province Portfolio: 231 blocks
• Challenging paradigms, inactive province • 65 in shallow water and
• Improving seismic resolution, active province 160 in deep water;
UNITED STATES • 6 producing;
• 5 discoveries in appraisal
New Orleans and development stage;
Houston
• 1 onshore prospect;
• Proved Reserves: 36.2
Coulomb North mmboe;
Deep Shelf Gas Prospects Zion
Big Bend • 2004 Average Production :
5.1 mboed;
Aquila Aquarius Goliad Bryce Sedona
Cottonwood
• Highest number of winner
Pegasus Andromeda Aransas Monte Belo proposals comprising 8
Centaurus Cascade
Flavian prospects with high
Crater Scorpio
HadrianSt Malo Chinook potential for oil and gas;
Cygnus
Aurelian
Claudius • 53 blocks in a total
Hadrian S
amount of US$ 30.1 M;
PRODUCING FIELDS • One of the leaders in
DISCOVERIES exploration in the GoM
MEXICO
PROSPECTS
ultra deep waters.
17

18. PETROBRAS
International - Main Projects in the Gulf of Mexico
Cottonwood Chinook Cascade
(Development) (Under Evaluation) (Under Evaluation)
• Petrobras (80%) - Operator • Petrobras (67%) - Operator • Petrobras (50%) - Operator
• Mariner (20%) • 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
• Various partners (Exxon, Newfield, BP,
• Chevron (13%)
• BHPBilliton, Dominion, Carrizo, Hess,
• Encana (6%) • Kerr McGee
• Devon (23%)
LONG TERM COMMITMENTS
• Exxon (4%) Two drilling units on long term contracts
• ENI (1%)
18

19. PETROBRAS
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
19

20. PETROBRAS
3rd Quarter 2006 Results
(Brazilian Corporate Law)
20

21. PETROBRAS
Domestic oil and NGL production
∆ = 3.1%
∆ = 1.3%
thousand bpd
1,779 1.790
1.780
1,757 1.770
1,751 1.760
1.750
1,736
1,725 1.740
1.730
1.720
1.710
1.700
3Q05 4Q05 1Q06 2Q06 3Q06
• 1.3% increase due to P-50 (Albacora Leste) and FPSO Capixaba (Golfinho) platforms performances,
both recently started operations;
• In the 3Q06, P-50’s contribution was around 18 thous. bpd above 2Q06 average, while FPSO
Capixaba increased production around 8 thous. bpd in the same period.
21

22. PETROBRAS
E&P – Oil Prices
69,62
US$ 10.80 bbl
69,49
64,74
61,53 61,75 66,07
56,9 57,59
56,39 58,69
51,59 58,2
US$/bbl
47,83 54,24 52,7 53,69
44,00 49,33
41,59 46,05
39,70 44,19
43,04
38,98
37,48
36,14 35,11
3T04 4T04 1T05 2T05 3T05 4T05 1T06 2T06 3T06
Average Sales Price Brent (average) Cesta OPEP
• The spread between Brazilian oil and Brent decreased from US$ 11.42/bbl, in the
2Q06, to US$ 10.80/bbl, in the 3Q06.
22

23. PETROBRAS
Domestic Lifting Costs without Government Participation
∆ = 8.5% or US$ 0.52
6.32 6.64
6.07 6.12
US$/bbl
5.44
3Q 05 4Q 05 1Q06 2Q06 3Q06
Main Causes
• Higher expenditure in:
• Transportation, seismic and drilling for wells intervention;
• Corrective maintenances;
• Higher costs due to initial operational phase in Albacora Leste and Golfinho
fields.
23

24. PETROBRAS
Lifting Costs including Government Participation
26 70
61,5 56,9 69,6 69,5
51,6 60
21 47,5 61,8
17.5 18.1 50
38,2 17.3
15.2 16.1
16 40
28,8 13.6 13.9
63%
US$/boe
24,8 11,5 30
63%
10.7 10,0 11,0 11,4
11
9,7
62%
7,7 8,4
59%
8.5 20
7.0 6,4
6 10
57%
5,1
4,0
6,0 5,4 5,4 6,1 6,3 6,1 6,6 0
3,0 3,4 4,3
1
-10
2002 2003 2004 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06
-4 -20
Lifting Cost Gov. Participation Brent
• Government participation remained stable due to the stability of the Brent
price, FX rate and production.
Obs.: Lifting Cost w/ gov. part. series was adjusted (retroactive to 2002) due to new ANP interpretation of the expense deductibility for the Finance Project
of Marlim Field, calculated as special participation. 24

25. PETROBRAS
Refining and Sales in the Domestic Market
91 95
2.400 91
93 90
Thous. barrels/day
91
2.200 89 85
2.000 80
80 81 80
79 79 75
%
1.800
70
1.600
65
1.804 1.720 1.761 1.753 1.757
1.400 1.812 1.795 1.684
1.647 1.649 60
1.200 55
1.000 50
3Q05 4Q05 1Q06 2Q06 3Q06
D o m e s t ic o il pro duc t s pro duc t io n O il pro duc t s s a le s v o lum e
P rim a ry pro c e s s e d ins t a lle d c a pa c it y - B ra zil ( %) D o m e s t ic c rude a s % o f t o t a l
• 4 pp reduction in throughput due to:
• Oil supply limitation;
• More scheduled stoppages compared to 2Q06;
• 1 pp decrease in domestic crude participation in processed feedstock due to operational problems in Golfinho
(less light oil) and increase spread between fuel oil and domestic heavy oil (more profitable to export).
• Increase in sales volume due to seasonality in agricultural diesel consumption, industrial fuel oil and
substitution of imported naphtha.
25

26. PETROBRAS
Domestic Refining Costs (US$/bbl)
2.48
2.03 2.07
1.86 1.90
3Q 05 4Q 05 1Q 06 2Q 06 3Q 06
• 20% increase compared to the previous quarter due to the occurrence of more
scheduled stoppages and restrictions to oil receipt.
26

27. PETROBRAS
Average Realization Price - ARP
100 3Q05 2Q06 3Q06
Average Average Average
81,83
81,78
80 72,43 72,28
70,66
61,54 69,49
60 69,62
60,26
40
ARP Brazil (US$/bbl) Brent Average Price ARP USA (w/ volumes sold in Brazil)
20
Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06
27

28. PETROBRAS
Sales Volume
Jan- Jan-
Thousand bpd 3Q06 2Q06 % %
Sept 06 Sept 05
Total Oil Products 1,757 1,684 4 1,697 1,658 2
Alcohol, Nitrogen and others 35 13 169 26 26 0
Natural Gas 250 239 5 240 224 7
Total Dom estic Market 2,042 1,936 5 1,963 1,908 3
Exports 564 536 5 540 498 8
International Sales 509 459 11 468 388 21
Total International Market 1,073 995 8 1,008 886 14
Total 3,115 2,931 6 2,971 2,794 6
• Increase in the sales of fuel oil, diesel, LPG and gasoline.
2006 includes ongoing exports 28

29. PETROBRAS
Income Statement 3Q06 vs 2Q06
2Q06 3Q06
43.363 14.3%
Net Revenues
37.948
R$ Million
27.066 27.3%
COGS
21.260
12.912 -5.2%
EBITDA
13.614
10.303 -8.6%
Operating Profit
11.267
7.085 1.8%
Net Income
6.959
• Net Revenues: 5% increase in the domestic sales volume, oil exports (33%) and ARP (2%);
• COGS: ANP (National Petroleum Agency) new interpretation of special participation in the Marlim field
(retroactive to 2002); expenses adjustment related to reinjected gas (Solimões, Campos and Esp. Santo
Basins).
• Net Income: R$ 1.492 billion in benefits due to Interest on Own Capital provision, reduced in R$ 321
million relative to bonds buyback.
29

30. PETROBRAS
Operating Expenses Analysis 3Q06 vs 2Q06
2Q06 3Q06
1.546 14.3%
Sales Expenses
1.353
R$ million
General and 1.459 3.1%
Administrative Exp. 1.415
531
Exploratory Costs 40.5%
378
1.342
Others 50.8%
890
• Operating Expenses increase mainly because of:
• Sales Expenses: increase in domestic sales (5.5%) and oil exports volume (33%);
• Exploratory Costs: write-off of dried wells (Brazil and abroad);
• Others: hedge contract maturity with ANDINA (R$ 167 million) and others like consulting and
technical consulting (R$ 285 million).
30

31. PETROBRAS
Changes in Operating Profit (3Q06 vs. 2Q06)- E&P
Changes in Operating Profit – R$ million
1,757 Domestic Oil, NGL and Condensate – thousand bpd 1,779
536
1.040
408
10.938 18 426 420 10.198
6
Extraordinary Items:
R$ 834 million
2Q06 Oper. Price effect Volum e Average cost Gas Marlim part. Volum e Operating 3Q06 Oper.
Profits on Net effect on Net effect on Reinjection Calculation effect on Expenses Profits
Revenue Revenue COGs Effect Effect COGs
• Quarter characterized by the increase in production and accounting of extraordinary items.
31

32. PETROBRAS
Changes in Operating Profit (3Q06 vs 2Q06)- Supply
Changes in Operating Profit – R$ million
3.168 2.160
2.944
1.017
2.486
106 1.461
2Q06 Oper. Price effect on Volume effect Average cost Volume effect Oper. Exp. 3Q06 Oper.
Profit Net Revenue on Net effect on COG on COGs Profit
Revenue
• Increase in oil products domestic sales volume (4%), offset by inventory sales with
a higher average cost.
32

33. PETROBRAS
Changes in Net Profit – R$ million (3Q06 vs 2Q06)
1,757 Domestic Oil, NGL and Condensate – thousand bpd 1,779
5.415 4.982 Extraordinary Items and
Bonds Buyback:
R$ 1.145 million
6.959 149 7.085
824 573 1.603
341 321
2Q06 Net Revenues GOGS w/o Extr. Items Oper. Exp. Fin. and Non Bonds Taxes (Int. Minority 3Q06 Net
Profit extraordinary Oper. Exp. Buyback Own Cap.) Interest Income
items and Eq.
Income
• COGS: influenced by extraordinary effects (R$ 426 million reinjected gas and R$ 408 million
special participation costs in Marlim field) and sales of higher costs inventories;
• Operating Expenses: write-off of dried wells (Brazil and foreign); increase in the domestic sales
and oil exports volume; maturity of the hedge with ANDINA and others.
33

34. PETROBRAS
Net exports of oil and oil products
Exports (thousand bpd) Imports (thousand bpd)
54 thous. bpd volume surplus in the 3Q06
536 564 559
512 519 510
446 424 446 459
409 209 109 442
249 257 269 137
213 105 94 115 88
228
355 450
319 352 344 354 373
233 263 262 267
181
2003 2004 2005 1Q06 2Q06 3Q06 2003 2004 2005 1Q06 2Q06 3Q06
Oil Oil Products Oil Oil Products
• Oil exports increase due to scheduled stoppages in refineries with high complexity;
• Oil products imports increase due to the seasonal increase in the diesel
consumption.
2006 includes ongoing exports 34

35. PETROBRAS
Leverage
Petrobras’ Leverage Ratio
R$ million 09/30/2006 06/30/2006
28%
27% Short Term debt (1) 11,858 12,214
26%
26% Long Term Debt (1) 32,280 31,307
24%
Total Debt 44,138 43,521
23% 20%
19%
18% 17% Cash and Cash
24,519 22,713
Equivalents
Net debt (2) 19,619 20,808
set/05 dez/05 mar/06 jun/06 set/06
Net Debt/Net Capitalization
Short-Term Debt/Total Debt
• Decrease in total and net debt:
• Strong operating cash generation allows reduction of the debt (bonds buyback)
(1)Includes debt contracted throughcash contracts of R$ 3.300 million on December 31, 2005, and R$ 4.021 million on December 31, 2004.
and increase in leasing balance.
(2)Total debt - cash and cash equivalents
(1)Includes debt contracted through leasing contracts of R$ 2,729 million on September 30, 2006, and R$ 2,815 million on June 30, 2006.
(2)Total debt - cash and cash equivalents 35

36. PETROBRAS
Consolidated Cash Flow Statement
R$ million
3Q06 2Q06
(=) Net Cash from Operating Activities 10,209 11,365
(-) Cash used in Cap. Expend. (8,337) (6,640)
(=) Free Cash Flow 1,872 4,725
(-) Cash used in Financing and Dividends (66) (4,995)
Financing (60) (1,472)
Dividends (6) (3,523)
(=) Net Cash Generated in the Period 1,806 (270)
Cash at the Beginning of Period 22,713 22,983
Cash at the End of Period 24,519 22,713
• R$ 1,8 billion increase in Free Cash Flow.
36

37. PETROBRAS
Investments (Capex)
R$ million Jan-Sept/06 % Jan-Sept/05 % %
• Direct investments 20.264 90 14.751 87 37
Exploration & Production 11.404 51 8.907 53 28
Supply 2.800 13 2.184 13 28
Gas and Energy 1.203 5 1.098 6 10
International 3.923 17 1.871 11 110
Distribution 477 2 368 2 30
Corporate 457 2 323 2 41
• Special Purpose Companies 2.072 9 1.914 11 8
• Ventures under Negotiation 300 1 169 1 78
• Project Finance 1 0 87 1 0
Total Investments 22.637 100 16.921 100 34
• Following the targets established in its Business Plan, the company
continues to invest primarily in Exploration and Production.
37

38. PETROBRAS
Visit our website: www.petrobras.com.br/ri/english
For further information please contact:
Petróleo Brasileiro S.A – PETROBRAS
Investor Relations Department
E-mail: petroinvest@petrobras.com.br
Av. República do Chile, 65 - 22nd floor
20031-912 – Rio de Janeiro, RJ - Brazil
+5521 3224-1510 / 3224-9947
November 2006
38