1. GENERAL PRESENTATION INVESTOR RELATIONS PETROBRAS APRIL, 2010 1

2. DISCLAIMER The presentation may contain forecasts aboutCAUTIONARY STATEMENT FOR future events. Such forecasts merely reflect theUS INVESTORS expectations of the Company's management. Such terms as "anticipate", "believe", "expect",The United States Securities and Exchange "forecast", "intend", "plan", "project", "seek",Commission permits oil and gas companies, in "should", along with similar or analogous their filings with the SEC, to disclose only proved expressions, are used to identify such forecasts. reserves that a company has demonstrated by These predictions evidently involve risks and actual production or conclusive formation tests to uncertainties, whether foreseen or not by the be economically and legally producible under Company. Therefore, the future results of existing economic and operating conditions. We operations may differ from current expectations,use certain terms in this presentation, such as oil and readers must not base their expectationsand gas resources, that the SECs guidelines exclusively on the information presented herein.strictly prohibit us from including in filings with the The Company is not obliged to update theSEC. presentation/such forecasts in light of new information or future developments. 2 3. PETROBRAS: AN INVESTMENT GRADE, PUBLICLY TRADED, MAJOR INTERNATIONAL OIL COMPANY Incorporated in 1953 as governmentmonopoly for all hydrocarbon activities inGovernment maintains controllingBrazilinterest with 55% of voting sharesOriginally established as a refinery ofimported crude oilMarket cap of approximately US$ 200billion as of March 16th, 2010Became net exporter in 2006Foreign currency ratings from Moodys60% of total equity capital (common and (Baa1), Standard & Poors (BBB-), andpreferred) is now publicly traded Fitch (BBB). Petroleum 2MM bpd, A New E&P Law and ANP First PublicFull Upgraded toCrossed theBrazil SelfPetrobras $200MM market Regulatory (National Oil Auction of OilDeregulation Investment US$100 billion Sufficient inNYSE Listingcap, DiscoveryFramework. Agency) ExplorationGrade Issuer Market Oil Cap mark of new oilPre-Salt and creation: Areasfrontier: Pre Strategic End of Salt (Tupi field) Areas Monopoly 1997June 1999Aug 2000 Jan 2002Oct 2005 2006 Apr 2006 2007Aug 20093 4. 60% OF THE EQUITY CAPITAL OF PETROBRAS IS PUBLICLY TRADED 9 ,5%Shareholder Base20 ,3% 2 6 ,4 % 10,9 %2 9,5 % 46 ,4 %10,3 %Foreign 18,0 % 9 ,9 %7 ,9 %37.4%2 5 ,1% 23 ,1%2 2,8 %Brazilian22.8% 61,6%53,6%44,4%40,6%39,8%Government 39.8%Oct/1992Jul/2000 After Aug/00 After Jul/01 offering Dec/2009offering Gov ernment (1)Bov espa BrazilBov espa Foreign ADRso On August, 2000 the Brazilian Government reduced its ownership share to 55% of the voting shares through an SEC registered secondary public offering (PBR) oIn July 2001, BNDESPar, sold a portion of its non-voting shares (PBRA) oSince the offering in July, 2001 the ownership structure has remained virtually unchanged.(1) Includes BNDES / BNDESPAR 5. PETROBRAS IS THE MOST LIQUID STOCK IN VALUE TRADED ON BOTH THE BOVESPA AND NYSE Turnover NYSE & Bovespa (Daily Average Turnover) Turnover 2009/2005 = 596%(US$ MM)(% category and US$MM) 1,930 1,308 43%47%43% 50%52%Nyse PBR992PBR/A NysePBR20% PBR/A25%21% 20%19%483 6% 6%5%5% 6% Bovespa 21931% PETR3Bovespa25%27% 26%PETR4 PETR323% PETR42005 2006 2007 2008 2009 2005 2006 2007 2008 2009PETR4 (Bovespa)PETR3 (Bovespa) PBR/A (Nyse)PBR (Nyse) o Turnover of PBR 3 times the volume of PBRA on the NYSEo Turnover of PN 5 times the volume of the ONo Probable explanation: Cultural. Brazilians familiar with PNs and would not pay premium for ONs5 6. CORPORATE ORGANIZATION AND KEY OPERATING RESULTS Exploration & Downstream Gas &ProductionDistributionEnergyInternational Biofuels(Supply)PetrochemicalsSummary FinancialsOperating Income* (US$ billion- USGAAP) (US$ billion- USGAAP)2007 2008200920 18,913,115,5Net Revenues87.7118.3 91.9EBITDA25.6 31.1 28.9 15 Net Income13.1 18.915.5 10Capex 21.0 29.935.1Total Debt(1) 21.9 27.157.1Cash & Cash Equivalents 7.0 6.516.2 5 Net Debt14.9 20.640.9Total Equity65.2 61.994.1 0Total Assets129.7 125.7 200.3 -5 20072008 2009 (1) Includes capital leasesDomestic E&P DownstreamGas &Energy * Excludes Corporate and EliminationDistribution International6 7. A WORLD-CLASS, PUBLIC, INTEGRATED ENERGY COMPANY 2009 Oil & Gas Production3.93.9 Gas Production boe/d3.2 Oil Production boe/d2.7(mmboe/d)2.5 2.5 2.2 1.7 84%(oil)0.6BPXOM RDS CVX PBRCOPTotalENIBGSource: Evaluate Energy and Company reports2008* Refining Capacity Market Value as of April 9th, 2010 325 5, 57 3 (thousand boe/d) 3 , 9 33(US$ bn)1891861863 , 1 3 3 2 , 6 79 160 2 , 6 5 8 2 , 1 64 2 , 1 1 5 141 95 857883 3 315 X OM RDSBPCOP T OT PBRCVX ENIST LX OM PBR RD S BPCV X T OT ENI COP ST LSource: PFC Energy*Report December 2009Source: Bloomberg 7 Note: Peer companies selected above have a majority of capital traded in the public markets. 8. DOMESTIC E&P PROFILE 2009 Production 2009 Proven Reserves (SPE) 14%10%9% 10%19% 24%57%57% 2,287 thousand boed14.17 billion boe OnshoreShallow water (0-300m) Deep water (300-1500m) Ultra-deep water (> 1500m)8 Source: Petrobras 9. COMPETITIVE ADVANTAGE IN THE DEEPWATERPetrobras operates 22% of global deepwater production and 18% of all operating vessels2008 Gross Global OperatedFPS OperatorsDeepwater Production All Contracted Vessels (252 Vessels Total)REL HESMUR HES RELMUR1% 1% 0204060 80 100120 2% 1%2% 1%BGPetrobras 45APC 4% PBRShell155% 22% StatoilHydro15 CVXExxonMobil136%BP 12APCTOT6%Chevron128%Anadarko10 XOM 14%Total9CNOOC 8BP9% ConocoPhillips 8 XOM ENI/Agip 5 STL RDSOthers100 14% 14% FPSO Semi Spar TLPOtherSource: (1) PFC Energy | Note: Estimated volumes above reflect what operators are responsible for producing, not what they keep on a net working interest or entitlement basis. Minimum water depth is 300 meters; twelve operators above account for 94% of global deepwater production in 2008. (2) Copyright 2008 ODS-Petrodata, Inc.9 10. DOMESTIC PROVEN RESERVES PROFILEProven Reserves as of Dec/2009 (ANP/SPE) (14,17 billion boe)< 22 API22Oil + Condensate(heavy) 85%50% 29% 22 31 API (intermediate)10% 5%15%6%Gas> 31 API (light)Associated Gas Non-Associated GasNon-43%Undeveloped57%DevelopedProven ReservesProven Reserves10 11. ENHANCING RESERVESSantos Pre-Salt announced recoverable volumes including thetransfer of rights, can more than double Brazilian reserves. million boe~ 30-35 bn boe35,000 +5,00030,000 Higher estimates25,000+5,400 20,000Lower estimates10,60015,000 10,0005,000 14,1690 2009 Proven Santos and Campos Basins Transfer ofProven Reserves*Reserves* Pre-SaltRights with+(Tupi, Iara, Guar and Whales CompensationSantos and Campos Basins Park)**Pre-Salt(Tupi, Iara, Guar and Whales Park)***SPE Criteria +Transfer of Right** include Petrobras and Partners11 12. IMPRESSIVE RECORD OF ACCELERATING DEVELOPMENT2.000.000 1.800.00 16 anos 54 anos1.600.00Production (bpd) 22 anos1.200.00 1.000.0027 anos12 anos45 anos 800.00 400.000 1 3 5 7 9 11 131517 19 21 23 25 2729 31 33 35 37 39 41 43 4547 49 51 53 55 Numbers of Years Production since Discovery of giant fields in Campos Discovery of Garoupa in Discovery of the Pre-Salt, incorporation of Petrobras basin including Albacora/Marlim the Campos basin (1974) since Parati (2006) (1953) (80s & 90s)12 13. INDUSTRY-LEADING PRODUCTION GROWTHCAGR (2004-2009) - %6,61 4,563,96 3,52 2,44 1,66 0,00 -1,38-2,59 -3,26-4,94** Ex x onM obilR D ShellPetroChina Luk oilT otal R eps ol YPFConoc oPhillipsBPC hev ron Petrobras ENI * 9M09 Annualized Petrobras Oil and Gas Production (000 boe/d) 4.6% CAGR2.525 2.400 2,297 2.3012.217 2.0202004 2005 2006 20072008 200913 Source: Evaluate Energy 14. STRATEGIC VISION: TO BE ONE OF THE WORLDS FIVE LARGEST PUBLICLY TRADED OIL PRODUCERS Petrobras 30,000Target: 2020 25,000 Reserves (mm boe) Petrobras XOM 20,000Target: 2013 BP 15,000PBR10,000CVX RDS TOT COP 5,0002,0002,500 3,0003,500 4,000 4,500 5,0005,5006,000Production (mboe/d)Petrobras 2009 (SEC) reserves and production 2009 production and 2008 (SEC) reserves 14 Source: PFC Energy 15. BRAZILIAN ECONOMY IS GROWING WITH STABILITY AND FISCAL RESPONSIBILITY GDP Growth (%) Trade Balance (US$ Billion)6 5.75.7Forecast250 ForecastExports Imports 5.154.7 198 189 1872004.0 173171 162161 GDP Growth (%)4 1533.2 150 138121 128119397100 91637421.2501 0.200 2004 200520062007 2008 200920102011 20032004 2005 20062007 200820092010Nominal Fiscal Deficit/GDP (%) International Reserves (US$ billion)20 Brazilian Debt (as % of GDP) 60 Net Debt/GDP (%) 300 200952,150,0 47,746,650 44,239,9 41,4 25023915207 40 20018010 30 150 86 5,1 20 1003,3 3,5 3,349 53 5452,72,61,95010 0 0 0 2003 2004 20052006 20072008 2009 abr mar out ago set jan jun mai juldeznov fev2003 20042005 2006 2007200815 Source: Brazilian Central Bank 16. INCREASING INVESTMENTS WITH CAREFULLY CRAFTED SPENDING PROGRAM Business Plan 2009-2013PN 2009-13 | Brazil/International 2%2% 2%3%US$ 174.4 billion9% 7%5.6 3.0E&P16.2US$ 174.4 billion11.8 2.8RTC 3.2BrazilG&EInternationalPetrochemicals158.243.4 104.6 (*)Distribution 25% 59%Biofuels91%Corporate (*) US$ 17.0 billion allocated to ExplorationBusiness Plan 2008-12 2%1%2%4% US$ 112.4 billion6% 4.32.6 o Petrobras strategy gives first priority to meeting6.71.5E&Pproduction targets 2.5 RTCG&E Petrochemicals26% 29.665.1 o E&P accounts for 76% of new project spending59%DistributionBiofuels (US$ 28.9 bn for pre-salt)Corporate16 17. PEERS CAPEXU$S MMCapex by Quarter: 1Q07 4Q0912.000 Petrobras10.000 Super Majors Average 8.000 (Exxon, Shell, BP)6.000 Peer Group Average (without Petrobras) 4.000 2.000 0 1Q07 1T07 2Q072T07 3Q07 3T074Q07 4T071Q08 1T082Q08 2T083Q08 3T084Q08 4T081Q09 1T09 2Q092T09 3Q093T094Q094T09Capex for 2010: 2009 vs. 2010E50.000 U$S MM45.000 40.000 35.00030.0002009Average25.000without20.000Petrobras 15.0002010Average10.000withoutPetrobras 5.000 0 (1)2009 2010 20092010 20092010 20092010 200920102009 20102009 20102009 20102009 20102009 20102009 2010 Source: Evaluate Energy and Company Reports17 (1) R$ 88.5 billion converted by FX rate of 1,87 R$/US$ (Petrobras forecast to 2010) 18. PETROBRAS RESEARCH CENTER: TECHNOLOGICAL INNOVATION FOR THE NEXT DECADESPartnership with over 120 universities and research centers in Brazil, and 70Institutions abroad Technological StrategyInvestments in Technology2009-2013US$ 4.0 billion 25% 1.0 1.9 47%5%0.20.9 23% E&PDownstreamG&ECorp. (Cenpes) 18 19. UPSTREAM1919 20. 17TH CONSECUTIVE YEAR OF FULLY REPLACING BRAZILIAN PRODUCTIONo 110% reserve replacement rate in 2009. o Targeting a reserves toOver the past decade, reserveproduction life over 18 yearsreplacement has principally been drivenby internal additions in Brazil13,7513,9214,09 14,17 13,23 0,920,861,23 0,88ProductionProductionProductionProduction (0.70 bn boe) (0.70 bn boe) (0.75 bn boe) (0.79 bn boe) ReservesReserves 13,04Reserves13,17Reserves 13,31 Replacement 12,52 Replacement Replacement Replacement Index Index Index Index (110%)(174%)(124%)(123%) 2005 20062007 20082009 * According to SPE (Society of Petroleum Engineers) criteria 20 21. PETROBRAS PRODUCTION GROWTH Petrobras Total Production (x 1000 boe/d)5,729223 409 7.7% p.y. 1,1773,655 5.6% p.y.131 9.7% p.y.210 2,525634 2,400 972,217 2,2972,3011411,8102,037 2,020101 1101001,635 96 124316228594142 126 24 35163 277 273321 161168 2743,920 44251252 265 232 2,6801,8551,971 1,684 1,7781,7921,5001,540 1,4931,335 20012002 20032004 2005 200620072008 2009.....2013.....2020 Oil production - BrazilGas production - BrazilOil production - International Gas production - International* Consider +- 2,5% 21 22. ESTIMATED OIL PRODUCTION IN BRAZIL Out of the 824 kb/d in The biggestThe PN 2008-2012 Brazil domestic productioncontribution in theoil target for 2015 was growth through 2013, 566 domestic production2,812 k b/d. The new kb/d will come from fields growth of 1,240 kb/d target represents an where we have alreadybetween 2013 and increase of 19% (+528 declared commerciality 2020 will come fromkb/d)pre salt productionPetrobras Total Production (000 b/d)3,920 3,340 2,680 1,971 1,8552008 2009 2013 2015 2020Light Oil 31 API Medium Oil Heavy Oil 22 API 22 23. ROBUST PROJECT PIPELINE: 2010-2013 CANAPUMANATI expansion URUGUJURU TAMBAARACANGALAGOSTA 3.32MEXILHO3.20 Oil and gasCAMARUPIM3.02 URUCU 2.79million boe/d 2.682.28 2.58 Oil 2.43 P-62 2.25RONCADOR 1.97P55 RONCADORP-57BALEIA AZULJUBARTEP-61JABUTIPAPA-TERRA TUPI P-56 MARLIM SULP-63 EWT TupiPilotPAPA-TERRAP-51 CACHALOTE. MARLIM SUL BALEIA FRANCA,GUAR 1BALEIA ANFRADETUPI 1PARQUE DAS Pilot Expansion CONCHAS2009 2010 201120122013Pre-saltHeavy oil Natural Gas 23 24. RESERVES IN ULTRA-DEEP WATER CAN BE DEVELOPED AT A RELATIVELY LOW COST Expected Costs of Production 140 Deepwater andProduction costs (US$/bbl-2008)120 Ultra-deep water100 Oil Gas to Coal to 80 Shales liquidsliquids Arctic CO - EOR 60 EORHeavy oil andbitumen 40Other 20 ProducedconventionPetrobras expectedMENA al oil maximum break-even cost01000200030004000 50006000 70008000 9000 10000 Reserves (bn bbls) 24Source: IEA Outlook 2008 25. LIFTING COSTS STABLE, IN SPITE OF HIGHER OIL PRICES R$/barrel US$/barrel 75.0068.2854.9158.79 44.4041.48 38.8641.62 43.0434.24 24.7422.39 19.50 22.8616.33 21.2824.78 26.53 18.1114.69 10.78 10.7815.239.87 6.8719.09 17.91 17.5816.84 16.518.24 7.828.72 9.51 7.82 4Q08 1Q092Q09 3Q09 4Q09 4Q08 1Q092Q093Q09 4Q09 Lifting Cost Gov. TakeLifting CostGov. TakeBrento Lower lifting costs without government take, in Reais, despite increase in international oil priceso In Dollars, the increase was due to FX rate appreciationo Increase in the government take due to higher international oil prices25 26. DISTRIBUTION OF UPSTREAM REVENUES Distribution of the Realization Price of a Barrel of Domestically Produced Oil $80,00 100,0% 90,0%$70,0080,0% $ per Barrel Realization Price% Share of Realization Price$60,00 70,0% $50,00 60,0%$40,00 50,0% 40,0%$30,0030,0%$20,00 20,0% $10,00 10,0% $- 0,0% 2005 2006 2007 2008 200920052006 20072008 2009 LiftingOther COGSDD&AIncome TaxOther SG&A Net IncomeR&D Exploratory Costs Government Take 26 27. NEW PRODUCTION UNITSProjectStart up Type Oil and Gas Capacity Shipyard Leased Urugu-Tamba25,000 bpd 1Q/10 FPSOCosco (China)ModecCidade de Santos 10.0 MM m3/dMau JurongMexilho 2Q/10Fix 15 MM m3/d(Brazil) Cachalote/Baleia Franca 100,000 bpd 2Q/10 FPSOKeppel (Singapore)SBMFPSO Capixaba3.2 MM m3/dTupi Pilot 100,000 bpd 4Q/10 FPSOCosco (China)ModecCidade de Angra dos Reis 5.0 MM m3/dMarlim Sul Mod. 3 - P-56 (P- 100,000 bpd Brasfels-Keppel 2H/11SS 51 Clone) 6.0 MM m3/d(Brazil)180,000 bpd Brasfels-KeppelJubarte Mod. 2 - P-572H/11 FPSO 2.0 MM m3/d(Brazil)180,000 bpdKeppelPapa Terra - P-612H/13 TLWPFloaTec 1.0 MM m3/d (Brazil)150,000 bpd Rio GrandePapa Terra - P-632H/13 FPSO BW Offshore 1.0 MM m3/d(Brazil)120,000 bpd Guar Pilot 2H/13 FPSOBid in progress 5.0 MM m3/dAtlntico Sul and180,000 bpd Roncador Mod 3 - P-55 2H/13SS Rio Grande 6.0 MM m3/d (Brazil)27 28. NEW TECHNOLOGIES TO INCREASE RECOVERY FACTOR Vertical Annular Separation and ESP in a skid on the sea-bed Pumping System4D Seismic (Espadarte-Fase III) (Marlim; Marlim Sul; (Congro; Malhado; Corvina) (Parque dosAlbacora) VASPS Temperos; )BonitoCAISSON 2011 20092010 2012 Oil WaterSubsea ChristmasSubseaTree.SeparationPiggy-back(Marlim)(Marimb; Barracuda) TLWP (Papa-terra) SBMS - SubseaRWI RawMultiphase PumpingWater InjectionMultifractured WellSystem (Albacora)(Bonito) (Marlim) 28 29. EXPLORING TO LEVERAGE EXCITING FRONTIER PLAYS IN OUR OWN BACKYARD ExplorationCapexSuccess Rate US$ mm 70%2.750 2.50060%2.250 50%2.000 1.750 40%1.500 1.25030%1.000 20% 750500 10% 250 00%2002 2003 2004 2005 2006 2007 2008 2009-201329 30. MAIN DISCOVERIES IN THE POST-SALT REGION (1) Estimated WaterDateField ParticipationFluidsRecoverable Depth (m) Volume Mar-2010 PiranemaBR (100%)Light Oil15 million800 barrels Fev-2010 Barracuda BR (100%)Oil40 million860 barrels Fev-2010PampoBR (100%)Oil25 million200 barrelsNov-2009 Rig FenceBR(100%)Light Oil25 million400MarimbbarrelsAug-2009 BM-C-36 BR (100%)Light Oil280 million 976 Aruan barrels BR(35%), May-2009 BM-S-48Repsol(40%),N. Gas andNot disclosed161 PanoramixVale(12,5%), CondensateVoodside(12,5%) Piranema Nov-2008BM-J-3BR (60%), Oil Not disclosed 2,354JequitinhonhaSTATOIL (40%) Sep-2008 BM-S-40/Sidon BR (100%)Light Oil150 million 274barrels Jul-2008 GolfinhoBR (100%)Light Oil150 million1,374 MarimbbarrelsAruan Barracuda Pampo May-2008 BM-S-40/TiroBR (100%)Light Oil Not disclosed235Dec-2007 BM-ES-5/ BR (65%), N. Gas andNot disclosed708 Camarupim EL PASO (35%) CondensateMay-2007 BM-ES-5/ BR (65%), N. Gas andNot disclosed763 Camarupim EL PASO (35%) CondensateMar-2007 BR (100%)Light Oil570 million1,011BC-60/Caxarubarrels * (1)2007 to March 2010 *Volume in place 30 31. EXPLORATION PORTFOLIO AT DIFFERENT STAGES OF DEVELOPMENT Margem Equatorial o BrazilCeara & PotiguarExploration:2009-13 US$Solimes13.8 bnPotiguaro Exploratory Area:155.0 thousandSEAL& REC & TUCkmBahia Sulo 265 exploratorySo Francisco blocksEspritoSanto o 35 appraisalplansCampos Petrobras Santoso 313 productionOthersconcessionsPelotas31 32. INCREASE IN THE NUMBER OF FIELDS ANDS BLOCKS HELD WITH PARTNERSo Petrobras current domestic production comes mainly from concessions (97%) owned by thecompany aloneo For the areas under development, the percentage of concession held without partners falls to 62%o More than half (53%) of the blocks under exploration or appraisal are joint venturesConcessions Under ProductionProduction DevelopmentExploration + Evaluation(247) Concessions (66)Concessions (54)97%53%38% 62% 47%3% Petrobras (100%) Petrobras in Partnerships34 Oil and Gas Companies (2008) 32SINN, July 2009 33. PRE-SALT OVERVIEW 33 34. PRE-SALT JOINT VENTURESTotal Area: 149,000 km2 Area Under Concession: 41,772 km2 (28%) Area Not Under Concession: 107,228 km (72%) Area With Petrobras Interest: 35,739 km2 (24%) JUBARTEESS-103 CHL-4BFR-1 Blocks Consortium1-2Bi boerBAZ-1BC-60 BR (100%)JubarteCachalote Shore Distance = 60 km Balia Franca Total Area = 3.000 km2 Baleia AzulBaleia AnBlocksConsortium BMS-8BR (66%), SH (20%) e PTG (14%) BMS-9BR (45%), BG (30%) e RPS (25%)BM-S-11BM- (Tupi)BMS-10 BR (65%), BG (25%) e PAX (10%) BMS-11 BR (65%), BG (25%) e PTG (10%) BMS-21 BR (80%), PTG (20%)1.1-2 bi BMS-22 EXX (40%), HES (40%) e BR (20%) Shore Distance = 300 km boer BMS-24 BR (80%), PTG (20%) Total Area = 15.000 km2 34 35. BRAZILIAN SE BASINS IN COMPARISON WITH GULF OF MEXICOUSAt 35 36. 2009 and 2010 PRE-SALT: Accelerating activities in the santos clustero EWT currently producing 20 thous. bpdo 2 wells being drilled: North of Guar and North of Iara (for ANP)o 1 well being completed and evaluated in Guar and tests were finished in Tupi O/W and Tupi NE which proved to have high productivity of 30 th. bpdo During 2010, 11 new wells expect to be drilled in the pre salt clustero Bids in progress:Parati (i) FPSO for Guar pilot Iara (ii) FPSO for the second pilot in the BM-S-11 (stillIracemaTupi NE being defined) Tupi O/A (iii) 8 hulls for the Santos clusterTupiJupiter Guar North Bem-te-viCariocaTupi 660Tupi Iguau Guar SouthAbarTupi 646 Wells drilledDrilling for ANPAzulo GuaraniDrilling CarambaCompleting / testingEWT36 37. GAS PIPELINE FOR TUPI`S PILOT SYSTEMUGNUTGCA RPBC14 5 KmPMXL170 Km21 2KURG mTo248 se Km rv i cethePMLZ-1 Pi lo t TUPI AreaExisting Planned TEFRA Under N Construction 38. CAPEX DISTRIBUTION: PRE-SALT VS. CAMPOS BASINPre-salt CAPEX DISTRIBUTION26% 18% 56% GatheringCompletion + DrillingUnitsDeepwater Projects in Campos Basin*CAPEX DISTRIBUTION 33.3%33.3%o The biggest difference between thecapex distribution in the pre-salt and inthe general deepwater projects inCampos Basin is a higher percentagein drilling and completion in the pre- 33.3%salt area. Gathering Completion + Drilling Units38 * Generic example, considering that these rates can change among the different existing projects in Campos Basin 39. DEVELOPMENT STRATEGY (example: TUPI) 1st Oil EWT 1st Oil TupiSignificant Tupi (May/09) Pilot (Dec/10)production level..... .....t2007200920102012 2017 Information Acquisition Definitive DevelopmentPhases Phase 0 Phase 1APhase 1BEWT (Mar/2009), Tupi Pilot Implementation of 8 production unitsImplementation of XFocus and appraisal wells(Replicated FPSOs)production unitso Area Delimitationo Analyze water and gas/CO2 injection behavior o Analyze reservoir flow o Test adjustments on FPU related to CO2 o Fractured well o Test improvements in well projects Objective performanceo Apply previous dominated concepts and technologies with necessary o Complete sampled coreadjustments to reach significant production by 2017 o Material analysis vs. CO2o Aggregate innovative technical solutions to optimize project performance 39 40. PRE-SALT ACCOMPLISHMENTS TIMELINE 2008Phase 02013 Phase 1A 2017Phase 1B2020 Phase 1A - Projects Phase 0:Information gathering Phase 1a: 1st phase of definitive development, use of Appraisal wells, EWTs and consolidated or rapidly-consolidating technologies to Tupi Pilotachieve production targets, generate cash-flow to support Phase 1b First 2 FPSOs to be chartered (2013-2014) Oil Production: 120,000 bpd Phase 1B - Projects Gas Compression: 5 M m/d 2nd phase of definitive development Additional 8 FPSOs (2015-2016) Construction of the hulls at the Rio Grande Significant production increaseShipyard All identical units, manufactured in series Innovation acceleration Process plant under study: Massive use of new technologies specially Oil Production: 150,000 bpd tailored for Pre-Salt conditions Gas Compression: 5.5 M m/d Water-Alternating-Gas injection capability40 41. MAJOR TECHNOLOGICAL DEVELOPMENTS UNDER EVALUATIONPLANSAL - Pre-Salt Development Master Plan Pre- Offshore logistical hubWater-alternating- Offshore gas (HC or CO2)produced fluidinjection handling hubs CO2 storage in Extended-reachsaline aquifers,and deviated depleted fields, salt wells (salt) caves Pre-SaltFlow AssuranceDefinitive Deepwater and formation CALM buoydamage control DevelopmentDry completionsystems (SPAR, ReservoirTLP, FPDSO, )Characterization Offshore gasFloating LNGstorage in saltcavesCO2 separation / capture technology 41 42. ESPRITO SANTO PRE SALTn to UTG CacimbasSaLinharesRio DoceCango o Infrastructure in-place: diversified and flexible portfolio; MGPero itoUPGN Lagoa Parda p r24 66 kmAracruz 25 MM m3/d o P-34 at Jubarte field, first pre-salt production (Sep/08): Es Terminal Barra do Riacho Camarupim excellent results/light oil (30API);CanapuGolfinho o FPSO Capixaba (100 Mb/d) moved from Golfinho fieldVITRIAVila Velha Carapand is being adapted to produce in Cachalote (CHT)/Baleia Franca (BFR) in 1H10;Sul-Norte CapixabaUTG Sul CapixabaSul Capixaba Gas pipelineGuarapariGas pipeline 12 a 24 160 km 12 83 km7 a 15 MM m3/d4,5 MM m3/d o Baleia Azul first definitive production unit by 4Q12; AnchietaPresidenteMarataizes Kennedy ARGCHTBaleia Franca o Natural gas production transported via pipeline. JUB OST NAU RJ Baleia AzulCXRABA PRBCatu Whales Park* 42 *Whales Park comprehends the fields: Jubarte, Cachalote, Baleia Franca, Baleia Azul and Baleia An 43. PRE-SALT OIL PRODUCTIONPetrobras Pre-salt Oil Production (000 b/d) 1,815 1,336632 582 463219160 873 1,183 62422 15720132015 20172020 Pre-Salt PetrobrasPre-Salt Partners Pre-salt Capex Through 2020 (US$ billion) 2009-2013 2009-2020 Petrobras Total Pre-salt Capex (Production Development) 28.9 111.4Santos Basin Pre-salt18.6 98.8Esprito Santo Pre-salt (includes post-salt fields)10.3 12.6 43 44. E&P REGULATORY FRAMEWORKPre-Salt and Strategic Areas 44 45. NEW REGULATORY MODEL ProductionTransfer SharingPre-saltof Rights withAgreement and compensationStrategic AreasPetrobras 100% Petrobras Operator Other companies trough Bidding ProcessCurrentOther Areas ConcessionModel There will be no regulatory changes in the areas under concession, including the pre- salt area already granted45 46. PRODUCTION SHARING AGREEMENTS Production sharing agreementso Petrobras will operate all blocks under this regime, with a minimum stake of 30%o Consortium between Petrobras, Petro-sal and the winning bidder will be managed by the OperationalCommitteeo Petrobras will be able to participate in the bidding process to increase its stake o The winning bidder will be theCompanies company that offers the highestpercentage of profit oil for the Profit Brazilian GovernmentOil o Petrobras will have to followGovernmentthe same percentage offeredby the winning bidder o The Brazilian Government will notassume the risks of the activities,except when it decides to investCostdirectly Oilo Prior to contracting, the Governmentmay evaluate the potential of theareas and may contract Petrobrasdirectly46 Graphs are showing only hypothetical values 47. E&P TRANSFER OF RIGHTS WITH COMPENSATIONo Government may transfer to Petrobras, for compensation, without bidding, therights to explore and produce oil in the pre-salt areas not under concession.These areas may or may not be contiguous o Transfer of rights limited to a maximum produced of 5 billion boe. Petrobraswill be the owner of produced volumes o Oil values shall be determined by technical reports prepared by qualifiedthird parties contracted by the government (ANP) and Petrobras, takinginto account best industry practices o The transaction includes a clause of reappraisal of reserves valueo If the value of appraisal rises, Petrobras will pay the difference to the Government. If price falls, the contrary will happen o Royalties will be paid by Petrobras and distributed according to the Law n9.478/97. No special participation payment is expected 47 48. TRANSFER OF RIGHTS APPRAISAL Appraisal need to considerProductionCapexCurve ProductionOil Volume Costs Oil reservoir Future OilDiscount prices Rate ReservesFiscaldevelopment/ Environment Knowledge(governmentparticipation)48 49. PETROBRAS CAPITALIZATION oThe value of capitalization could be: o Minimum: the same value of the transfer of rights with compensation o Maximum: up to 3 times this value Petrobras will receivecash from minorityPetrobras increaseshareholders in capital Petrobras will pay the (to be approved bytransfer of rights with Appraisal of the ESM)compensation to thereserves in R$federal govto Brazilian Government could pay the capital contribution to Petrobras withpublic debt issuances, priced at market valueo Petrobras may pay the Brazilian Government the transfer of rights withcompensation, using the same securities arising from the capitalization 49 Graphs are showing only hypothetical values 50. NEW REGULATORY MODEL AND CAPITALIZATION o Only completed after areas definedo One well drilling, another scheduled Appraisal ofo Appraisal by at least 2 independent the barrelscertification companieso Future revaluation to ensure fairnessResults of capitalizationo STILL TO BE DETERMINEDo Access to 5o Access to 5Size of o Variables value of the barrels +billion barrelsbillion barrelsfunding needs + capital structure capitalizationo Greatero Greatero Board Committee to representFinancialFinancialminority and preferred shareholderso All shareholders will have equalstrengthstrength Transparency and subscription rights fairness o Full and Transparent disclosure of allo Participationo Participationrelevant informationof all of allo All Bills for capitalization and newshareholders shareholdersregulatory regime now passed by in a larger in a largerLower House Timing company companyo Senate has up to 45 days to approve,modify or reject the bill. If modified, with more with moremust reconcile with lower house opportunities opportunitieso Completion of Capitalization 60 to 90days after bill becomes law50 51. BILL 5941/09 COURSE OF ACTION (CAPITALIZATION): Fast track procedure since arrival in the Senate25 days o Bill is sent to commissions and timeline is open for amendments 2 o After deadline for amendments the bill shall be voted and sent to plenaryArrival in the Senate,Presidential message appreciation of the billrequesting fast trackSubject Voting and forward1procedure Art.64 F.C.inclusion process 03/22/10 Up to 35 days05/06/10After 45 days, subject is ceased05/17/10Appreciation and Up to 10 Returns to the Approval with amendmentdays Lower House amendments voting Up to 15 business days Up to 15 business days PresidentialArt 66 FC Art 66 FCapproval Approval 06/04/10 05/27/10Rejected Filled 1 Bills sent to commission2 Amendments are presented in the CCJ51 52. EQUIPMENT AND SERVICES52 53. USING CONTRACTS AND LEASES TO SECURE NEEDED DRILLING ASSETSWater Depth 2009 20102011 2012 2013- 2018 500-1000m 9 1000-1500m12 +1 1500-2000m 8 +3 2000-2500m 4+5 +3+4 2500-3000m 1+3 +4+4 +28 to be leasedTotal per year 34+12 +7+8o 34 rigs operating in 2009o 27 rigs contracted to be delivered until 2012o Bids are out to construct 28 rigs in Brazil, being delivered between 2013 and 20185353 54. COMPETITIVE NATIONAL SUPPLY OF GOODS AND SERVICESAdequacy of The National Supply Industrial Complex PATH 5. Incentive for internationalcompanies to establishGOOD AND SERVICES SUPPLY Importsoperations in Brazil 4. Incentive for associationbetween national and NationalIncrease ininternational companies Industry National Supply3. Incentive for new national Capacity ofentrants G&S 2. Develop competition amongImports medium competitive sectors1. Increase productivity capacity of NationalNational highly competitive sectors IndustryIndustry Current Demand Future Demand 54 55. NEW EQUIPMENT TO BE CONTRACTED ItemsUn.TOTALItems Un.TOTALWet Christmas Treeun500Pumpsun 8.000Well Head un500Compressorsun700Flexible Lineskm4.000Winchun450Manifolds un 30Craneun200Producing pipest 42.000Enginesun 1.000Umbilical km2.200Turbines un350Dry Christmas Treeun1.700Structure Steel (Hull)t 240.000Onshore well head un1.700Structure Steal (Platforms Hull)t 700.000ItensUn. TOTAL Itens Un. TOTAL Reactorsun 280Power Generatorsun 500 Oil and water splitterun50Filters un 300 Storage Tankers un1.800 Flaresun30 Turrets un 550 55 56. CAMPOS BASIN: A GIANT TECHNOLOGY LAB Petrobras Offshore FacilitiesSubsea TreesInstalled Planned Manifold Equipment Dec/2009 (2010)Subsea Trees 733 72Subsea Manifolds74 2Flexible Flowlines 4,425 633(km) Umbilicals Flexible Flowlines (km) 3,391 358 UmbilicalsRigid Pipelines (km)1,63035FloatingProduction 40 3 Units Mono-buoys22 56 57. LONG TERM HR CHALLENGES 20072008 2009 2010201120122013 2014 2015 2016Business Plan 2008 2012 28 Rigs146 sSpply VesselsNew Production PlatformsPromef IILeasing of 19 VesselsRefinery- Premium IRefinery-Premium II 207,643 Human Resource Gap BP 2009-13 25,540 52,862 ProfessionalsQualified SelectedProfessionalso Shortage of trained human resources and demand for local-content increase o Competition with other projects for people57 58. DOWNSTREAM58 59. DOMINANT POSITION IN A LARGE AND GROWING EMERGING MARKET2008 Total Oil Consumption by Country (mmbo/d) 19.410 98.0 8 7o Brazil is worlds seventh-largest 64.8 oil consumer. 5 42.9 2.8 3 2.5 2.42.32.32.2 2.01.91.71.7 1.7 2 1 - S. KoreaChinaIndia RussiaCanada ItalyUS GermanyJapanMexicoIranSaudi Brazil France UKTotal Oil Consumption mb/d (index) 120 BrazilUSOECDWorld115o Brazil oil consumption growing at1.99% p.a; 110 o OECD oil consumption growing at1050.17% p.a. 100 95 2002 2003 2004 2005 20062007200859 Source: BP Statistical Review 2009, PFC Energy 60. VERTICALLY INTEGRATED SYSTEM TO CAPTURE SYNERGIES WITHIN THE VALUE CHAINUpstream Operations Downstream Operations Existing Pipelines RefineriesPetrobrasMarine TerminalOther CompaniesIn Land Terminal o Access to raw materialo Logistic and infrastructure developed o Access to oil products market o Near the biggest market in Brazil60 61. STRONG INVESTMENTS IN FUEL QUALITY AND EXPANSIONDownstream Investments in 2009Oil Products output (th. bpd)US$ 10,5 billion1,7871,823 153 159Fuel Quality 255 243 Complexity 13530%142 34% 143 136New projects*2% 331 9% 343Logistics 74 25% 65 Others 694 737Construction in progress20082009 US$ 11,9US$ 22,7 2008 2009Diesel Jet fuel Gasoline Nafta LPG Fuel Oil Otherso 6,2% increase in diesel output and 12,5% reduction in fuel oil output yoyo 6 million reduction in diesel importso Acid and ultra-acid oils processing up 178% yoyo Comply with more strict environmental standardso Start up of Diesel S-50 production in 3 refinerieso 3 new HDT units 61 * Includes Northeast refinery, Comperj, Suape Petrochemical plant and Plangs 62. DOMESTIC CRUDE THROUGHPUTDownstream Investmentso Adding values to domestic crude and producing diesel andUS$ 47.8 billiongasoline in-line with international standards 12%Refiningo Investment targets Fuel Quality, Conversion and Expansion7% Pipelines & TerminalTransport8% Premium I (600 th bpd)Ship TransportandPremium II3,012 (300 th bpd)Petrochemicals73% 1st Fase: 2013 2nd Fase: 2015UPBClara 150 tho. bpd 2,270 Camaro Dez/20122010RNE 1,7791,791 REVAP230 tho.(Thousand bpd)) 10 tho.bpdbpd20102011 REPLAN REPARRevamp Revamp 33 tho. bpd25 tho. bpd2010 20112008 20092010 201120122013202062 63. UPGRADING TO OPTIMIZE PERFORMANCE AND ENSURE SUSTAINABILITYo QUALITY OF GASOLINE o QUALITY OF DIESEL200920102011201220132009 201020112012 2013Transition Regular GasolineDiesel S-1800Regular Gasoline Period 0.005% SDiesel S-500RECAPREPARDiesel Gasoline Diesel S-50&GasolinREDUCeREPLANGasoline Gasoline Diesel S-10REFAPGasoline REVAPRECAP RLAM REFAPREPLANREFAPGasoline Diesel &Diesel Diesel DieselGasoline Diesel S-50 in 2009Gasoline REGAPRPBCAlready supplied in 2009:Diesel DieselRLAMGasoline total 669 thousand m. (RJ, SP, Recife, Fortaleza, REGAPRPBC RevampGasoline Curitiba and Belm) HDTIMPROVING GASOLINE AND DIESEL QUALITY TO COMPLY WITH STRICTERENVIRONMENTAL REGULATIONS AND REDUCE EMISSIONS & POLLUTANT STREAMS 63 64. FAST GROWING DOMESTIC DEMAND (000 b/d)2,8763.3% p.y. 400Others2,257150FO1,906 1,944 3.0% p.y.274Diesel 112 182 208QAV 119 1091224Naphta 901Gasoline 738 771LPG 179 118 8489246 250 220 255367 419 326 332 208 215 230 257 200720082013E 2020E64 65. VOLATILE INTERNATIONAL OIL PRICES, STABLE DOMESTIC PRODUCTPRICES Petrobras Oil Price (US$/bbl)Brent (US$/bbl)R$/bbl2009 average 121250 120,00 ARP Petrobras: 157.77 115 105,46ARP EUA: 130.06100,0097 200 100,588986,13150 US$/bbl80,0075 76,75756870,242008 average 5960,00 64,42 5564,00 100ARP EUA: 194.7148,68ARP Petrobras: 176.4147,95 4440,00 50 32,23 20,0003Q07 4Q07 1Q082Q083Q08 4Q081Q09 2Q09 3Q094Q09Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 o Growing crude oil exports benefit from higher crude oil prices, improving quarterly earnings duringthe year. Lower discount between benchmark light and Petrobras oil also contributedo Following long term pricing policy, Petrobras average realization price (ARP) declined less thaninternational prices, recovering shortfalls experienced in 2008o Oil product pricing in Brazil continue to converge with international pricingo Pricing policy contributed to positive refining margins in 2009 (stable revenues, declining costs)65 66. POSITIVE MARGINS GUARANTEES REFININGS GOOD RESULTS WTI Petrobras Margins* US Gulf Coast Margins** 140125,38 133,30 120 105,4594,7492,98103,61 10078,05 74,41 (US$barrel) 80 64,10 69,41 6059,12 57,41 PBR:-5.3441,75 40PBR:+18.91 PBR:+13,35 PBR: +12,61USGC: +15.22 USGC: +3.26USGC: +7,14USGC: +4.85 200 -20 4Q071Q082Q083Q08 4Q08 1Q092Q093Q094Q09 out/07jul/08 out/08 jul/09 out/09jan/08abr/08 jan/09abr/09 o Although diesel and gasoline prices were down in June 2009, Petrobras margins are still above international market reference margins o Sustained margins contributed to Downstream significant results 66*Petrobras Margins = PMR-WTI (in US$/barrel) * * USGC Margins Bloomberg 67. IMPROVING OPERATIONS REFLECTED IN GROWING TRADE BALANCE(thousand barrel/day) Oil products2008 vs2009Oil673 705571227549 234 197152 439 478156 373397 102 ExportsImports Net ExportsExportsImports Net Exports Financial Volume (US$ Million)o Boost in oil production led to higher oilexport- US$ 927 + US$ 2,874 o Imports decreased (specially diesel imports) 22.17321.246 due to economic slow down, lower12.32715.201thermoelectric generation and increase inproduction of domestic oil products (diesel) 2008 2009Imports Exports67 68. DOWNSTREAM SUPPLY CHAIN: INTEGRATING THROUGH TARGETED INVESTMENTS Investment decisions in this segment are based on the need to:o Secure a natural hedge between petrochemical and o Maintain flexibility and access to competitive feedstockrefining cycles o Develop cost leadershipo Diversify into higher value-added products o Improve competitivenessBRK Petrochemical Investmentsi)The incorporation of a holding company which will hold100% of Braskem common stocks ii) Capital contribution in BRK to be paid in cash byPetrobras (R$ 2,5billion) and Odebrecht (R$ 1 billion) iii)Capital increase at Braskem through a privatesubscription (between R$4,5 and R$ 5 billion) iv) Acquisition by Braskem of the stock in Quattor held byUnipar v)Acquisition by Braskem of 100% of the stock in UniparComercial and 33% of the stock in Polibutenos vi) Merger by Braskem of Petrobras stake at Quattor vii)Stock tender offer for the indirect sale of the controllinginterest in Quattor Petroqumica SA 68 69. COMPERJ: CONTRIBUTING TO THE PETROBRAS VALUE CHAINComperj will:o Expand the domestic petrochemical market o Capture synergies from existing regional infrastructureo Utilize Marlim crude as feedstock o Improve the balance within the commercial value chain for oil, oil products and petrochemicalsBASICSDOWNSTREAMProduction Products (kta)ProductionDiesel 535Products (kta) FuelsNaphtha284Polypropylene 850Coke 700Polyethylene800Ethylene1,300Styrene 500Propylene881Ethylene glycol 600PetrochemicalsBenzene608Butadiene157PTA 500p-Xylene 700PET 600Sulphur 4569 70. BIOFUELS: ANOTHER GOOD OPPORTUNITY TO BECAME A GLOBAL PLAYERBrazil: Leader in ethanol efficient production Petrobras Investments in BiofuelsENERGY US$ 2.8 billionRAW MATERIAL OUTPUT/ENERGY INPUT Wheat1.2 16% Corn1.3 1.8Ethanol Sugar Beet 1.9 Biodiesel84% Sugar Cane (under Brazilian Production 8.3 Condictions)Brazilian Biodiesel Market andEthanol Exports Petrobras Production Target*4,5 2500 417.9%3,540.6% p.y. 2000 (thousand m) (thousand m) 3p.y.2,515002114 24,225 10001,5 971 1 5000,51,081401Petrobras535 (29%)Market-share (20%) 0 0 2009 20132009 2013 70 71. GAS & ENERGY7171 72. GAS & ENERGY: BALANCING SUPPLY & DEMAND (2008 2017)G&E 2009-13 Investments US$ 10.6 billion 1,477 9264.5283.692 Natural Gas US$ 8.2 billionProjects in PortfolioNew Investments Proposed EnergyProjects in PortfolioNew Investments Proposed 157 166 US$ 2.4 billion 135 139146Additional LNG123 Generation74 Power 11256 67 4950LNGMillion m3/d @ 9.400 kcal/m39644 42 Bolivia Other usesSupply 68 36 584547 47 46 48 141934 39 19 27National 17Supply Industrial 2730 33 36 40 4141 42 43 44Pre-Salt2008 2009201020112012 20132014 201520162017Nac ional S upplyBolivia S upply L NGA ddic ional LGN Indus trial Demand Other us esThermoelec tric Demand72 73. NATURAL GAS AND ENERGY GENERATION INFRASTRUCTURE CONSOLIDATION o Natural Gas logistic and Energygeneration Infrastructureconsolidation. Highlights: o Urucu-Coari-Manauspipeline and Gasoduc III 844 KM and 44.1MMm3/d NG capacity o LNG RegasificationTerminals:- Guanabara Bay andPecm - 27 MMm3/d o Auctions and bi-lateralagreements to sell short-term NG supply (averagesales of 4.7 MMm3/d deNG in 9 auctions) o Portfolio diversificationconcluding first investmentcycle73 74. INTERNATIONAL 74 75. PETROBRAS CURRENT INTERNATIONAL PRESENCEExploration & Production Energy Refining Gas sector activities Distribution Representative office CommercializationCooperation agreement Petrochemicals Head office 75 76. PROCESS OF DEVELOPING DEEPWATER PRODUCTION IN OFFSHORE GOM wells are a continuation of our process of developing deepwater production in offshore Brazil 1977 Enchova410ft 1988Marimb 1610ftTUPI WATER DEPTH = 7,125 ft 1994 TOTAL DRILLING DEPTH = 17,431 ftMarlin 3,370ftTIBER 2009WATER DEPTH = 4,134 ftTiber1997TOTAL DEPTH = 35,055 ft4,134 ft Marlin Sul 5,600ft 2003 Roncador6,180 ft20092010TupiCascade DRILLING MILES BY WATER DEEPTH7,125 ftChinok 8,250ft76 77. CASCADE - CHINOOK DEVELOPMENTFIRST OIL 2010 Shuttle Petrobras America operated fields Tanker FPSO - Water Depth ~ 2,500 meters (8,200 feet).Gas Export PipelineFSHR US regulators approved Petrobras plans to bring first FPSO (*) to the ChinookControlUS Gulf of Mexico. UmbilicalFlow line PowerUmbilical Technologies new to US Gulf of Mexico, including disconnectable turret buoy, allowing the vessel toCascade Manifold Tree move offsite during hurricanes, and transportation via shuttle tanker. (*) FPSO Floating, Production, Storage and Offloading facility. Petrobras has an extensive experience in the use of FPSO with fifteen units currently under operation offshore Brazil.77Source: Petrobras America inc 78. INTERNATIONAL WEST AFRICA6 blocks (1 in production) 6 blocks (1 in production)AGBAMI Operator in prolific Block 18 with Operator in prolific Block 18 30% stake (First oil: 2010)(PB 13%, Operator: with 30% stake (First oil: 2010)Chevron):First oil: July 2008 / Peak:232,000 bpd in 2009 (total) AKPO(PB 20% - Operator: Total):First oil: March 09 / Peak:175,000 bpd in 2009 (total) Petrobras Stake in Akpoand Agbami: 64,000 bpd byend of 2009.Proven Reserves (SEC - 2008): 131,3 MM boe (% Petrobras) 78 79. FINANCE 79 80. HISTORICAL DIVIDEND PAYMENT Dividends per ADR Net Income per ADR Price per ADR (Max-Min)US$US$ US$ 75.2 58.8 2.04.3 53.0 3.52.9 3.0 0.80.926.7 23.00.721.1 17.514.920062007 20082009 2006 2007 20082009 2006 200720082009o Brazilian Corporate Law requires a minimum annual distributions equal to 25% of net incomeo Dividends paid each year based on prior years incomeo In 2009, Petrobras paid the dividends related to the 2008 results as well as a portion of the dividends(interest on capital) related to the 2009 results* Dividends includes the Interest on own Capital (IOC) 81. GROWING CASH FLOW DRIVES CAPEXSOURCES 42,83235,00034,2135,9 9 3 17,9 1230,000 27,88625,000 5,2 2 217,825 US $ m illion20,00012,31115 , 0 0 0 2 8 ,2 2 02 2 ,6 6 4 2 4 ,9 2 010 , 0 0 02 1,0 77 15,115 5,000 0- 2 ,8 0 4 - 3 ,2 52- 5,000 20052006 20072008 2009OC F N et D eb t USES 45,000 42,845 40,000 7,71234,621 35,000-4 ,74 7US $ millio n 30,000 26,179 25,000 1,551 20,000 18,030 3 ,8 6 0 12,480 3 ,14 4 3 5,13 4 15,0002 9 ,8 740 10,0002 ,10 4 2 0 ,76 8 14 , 4 705,00010 ,3 76 020052006 200720082009C A PEX D ivid end s A cq uisit io n 82. CAPEX RELATED TO GROWTH, NOT MAINTENANCE US$ MM50.000 47,326 Others45.000 40.00035,134 Gas & Energy35.000 30.000 Downstream24,92025.000 20.000 E&P14,50015.000 10.0005.000-OCF 2009 Capex 2009 (1) Capex 2010 (2) Est. Maintenance Capex (1)In USGAAP(2)R$ 88.5 billion converted by FX rate of 1,87 R$/US$ (Petrobras forecast to 2010)82 83. HISTORICALLY, CONSERVATIVE PLANNING HAS LED TO A BALANCE BETWEEN OCF AND CAPEX Historical Projected US$ 88.5 bn (2003 2008)US$ 148.6 bn (2009 2013)Net Debt Net DebtCapex OCF(US$ 174.4 bn)OCF (after dividends) (after dividends)Capex(US$ 92.3 bn) Sources Uses SourcesUseso Average Brent: o Average Oil Production: o Average Brent (e): o Average Oil Production (e):US$ 60/bbl 1,720 (thousand boe/d)US$ 66/bbl 2,398 (thousand boe/d)83 84. 2009-2013 ASSUMPTIONS AND CAPEX ARE DESIGNED TO MAINTAIN TARGETED FINANCIAL RATIOSINDEX 2009-2013 Plan 2008-2012 PlanFX Rate (R$/US$) 2.0 2.18 2009 58.00 2010 61.002008 55.00 2011 72.002009 50.00Brent for Funding (US$/bbl)2010 45.00 2012 74.00 2013 68.002011-2012 35.00 Projected Net Cash Flow (After148.6104.4dividends) (US$ bn) Projected Investments (US$ bn)174.4112.4 Net Debt/Net Debt + Shareholders Equity(Leverage) Up to 35%20%Minimum cash balance (US$ bn)-5 84 85. SUCCESSFUL EFFORTS TO RAISE CAPITAL FROM LONG TERM SOURCESMarket Capital Bond issuance +Others Loans 6.752009 US$ 28.05 billion 6.5Oct (Maturity 2040)U S Eximbank 1,5Yield: 7.00% 2 Others (US$ bilion) 2.75Oct (Maturity 2020) 2,5Yield: 5.875% BNDES 13.3(*)101,25Jul (Maturity 2019)Yield: 6.875% China 1,5 Development 0Feb (Maturity 2019)BankYield: 8.125%Brigde Loan Bond issue (*) R$ 25 billions converted by FX tax in 07.30.09In 2009, US$ 34.8 billion were raisedwith an average life of 10.6 years 85 86. DEBT PORTFOLIO0,3%FUNDING SOURCES2,5% 22.1%(US$bn)Dec-09** Dec-08 Dec-07 75.1% Commercial Banks Debt13.16.94.7International Bonds12.45.75.3 Local Bonds1.8 1.62.1US$R$JPYOthers ECAs1.2 1.41.6 Project Finance2.9 4.54.4 BNDES* 18.02.92.5 Other0.7 1.01.3 49%BB/CEF 5.4 3.451% Total Debt 55.527.4 21.9% Capital Market 26% 27%34% FixedFloating* Including Project Finance 86 **Based on 4Q09 BRGAAP Results 87. INVESTMENTS SUPORTED BY CASH FLOW AND INCREMENTAL DEBT US$ MillionJan-Dec 2008 Jan-Dec 2009 4Q09 Cash at the beging of the period 6,987 6,49916,595 Net cash from operating activities 28,220 24,9206,915 Net cash used in investment activities(29,466)(35,120)(9,598) Net cash from financing activities (2,778)(16,935)(2,311)Effect of exchange rate on cash(2,020) 2,935 (54)Cash at the end of the period6,49916,16916,169 Brent (US$/bbl) 976275FX Rate (R$/USD) 1,842,001,74 o Stable operating cash flow, despite lower oil priceso Increasing CAPEX supported by higher borrowings during the yearo New loans improved average life of debt stock 88. LIQUIDITY STRENGTHENED, LEVERAGE WITHIN TARGETS 30%US$ Billion 12/31/2009 12/31/2008 12/31/200727%27% 25% 25% Short Term Debt 8.55.91.5 Long Term Debt48.1 20.6 19.6 21% 22% Total Debt *57.1 27.1 21.819%Cash and Cash15%16.2 6.56.9 Equivalents 12%Net Debt 40.9 20.6 14.9 Net Debt/Ebitda 1.4X 0.7X 0.6XMaturity 7.46 6.49 4.21 12/31/20086/30/200912/31/2009Net Debt/Net Capt.Short Term Debt/Total Debt o Debt profile improved with new borrowings: longer tenor, competitive costs and diversified sources o Leverage sustained within the target range (25% to 35%) * Includes Capital Lease Obligations 89. CAPITAL STRUCTURE AND CREDIT METRICS In Million US$20092008 2007 Cash and Cash Equivalents16.169 6.499 6.987 Total Debt 57.13227.12321.895 Net Debt 40.96320.62414.908 Shareholders Equity94.05861.90965.179Net Debt / Net Capitalization30%25%19% Net Debt/ Market Capital 21%22% 6% Net Debt / Boe Production (USD/boe)22,4 23,5 17,8 Net Debt / Proved Reserves (USD/boe) 2,76 1,371,0 Reserves/Production (Years, SPE Criteria) 16,1217,2217,9820092008 2007 Net Income 15.50418.87913.138 EBITDA 28.98231.08325.604 Net Debt/EBITDA0,710,66 0,58 90. CAPEX 2010 vs. 2009 Investments 2009 Annual Business Plan 2010R$ 70.8 billion 25% R$ 88.5 billion 0,6 0,93,8 2,6 E &P 6,8 6,2 D owns tream 8,131,6 G as & E nergy 36,710,5 International 17,4D is tribuition 34,0Others 16.6 (2.4) (0.7) (0.9) 88.5 5.1 70.8 (R$ billion)CAPEX 2009E&PDownstreamG&E International Distribution, CAPEX 2010 Biofuels andCorporate 91. BUSINESS PLAN 2010 - 2014INVESTMENT 2010 2014 BETWEEN US$ 200 TO US$ 220 BILLION: MONITORING FINANCIAL RATIOS o Leverage between 25% and 35% o Net Debt/ EBITDA up to 2.5X o Investment revenue maintenance in the different segments RELEVANT ASSUMPTIONS FOR THE PROJECTIONS o Brent curve upward trend o Capitalization value and timing o Funding needs for the new Business Plan 2010-2014 91 92. UPDATE9292 93. SUSTAINABLE AND SIGNIFICANT PRODUCTION INCREASEThous. boed Oil & Gas Average TotalOil & Natural Gas AverageProduction Domestic Production +5% 2,288 +5% 2,526 2,176 2,400 3172242383212,1762,2881,8551,9712008 200920082009National InternationalOil & NGL Natural Gaso 6% increase in national oil production from ramp-ups of P-52, P-54 and P-53 and start-up of 5 newunits;o 6% increase in international production from Akpo and Agbami fields in Nigeria;o Natural Gas production declined because of reduced demand in Brazil 93 94. 2009 CRUDE OIL AND PRODUCT SALES: Growth in domestic sales and higher export volumesOil ProductsNatural Gas+2% 1,8491,762 1,810311434 492 489 Thous.barrels/day 244 247211 222 212364 327 366753 769 782 4Q083Q09 4Q094Q083Q09 4Q09Diesel Gasoline LPG Others o Diesel sales increased with the Brazilian economy recovery (although imports decreased 43%) o Higher level of gasoline sales due to reduced competitiveness of ethanol o Reduced levels of natural gas sales due primarily to lower thermoelectric demand o Net exports of crude oil and products of 156 tbpd, improving YoY trade balance by US$ 3.8 billion 94 95. 2009 RESERVE REPLACEMENT: 17th consecutive year of fully replacing brazilian productionBillion boe Brazil ReservesInternational Reserves 14.09314.169 Inction:orpora e0.992 2.124861 M M bo 2.113 P ro d785 uction MM boe :0.4950.696RRI: 110% 0.203 11.96912.056 0.4970.493 20082009 2008 2009Oil & NGL Natural Gas Oil & NGLNatural Gaso 18 years of reserves to production in Brazil, 8 year reserves to production internationallyo Pre-salt discoveries from Espirito Santo Basin contributed with 182 million boe. Estimated reservesin Santos Basin pre-salt are still under appraisal and therefore not included in proved reserveso Decrease in international reserves as constitutional changes in Bolivia eliminate reserve recognition 95 96. 2009 CAPEX SPENDING REFLECTS CONTINUED RAMP-UP OF LONG TERM PLANInvestments 2008Investments 2009 R$ 53.3 billion R$ 70.8 billion 0.6 0.6 2.43.86.1 5,6 E&P 6.8E&P 0,05 1,1Downstream DownstreamGas & Energy10.531.6 Gas & Energy 7.2 26.21,3 3,8InternationalInternational 6,110.8Distribution Distribuition10,124,7 17.4Others Others EBITDA (in R$ billion) 5760Stable cash generation supportsPetrobrass growing capitalexpenditures2008 200996 97. Information: Investor Relations +55 21 3224-1510 petroinvest@petrobras.com.br97