CEOJOSÉ SÉRGIO GABRIELLI DE AZEVEDO

May 23rd,  2011

FRANCE

French Institute of Petroleum

1

DISCLAIMER

FORWARD-LOOKING STATEMENTS: DISCLAIMER

The presentation may contain forward-looking statements about future events within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are not based on historical facts and are not assurances of future results. Such forward-looking statements merely reflect the Company’s current views and estimates of future economic circumstances, industry conditions, company performance and financial results. Such terms as "anticipate", "believe", "expect", "forecast", "intend", "plan", "project", "seek", "should", along with similar or analogous expressions, are used to identify such forward-looking statements. Readers are cautioned that these statements are only projections and may differ materially from actual future results or events. Readers are referred to the documents filed by the Company with the SEC, specifically the Company’s most recent Annual Report on Form 20-F, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including, among other things, risks relating to general economic and business conditions, including crude oil and other commodity prices, refining margins and prevailing exchange rates, uncertainties inherent in making estimates of our oil and gas reserves including recently discovered oil and gas reserves, international and Brazilian political, economic and social developments, receipt of governmental approvals and licenses and our ability to obtain financing.

We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events or for any other reason. Figures for 2010 on are estimates or targets.

All forward-looking statements are expressly qualified in their entirety by this cautionary statement, and you should not place reliance on any forward-looking statement contained in this presentation.

NON-SEC COMPLIANT OIL AND GAS RESERVES:

CAUTIONARY STATEMENT FOR US INVESTORS

We present certain data in this presentation, such as oil and gas resources, that we are not permitted to present in documents filed with the United States Securities and Exchange Commission (SEC) under new Subpart 1200 to Regulation S-K because such terms do not qualify as proved, probable or possible reserves under Rule 4-10(a) of Regulation S-X.

PRIMARY DEMAND FOR ENERGY – BREAKDOWN BY FUEL (MM TOE)

• Loss of oil relative participation in primary energy demand• Significant growth of biofuels and other renewable, driven by 

technological advances

• Low gas prices may result in higher gas participation over time

16.590

2007 2030

12.271

16.882

2008 2030

Average Annual Growth (% p.y.)

Traditional Biomass

Other Renewable*

Biofuels

Hidro

Nuclear

Coal

Gas

Oil

Sustainable Development

Business as Usual

Sustainable Development

Business as Usual

0,4%0,7%

33%

21%

27%

6%2%9%

29%

22%

25%

7%3%

3,5% 1,3%

30%

22%

6%3%2,2%9%

1% 10%

+0,96%

+1,5%

+1,6%

+1,2%

+2,0%

+5,8%

+6,4%

+1,0%

+0,72%

+1,6%

+0,9%

+1,9%

+2,4%

+7,2%

+8,5%

+1,4%

28%

1,3%

1,4%

•Wind, Solar (PV e CSP), Geothermal,  Marine (Tide and Wave)

•Source: 2008 – IEA ; 2030 –Petrobras’ Scenarios

3

ACCORDING TO MOST OF THE INSTITUTIONS, NATURAL GAS WILL PLAY AN IMPORTANT ROLE FILLING THE GAP LEFT BY THE CURRENT OFFLINE NUCLEAR CAPACITY

PIRACredit SuisseBarclays CapitalSocieté GénéraleWoodMackensie

Possible outcomes to the mix of fossil energy that will substitute offline nuclear capacity

Source: GE-MC/MKT/PREÇOS e GE-MC/SGN/CGNL

Assumptions: It is expected that coal plants will be restored to full capacity. Capacity Factor: 75% nuclear; time horizon 12 months

Oil Products, 40%

Natural Gas; 40%

Coal; 20%

Substituição

Oil Products; 39%

Natural Gas; 47%

Coal; 14%

Substituição

Oil Products;50%

Natural Gas; 39%

Coal; 11%

Substituição

Oil Products,30% 

Natural Gas; 50%

Coal; 20%

Substituição

Oil Products;70%

Natural Gas; 20%

Coal; 10%

Substituição

Tokai Daini; 1.100

FukushinaDaini; 4.400

Fukushima Daiishi; 4.696

Onagawa; 2.174

Offline Nuclear Capacity (MW)81500 Gw/h – 75% 

Substitution

4

Substitution Substitution Substitution Substitution

Japanese spot LNG prices lower than oil in an energy equivalent basisNatural  gas  import  infrastructure  not  much  affected  and  already operating    with significant spare capacity 40 regasification terminals and a big storage capacity (35 day of demand)

ALTHOUGH  THERE  IS AN ONGOING  TRANSITION ON DEMAND GROWTH DYNAMICS, OECD MEMBERS STILL ARE THE BIGGEST OIL‐CONSUMING COUNTRIES

Note: each circle represents the relative size of each country’s oil demand.Source: PIRA

Biggest Oil‐Consuming Countries – 2010

USA

China

Japan

India

Saudi Arabia

Russia

Brazil

Germany

CanadaKoreaMexico

France

Iran

UnitedKingdom

Italy

Spain

‐6%

‐4%

‐2%

0%

2%

4%

6%

8%

10%

‐2% 0% 2% 4% 6% 8% 10% 12%

Annual GDP Growth, 2005‐2010 (%)

Ann

ualO

ilDem

andGrowth,

2005

‐201

0 (%

)

5

2.4

28

20102006 2007 2008 2009

26

28

23

18

1.20.41.6 2.4

28

20102006 2007 2008 2009

26

28

23

18

1.20.41.6

Colombia ‐ Production(billion liters) Brazil B5;

E20

Argentina2010 ‐ B7; E3

2011/ 2012‐ B10; E5

Colombia

E8, B8

Uruguay2012: B52015: E5

Peru – B22011‐ B5; E7‐E8

THE REGION HOLDS SUFFICIENT NATURAL RESOURCES TO THE SUSTAINABLEPRODUCTION OF FOOD AND BIOFUELS

Brazil ‐ Production (billion liters)

EcuadorB2,5; E10

Panama E10

Costa Rica‐max E8; B2

Chile – B2‐B5E2‐E5

Bolivia – B2,52015‐ B20

Mexico and Caribbean Production (billion liters)

ParaguayB5; E18‐E24

• Biofuels industry contributes to the rural sector development and to employment generation;

• In  Brazil,  agro‐ecological  zones  delimit  the  areas  for  soy,  cane, and palm. From the 7% of feasible and authorized area available to the production of cane in Brazil, only 1% is used.

BiodieselEthanol

6

Argentina ‐ Production (billion liters)

20102008 2009

0.60.4 0.5

20102008 2009

0.60.4 0.5

20102008 2009

0.40.2

0.30.3

20102008 2009

0.40.2

0.30.3

Main Biofuels Producers and Government Programs

Source: consolidated data based on various sources (ADP Renewables, ÚNICA, ANP and others)

20102007 2008 2009

0.4 0.8 1.4 0.32.2

ASIA, LATIN AMERICA AND MIDDLE EAST HAVE THE LARGEST PROJECTS OF NEW REFINERIES AND CAPACITY EXPANSIONS

• The new refineries have large scale, high complexity and are fully prepared to process heavy crudes. Most of them are  focused  in  maximizing  low  sulfur  distillates,  objective  achieved  through  the  use  of  delayed  coking  and hydrocracking units.

(Totals in kbpd)

Source: Pira, Petrobras, 2011

Refining Capacity additions (2011‐2016)

437703

153

1.755

736

1.997

3.204

0

500

1000

1500

2000

2500

3000

3500

4000

Asia Middle East NorthAmerica

Latin America Europe Former SovietUnion

Africa

New Refineries

Expansions

7

325180

Shell  &Aramco

2012

Main capacity expansion projects in the world 2011‐2016 (kbpd)

Project Starting Year

PBF Energy Valero

2011 2013

75

200180

Russia and Europe

201620142011

140400

300

Asia

200

182178

Latin America580

2013/152013/14

110Africa

20

300400

Middle East

2014 20152013

375

Source: Pira, Petrobras, 2011

ALTHOUGH THE MAIN  EXPECTED REFINING PROJECTS  IN  THE WORLD ARE  EXPORT‐ORIENTED,  IN LATIN AMERICA AND  IN ASIA, THE LARGEST PROJECTS ARE ORIENTED TO THE DOMESTIC MARKET. 

PDVSAEcopetrolPetrobras

2013/14/15

Turcas &Socar

RosneftTatneft

Iran Oil Aramco & Sinopec

Aramco & TotalSonangolPetrochina

Petrochina IndianOil PetroVietnam

2012 2016

2012/16 2014 2015

North America

8

SOUTH AMERICA IS NOT A MAIN SHIPPING ROUTE, BUT IT WILL INCREASE ITS OIL EXPORTS. ASIA WILL BECOME A MAJOR OIL CONSUMER, LIKE EUROPE AND NORTH AMERICA

Source: PIRA (Maps). IEA/WEO 2010 (Graphs)9

0,5

1,6

0,3

1,92,2

1,4

0,4

0,2

0,3 0,4

0,6

1,7

1,2

1,8

9,5

0,4

3,0

0,1

0,5

1,4

1,0

0,70,2

1,90,7

Major world oil flows (MMBpd - 2009)

Balance of Oil (Exports / - Imports)

-20

-10

0

10

20

30

40

Nor

th A

m.

(incl

.Mex

ico)

Latin

Am

eric

a

Euro

pe

Mid

dle

East

Afr

ica

Cas

pian

and

Rus

sia

Chi

na

Asi

a (n

on-

Chi

na)

Oth

ers

MM BPD

2009 2020

9

FSU STAYS AS A MAJOR EXPORTER OF DIESEL AND FUEL OIL. NON‐CHINESE ASIA INCREASES ITS IMPORTS OF OIL PRODUCTS.

Source: PIRA (Maps). PETROBRAS (Graphs) 10

140

60

540

150

65

200130

100

60

720

140

170

130

130

40

240

200

100

230

60 10

1020

160

105

30

10

30

300

320

80

370

110

250

200

50

110

Gasoline JetDiesel/Gasoil Fuel Oil

70

Main Products' Net Exports/(Imports)

-1200

-800

-400

0

400

800

1200

1600

USA andCanada

LatinAmerica

Europe MiddleEast

Africa FSU China Asia(withoutChina)

kBPD

2010 2020

Major world oil product

flows (MMBpd - 2009)

• Tonne miles more than tripled to China, while seaborne imports  just  doubled.  Its  fast  growth  demanded  fast diversification  of  sources  from  even  more  distant places. 

• China’s  strong  imports  also  pressure  other  Asian countries to diversify their imports.

• India  also  demands new  sources,  diversifying  imports to further regions, such as West Africa.

• New  refining  in  Asia/Pacific  implies  in  less  needs  of long‐haul  imports  of  products,  but  some  long‐haul exports may  remain,  from  India  and  Arabian  Gulf  to Europe or to the US.

* Long‐haul = more than 5,000 Nautical Miles• Clarkson Research, February 2011

WITH  NEW  REFINING  IN  ASIA,  LONG‐HAUL*  CRUDE  ROUTES  BECOME  MORE  RELEVANT TOWARDS THE EAST, BUT LONG‐HAUL ROUTES FOR PRODUCTS MAY WEAKEN

Estimated Tanker Demand

Vessels under 200,000 dwt

Vessels above 200,000 dwt

0

100

200

300

400

500

2010 2011 2012 2013 2014 2015

Million DWT

11

China plans to reduce its dependency on the Malacca Strait, but volumes shipped through the strait will remain high

• Myanmar oil pipeline (2013/2014): 440 kbpd

• Kazakhstan‐China oil pipeline (2013): 400 kbpd

• Russia‐China oil pipeline (Present: 300 kbpd; expansion by 2015: 600 kbpd)

• Total from pipeline options: 1440 kbpd, are only 23% of expected imports from China (2015) –6400 kbpd (IEA 2010)

Map: Current and future routes for China´s oil and natural gas imports (IEA 2011)

THE  INDIAN  OCEAN  IS  EVER  MORE  CRITICAL  TO  OIL  AND  PRODUCTS  SHIPPING There are strategic risks in the strait of malacca and piracy in the gulf of aden

12

13

20

30

40

50

60

70

80

90

100

110

120

2000 2005 2010 2015 2020 2025 2030

(Em

MM

bpd

)

Source: IEA World Energy Outlook 2010, EIA International Energy Outlook 2010

WORLD DEMAND FOR OIL

GLOBAL LIQUIDS DEMAND

Existing production

Challenges ofsupply

2020

2030

43

65

48

78

MM bpd

MM bpd

o Perspectives: investments in oil production will be necessary

• Incorporation of new discoveries

• Alternatives energy source

• Increase of energy efficiency

•increases to Oil in Place or recovery factor

Capacity additionrequired

Project decline in the production

Scenario: Business as Usual

Scenario: Sustainable Development

INTEGRATED VALUE CHAIN

Our main lines: Key Statistics and market position (2010)

Exploration and Production

• 15.3 Bn boe of 1P(SPE)

• 2.3 mm boedproduction

•98.5%  of brazilianproduction

• 20% of deepwaterproduction

RTM (incl. Petrochemicals)

• 12 refineries

• 2.0 mm bbl/d refining capacity

• 11.2 mm t/y nominal petrochemicalcapacity2)

Retail

• 7,306  servicestations

•38.8% market share

Gas and Power

• 14,246 km of pipelines

•Participation in 20 of27 discos of gas in Brazil

• 5,944 MW of Electricity Generationcapacity

International

• 25 countries

• 0.7 Bn boe of 1P(SPE)

• 245 mil boed of production

• 281 mil bbl/d refiningcapacity

•Petrochemical, Gas and Power activities

Biofuels

• 3 new biodiesel plants

• Ethanol: newmarkets

• Responsible for10% of brazilianethanol exports.

Note: (1) Includes Corporative and Elimination; (2) Through Braskem and  Quattor

E&PRTMG&PPetroquímica

53%

33%

2%1%2%8%

1%

Business Plan 2010‐2014US$ 224.1 Bn

MarketingBiofuelsCorporative Brasil

95%

Internacional5%

Opportunities: Economic GrowthGeopolitical stabilityHydrocarbon potentialBiofuels

Challenges:Critical resources (goods and services, human resources)FinancingEnergy Integration

14

1. 5 0 0 1. 6 8 4 2 . 0 0 42 5 2

1 . 1 0 9

6 2 3

3 3 42 7 4

3 5 1 6 31 4 4

2 0 3

1 7 6

2 2

1 2 0

1 2 8

1 0 19 6

2002 2005 2010 2014 2020

Oil Production - Brazil Gas Production - Brazil Oil Production - International Gas Production - International

GROWING PRODUCTION FULLY SUPPORTED BY DISCOVERIES

Pre‐Salt

Petrobras Total Production (000 b/d)

241

12,131

Proven Reserves 2002

14,913

Proven Reserves 2005

15,986

Proven Reserves 2010

5,000

Transfer of Rights

29,000‐31,000

Total Resource Base

HigherEstimates9,600

Lower estimates8,100

• 18th consecutive years of fully replacing the production (229% in 2010)

• R/P ratio 18.4 years (SPE Criteria)

1,078

1,809 2,217 2,583

5,382

3,9074.5% p.y. 7.6% 

CAGR

...

Potential Recoverable (Lula, Cernambi, Iara, Guará and 

Whales Park)

Petrobras Total Reserves (bln boe) ‐ SPE Criteria

...

3,9502,980

15

TRENDS  IN  LATIN  AMERICA  OIL  PRODUCTION  REFLECT  THE  BUSINESS ENVIRONMENT IN EACH COUNTRY

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

MMb/d

Latin American Oil Production

Arg.

Brazil

Colo.

Ecu.

Peru

Trin.

Ven.

Mex.

Source: BP 2010 Statistical Review

0.0

1.0

2.0

3.0

4.0

5.0

6.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009Bcf/d

Latin American Gas Production

Arg.

Bolivia

Brazil

Colo.

Trin.

Ven.

Mex.

Source:  BP 2010 Statistical Review

16

THE ACCESS TO BRAZILIAN E&P

Source: IHS CERA

PresaltOn Hold

Mature Basins

New Frontiers/ High Potential

17

18

PRE-SALT SUSTAINABILITY

EnvironmentalEnvironmental

FinancialFinancial

SocialSocial

Ex: Commitment to giveenvironmental friendly destinationto the carbon dioxide producedfrom Pre‐Salt reservoirs, ...

Ex:• Lula Pilot breakeven in the US$ 35‐45/bbl oil price range.• Consortia sactioned procurementof 13 FPSOs

Create jobs and income

Reinforce internal market

Strengthen Brazilian economy

Local  content

Expanded supply capacity

New suppliers

Lower prices

More equipment availability

Increased flexibility

TECHNOLOGICAL CHALLENGES

• Qualification  of  flexible  risers  for water  depth  of  2,200m (7,218 ft), considering CO2 and high pressure

• Qualification  of  flexible  flowlines for  high  pressure  gas Injection (about 8,000 psi)

• Wax deposition in long pipelines

• Scaling control

• Temperature management along the subsea lines

• Installation and operation of uncoupled rigid risers

• Operation  of  satellite WAG  injection wells  (avoid  hydrate formation)

SubseaSubsea

• Mooring in water depths of 2,200 m

• Interaction with the riser´s system

• Scenario for platforms with direct access to the wells (SPAR, FPDSO)

• CO2  separation  facilities;  compression,  compression  for reinjection

• Plant modularization for deck space/cargo optimization

• Standardization of most systems in the FPSO

FPUsFPUs

• Definition  of  large  reservoir  facies variations  and  fluid contacts from seismic data

• Internal reservoir characterization, with focus on the • heterogeneities that impact fluid flow

• Secondary recovery: technical feasibility of water injection,• WAG‐HC and WAG‐CO2

• Feasibility of 4D seismics under the recovery methods

• Rock‐fluids interactions: impact on the potential of scale• precipitation, on geomechanics of the surrounding rocks

• Avoid flow concentration in high permeability layers

• Improvement of the waterflood performance in mixed wet• carbonates

• Efficient control of inorganic scaling

ReservoirReservoir

• Construction  of  high  angle  wells,  deviated  into  the  salt zone

• Definition of the best strategy of well stimulation

• Quality of cement jobs and resistance to CO2

• Well integrity

• Penetration rate in the microbial carbonate reservoir

• Performance of intelligent completion

• New alloys to reduce costs of well materials

• New procedures to reduce well drilling and completion• duration

• Performance improvement of the new rigs

Drilling and CompletionDrilling and Completion

19

BRAZILIAN DEMAND AND REFINING CAPACITY

20

1.81

1 2.47

9 3.22

4

4.91

0

3.07

0

2.11

0

2.00

4

1.97

1

1.79

8

1.79

2

1.93

3

2.14

7

2.20

8

2.49

3 3.19

7

0

1.000

2.000

3.000

4.000

5.000

2009 (*) 2010 (*) 2011 2015 2020

Oil Production Throughput Oil Production Demand(*) Dados do realizado para 2009 e 2010.

Mil bpd Refinaria Abreu e Lima

(RNE)230 mil bpd(Dez-2012)

COMPERJ(1º trem)

165 mil bpd(Set-2013)

PREMIUM I(1ª trem)

300 mil bpd(Out-2014)

PREMIUM I(2ª trem)

300 mil bpd(Dez-2016)

PREMIUM II300 mil bpd(Dez-2017)

COMPERJ(2º trem)

165 mil bpd(Jan-2018)

Ethanol• Increase of Petrobras participation  in Brazil's 

ethanol  industry  and  bioenergy;  investments focus  on  developing  a  new  generation  of biofuels and cogeneration power:

• Acquisition  of  45.7%  of  Guarani,  the  4th largest processor of sugar cane in the country, and agreement to reach a stake of up to 49%;

• Acquisition of 40.4% of Usina Total; • Strategic  partnership  with  Grupo São 

Martinho,  creating  a  new  company,  called Nova Fronteira (49% BR).

StrategyAct globally, on biofuels production, with relevant participation in biodiesel and ethanol bussiness

BIO DIESEL

ETHANOLINVESTMENTS 2010‐2014:

US$ 3.5 Billion

2,0

0,4

0,4

0,7

Ethanol Biodiesel R&D Logistics

Thou

s. m

³/year

Ethanol Exports

1,055

449

2010 2014

+135%

2.600

886

2010 2014

+193%

747

507

2010 2014

+47%

Ethanol ProductionProduction Capacity of 

Biodiesel in Brazil 

BIOFUELS TARGETS AND INVESTMENTS 2010‐2014Continued expansion and integration with oil products

21

Date: February 2011

HUMAN RESOURCES PETROBRAS

22

48%48%

51%51%

3%3%

46%46%

Time in Time in companycompany ((averageaverage): 14.6 ): 14.6 yearsyears

Age (Age (averageaverage): 42 ): 42 yearsyears

Strategic Remuneration

Internal  development  and external attraction

Leadership development

Knowledge Management

Actions in HR

50 THEMATIC NETWORKS WITH 80 INSTITUTIONS50 THEMATIC NETWORKS WITH 80 INSTITUTIONS

ANPANP

TechnicalTechnicalScientificScientific

CommitteeCommitteePartnerPartner

institutioninstitution 11PartnerPartner

institutioninstitution 55

PartnerPartnerinstitutioninstitution 22 PartnerPartner

institutioninstitution 33

PartnerPartnerinstitutioninstitution 44

MCTMCTFINEPFINEPCNPqCNPq

-- PhysicalPhysical and and HumanHuman InfrastructureInfrastructure-- HumanHuman ResourcesResources TrainingTraining-- R & D R & D ProjectsProjects-- TechnologyTechnology ServicesServices

UNIVERSITIESUNIVERSITIES

INCUBATORSINCUBATORS

RESEARCH RESEARCH INSTITUTESINSTITUTES

SUPPLIERSSUPPLIERS

CENPESCENPES(manager)(manager)

TECHNOLOGICAL DEVELOPMENT

23

DEMANDS OF HUMAN RESOURCES ‐ BUSINESS PLAN 2010‐2014

24

2010 2011 2012 2013 2014 2015 2016200920082007

146 Supply BoatsNew Stationary Production UnitsPromef IIFreight 19 vesselsRefinery Premium IIRefinery Premium IComperj and RNEST replanningNew projects

Business Plan 2008 – 201228 Drilling Rigs

212.638New Demands

BP 2010-14

78.402Qualified

Professionals

PETROBRAS CHALLENGES

25

Capacity to execute a huge portfolio project

Strength and reliability of supply chain

Resource management and efficiency

Human Resources challenges

Funding requirements