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LP Gas and Future Market PerspectivesJos Sergio Gabrielli de AzevedoCEO. October, 8th 2009

www.HidrocarburosBolivia.co


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The presentation may contain forecastsabout future events. Such forecasts merelyreflect the expectations of the Company'smanagement. Such terms as "anticipate","believe", "expect", "forecast", "intend","plan", "project", "seek", "should", along withsimilar or analogous expressions, are usedto identify such forecasts. These predictions

evidently involve risks and uncertainties,whether foreseen or not by the Company.Therefore, the future results of operationsmay differ from current expectations, andreaders must not base their expectationsexclusively on the information presentedherein. The Company is not obliged toupdate the presentation/such forecastsin light of new information or futuredevelopments.

The United States Securities and ExchangeCommission permits oil and gas companies,in their filings with the SEC, to disclose onlyproved reserves that a company hasdemonstrated by actual production or conclusive formation tests to beeconomically and legally producible under existing economic and operating conditions.We use certain terms in thispresentation, such as oil and gasresources, that the SECs guidelinesstrictly prohibit us from including infilings with the SEC.

CAUTIONARY STATEMENTFOR US INVESTORS

DISCLAIMER



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GLOBAL OIL DEMAND SCENARIOS

MEDIUM/LONG-TERM OIL MARKET OUTLOOK REMAINS VERY STRONG

Natural decline

Actual decline

Global liquids demand scenarios

EIA/DOE High DemandScenario

IEA Reference Scenario

EIA/DOE Low DemandScenario

2030 | 66 85 mm2020 | 42 51 mm

Additional RequiredCapacity (b/d)

Existing production

Source: IEA World Energy Outlook 2008, EIA International Energy Outlook 2009

The global crisis impacted down the perspectives for demand growth, but in medium/long-termoil market outlook remains very strong Global oil production capacity will be challenged to meet projected demand growth


Hid b B li i


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2,111,2

10,618,1

28,133,9

62

72,3

0

20

40

60

80

M i l l i o n T o n s

Oceania Africa CIS Middle

East

Latin

America

Europe North

America

Asia

31,0%

24,3%

6,1%

5,5%

21,0%

12,1%

Mexico Brazil VenezuelaCaribbean Argentina Others

WORLD LP GAS DEMAND

Source: Purvin & Gertz


www HidrocarburosBolivia co


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PRE-SALT POTENTIAL

Total 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%)


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20,000

25,000

30,000

Santos and Campos BasinsPre-Salt(Tupi, Iara, Guar and Whales

Park)**

mi boe ~ 25-30 bn boe

Proven Reserves* +Santos and Campos BasinsPre-Salt

(Tupi, Iara, Guar and Whales Park)**

5,000

10,000

15,000

2008 ProvenReserves*

14,093

0

ANNOUNCED RECOVERABLE VOLUMES IN SANTOS AND CAMPOS BASINS PRE-SALT

*SPE Criteria

** include Petrobras and Partners

Higher estimates+5,400

Lower estimates10,600

Santos Pre-Salt announced recoverable volumes, canalmost double Brazilian reserves.




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T h o u s .

b p

d

208 215 230 257326 332 367 419250 220 255 24684 89 118

179738 771901

1224119 109112

150

182 208274

4002,301 2,400

3,655

5,729

1,7921,855

2,680

3,920

2007 2008 2013E 2020E

Others

Fuel Oil

Diesel

Jet Fuel

Naphta

Gasoline

LPG

Oil Production - Brazil

Oil and Natural Gas

1,906 1,9442,257

2,876

7,5% p.y.

REPLANRevamp33 thous.

bpd2010

RNE230

thousbpd2011

REPARRevamp25 thous

bpd2011

UPB150 thous

bpdDec/2012

Premium I(600 thous bpd) e

Premium II(300 thousbpd)

1st phase: 20132nd phase: 2015

ClaraCamaroRefinery

2010

PRODUCTION INCREASE FOLLOWED BY HIGHER DOMESTIC OIL PRODUCT DEMAND




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LP GAS COMSUMPTION IN BRAZIL

0

2

4

6

8

10

12

14

16

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

T h o u s

.

Industrial Residential Others

LP Gas Consumption (Thous. M3)

Source: ESTRATGIA / EMN & ANP

After 2009 Business Plan 2020 estimates

BusinessPlan 2020

Domestic LPG production in 2008: 6,71 million tonsLPG Brazilian market grew 5,4% from 2004 to 2008, representing an average variation of 1,08% p.y.Present in all Brazilian municipalities47 million homes are attended monthly.

BusinessPlan 2020



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LP GAS IMPORTS

0

0,5

1

1,5

2

2,5

3

I m p o r t a

o

( m i l h o

t o n

/ a n o

)

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Importao Brasileira de GLPLPG IMPORTS (million ton/year)

Imports Origins (%)

Africa; 40%

Americas; 35% Europe; 13%

Middle East;12%

Middle East Europe Africa Americas

From 2000 to 2005 LPGimport fell due to NaturalGas substitution andderegulation on LPG pricesat the end-user; Imports started to growfrom 2005 to 2008 due tohigher domestic residentialand industrial demand

Imports coming mainly fromAmerica and Africa (2008)



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0

0,5

1

1,5

2

2,5

3

M i l l i o n T o n s p

. y

1 9 9 9

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

2 0 1 0

2 0 1 1

2 0 1 2

2 0 1 3

2 0 1 4

2 0 1 5

2 0 1 6

2 0 1 7

2 0 1 8

2 0 1 9

2 0 2 0

Source: Petrobras.

* Data does not consider LPG production comming from pre-salt projects

FUTURE IMPORT ESTIMATES

From 2009 to 2016 - LPG imports will fall due toPLANGAS and new refineries (Premium 1, Premium 2,RNEST); Imports started to grow from 2017 on no significant

increment in new production, despite of marketincreasing in a pace of 1,7% per year



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PETROBRAS INFRASTRUCTURE

RefineryNGPU

Off Land Terminal

ShipLPG Pipeline

Terminal in Land3rd party off land terminal

CabotageImport

PETROBRAS INFRASTRUCTUREPetrobras Refineries

Petrobras Natural GasProducing Units(NGPU)

LPG Pipelines andTerminals

Petrobras Participation

10 refineries1 shale oil processing unitProduction:4,2 million tons/year

5 NGPUs2 In Construction*Production: 0,9 million

tons/year

7 onshore terminals2 offshore terminals inconstruction11 offshore terminals5 pipelines serving LPG,Total extention:1.550 km

REFAP S.A

33 % Refinery of Rio Grande

70% Petrobras / 30% Repsol

Production 0,4million tons/year

NORTH

NEMIDDLEWEST

SE

S


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LP GAS AND NATURAL GAS PARTICIPATION IN RESIDENTIAL MARKET

LPG Residential Market(thous. m3/y)

9.000

9.500

10.000

10.500

11.000

11.500

12.000

2 0 0 8

2 0 1 0

2 0 1 2

2 0 1 4

2 0 1 6

2 0 1 8

2 0 2 0

Natural Gas Residential Market

(thous. M3/y) *

0

50.000

100.000

150.000

200.000

250.000

300.000

350.000

400.000

450.000

2008 2010 2012 2014 2016 2018 2020

* Energetic equivalence between LPG and NG: 1,63m3 of LPG = 880m3 of NG

+1,7% p.y+5,4%p.y

Residential Natural Gas market grows significantly more than LPGresidential market



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LP GAS INDUSTRY CONSUMPTION

0

200

400

600

800

1000

1200

1400

1600

1991 1993 1995 1997 1999 2001 2003 2005 2007

OtherMetallurgyCeramic

thousand m 3

Strong replacement of LPG forNatural Gas, especially in thewhite ceramic industry in SantaCatarina and So Paulo States

0

100

200

300

400

500

600

700

2000 2008

OthersSanta CatarinaSo Paulo

LPG in ceramics

Industrial LPG Consumption

Sourse: ESTRATGIA/EMN

The strong shift of LPG in steel and ceramic segments is partially offset by asmall increase in the consumption of chemicals and foods.

thousand m 3



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PERSPECTIVES FOR LP GAS DOMESTIC MARKET

FINAL REMARKSFINAL REMARKSDifficulties: Use of wood as a substitute product Displacement by the entry of Natural Gas / LNG Informality in retail sector

Opportunities: Modernization of 18 plants for bottling system (improvement ofproductivity and costs)

Growth of internal production with reduction of LPG imports



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For more information:Investor Relationswww.petrobras.com.br/ri+55 21 [email protected]

www.hidrocarburosbolivia.com

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