1. PETROBRAS AT A GLANCE Pre-Salt ReservoirNovember, 2009 1

2. DISCLAIMERThe presentation may contain forecastsCAUTIONARY STATEMENT about future events. Such forecasts merelyFOR US INVESTORS reflect the expectations of the Company's management. Such terms as "anticipate", The United States Securities and Exchange "believe", "expect", "forecast", "intend",Commission permits oil and gas companies, "plan", "project", "seek", "should", along with in their filings with the SEC, to disclose only similar or analogous expressions, are usedproved reserves that a company has to identify such forecasts. These predictions demonstrated by actual production or evidently involve risks and uncertainties, whether foreseen or not by the Company. conclusive formation tests to be Therefore, the future results of operations economically and legally producible under may differ from current expectations, and existing economic and operating conditions. readers must not base their expectationsWe use certain terms in this exclusively on the information presentedpresentation, such as oil and gas herein. The Company is not obliged to resources, that the SECs guidelines update the presentation/such forecastsstrictly prohibit us from including in in light of new information or future filings with the SEC. developments. 2 3. PETROBRAS: AN INVESTMENT GRADE, PUBLICLY TRADED, MAJOR INTERNATIONAL OIL COMPANYIncorporated in 1953 as government Government maintains controllingmonopoly for all hydrocarbon activitiesinterest with 55% of voting sharesin BrazilOriginally established as a refinery ofMarket cap of approximately US$ 216imported crude oil billion as of November 17, 2009Became net exporter in 2006 Foreign currency ratings from Moodys60% of total equity capital (common and(Baa1), Standard & Poors (BBB-), andpreferred) is now publicly tradedFitch (BBB).Crossed the Brazil Self2MM bpd, A New E&P BrazilianFirst Public PetrobrasFull Upgraded to$100 billionSufficient in $200MM market Regulatory Constitution Auction of Oil NYSE Listing Deregulation Investmentdollar Market Oil cap, DiscoveryFramework. AmendedExplorationGrade IssuerCap markof new oilPre-Salt andAreas frontier: Pre StrategicSalt (Tupi field) Areas Nov 1995 June 1999Aug 2000 Jan 2002Oct 2005 2006 Apr 20062007Aug 20093 4. DIVERSIFIED SHAREHOLDER BASE 60% of the economic value of Petrobras in private hands, but Government maintains control with 55% ofvoting sharesMore than 1,00,000 investors in Brazil and abroad9 ,5 % 2 0 ,3 %2 6 ,4 % Foreign 10 ,9 %3 1,2 % 2 9 ,5 % 4 6 ,4 % 10 ,3 % 37,4% 18 ,0 %9 ,9 % 8 ,0 %7 ,9 % Bovespa2 5 ,1%2 3 ,1% 2 0 ,7 %2 2 ,8 %30,7% 53,6%61,6%44,4% 40,6% 40,1%39,8%Oct/1992 Jul/2000After Aug/00 After Jul/01 Dec/2003 Nov /2009offeringoffering Gov ernment (1) Bov espa BrazilBov espa ForeignADRs Free Float 46.4 38.4 55.659.459.960.2(1) Includes BNDES / BNDESPAR 4 5. PETROBRAS IS THE MOST LIQUID STOCK IN VALUE TRADED ON BOTH THE BOVESPA AND NYSE Turnover NYSE & Bovespa (Daily Average Turnover)Turnover 2009YTD/2005 = 512% (US$ MM) (% category and US$MM)20001,9301800100%90%160080%43%43%1400 1,34447%50%53%70%1200NysePBR992 60% PBR/A1000 Nyse 50% PBR 20% 80025% 21%PBR/A 40%20%19% 600 6% 48330% 6% 5% 5%5% Bovespa 40020%219 Bovespa PETR3 31% PETR325% 27%26% PETR4 200 PETR410% 22% 0 0%2005 2006 20072008 2009 YTD 20052006 20072008 2009 YTDPETR4 (Bovespa)PETR3 (Bovespa) PBR/A (Nyse) PBR (Nyse)Turnover of PBR 3 times the volume of PBRA on the NYSE Turnover of PN 5 times the volume of the ON Probable explanation: Cultural. Brazilians familiar with PNs and would not pay premium for ONs 5 6. CORPORATE ORGANIZATION AND KEY OPERATING RESULTS Exploration &DownstreamGas &Production Distribution Energy InternationalBiofuels (Supply) Petrochemicals Income from OperationsSummary FinancialsG&EDistribution (US$ billion- USGAAP) 200720081H092,7% 2,9%Net Revenues 87.7118.3 39.8EBITDA 25.631.313.6Domestic 41,8%Net Income 13.118.9 6.6 Downstream 52,6%E&PCapex21.029.9 14.3Total Debt(1)21.927.4 34.6Cash & Cash Equivalents7.06.54.9Net Debt 14.920.9 29.8Total Equity 65.261.9 79.2Total Assets 129.7 125.7157.4(1) Includes capital leases6 7. A WORLD-CLASS, PUBLIC, INTEGRATED ENERGY COMPANY 2008 Oil & Gas Production 3.9 3.8 Gas Production boe/d 3.2 Oil Production boe/d 2.5 (mmboe/d)2.42.4 2.3 1.8 83%(oil)0.6 XOMBPRDSCVX PBRCOP Total ENI BGSource: Evaluate Energy and Company reports 5,675 2008 Refining CapacityMarket Value as of November 17, 2009 356 3,905(mcb/d) 3,119 2,917(US$ bn) 2,600 216 2,223 2,083 192 186158 149 8281048380299 XOMRDS BP COP TOT PBRCVXENISTL X OM P BR RDS BP CV X T OT E NI ST L C OPSource: PFC Energy WRMS (barrels per calendar day, considering company % shareholding and including JVs) Source: Bloomberg 7Note: Peer companies selected above have a majority of capital traded in the public markets. 8. DOMESTIC E&P PROFILE2008 Production2008 Proven Reserves (SPE)15% 9% 10% 14%13%23% 58%58% 2,176 thousand boed 14.09 billion boe OnshoreShallow water (0-300m) Deep water (300-1500m) Ultra-deep water (> 1500m) 8Source: Petrobras 9. COMPETITIVE ADVANTAGE IN THE DEEPWATERPetrobras operates 22% of global deepwater production and 18% of all operating vessels 2008 Gross Global Operated FPS Operators Deepwater ProductionAll Contracted Vessels (252 Vessels Total) REL HES MUR HES REL MUR 1% 1%020406080 1001202% 1% 2% 1% BG Petrobras 45 APC 4%PBRShell15 5%22% StatoilHydro15 CVXExxonMobil136%BP 12 APC TOT 6% Chevron128%Anadarko10 XOM 14%Total9CNOOC 8 BP 9%ConocoPhillips 8 XOM ENI/Agip 5 STL RDSOthers 100 14% 14% FPSO Semi SparTLPOtherSource: (1) PFC Energy | Note: Estimated volumes above reflect what operators are responsible for producing, not what they keep on a net working9 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. 10. DOMESTIC PROVEN RESERVES PROFILE Proven Reserves as of Dec/2008 (SPE)(14.09 billion boe) Oil + Condensate < 22 API2285%(heavy) 22 31 API 10% 5%50% (intermediate) 29%15% 6%Associated GasNon-Associated Gas Gas> 31 API (light) 45% Undeveloped55% Proven Reserves DevelopedProven Reserves 10Source: Petrobras 11. ENHANCING RESERVES Santos 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 14,0930 2008 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 DEVELOPMENT2.000.0001.800.0016 anos54 anos 1.600.00 Production (bpd)22 anos 1.200.001.000.00 27 anos 12 anos 45 anos800.00400.00 01 3 5 7 9 11 131517 19 21 23 25 2729 31 33 35 37 39 41 43 4547 49 51 53 55Numbers of YearsProduction since Discovery of giant fields in CamposDiscovery of Garoupa in Discovery of the Pre-Salt,incorporation of Petrobras basin including Albacora/Marlimthe Campos basin (1974) since Parati (2006)(1953) (80s & 90s) 12 13. INDUSTRY-LEADING PRODUCTION GROWTH CAGR (2004-2008) - % 7,755,33 4,404,382,481,36 -1,02 -1,79-2,57 -3,71-3,78 ExxonMobil ChevronRepsol YPFBPPetroChinaLukoil TotalRD ShellConocoPhillipsPetrobras ENIPetrobras Oil and Gas Production (000 boe/d)2,4002,297 2,3012,217 4.4% CAGR2,020 20042005 2006 20072008Source: Evaluate Energy (2004-2008 CAGR) 13 14. STRATEGIC VISION: TO BE ONE OF THE WORLDS FIVE LARGEST PUBLICLY TRADED OIL PRODUCERS 30,000 ProductionTarget: 202025,000R es erves (m m boe) Production Target: 2013XO M 20,000 BPProduction 15,000 Target: 2009 PBR10,000CVX R DSTO T C OP5,0002,000 2,5003,000 3,5004,000 4,500 5,000 5,5006,000 2007 (SEC) reserves and production P roduc tion (m boe /d) 14 15. BRAZILIAN ECONOMY IS GROWING WITH STABILITY AND FISCAL RESPONSIBILITY GDP Growth (%)Trade Balance (US$ Billion) 250.0ExportsImports Forecast 65.7 5.7 Forecast 5.1 198 54.7200.0 173 170 4.0161 155 155 GDP Growth (%) 4 150.0 1383.2 130119 121 397 91 100.07374 2 63 1.2 4850.0 10.2 0 0.0200320042005 2006 2007 2008 2009 2010 200320042005 2006 2007 2008 2009 2010International Reserves (US$ billion)Brazilian Debt (as % of GDP)Nominal Fiscal Deficit/GDP (%) 2008200920 6053,5Nominal Debt/GDP (%)250,0Net Debt/GDP (%)Net Debt/GDP (%)212 48,2 48,045,9 43,9 50 207 15 44,0200,0 180 38,8 40 150,010 30 4,73,920100,086 52,8 3,43,549 53 54 2,81050,02,00 0 20032004 20052006 20072008 ago/090,0dezabrmaijulabrmai julmaragomar janjunjanjunout setnovfevfev20032004200520062007 15Source: Brazilian Central Bank 16. INCREASING INVESTMENTS WITH CAREFULLY CRAFTED SPENDING PROGRAMBusiness Plan 2009-2013 PN 2009-13 | Brazil/International2%2% 2% 3%US$ 174.4 billion9%7%5.6 3.0E&P 16.2US$ 174.4 billion 11.8 2.8 RTC3.2Brazil G&E International Petrochemicals 158.2 43.4 104.6 (*)Distribution25% 59% Biofuels 91% Corporate(*) US$ 17.0 billion allocated to Exploration Business Plan 2008-122%1%2% 4% US$ 112.4 billion 6% 4.32.6 Petrobras strategy gives first priority to6.71.5 E&PRTCmeeting production targets 2.5 G&EPetrochemicals E&P accounts for 76% of new project26% 29.665.1 Distribution59%spending (US$ 28.9 bn for pre-salt)BiofuelsCorporate16 17. PEERS CAPEX Capex by segment(3Q09 vs. 3Q08) Source: Evaluate EnergyChemicals Others17 18. PETROBRAS RESEARCH CENTER: TECHNOLOGICAL INNOVATION FOR THE NEXT DECADES Partnership with over 120 universities and research centers in Brazil, and 70 Institutions abroad. Technological Strategy Expanding Limits Investments in Technology2009-2013MediumOffshorePre-Salt DistillatesNatural Gas US$ 4.0 billion Ultra-deepMaximization TransportationNovas Advanced Water 25%fronteiras Recuperation ExploratriasSustainability 1.0 1.9 47% Enhance Product Mix5%0.20.9 23% E&PDownstream Biomass 2nd GenerationCO2 Water Refining BiofuelsEnergyManagement ManagementEfficiency G&ECorp. (Cenpes)18 19. UPSTREAM 1919 20. CONSISTENTLY DELIVERING RESERVES GROWTHMaintained a ~120% reserve Targeting a reserves to replacement rate in 2008. Over the production life of 15 years past decade, reserve replacement has principally been driven by internal additions in Brazil 13.75 13.9214.0913.02 13.23 0,92 1,230,880,88ProductionProductionProduction Production(0.67 bn boe) (0.70 bn boe) (0.70 bn boe)(0.75 bn boe)Reserves ReservesReserves Reserves Replacement 12,35Replacement12,52Replacement13,04 Replacement 13,17 IndexIndex IndexIndex(131%) (174%)(124%) (123%)2004 200520062007 200820* According to SPE (Society of Petroleum Engineers) criteria 21. PURSUING NEW PROJECTS WHILE MAXIMIZING PRODUCTION FROM EXISTING ASSETSPetrobras Total Production (x 1000 boe/d)5,729 2237.5% p.y. 4091.177 3,6555.6% p.y.8.8% p.y. 1312,758210 634 2,400 103 2,217 2,2972,301 142 1,8102,037 2,020101 110100 1,635 96 124463 228594142 12624 163321 35 161168 277 2733.92044 274 252251265232 2.680 1.8552.050*1.684 1.7781.792 1.5001.5401.493 1.33520012002 20032004 2005 200620072008 2009.....2013.....2020Oil 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 2,050 1,8552008 2009 2013 2015 2020Light Oil 31 API Medium Oil Heavy Oil 22 API 22 23. ROBUST PROJECT PIPELINE: 2010-2013 CANAPU MANATIexpansion URUGUJURUTAMBAARACANGA LAGOSTA3.32 MEXILHO3.20 Oil and gas CAMARUPIM 3.02URUCU 2.79 million boe/d2.68 2.51 2.58 Oil2.43P-622.25RONCADOR2.05P55RONCADOR P-57 BALEIA AZUL JUBARTEP-61 JABUTIPAPA-TERRATUPI P-56MARLIM SULP-63EWT TupiPilot PAPA-TERRA P-51 CACHALOTE.MARLIM SUL BALEIA FRANCA,GUAR 1 BALEIA AN FRADE TUPI 1 PARQUE DAS Pilot ExpansionCONCHAS 2009 2010 201120122013 Pre-saltHeavy oil Natural Gas 23 24. RESERVES IN ULTRA-DEEP WATER CAN BE DEVELOPED AT A RELATIVELY LOW COSTExpected Costs of Production140Deepwater and Production costs (US$/bbl-2008) 120Ultra-deep water 100Oil Gas to Coal to80 Shales liquidsliquidsArcticCO - EOR60EOR Heavy oiland bitumen40 Other20 Produced conventionPetrobras expected MENA al oil maximum break-even cost 01000200030004000 50006000 70008000 9000 10000Reserves (bn bbls)24Source: IEA Outlook 2008 25. LIFTING COSTS STABLE, IN SPITE OF HIGHER OIL PRICES R$/barrelUS$/barrel114.7868.28 54.40 54.9158.7941.62 44.40 41.4838.8636.79 34.2422.3916.3321.28 24.78 30.2718.11 19.50 22.8620.06 14.69 13.8417.61 19.0917.9117.58 16.849.87 6.8710.7810.218.24 7.828.729.023Q084Q08 1Q09 2Q093Q093Q08 4Q08 1Q092Q093Q09 Lifting Cost Gov. Take Lifting Cost Gov. Take Brent Lower lifting costs without government take, in Reais, despite increase in internationaloil prices In Dollars, the increase was due to FX rate appreciation Increase in the government take due to higher international oil prices and increase intax rates applied to certain fields, especially Marlim Sul e Marlim Leste 25 26. DISTRIBUTION OF UPSTREAM REVENUES Distribution of the Realization Price of a Barrel of Domestically Produced Oil $85,00 $75,00 95,0% $ per Barrel Realization Price% Share of Realization Price$65,0075,0%$55,00 $45,00 55,0%$35,00 35,0%$25,00 $15,00 15,0%$5,002005 2006 2007 2008 1H09 20052006 20072008 1H09$(5,00)-5,0%LiftingOther COGSDD&AIncome Tax OtherSG&A Net Income R&DExploratory CostsGovernment Take 26 27. NEW PRODUCTION UNITSProjectStart up Type Oil and Gas Capacity ShipyardLeased Urugu-Tamba25,000 bpd 1Q/10 FPSOModecCidade de Santos 10.0 MM m3/dMexilho 2Q/10Fix 15 MM m3/dMau Jurong Cachalote/Baleia Franca 100,000 bpd 2Q/10 FPSO SBMFPSO Capixaba3.2 MM m3/dTupi Pilot 100,000 bpd 4Q/10 FPSO Cosco (China)ModecCidade de Angra dos Reis 5.0 MM m3/dMarlim Sul Mod. 3 - P-56 (P- 100,000 bpdBrasfels-Keppel 2H/11SS 51 Clone) 6.0 MM m3/dAngra180,000 bpdJubarte Mod. 2 - P-572H/11 FPSOSBM Cingapura 2.0 MM m3/d100,000 bpdPapa Terra - P-612H/13 TLWPBid in progress 1.0 MM m3/d150,000 bpdPapa Terra - P-632H/13 FPSOBid in progress 1.0 MM m3/d120,000 bpd Guar Pilot 2H/13 FPSOBid in progress 5.0 MM m3/d Atlntico Sul180,000 bpd Roncador Mod 3 - P-55 2H/13SS (Suape) and Rio 6.0 MM m3/dGrande27 28. NEW TECHNOLOGIES TO INCREASE RECOVERY FACTOR Vertical Annular Separation andESP in a skid on the sea-bed Pumping System 4D Seismic (Espadarte-Fase III)(Marlim; Marlim Sul; (Congro; Malhado; Corvina) (Parque dos Albacora) VASPS Temperos; ) Bonito CAISSON2011 2009 2010 2012Oil Water Subsea Christmas Subsea Tree. Separation Piggy-back(Marlim) (Marimb; Barracuda) TLWP(Papa-terra)SBMS - SubseaRWI Raw Multiphase PumpingWater InjectionMultifractured Well System(Albacora)(Bonito) (Marlim)28 29. EXPLORING TO LEVERAGE EXCITING FRONTIER PLAYS IN OUR OWN BACKYARDExploration CapexUS$ mm70% 2.750Success Rate2.50060% 2.25050% 2.0001.75040% 1.5001.25030% 1.00020%750 50010%25000% 2002 2003 2004 2005 2006 2007 2008 2009-201329 30. MAIN DISCOVERIES IN THE POST-SALT REGION *Date Field ParticipationFluids WaterDepth (m) Nov-2009Rig FenceLight Oil400 BR(100%) MarimbAug-2009BM-C-36 BR (100%)Light Oil976 AruanMay-2009BM-S-48BR(35%), Repsol(40%),N. Gas and161PanoramixVale(12,5%),Voodside(12,5%) Condensate MarimbBM-J-3Aruan Nov-2008 BR (60%), STATOIL (40%)Oil2,354 (BM-C-36) Jequitinhonha Sep-2008BM-S-40/Sidon BR (100%)Light Oil274Jul-2008GolfinhoBR (100%)Light Oil 1,374May-2008BM-S-40/TiroBR (100%)Light Oil235Dec-2007BM-ES-5/ BR (65%), EL PASO (35%)N. Gas and708CamarupimCondensateMay-2007BM-ES-5/ BR (65%), EL PASO (35%)N. Gas and763CamarupimCondensateMar-2007BC-60/Caxaru BR (100%)Light Oil 1,01130 * 2007 to 2009 31. EXPLORATION PORTFOLIO AT DIFFERENT STAGES OF DEVELOPMENTMargem Equatorial Brazil Ceara & PotiguarExploration: 2009-13 US$ Solimes13.8 bn PotiguarExploratory Area: 155.0 thousand SEAL& REC & TUC km Bahia Sul 265 exploratory So Francisco blocks Esprito Santo 35 appraisal plans CamposPetrobras Santos313 production Othersconcessions Pelotas31 32. INCREASE IN THE NUMBER OF FIELDS ANDS BLOCKS HELD WITH PARTNERSPetrobras current domestic production comes mainly from concessions(97%) owned by the company aloneFor the areas under development, the percentage of concession heldwithout partners falls to 62%More than half (53%) of the blocks under exploration or appraisal arejoint ventures Concessions Under Production Production 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 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 MEXICOUSA35 t 36. PRE-SALT ACTIVITIES ACCELERATING, REAFIRMING POTENTIAL AND INCREASING UNDERSTANDING Drilling of the 4th well of the BM-S-10 BM-S-11Evaluation Plan of Tupi was BR 65%BR 65% concluded, confirming thepotential of the areaIara BM-S-8Parati BR 66%IracemaExcellent performance ofTupi EWT, with production Tupi NEof approximately 20TupiJpiterthousand bpd Extenso - Tupi CariocaTupi P1 Formation Test in wells Iara,Bem-te-vi GuarIracema and Tupi Northeast Iguau BM-S-24Abar BR 80%Drilling and completion of the1st well in the Tupi pilot Guarani Azulo BM-S-9Caramba BR 45% Legend: BM-S-21BM-S-22 Drilled Wells BR 80%BR 20%Formation Test Next steps: new wells in the Tupi pilot; new exploratory wells in BMS-9, BMS-11 and BMS-10Drilling and Rigs: 3 new drilling rigs until 1H/2010 Completion Ongoing biddings: (i) FPSO chartered for the Guar pilot; (ii) 8 hulls for the Pre-salt project in Santos Basin 36 37. INVESTMENT PROGRAM FORECAST Total Investments of US$ 104.6 billion in Investment (Program %) E&P through 2013, of which US$ 92 billionwill be spent in BrazilOil Transfer Exploratory Appraisal 4.7% 1.9%Gas Transfer 5.2% Production 12%13% Infrastructure 0.5% Production 17% Development87.7%58%19% Subsea49%32% WellsExploration DevelopmentUnitsSantos Pre-salt International 37 38. DEVELOPMENT STRATEGY (example: TUPI)1st Oil EWT 1st Oil Tupi SignificantTupi (Mar/09) Pilot (Dec/10))production level ..... .....t 200720092010 20122017 Information AcquisitionDefinitive Development PhasesPhase 0 Phase 1APhase 1B EWT (Mar/2009), TupiImplementation of X production units Implementation of FocusPilot and appraisal wells (Replicated FPSOs) Y production units Area Delimitation Analyze water and gas/CO2 injection behavior Analyze reservoir flow Test adjustments on FPU related to CO2 Fractured well Test improvements in well projectsperformance Objective Apply previous dominated concepts and technologies with Complete samplednecessary adjustments to reach significant production by 2017core Aggregate innovative technical solutions to optimize project Material analysis vs.performanceCO2 38 39. PRE-SALT ACCOMPLISHMENTS TIMELINE 2008 Phase 02013 Phase 1A 2017Phase 1B2020Phase 1A - ProjectsPhase 0:Information gatheringPhase 1a: 1st phase of definitive development, use ofAppraisal wells, Small scaleconsolidated or rapidly-consolidating technologies toproduction (EWTs) achieve production targets, generate cash-flow tosupport Phase 1bFirst 2 FPSOs to be chartered (2013-2014) Oil Production: 120,000 bpdPhase 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 bpdtailored for Pre-Salt conditions Gas Compression: 5.5 M m/d Water-Alternating-Gas injection capability 39 40. MAJOR TECHNOLOGICAL DEVELOPMENTS UNDER EVALUATION PLANSAL - Pre-Salt Development Master Plan Offshorelogistical hub Water-alternating- Offshoregas (HC or CO2)produced fluid injection handling hubsCO2 storage in Extended-reach saline aquifers,and deviateddepleted fields, salt wells (salt)caves Pre-SaltFlow AssuranceDefinitiveDeepwater and formationCALM buoydamage control DevelopmentDry completionsystems (SPAR,ReservoirTLP, FPDSO, ) CharacterizationOffshore gas Floating LNGstorage in salt caves CO2 separation /capture technology 40 41. ESPRITO SANTO PRE SALTn to UTG CacimbasInfrastructure in-place: diversified and flexible portfolio;SaLinharesRio DoceCango MGPero P-34 at Jubarte field, first pre-salt production (Sep/08): itoUPGN Lagoa Parda excellent results/light oil (30API); p r24 66 kmAracruz 25 MM m3/d Es Terminal Barra do Riacho Camarupim FPSO Seillean started in dec/08 as pilot system ofCanapu Cachalote (CHT) field; Golfinho VITRIA 2 wells were reallocated from FPSO Capixaba to CarapVila Velha FPSO Cidade de Vitria; UTG Sul CapixabaSul-Norte Capixaba Gas pipeline Developing new discoveries in the Ring Fence ofGuarapari Sul CapixabaGas pipeline 12 a 24 160 km 12 83 km7 a 15 MM m3/d Golfinho using FPSO Cidade de Vitria; Anchieta 4,5 MM m3/dPresidenteMarataizes FPSO Capixaba (100 Mb/d) moved from Golfinho field Kennedy ARGCHTBaleia Franca and is being adapted to produce in Cachalote JUB OST RJ Baleia Azul NAU (CHT)/Baleia Franca (BFR) in 1H10;ABACXR PRB Baleia Azul first definitive production unit by 4Q12;CatuNatural gas production transported via pipeline. Whales Park*41 *Whales Park comprehends the fields: Jubarte, Cachalote, Baleia Franca, Baleia Azul and Baleia An 42. PRE-SALT OIL PRODUCTIONPetrobras Pre-salt Oil Production (000 b/d)1,8151,336632582 463219 160873 1.183 62 422 1522013201520172020 Pre-Salt Petrobras Pre-Salt PartnersPre-salt Capex Through 20202009-2013 2009-2020Petrobras Total Pre-salt Capex (Production Development) 28.9 111.4 Santos Basin Pre-salt 18.498.8 Esprito Santo Pre-salt (includes post-salt fields) 10.312.6 42 43. E&P REGULATORY FRAMEWORK Pre-Salt and Strategic Areas 43 43 44. NEW REGULATORY MODELProduction Transfer Sharing of Rights withAgreementcompensationPre-saltPetrobras 100% and Petrobras OperatorStrategic Other companies AreasUp to 5 billion boe Trough Bidding Process Other AreasCurrent Concession Model There will be no regulatory changes in the areas under concession, includingthe pre-salt area already granted44 45. PRODUCTION SHARING AGREEMENTS Production sharing agreementsPetrobras will operate all blocks under this regime, with a minimum stake of 30%Consortium between Petrobras, Petro-sal and the winning bidder will be managed by theOperational CommitteePetrobras will be able to participate in the bidding process to increase its stake The winning bidder will be theCompaniescompany that offers the highest percentage of profit oil for theProfit Brazilian Government Oil Petrobras will have to followGovernment the same percentage offered by the winning bidder The Brazilian Government will notassume the risks of the activities,except when it decides to invest Cost directlyOil Prior to contracting, the Governmentmay evaluate the potential of theareas and may contract Petrobrasdirectly Graphs are showing only hypothetical values 45 46. E&P TRANSFER OF RIGHTS WITH COMPENSATION 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 Transfer of rights limited to a maximum produced of 5 billion boe. Petrobraswill be the owner of produced volumes Oil values shall be determined by technical reports prepared by qualifiedthird parties contracted by the government (ANP) and Petrobras, takinginto account best industry practices The transaction includes a clause of reappraisal of reserves valueIf the value of appraisal rises, Petrobras will pay the difference to the Government. If price falls, the contrary will happen Royalties will be paid by Petrobras and distributed according to the Law n9.478/97. No special participation payment is expected46 47. TRANSFER OF RIGHTS APPRAISALAppraisal need to considerProductionCapexCurve ProductionOil Volume CostsOil reservoirFuture OilDiscount prices Rate ReservesFiscal development/ EnvironmentKnowledge (governmentparticipation)47 48. PETROBRAS CAPITALIZATION The value of capitalization could be: Minimum: the same value of the transfer of rights with compensation Maximum: up to 3 times this value Petrobras will receivecash from minority Petrobras increase shareholdersin capital Petrobras will pay the(to be approved by transfer of rights withAppraisal of the ESM) compensation to the reserves in R$ federal govt Brazilian Government could pay the capital contribution to Petrobras with public debt issuances, priced at market value Petrobras may pay the Brazilian Government the transfer of rights with compensation, using the same securities arising from the capitalization 48Graphs are showing only hypothetical values 49. EQUIPMENT AND SERVICES 49 50. USING CONTRACTS AND LEASES TO SECURE NEEDED DRILLING ASSETS Water Depth2008200920102011 20122013 - 2018 0-999m11 11000-18 21999m 2000m 5 596 + 28 to be leased Total per34 79* 7 928** yearRigs Available in7 176the market > 2400m 30 RIGS CONTRACTED PLUS 28 TO BE LEASED UP TO 2018, MAKING A TOTAL OF 58DRILLING RIGS: - 23 being delivered between 2009 and 2011- 9 will be chartered via international bidding, being delivered in 2012 Meeting Petrobrasshort-term needs, while the national industry prepares itself for additional orders.- 28 will be built in Brazil, being delivered between 2013 and 2018* 2 rigs will be dismissed in 201350 **30 rigs contracted plus 28 to be leased up to 2018, making a total of 58 new drilling rigs 51. COMPETITIVE NATIONAL SUPPLY OF GOODS AND SERVICESAdequacy of The National Supply Industrial Complex GOOD AND SERVICES SUPPLYPATH5. Incentive for international importscompanies to establish operations inBrazill 4. Incentive for associationbetween national and Increase ininternational companiesNational SupplyCapacity of G&S3. Incentive for new nationalimports entrants2. Develop competition amongmedium competitive sectors1. Increase productivity capacity ofNationalhighly competitive sectorsIndustry Current DemandFuture Demand Source: Promimp, 200851 52. NEW EQUIPMENT TO BE CONTRACTEDItemsUn. TOTALItemsUn.TOTALWet Christmas Tree un500Pumpsun 8.000Well Headun500Compressorsun700Flexible Lines km 4.000 Winchun450Manifoldsun 30Craneun200Producing pipes t42.000 Enginesun 1.000Umbilicalkm 2.200 Turbines un350Dry Christmas Tree un 1.700 Structure Steal (Hull)t 240.000Onshore well headun 1.700 Structure Steal (Platforms Hull)t 700.000 ItensUn.TOTALItens Un. TOTALReactorsun280 Power Generatorsun 500Oil and water splitterun50Filters un 300Storage Tankers un1.800 Flaresun30Turrets un55052 53. LONG TERM HR CHALLENGES 200720082009 2010 2011 2012 2013 2014 2015 2016120.000Projects on Business Plan 2008 2012 28 Offshore Drilling100.000 Rigs 146 Supply Vessels New Production Platforms 80.000Promef II* 19 Chartered ShipsPremium Refinery II 60.000 Premium Refinery I 40.000 20.000 243.000 43.000Business Plan 2009-2013 Professionals 0 Qualified Shortage of trained human resources and demand for local-content increaseCompetition with other projects for people 53 54. DOWNSTREAM 5454 55. DOMINANT POSITION IN A LARGE AND GROWING EMERGING MARKET2008 Total Oil Consumption by Country (mmbo/d) 19.4 10 98.0 8 7 6Brazil is worlds seventh- 54.8largest oil consumer. 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) 125 BrazilUSOECDWorld120 Brazil oil consumption 115 growing at 1.99% p.a;110 OECD oil consumption 105growing at 0.17% p.a. 100 1997 19981999 2000 2001 20022003 200420052006 20072008 55Source: BP Statistical Review 2009, PFC Energy 56. VERTICALLY INTEGRATED SYSTEM TO CAPTURE SYNERGIES WITHIN THE VALUE CHAINUpstream Operations Downstream OperationsExisting PipelinesRefineries PetrobrasMarine Terminal Other CompaniesIn Land Terminal Access to raw material Logistic and infrastructure developed Access to oil products market Near the biggest market in Brazil 56 57. ADDRESSING THE NEED TO INCREASE THROUGHPUT CAPACITY AND COMPLEXITY Average Refinery Throughput Capacity (000 b/d)240 220 200 180 160 140 120 1001 2 345 678 9 10PFC Energy Complexity Index57Source: PFC Energy 58. DOMESTIC CRUDE THROUGHPUTDownstream InvestmentsAdding values to domestic crude and producing diesel and gasoline in-US$ 47.8 billion line with international standards 12%Refining 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 201120122013202058 59. UPGRADING TO OPTIMIZE PERFORMANCE AND ENSURE SUSTAINABILITY QUALITY OF GASOLINEQUALITY 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 59 60. 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 2020E 60 61. SUCCESSFUL LONG TERM PRICING POLICYUS$/bblUS$/bblR$/bbl R$/bbl 3Q08 2Q09 3Q093Q08 2Q09 3Q09 R$/bbl US$/bbl160 129.81 250215.62 140120200112.49 160.79 100 187.02 152.65150 8077.34 81.5460 70.37 100128.41 131.5240 62.2350 20 00 Mar-07Jun-07Sep-07Dec-07Mar-08Jun-08Sep-08Dec-08Mar-09Jun-09Sep-09 Mar-07Jun-07Sep-07Dec-07Mar-08Jun-08Sep-08Dec-08Mar-09Jun-09Sep-09 ARP Petrobras ARP EUA Comparing with the 2Q09 the ARP decreased in Reais due to reduction of gasoline and diesel price and the strengthening of the Real Express in Dollars, average sales price increased 5,4% due to strengthening of Real 61 62. IMPROVING OPERATIONS REFLECTED IN GROWING TRADE BALANCE (thousand barrel/day) Oil products 9M08vs9M09Oil 633628 714234 222 562 231157 399 406152 4834055Exports ImportsNet Exports ExportsImportsNet Exports Financial Volume (US$ Million) Boost in oil production led to higheroil export- US$ 1,813 + US$ 1,795 19,920 18,107 Imports decreased (specially diesel 8,84510,640imports) due to economic slow down,lower thermoelectric generation and9M08 9M09 increase in production of domestic oil Im portsExportsproducts (diesel) 62 63. DOWNSTREAM SUPPLY CHAIN: INTEGRATING THROUGH TARGETED INVESTMENTSInvestment decisions in this segment are based on the need to: Secure a natural hedge between petrochemical Maintain flexibility and access to competitive feedstock and refining cyclesDevelop cost leadership Diversify into higher value-added productsImprove competitivenessQUATTORBRASKEMPQU COPESULPRODUCTION PRODUCTION1,020 kta ethane QUATTOR 2,480 kta ethane320 kta propane1,180 kta propane IQ1,040 kta PE PU510 kta PVC875 kta PP 1,975 kta PEIPQ 1,090 kta PP RIOPOLUDQ37.3% Petrobras/Petroquisa23% Petrobras/Petroquisa56% UNIPAR | 6.6% BNDES 38% Grupo Odebrecht36% Others63 64. COMPERJ: CONTRIBUTING TO THE PETROBRAS VALUE CHAINComperj will:Expand the domestic petrochemical Capture synergies from existingmarketregional infrastructureUtilize Marlim crude as feedstock Improve the balance within thecommercial value chain for oil, oilproducts and petrochemicals BASICS DOWNSTREAM Production Products(kta) ProductionDiesel 535Products(kta) FuelsNaphtha284Polypropylene 850Coke 700Polyethylene800Ethylene1,300Styrene 500Propylene881Ethylene glycol 600 Petrochemicals Benzene608Butadiene157PTA 500p-Xylene 700PET 600Sulphur4564 65. BIOFUELS: ANOTHER GOOD OPPORTUNITY TO BECAME A GLOBAL PLAYER Brazil: Leader in ethanol efficient productionPetrobras Investments in BiofuelsENERGY US$ 2.8 billion RAW MATERIALOUTPUT/ENERGY INPUT Wheat 1.216% Corn 1.3 1.8 Ethanol Sugar Beet1.9Biodiesel84% Sugar Cane (under Brazilian Production8.3 Condictions)Brazilian Biodiesel Market andEthanol Exports Petrobras Production Target* 4,5 2500 417.9% 3,5 40.6% p.y. 2000 (thousand m) (thousand m) 3p.y. 2,5 15002114 24,225 1000 1,5971 1 500 0,5 1,081401Petrobras535 (29%)Market-share (20%) 0 0 20092013 2009 201365 66. GAS & ENERGY 6666 67. 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 LGN123 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 Demand 67 68. PHASE I: DIVERSIFY SUPPLY & INTEGRATE NETWORK (A) EXPAND PIPELINE SYSTEM ManausGasfor PipelinesAu/Serra do Mel Length's:Urucu - Manaus (set/09) Nordesto 2003 (mar): 5.492 Km GLP duto (jan/09) Pilar-Ipojuca (set/10)Urucu GASALP 2005 (dec): 5.492 Km Itaporanga-PilarAtalaia-Itaporanga 2006 (dec): 5.492 Km GASEBCatu-Itaporanga 2007 (jun): 5.691 Km Cacimbas-Catu (mar/10)Gasbel 2008 (feb): 6.457 KmGasbel II (abr/10)Cacimbas-Vitoria 2009 (apr): 6.908 KmLagoa Parda-Vitoria - Gasvit 2010 (dec): 9.265 Km Cabinas-VitriaGasduc III (nov/09)GasbolGasduc I e IIJaperi-Reduc (mai/09)Campinas-Rio(trecho Taubat-Japeri)Campinas-Rio(trecho Paulinia Taubat)Gastau (out/10)Paulnia Jacutinga (set/09)GASPAL II* (ago/10)Underway construction GASAN II* (ago/10)Existing in 2007/2008/2009GASPAL IExisting before 2003GASAN I 68 69. PHASE I: DIVERSIFY SUPPLY & INTEGRATE NETWORK (B) ADD FLEXIBILITY WITH LNG FLEXIBLE TERMINAL Baa de Guanabara RJ: Operational Capacity: Terminal: 20 MM m3/dRegasification: 14 MM m3/dC&A Conclusion: Jan/09Start up: Mar/09Purpose: Flexible natural gas supply to thermoelectric demand in Southeast region. 69 70. INTERNACIONAL 70 70 71. PETROBRAS CURRENT INTERNATIONAL PRESENCE Exploration & Production EnergyRefining Gas sector activitiesDistribution Representative officeCommercializationCooperation agreementPetrochemicals Head office 71 72. PROCESS OF DEVELOPING DEEPWATERPRODUCTION IN OFFSHOREGOM 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 8,250ft72 73. CASCADE - CHINOOK DEVELOPMENTFIRST OIL 2010 Shuttle Petrobras America operated fields Tanker FPSO - Water Depth ~ 2,500 meters (8,200 feet).Gas Export Pipeline FSHRUS regulators approved Petrobras plans to bring first FPSO (*) to the Chinook Control US Gulf of Mexico.Umbilical Flow linePower Umbilical Technologies new to US Gulf of Mexico, including disconnectable turret buoy, allowing the vessel toCascadeManifoldTree 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 withfifteen units currently under operation offshore Brazil. Source: Petrobras America inc 73 74. INTERNATIONAL WEST AFRICA 6 blocks (1 in production)6 blocks (1 in production) AGBAMI Operator in prolific Block 18 withOperator in prolific Block 1830% 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 Akpo and Agbami: 64,000 bpd by end of 2009. Proven Reserves (SEC -2008): 131,3 MM boe (%Petrobras)74 75. FINANCE 75 75 76. STEADY PAYOUT AND INCREASING INCOME HAS LED TO HIGHER DIVIDENDSUS$ mm29%20.000 50%18.00032%45%32%16.000 40%14.000 33%12.00031%35%10.000 30% 8.000 25% 6.000 20% 4.000 2.000 15% - 10% 200420052006 2007 2008Net IncomeDividend Dividend as % of Net Income Brazilian Corporate Law requires a minimum annual distributions equal to 25% of net income76 Note: Net Income and Dividends based on provisioned dividends and US GAAP. 77. 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 Debt Capex OCF (US$ 174 bn)OCF (after dividends) (after dividends)Capex(US$ 92,3 bn) Sources Uses Sources Uses Average Brent:Average Oil Production: Average Brent (e): Average Oil Production (e): US$ 60/bbl1,720 (thousand boe/d)US$ 66/bbl 2,398 (thousand boe/d)77 78. 2009-2013 ASSUMPTIONS AND CAPEX ARE DESIGNED TO MAINTAIN TARGETED FINANCIAL RATIOSINDEX 2009-2013 Plan 2008-2012 Plan FX Rate (R$/US$) 2.0 2.182009 58.002010 61.002008 55.002011 72.002009 50.00 Brent for Funding (US$/bbl)2010 45.002012 74.002013 68.002011-2012 35.00Projected Net Cash Flow (After148.6104.4 dividends) (US$ bn)Projected Investments (US$ bn)174.4112.4Net Debt/Net Debt + Shareholders Equity (Leverage) Up to 35%20% Minimum cash balance (US$ bn)- 578 79. PROJECTED BRENT CURVES 120 10080 US$ bbl6040200 2003 2004 20052006 2007 20082009 20102011 2012 20132014 2015 2016 2017 2018 2019 2020B re nt - F orwa rd C urve (01/23/09) P IR A (J a n 09) P e trobra s (B a s e C a s e ) P e trobra s (F unding 09-10) WoodMa cke nzie (D e c 08)B re nt - F orwa rd C urve (09/03/09) Long-term pricing assumptions at or below market forecasts. Near-term funding requirements assume prices well below the forward curve.79Source: Bloomberg/PIRA/Mackenzie 80. SUCCESSFUL EFFORTS TO RAISE CAPITAL FROM LONG TERM SOURCESMarket Capital Bond issuance+ Others Loans 6.75US$ 28.05 billions6.5 Oct-30 (Maturity 2040) U S Eximbank1.5 Yield: 7.00% Others (US$ bilion) BNDES 2Oct-30 (Maturity 2020) 2.752.5 Yield: 5.875% (*)13.31.25 Jul-09 (Maturity 2019) 10Yield: 6.875%China1.5 Development 0Feb-11 (Maturity 2019)BankBrigde LoanBond issue Yield: 8.125% (*) 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 80 81. CAPEX BY SEGMENTMost of Petrobras Capex spending is related to production growthUS$ MM 29,874 30.00028,7924,091Others 4,649 25.0004,256Gas & Energy 3,092 20.000Downstream7,234 8,028 15.00012,500E&P500 18%500 10.000(Exploration) 1,00014,29313,0235.00082% 10,500 (Production) - Capex 2008 (1) Capex 2009 (2)Est. Maintenance Capex(1) In USGAAP81(2) Estimated for segment acoording business plan 82. CAPITAL STRUCTURE AND CREDIT METRICS In Million US$ 9M092008 2007 Cash and Cash Equivalents 16,595 6,499 6,987 Total Debt50,16627,35121,895 Net Debt33,57120,85214,908 Shareholders Equity 89,88161,90965,179Net Debt / Net Capitalization 27%25%19% Net Debt/ Market Capital18%22% 6% Net Debt / Boe Production (USD/boe)*22.5 23.8 17.8 Net Debt / Proved Reserves (USD/boe)2.23 1.381.0 Reserves/Production (Years, SPE Criteria)* 16.3117.2217.98 9M092008 2007 Net Income10,36118,87913,138 EBITDA20,79231,30825,604 Net Debt/EBITDA*0.810.67 0.58 * Annualized82 83. DEBT PORTFOLIO3% FUNDING SOURCES20%(US$bn) Jun-09** Dec-08 Dec-07Commercial Banks 10.46.94.7 77% DebtInternational Bonds 8.2 5.75.3Local Bonds 1.6 1.62.1 US$ R$JPYECAs 1.2 1.41.6Project Finance 4.2 4.54.4BNDES*17.02.92.5 Other 0.8 1.01.348%BB/CEF4.3 3.452% Total Debt47.727.4 21.9% Capital Market21% 27%34%* Including Project FinanceFixedFloating**Based on 2Q09 USGAAP Results, but including the reopening of 7.875% Global Notes due Mar 83 2019 and BNDES Loan 84. LIQUIDITY STRENGTHENED, LEVERAGE WITHIN TARGETS R$ million09/30/2009 06/30/2009 27% 28% 28%23%25%26%26%Short Term Debt10,639 13,08621% 21% 21%22%Long Term Debt 79,588 55,782 18% 19% 19%21% Total Debt 90,227 68,868 19%18%Cash and Cash 30,088 10,072 12%Equivalents Short Term Debt60,139 58,796 30/09/2007 31/03/2008 30/09/2008 31/03/2009 30/09/2009Capital Structure49%49% Net Debt/Net Capt. US$ million 09/30/2009 06/30/2009Short Term Debt/Total DebtTotal Debt 50,743 35,288 Increase in liquidity due to the increase in cash and decrease in short term debt. Net Debt/Net Capitalization stable and within the target range (25%-35%) 84 85. UPDATE 8585 86. CONTINUED GROWTH OF DOMESTIC AND INTERNATIONAL PRODUCTIONTotal Production (Oil, NGL and Natural Gas) - 3Q09 VS 3Q08Domestic Production - 3Q09 VS 3Q082,213 2,2932,437 2,534 -3 %+8% 241 330 319224 Thousand bpd Thousand bpd+4% +5% 2,213 2,293 1,883 1,974 3Q083Q09 3Q083Q09 Domestic International Oil and NGLNatural Gas Increase in total production due to higher domestic production and the start-up of Akpo field, inNigeria 5% increase in domestic oil production due to increased output from P-52 and P-54, coupled withthe start-up of P-51, P-53, FPSO Cidade de Niteri and FPSO Cidade de So Vicente Natural gas production restricted by the decrease in demand, specially from thermo-electric plants 86 87. NEW PRODUCTION UNITS WILL CONTINUE RAMP-UP TO INCREASE PRODUCTIONP-51 AVERAGE PLATFORM/ CAPACITY 3Q09 NUMBER OF EXPECTED FIELD (thous. bpd)WELLSWELLS(thous. bpd)P-51 P-53 / Marlim 7 producers13 producers Leste 18090 3 injectors 8 injectorsP-53 P-51 / Marlim 5 producers10 producers Sul 18088 6 injectors 9 injectorsFPSO-Cidade 9 producers (oil)FPSO Cidade de Niteri de Niteri /10038 2 producers (oil) Marlim Leste1 producer (gas) FPSO Cidade deNiteri Total 460216- - 87 88. REDUCED HEAVY OIL DISCOUNT IMPROVES MARGINS(US$/barrel) 121.37 114.78 96.988.6974.87105.4686.13 100.5868.2876.75 54.9158.7944.4064.4264.0047.9548.6815.91 14.20 32.2310.4511.9410.776.96 12.17 10.114.28 3Q07 4Q07 1Q082Q083Q084Q081Q09 2Q093Q09Petrobras Oil Price (average)Brent (average)Discount Decrease in global supply of heavy oil contributed to the significant reduction in theBrent discount Improvement in relative price for Petrobras export basket increased export revenues88 89. INCREASE IN SALES VOLUMES, IN LINE WITH ECONOMIC RECOVERYOil Products and Natural Gas in Brazilian Market - 2% -13% +3% 2,118+10%2,0851,9982,0543373021,824244 244Thousand bpd 215404498 456 492 453224211 212 222 195 354 329 331 327303 799 755+2%769 745658 3Q08 4Q081Q092Q093Q09 DieselGasoline GLPOthers Oil ProductsNatural Gas Oil product sales increased with resumption of Brazilian economic growth, accentuated by seasonal aspects Natural gas sales decreased due to lower thermoelectric demand, partially compensated by higher industrial consumption 89 90. CONTINUED GROWTH IN CAPEX, CONSISTENT WITH BUSINESS PLAN Capex 9M09 - R$ 50.7 billions vsCapex 9M08 - R$ 34.1 billions7%11%2% 3%3%0,5 1%0.91,13.8 0,41.23.72% 0,4 1.5 0.7 0,10.41%0.311% 1,0 5.546%4.115.846% 23.212% 1,54.57,1 2.29% 2,8d6.410.6 6% 21% 19% E&PDownstream G&EInternational Distribution Corporate SPE Projects under Negociation Capex in line with the Companys opportunities 90 91. STABLE CASH FLOWS SUPPORT INVESTMENT PLAN R$ millionJan-Sep2008 Jan-Sep 2009 3Q09Cash at the beginning of period 13,071 15,889 10,072Operating Cash Flow 34,337 38,180 16,681Investment(34,534) (50,622) (18,446)Free Cash Flow (198) (12,442) (1,765)Dividends (6,187)(9,835)(3,426)Financing3,581 36,987 25,441Cash at the end of period 10,776 30,088 30,088 Average Life of Debt (years)*4.21 6.38 6.38Net Debt/ EBITDA 0.85 1,00 1.11** Average Brent (R$/bbl)187.62 118.87 127.68 Average Exchange Rate (R$/US$) 1.69 2.08 1.87Higher operating cash flow, despite lower oil pricesIncreasing CAPEX supported by higher borrowings during the yearNew loans improved average life of debt stock * End of period 91** last 12 months 92. For more information:Investor Relationswww.petrobras.com.br/ri +55 21 3224-1510 92 petroinvest@petrobras.com.br