1. PETROBRAS23rd World Gas ConferenceAmsterdamBrazilian Oil and Gas Perspectives A National Oil Company ApproachJos Srgio Gabrielli de AzevedoCEO and President 9th June 2006 1

2. PETROBRASThe presentation may contain forecasts about future events. Such forecasts merely reflect the expectations of the Company's management. Such terms as "anticipate", "believe", "expect", "forecast", "intend", "plan", "project", "seek", "should", along with similar or analogous expressions, are used to identify such forecasts. These predictions evidently involve risks and uncertainties, whether foreseen or not by the Company. Therefore, the future results of operations may differ from current expectations, and readers must not base their expectations exclusively on the information presented herein. The Company is not obliged to update the presentation/such forecasts in light of new information or future developments. Cautionary Statement for US investors The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation, such as oil and gas resources, that the SECs guidelines strictly prohibit us from including in filings with the SEC. 2 3. PETROBRAS Petrobras: Overview 3 4. PETROBRAS Petrobras Overview: Petrobras 2015 Mission and VisionMissionVision 2015 Operate in a safe and profitable Petrobras will be an manner in the oil, gas andintegrated energy company energy industry in Brazil andwith a strong presence in abroad, with social andthe international market environmental responsibility,and as a leading force in providing products andLatin America, focusing on services that meet clients profitability and social and needs and that contribute to theenvironmental development of Brazil and theresponsibility. countries in which it operates.4 5. PETROBRAS Petrobras in the World Activities in 24 countries United Kingdom.New YorkUSAHoustonTurkeyTokyo Iran Beijing Lybia Mexico Trinidad &TobagoNigeria Venezuela Colombia Equatorial Guinea Tanzania SingaporeEcuadorBRAZIL Angola MozambiquePeru Bolivia Rio de HEAD OFFICE Paragay JaneiroUruguayREPRESENTATIVE OFFICE ChileREFINING Argentina TRADING EXPLORATION AND PRODUCTION5 6. PETROBRAS Company Overview An integrated energy company with US$ 74 billion in gross revenue (2005 US GAAP) Exploration Proven Reserves: 11.8 billion boe (SEC 2005)and Production Oil and Gas Production: 2.22 million boed (2005) Refining, 16 Refineries Capacity: 2,114 thousand bpdTransportand Marketing Pipelines: 18,854 miles Vessels (own fleet): 50 6,933 service stations (34% share in the BrazilianDistribution market), 746 in Argentina and 105 in Bolivia Natural Gas Sales of Natural Gas: 1.83 bcf/day Ethene Production: 460,000 tons/yearPetrochemicals Styrene Production: 250,000 tons/year Polystyrene Production: 120,000 tons/yearOperational data includes Petrobras Energia 6 7. PETROBRAS(1) 2005 figures not available yet. Publicly traded peer comparison(2) Oil and Gas Production(3) Proforma for acquisition of Burlington Resources Proven reserves (SEC - billion boe) Dec. 2005 Oil and gas production (million boe) - 2005 ExxonMobil22,4 ExxonMobil 921563 Lukoil* 20,1BP 912 543 Petrochina*18,5 Shell764505Petrochina 823187BP 17,6Total592 291 Yukos*13,0 Chevron609259 Chevron Texaco12,1 ConocoPhillips (3) 507 342 11,87thPetrobras643 118Petrobras Eni406 2288th Shell 11,5Yukos (1) (2)624 Total11,1Lukoil (1) (2) 6145th Oil ProductionConocoPhillips 9,4 Statoil (2)427 ENI6,8Repsol-YPF194 222Statoil4,3Sinopec 279 37 Sinopec* 3,80200 400 600 800 1.000 1.200 1.400 1.600 Repsol 3,3 Oil Gas Reserve life (years) Dec. 2005Refining capacity (thousand bpd) - 2004 Lukoil* 32,7XOM 6.343 Yukos*20,8RDS4.026 Petrochina*19,6 Sinopec2.998 ExxonMobil15,1BP2.747Petrobras 14,6 TOT2.708ConocoPhillips14,2 5th COP 2.275 Chevron Texaco13,1 PetroChina 2.202Sinopec 12,3 CVX 2.195 Total12,212,2 Petrobras Yukos2.1141.223 9thBPENI11,5 Repsol 1.175Statoil 10,1 Lukoil1.139ENI** 524 Shell9,0 Statoil 296 Repsol8,0Source: Evaluate Energy and Company Reports7 8. PETROBRAS Oil Production in Brazil 2.000 Oil and NGL Natural Gas 1.500 million boe 1.0003dpb01500 - 1954 1958 1962 1966 1970 1974 1978 1982 1986 1990 1994 1998 2002 7 6 4 3 G Source: Petrobras8 9. PETROBRASE&P Brazil - Domestic production units Domestic production will grow at an average of 6.4% per year 15 new projects until 2010RoncadorRoncador Roncador Roncador P-55 P-552,400 Albacora LesteAlbacora Leste P-52P-52Frade180,000 bpd 180,000 bpdFrade P-50 P-50 180,000 bpd180,000 bpd100,000 bpd2010 2010 100,000 bpd 180,000 bpd 180,000 bpd 200720072009 2009April 2006 April 2006Cidade de Vitria Cidade de Vitria 2,300Thousand boed2,200 JubarteJubarte (Golfinho Mod. 2)(Golfinho Mod. 2) Phase 1 Phase 1 100,000 bpd 100,000 bpd 2,200 JubarteJubarte P-34 P-342007Phase 2 Phase 2 200760,000 bpd60,000 bpd 2,100 P-57 P-57September180,000 bpd 180,000 bpd2,000 September 2006 2006 2,0002010 2010Marlim LesteMarlim Leste P-53P-53 GolfinhoGolfinho Rio de janeiro 180,000 bpd180,000 bpd Rio de janeiroFPSO Mod. 3 FPSO Mod. 3 1,910 Espadarte Espadarte 20082008 100,000 bpd1,800Piranema 100,000 bpd Piranema100,000 bpd100,000 bpd201020,000 bpd 201020,000 bpd 20072007OctoberOctober Marlim SulAlbacoraMarlim Sul Albacora 20062006 Roncador Roncador Module 2Extension1,684Module 2 Extension1,600P-54P-54P-51 100,000 bpdFPSO CapixabaFPSO CapixabaP-51100,000 bpd180,000 bpd180,000 bpd180,000 bpd2010 2010Golfinho Mod. 1Golfinho Mod. 1180,000 bpd 200720072008 100,000 bpd100,000 bpd2008 May 2006 May 20061,40020052006 200720082009 20109 10. PETROBRASUpstream Portfolio at Home2005 Reserves Cear & Cear & Proven Reserves of 14.9 Potiguar Potiguarbillion boe (SPE) Reserve life (SPE) = 19.7 Solimes & Amazonas Sergipe &Sergipe & yearsAlagoasAlagoasRecncavoRecncavo11%89%Esprito Santo,Esprito Santo,Campos & SantosCampos & Santos Brazil International 10.6 billion boe (SEC)2005 Production 1.969 million boed 1.684 million bpd oil10 11. PETROBRASRecent Acquisitions United States (Gulf of Mexico) Petrobras America successfully tendered for 10 blocks in the US sector of the Gulf ofMexico; This years estimated capital expenditures are US$ 305 millions, and by 2010, US$ 1.5billion. Angola Petrobras has recently obtained a stake in 4 Angolan exploratory blocks and will beoperator in 3. The company has now interests in six blocks, including a production one (6,500 bpd). Petrobras aims at increasing its exploratory projects portfolio in Angola, one of the most competitive countries in the oil industry. TurkeyPetrobras presented the winning bid for two deepwater blocks in the Black Sea; The company will sign a 50-50 partnership with the Turkish oil company (TPAO) for theexploration and production of the blocks. Equatorial Guinea Petrobras acquired a 50% participating interest in a deepwater block The company has the option of becoming operator in the case of a commercial discovery11 12. PETROBRAS Downstream Strategies Domestic oil production will exceed throughput; In 2010 oil products sales will be equal to throughput; Increase of the domestic oil participation in throughput, reaching 91% in 2010.2,300 2,250High operational flexibility Thousand boed 2,050 Low operationalflexibility1,895 1,8501,7121,869 1,650 1,596 1,450Brazilian Self-sufficiency 1,250 1,271 1,050 2000 20012002 20032004 2005 2010Oil Production Oil Products Sales Throughput12 13. PETROBRAS Gas and Power 13 14. PETROBRASBrazilian Energy Matrix Development Natural gas participation in the Brazilian energy matrix rose from 5.4%, in 2000, to 9.3% in 2005, inspite of low thermal electric use100% 90% 5.4% 6.5% 7.5% 7.7% 8.9%9.3% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2000 2001 2002 2003 2004 2005Oil and Oil products Biomass Hydro Natural GasCoalNuclear Source: MME (2005: preliminar) 14 15. PETROBRASGas & Power - Brazil Current Situation High potential for growth in gas demand: Gas represents only 9% of the Brazilian energy matrix 80% of total power generation is hydro Residential-industrial- thermal consumption are likely to increase Installed capacity of thermoelectric and cogeneration plants will be 4,857 MW in 2010 Energy investments: US$ 1.3 billion slated primarily for conclusion of projects already underway15 16. PETROBRAS Natural Gas Market in Brazil 2010 (99.3)40003,506.8487,4 MMcfd / (Million m3/day)3000 (40.9)1.380,82000(37.9)(30.7)1,444.4 1,338.4 1,084.3190,7 226,01000 162,5808,7 875,81.638,6 692,2 229,6339,0 342,602003 2004 2005**BP 2006/10*ThermoeletricIndustrialOther (*) Considers the total supplying capacity, including bi-fuel conversion, contingency demand managing and isolated system in the North region. In the previous plan only the forecasted shipping of the thermo-electric demand was contemplated. (**) Source: ABEGAS Note: does not include Petrobras direct consumption 16 17. PETROBRASNatural Gas Production in Brazil (million m3/day) 50 Associated Non associated. 45 p.y% 10,7 40 7,5 10,99,4 10,4 35 6,3 7,8 307,0 25 7,88,0 7,5 37,3 20 6,1 34,93,3 4,0 5,333,332,83,4 30,4 30,1 15 0,2 2,2 2,5 2,2 2,7 3,125,50,421,7 10 0,3 18,9 17,715,7 16,3 14,7 14,716,115,8 14,313,4 14,113,8 12,9 14 10,75 019831985 1987 19891991 19931995 1997 1999 2001 2003 2005Increasing non-associated natural gas participation in production. 17 18. PETROBRAS 2005 Natural Gas Proven Reserves and Production Natural Gas ReservesNatural Gas Production Total Petrobras: 420.2 billion m3 Total Petrobras: 59,816 thous. m3/day Brazil: 296.9 billion m3 Brazil: 43,532 thous. m3/day International: 123.3 billion m3 International: 16,284 thous. m3/day Bolivia: 84.1 billion m3 Bolivia: 7,753 mil thous. m3/dayInternationalInternational9,3% 14,3%Brazil70,7%Brazil72,8%Bolivia20,0%Bolivia 13,0%Bolivia to Brazil18 19. PETROBRAS Gas Pipelines New investments will reduce the countrys dependence on imported gas.Business Plan 2006-10 US$ 56.4 billion 60% US$ 34.1 billion6,7 US$ 11.4billion2%2.1 6.7 2%20% 4%12%E&PDownstreamG&EPetrochemicalDistribution Corporate Production in Southeast will raise from the current 15.8 million to 40 million m3 per day in 2008. Demand FlexibilizationConstruction Refineries, Distributors and flex-CurrentUnder evaluation fuel thermoelectric plants ( LNG,GASBOL diesel and alcohol) 19 20. PETROBRASExpected Production Growth Southeast Natural Gas Supply Expansion Two new fields in Esprito Santo Increase of supply from Marlim field Expansion of production in Merluza field 80RoncadorFradeBS-500(P-54)2010 Urucu2009 69.6 70Natural gas 2007 Mexilho sales Golfinho Marlim Leste2007Mod 2 (P-53)200961.5 60 Golfinho Mod 12007 200854.3 2006 58.359.0 50 Manati 50.8 RoncadorNG non associated NG associatedBarracuda (P-43)2006 (P-55)Caratinga (P-48)201043.0 40 Jubarte Phase 2 Roncador (P-57) 31.4 (P-52) 2010Golfinho 30 26.5 2007 RJS-409 Espadarte(FPSO 3) Marlim SulAlbacora 2010 2007 Mod 2 PiranemaExtension 20 Pero-Cangoa Albacora 2006Pero-Cangoa (P-51) 2008 2010Phase 2 (PPER)Leste Jubarte 2007(P-50)Pase 1 10 (P-34) 2006 0 20052006 2007 2008 2009 201020 21. PETROBRAS Esprito Santo and Campos Basin: 2006-2008 CacimbasPero/CangoaGolfinho +ESS-164CanapuEsp. Santo BasinActual: 1,3 MM m3/dia2008: 18 MM m3/diaParque das Baleias + 16,7 MM m3/diaESS-130120 kmBacia de Campos RoncadorCabinasActual: 13,5 MM m3/dia2008: 19,5 MM m3/diaNamorado+ 6 MM m3/dia120 km21 22. PETROBRAS Santos Basin: 2006-2008 Caraguatatuba BS-5002, 521MEXILHOMMTAMBA5km3mURUGUA/dMerluzaLagosta SPS-25SPS-44 Santos Basin Actual: 1,0 MM m3/dia2008: 2,5 MM m3/dia+ 1,5 MM m3/dia22 23. PETROBRASFlexible LNG ProjectFacilitates the adjustment of the offer to the markets characteristic: Flexible Offer (with guarantee) to the thermoelectric plants.More efficient than Diesel in the thermo plants; Mitigates the risk of failing to supply the gas due to abnormalities; Diversifies the sources of imported gas; Projects under evaluation:Purchase or freight of floating storage and regasification units (FSRU);Maritime terminal in Pecm (Cear) - 6 MM m/day (estimate Jul/2008 3 months)Maritime terminal in the Guanabara Bay (Rio de Janeiro) 12/14 MM m/day (estimate Jul/2008 3 months)FSRU Floating Storage and Regasification Unit 23 24. PETROBRASSituation in Bolivia As a consequence to the measures adopted by the Bolivian Government, Petrobras will act to: Protect its interests through negotiations by all legal means; Suspend all new investments in Bolivia as well as those related to the Bolivia-Brazil Gas Pipeline (GASBOL); Immediately initiate studies to diversify supply sources, including LNG regasefication project(s); Natural Gas Offer - Million m3/daySubstitution of additional imports from Bolivia 120 11.0 10011.0 4.080 30.030.0 30.060 30.0 30.030.04061.5 69.6 54.320 43.0 26.531.4 0 2005200620072008 20092010 Domestic ProductionImports from Bolivia as of existing GSANational Production Increase or LNG 24 25. PETROBRAS Gas exports from Bolivia (MM m3/dia) 30,0 28,0 26,0 24,0 22,0 20,0 Volume LUMEN [MMm 3/da]18,0 16,0 VO (MMm3/day)14,0 12,0 10,08,06,04,02,00,0 1992 1993 199419951996 199719981999 2000 2001 20022003 2004 2005 TIEMPO [AOS] Exports to Argentina (MMm3/day)EXPORTACIN ARGENTINA [MMm3/da]EXPORTACINto Brazil (MMm3/day)Exports BRASIL [MMm3/da] Source: YPFB25 26. PETROBRAS Gas Purchase: contractual structure BoliviaBrazil YPFB - PETROBRAS BOLIVIA/OTHER PRODUCERS - YPFB - PETROBRAS Shared Risk Contract Back-to-back contracts GSA contract(exploratory and production concession)(gas sales)(gas exports) Bolivian LegislationBolivian Legislation Forum: Santa Cruz Forum: Santa CruzCourt of Arbitration: International Court of Arbitration: InternationalChamber of Commerce (ICC) Chamber of Commerce (ICC)Forum: New YorkCourt of Arbitration: American Arbitration AssociationInvestment Protection Treaty between Bolivia and the Netherlands ICSID (International Center for Settlement of Investments Disputes) 26 27. PETROBRAS Renewable Energy and NewTechnologies27 28. PETROBRASResearch Center Natural Gas Main topics Budget: US$ 42 million 19% 27% 9%7%19% 19%GTL Cogeneration & ThermoelectricTransportationIndustrial ApplicationHydrogenAutomotive Application GTL MainProjectsTransportationFT Synthesis: Catalyst DevelopmentMarine CNGFT Reactor design ( Fixed Bed)GtS ( Hydrates)GTL OffshoreANG (Adsorbed Natural Gas)GTL Pilot Plant ConstructionExpert SystemDME LNG Offshore RegasificationCogeneration & ThermoelectricHydrogenFuel CellsATR (autothermal Reforming)Microturbines Plasma pyrolysis of NGOptimization of Thermal CyclesFuel Cell applicationGas Turbine Development Fueling stationDevelopment of a Bus with Fuel CellBlend of Natural Gas and Hydrogen 28 29. PETROBRASEthanol Market Ethanol global market is 46.5 Billion Liters (2005) Ethanol as a Fuel is 30.6 Billion Liters (67% of total ethanol production) Today the ethanol consumption is 2.6% of gasoline MKT 10% of ethanol in gasoline will represent 118 Billion LtBrazil-Japan Ethanol Inc. Recently, Petrobras incorporated Brazil-Japan Ethanol Inc. The company will import and distribute Brazilian-produced ethanol in Japan; Development of technical and commercial solutions for the reliable and long term supply of alcohol in the Japanese market; Petrobras will break into one of the most complex and important energy markets in the World: ethanol logistics distribution fuel distribution sector in Japan.29 30. PETROBRASBiofuel Production H-Bio: refining process that utilizes vegetable oils as an input, in order to obtain diesel oil Hydrogenation of a blend of diesel and vegetable oils Hydrogen Diesel AgribusinessFractions ProcessedSeeds OilFarming CrushingRefinery or Diesel or Transerestification Biodiesel EthanolDistributors or or B2 or B5Diesel Methanolmixture StationsGlycerin+ OthersComplementary and not competitive processes 30 31. PETROBRASRio de Janeiro Petrochemical Complex Investment: US$ 6,5 billion Expected Annual Production: 1,3 million tons of Ethane; 900,000 tons of propane; 360,000 tons of benzene; Petrochemical 700,000 tons of p-xylene. The Complex will add value to So Gonalo Liquids Complex Itabora150,000 barrels/day of heavyOutflow Unit oil form the Campos Basin.BasicFuelsFuelsMarlim oilProduction Unit 150,000 bbl/dSo Gonalo - ItaboraBasic Liquids Outflow petrochemicalsUnitP-XyleneIntelligence Center Ethylene PropyleneBenzene Styrene Ethylene Glycol PTAPhenol Polyethylene Polypropylene Polyethylene 31 32. PETROBRAS Records in Completion/Production and Exploration Drilling Offshore OTCOTC1992 2001 Exploration Wells Vs. Maximun Water-Depths by year32 33. PETROBRAS QUESTION AND ANSWER SESSIONVisit our website: www.petrobras.com.br/ri/english For further information please contact:Petrleo Brasileiro S.A PETROBRAS Investor Relations Department Raul Adalberto de Campos Executive ManagerE-mail: petroinvest@petrobras.com.brAv. Repblica do Chile, 65 - 22nd floor 20031-912 Rio de Janeiro, RJ(55-21) 3224-1510 / 3224-9947 33