Current and Projected Income Statement($ in millions, except per user data)

Fiscal Year Ended December2008 2009 2010 2011

Projected Projected Projected ProjectedRevenues from net productionSales $ 6,465.4 $ 9,334.4 $ 9,327.6 $ 9,361.8 Royalty at 18.5% $ 1,196.1 $ 1,726.9 $ 1,725.6 $ 1,731.9 Total revenue $ 5,269.32 $ 7,607.55 $ 7,601.97 $ 7,629.86 % Growth 44.4% -0.1% 0.4%

Production expense excl. taxes (547) (790) (790) (792)Gross Profit $ 4,722.02 $ 6,817.4 $ 6,812.4 $ 6,837.4 Gross Margin 89.6% 89.6% 89.6% 89.6%

Taxes other than on income $ (30.1) $ (43.4) $ (43.4) $ (43.5)Proved producing propertiesDepreciation & depletion $ (396.4) $ (572.2) $ (571.8) $ (573.9)Accretion expense $ (20.2) $ (29.2) $ (29.2) $ (29.3)Exploration expenses $ (163.8) $ (189.6) $ (227.5) $ (273.0)Unproved properties valuation $ (7.4) $ (10.6) $ (10.6) $ (10.7)Other income (expense) $ (274.3) $ (396.0) $ (395.7) $ (397.1)Earnings before Taxes $ 3,829.89 $ 5,576.30 $ 5,534.15 $ 5,509.79 Profit Allowance (@16%) $ 612.8 $ 892.2 $ 885.5 $ 881.6 Results before income taxes $ 3,217.11 $ 4,684.09 $ 4,648.69 $ 4,628.22 Income tax expense $ (2,734.5) $ (3,981.5) $ (3,951.4) $ (3,934.0)Additional earnings $ 482.6 703 697 694

Note:For Valuation purposes assume $7B of Capital Expenditures will be amortized uniformly over 17 years; also assume changes in working capital will be zero.

The line items were obtained from Chevron's annual report (refer to Table III): http://www.chevron.com/AnnualReport/2007/Financials/SupplementalInformationOnOilAndGas/

Assumption: All line items (incuding depreciation) are calculated as a percentage of revenue. One reason being that based on production schedule the life of the items and other expenses/income change.

Fiscal Year Ended December2012 2013 2014 2015 2016 2017 2018 2019

Projected Projected Projected Projected Projected Projected Projected Projected

$ 9,435.3 $ 8,795.8 $ 8,154.7 $ 7,506.4 $ 6,842.6 $ 6,194.3 $ 5,517.1 $ 4,813.9 $ 1,745.5 $ 1,627.2 $ 1,508.6 $ 1,388.7 $ 1,265.9 $ 1,146.0 $ 1,020.7 $ 890.6 $ 7,689.73 $ 7,168.58 $ 6,646.08 $ 6,117.69 $ 5,576.71 $ 5,048.38 $ 4,496.44 $ 3,923.30

0.8% -6.8% -7.3% -8.0% -8.8% -9.5% -10.9% -12.7%

(799) (745) (690) (635) (579) (524) (467) (407) $ 6,891.0 $ 6,424.0 $ 5,955.8 $ 5,482.3 $ 4,997.5 $ 4,524.0 $ 4,029.4 $ 3,515.8

89.6% 89.6% 89.6% 89.6% 89.6% 89.6% 89.6% 89.6%

$ (43.9) $ (40.9) $ (37.9) $ (34.9) $ (31.8) $ (28.8) $ (25.7) $ (22.4)

$ (578.4) $ (539.2) $ (499.9) $ (460.2) $ (419.5) $ (379.7) $ (338.2) $ (295.1) $ (29.5) $ (27.5) $ (25.5) $ (23.5) $ (21.4) $ (19.4) $ (17.3) $ (15.1) $ (327.6) $ (156.1) $ (206.6) $ (190.2) $ (173.4) $ (157.0) $ (139.8) $ (122.0) $ (10.7) $ (10.0) $ (9.3) $ (8.5) $ (7.8) $ (7.1) $ (6.3) $ (5.5) $ (400.2) $ (373.1) $ (345.9) $ (318.4) $ (290.3) $ (262.8) $ (234.0) $ (204.2) $ 5,500.56 $ 5,277.09 $ 4,830.56 $ 4,446.51 $ 4,053.31 $ 3,669.30 $ 3,268.14 $ 2,851.56 $ 880.1 $ 844.3 $ 772.9 $ 711.4 $ 648.5 $ 587.1 $ 522.9 $ 456.3 $ 4,620.47 $ 4,432.76 $ 4,057.67 $ 3,735.07 $ 3,404.78 $ 3,082.22 $ 2,745.24 $ 2,395.31 $ (3,927.4) $ (3,767.8) $ (3,449.0) $ (3,174.8) $ (2,894.1) $ (2,619.9) $ (2,333.5) $ (2,036.0) 693 665 609 560 511 462 412 359

For Valuation purposes assume $7B of Capital Expenditures will be amortized uniformly over 17 years; also assume changes in working capital will be zero.

2020 2021 2022 2023 2024Projected Projected Projected Projected Projected

$ 4,082.7 $ 3,324.0 $ 2,535.7 $ 1,718.1 $ 873.4 $ 755.3 $ 614.9 $ 469.1 $ 317.8 $ 161.6 $ 3,327.40 $ 2,709.03 $ 2,066.61 $ 1,400.24 $ 711.78

-15.2% -18.6% -23.7% -32.2% -49.2%

(346) (281) (215) (145) (74) $ 2,981.8 $ 2,427.7 $ 1,852.0 $ 1,254.8 $ 637.9

89.6% 89.6% 89.6% 89.6% 89.6%

$ (19.0) $ (15.5) $ (11.8) $ (8.0) $ (4.1)

$ (250.3) $ (203.8) $ (155.5) $ (105.3) $ (53.5) $ (12.8) $ (10.4) $ (7.9) $ (5.4) $ (2.7) $ (103.4) $ (84.2) $ (64.3) $ (43.5) $ (22.1) $ (4.6) $ (3.8) $ (2.9) $ (2.0) $ (1.0) $ (173.2) $ (141.0) $ (107.6) $ (72.9) $ (37.0) $ 2,418.45 $ 1,969.00 $ 1,502.07 $ 1,017.73 $ 517.34 $ 387.0 $ 315.0 $ 240.3 $ 162.8 $ 82.8 $ 2,031.50 $ 1,653.96 $ 1,261.74 $ 854.90 $ 434.57 $ (1,726.8) $ (1,405.9) $ (1,072.5) $ (726.7) $ (369.4) 305 248 189 128 65

2007 Chevron Africa's income statement

8588

-892 -0.1038659

-49 -0.0057056

-646 -0.0752212-33 -0.0038426

-267 -0.0310899-12 -0.0013973

-447 -0.0520494

6242-4907 -0.78612621335

DCF Analysis($ in millions, except per share) Fiscal Year Ended December

0.5 1.5 2.52008 2009 2010

Projected Projected ProjectedSales/Revenue (after Royalty) $ 5,269.3 $ 7,607.6 $ 7,602.0

All Expenses (combined) $ (495.8) $ (668.8) $ (706.4)EBITDA (after Royalty and all other expenses) $ 4,226.3 $ 6,148.5 $ 6,106.0 Less: Depreciation $ (396.4) $ (572.2) $ (571.8)EBIT $ 3,829.9 $ 5,576.3 $ 5,534.2 Less: Taxes $ (2,734.5) $ (3,981.5) $ (3,951.4)Net Operating Profit After Taxes $ 1,095.3 $ 1,594.8 $ 1,582.8

Plus: Depreciation $ 396.4 $ 572.2 $ 571.8 Less: Capex $ 411.8 $ 411.8 $ 411.8

Unlevered Free Cash Flow $ 1,079.9 $ 1,755.3 $ 1,742.8

$ 999.75 $ 1,392.57 $ 1,184.94 Standardized Measure: Net cash flows $ 8,072.72

Petrobras share @ 13% $ 1,049 Million *using EHV

Petrobras share @ 13% $ 1,207 Million *using sovereign spread

Cost of capitalDiscount rate: 16.69%Royalty 18.50%Taxes 85%Profit Allowance 16%

Sensitivity Analysis on Value of Petrobras' share: Royalty vs Profit Allowance

$ 1,049

Midyear annual discount for timing of estimated cash flows

12%13%14%15%16%17%18%19%20%

12.90%

Profit Allowance

Fiscal Year Ended December3.5 4.5 5.5 6.5 7.5 8.5

2011 2012 2013 2014 2015 2016Projected Projected Projected Projected Projected Projected

$ 7,629.9 $ 7,689.7 $ 7,168.6 $ 6,646.1 $ 6,117.7 $ 5,576.7

$ (753.7) $ (812.0) $ (607.7) $ (625.3) $ (575.6) $ (524.7) $ 6,083.7 $ 6,079.0 $ 5,816.3 $ 5,330.5 $ 4,906.7 $ 4,472.8 $ (573.9) $ (578.4) $ (539.2) $ (499.9) $ (460.2) $ (419.5) $ 5,509.8 $ 5,500.6 $ 5,277.1 $ 4,830.6 $ 4,446.5 $ 4,053.3 $ (3,934.0) $ (3,927.4) $ (3,767.8) $ (3,449.0) $ (3,174.8) $ (2,894.1) $ 1,575.8 $ 1,573.2 $ 1,509.2 $ 1,381.5 $ 1,271.7 $ 1,159.2

$ 573.9 $ 578.4 $ 539.2 $ 499.9 $ 460.2 $ 419.5 $ 411.8 $ 411.8 $ 411.8 $ 411.8 $ 411.8 $ 411.8

$ 1,738.0 $ 1,739.8 $ 1,636.7 $ 1,469.7 $ 1,320.1 $ 1,167.0

$ 1,012.64 $ 868.75 $ 700.39 $ 538.98 $ 414.89 $ 314.31

*using sovereign spread Breakeven Premium $ (49.45)(To stay in Agbami)

18.50% 21.00% 23.50% 26.00% 28.50%16% 15.00% 14.00% 13.00% 12.00%85% 87.500% 90.000% 92.500% 95.000%

Sensitivity Analysis on Value of Petrobras' share: Royalty vs Profit AllowanceRoyalty

13.50% 16.00% 18.50% 21.00% 23.50% 26.00%

$ 1,049

Fiscal Year Ended December9.5 10.5 11.5 12.5 13.5

2017 2018 2019 2020 2021Projected Projected Projected Projected Projected

$ 5,048.4 $ 4,496.4 $ 3,923.3 $ 3,327.4 $ 2,709.0

$ (475.0) $ (423.0) $ (369.1) $ (313.1) $ (254.9) $ 4,049.0 $ 3,606.4 $ 3,146.7 $ 2,668.7 $ 2,172.8 $ (379.7) $ (338.2) $ (295.1) $ (250.3) $ (203.8) $ 3,669.3 $ 3,268.1 $ 2,851.6 $ 2,418.5 $ 1,969.0 $ (2,619.9) $ (2,333.5) $ (2,036.0) $ (1,726.8) $ (1,405.9) $ 1,049.4 $ 934.7 $ 815.5 $ 691.7 $ 563.1

$ 379.7 $ 338.2 $ 295.1 $ 250.3 $ 203.8 $ 411.8 $ 411.8 $ 411.8 $ 411.8 $ 411.8

$ 1,017.4 $ 861.2 $ 698.9 $ 530.2 $ 355.1

$ 234.84 $ 170.34 $ 118.48 $ 77.03 $ 44.22

Sensitivity Analysis on Value of Petrobras' share: Discount Rate vs Prices of OilPrice of Oil Option 1 (Texas State) Price of Oil Option 2 (Futures Market)

Royalty Discount Rate Petrobra's Value Discount Rate28.50%

12.69% 725.8 12.69%13.69% 698.6 13.69%14.69% 673.0 14.69%15.69% 648.9 15.69%16.69% 626.3 16.69%17.69% 605.0 17.69%18.69% 584.9 18.69%19.69% 565.9 19.69%20.69% 548.0 20.69%

Fiscal Year Ended December14.5 15.5 16.5

2022 2023 2024Projected Projected Projected

$ 2,066.6 $ 1,400.2 $ 711.8

$ (194.4) $ (131.7) $ (67.0) $ 1,657.5 $ 1,123.1 $ 570.9 $ (155.5) $ (105.3) $ (53.5) $ 1,502.1 $ 1,017.7 $ 517.3 $ (1,072.5) $ (726.7) $ (369.4) $ 429.6 $ 291.1 $ 148.0

$ 155.5 $ 105.3 $ 53.5 $ 411.8 $ 411.8 $ 411.8

$ 173.3 $ (15.4) $ (210.3)

$ 18.49 $ (1.40) $ (16.48)

Sensitivity Analysis on Value of Petrobras' share: Discount Rate vs Prices of OilPrice of Oil Option 2 (Futures Market) Price of Oil Option 3 (Average) Price of Oil Option 4 (Breakeven)

Petrobra's Value Discount Rate Petrobra's Value Discount Rate

$ 1,708.2 12.69% $ 1,217.0 12.69% $ 1,643.2 13.69% $ 1,170.9 13.69% $ 1,582.4 14.69% $ 1,127.7 14.69% $ 1,525.5 15.69% $ 1,087.2 15.69% $ 1,472.1 16.69% $ 1,049.2 16.69% $ 1,421.9 17.69% $ 1,013.5 17.69% $ 1,374.8 18.69% $ 979.8 18.69% $ 1,330.4 19.69% $ 948.1 19.69% $ 1,288.5 20.69% $ 918.2 20.69%

Fiscal Year Ended December

Price of Oil Option 4 (Breakeven)Petrobra's Value

$ (10.9) $ (7.4) $ (4.5) $ (2.0) $ - $ 2.0 $ 3.5 $ 4.7 $ 5.8

Sample calculations on Taxes and RoyaltyGross Revenue $100 Royalty (@18.5%) $18.50 Depreciation (say 10%) $10 Capex (say 10%) $10 EBIT $61.50 Profit Allowance (@ 16%) $9.84 EBT $51.66 Taxes (@85%) $43.91 Net Profit $7.75

Note: Net Profit earned by the firm is in addition to the Profit Allowance

Year Option 1 (Texas State Government) Option 2 (Futures Price)1 67.83 134.612 68.34 136.253 69.21 135.234 70.19 135.005 71.56 135.246 73.15 135.707 74.83 136.408 76.73 137.159 78.63 138.00

10 80.55 140.0711 82.40 142.1712 84.30 144.3013 86.19 146.4714 88.11 148.6715 89.94 150.9016 91.61 153.1617 93.39 155.46

Option 3 (Average Price) Option 4 Breakeven Oil Price101.22 24.03102.30 24.51102.22 25.00102.60 25.50103.40 26.01104.43 26.53105.62 27.06106.94 27.60108.32 28.15110.31 28.71112.29 29.29114.30 29.87116.33 30.47118.39 31.08120.42 31.70122.38 32.34124.42 32.98

Oil Production Schedule

1 100,000 2 113,636 3 127,273 4 140,909 5 154,545 6 168,182 7 181,818 8 195,455 9 209,091

10 222,727 11 236,364 12 250,000

Production: 175,000 Production Capacity Factor: 100% Enter Option (1,2,3 or 4 )>>>

Year Capacity Utilization1 175,000 175,000 63,875,000 100%2 250,000 250,000 91,250,000 100%3 250,000 250,000 91,250,000 100%4 250,000 250,000 91,250,000 100%5 250,000 250,000 91,250,000 100%6 230,769 230,769 84,230,769 100%7 211,538 211,538 77,211,538 100%8 192,308 192,308 70,192,308 100%9 173,077 173,077 63,173,077 100%

10 153,846 153,846 56,153,846 100%11 134,615 134,615 49,134,615 100%12 115,385 115,385 42,115,385 100%13 96,154 96,154 35,096,154 100%14 76,923 76,923 28,076,923 100%15 57,692 57,692 21,057,692 100%16 38,462 38,462 14,038,462 100%17 19,231 19,231 7,019,231 100%

Production Capacity (barrels per day)

Adjusted Production Capacity (barrels per day)

Production Capacity (barrels per year)

Production schedule assumptions:Production begins with 100,000 bblspd; at the end of first year production reaches 250,000 bblspd. This level is maintained for the next 4 years. Then it slowly tapers off over the life of the project to 0 bblspd. Information based on interview with Chevron.

1 Option 1 (Texas State Government)2 Option 2 (Futures Price)3 Option 3 (Average Price)

3 4 Option 4 Breakeven Oil Price

63,875,000 $ 101.22 $ 6,465 91,250,000 $ 102.30 $ 9,334 91,250,000 $ 102.22 $ 9,328 91,250,000 $ 102.60 $ 9,362 91,250,000 $ 103.40 $ 9,435 84,230,769 $ 104.43 $ 8,796 77,211,538 $ 105.62 $ 8,155 70,192,308 $ 106.94 $ 7,506 63,173,077 $ 108.32 $ 6,843 56,153,846 $ 110.31 $ 6,194 49,134,615 $ 112.29 $ 5,517 42,115,385 $ 114.30 $ 4,814 35,096,154 $ 116.33 $ 4,083 28,076,923 $ 118.39 $ 3,324 21,057,692 $ 120.42 $ 2,536 14,038,462 $ 122.38 $ 1,718 7,019,231 $ 124.42 $ 873

Actual Production

Price of Crude per barrel

Revenue (Millions of Dollars)

Production schedule assumptions:Production begins with 100,000 bblspd; at the end of first year production reaches 250,000 bblspd. This level is maintained for the next 4 years. Then it slowly tapers off over the life of the project to 0 bblspd. Information based on interview with Chevron.

Cost of Capital Worksheet

Worksheet calculates cost of equity capital in nominal U.S. dollar terms.Convert local currency cash flows to USD by the assumption of Purchasing Power Parity, i.e. the expected annual depreciation in the FX rate is exactly equal to the difference between local and U.S. inflation rates.

Risk Premium CalculationInputs Output Category

4.10 U.S. risk free in %5.00 U.S. risk premium in %

93.80 Current U.S. Credit Rating38.30 Institutional Investor country credit rating (0-100)

24.95 Anchored Cost of Equity Capital for project of average risk in country (ICCRC)

15.85 Country Risk Premium

Industry Adjustment0.94 Beta (Industry)

-0.30 Sector adjustment

Project Risk Mitigation (-10 to 10; where 10=risk completely eliminated, 0=average for country)

Weights ScoreSovereign

0.40 9.50 -6.02 Currency (direct, e.g. convertibility)0.10 7.00 -1.11 Currency (indirect, e.g. political risk caused by crisis)0.15 -2.50 0.59 Expropriation (direct, diversion, creeping)0.05 5.00 -0.40 Commercial International partners0.05 0.00 0.00 Involvement of Multilateral Agencies0.05 -4.00 0.32 Sensitivity of Project to wars, strikes, terrorism0.05 0.00 0.00 Sensitivity of Project to natural disasters

Operating0.05 6.00 -0.48 Resource risk0.03 8.00 -0.32 Technology risk

Financial0.05 7.00 -0.55 Probability of Default0.03 0.00 0.00 Political Risk Insurance

Impact on Country Premium

1.00 Sum of weights (make sure = 1.00)

Project Cost of Capital 16.69

Cash Flow Check List:Operating-PrecompletionResources available (quantity/quality) -part not in discount rateTechnology (proven technology) -part not in discount rateTiming risks (penalties for milestones)

Operating-Post-completionMarket risks (prices of outputs)Supply/input risk (availability)Throughput risk (material put through plus efficiency of systems operation)Operating costs

SovereignInflation assumptions/Exchange rates

Real OptionsInput mix or process flexibilityOutput mix or product flexibilityAbandonment or terminationTemporary stop or shutdownIntensity or operating scaleExpansionContractionInitiation or defermentInterproject/intraprojectGrowthShadow costsFinancial flexibilityComplex options which might diminish or augment value of other options

Sovereign Spread Calculation

4.10 U.S. risk free in %5.00 U.S. risk premium in %0.94 Beta

8.8 Implied Re7.27 Nigeria Bond Yield (8 yr. maturity)3.17 Sovereign Spread

12.90 Adjusted Re