petrobrasapril11

1

January,�2011

PETROBRAS AT A GLANCE

2

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 inmaking 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.

3

WORLD-CLASS INTEGRATED

ENERGY COMPANY FOCUSED IN BRAZIL

SOLIDRESULTS

TECHNOLOGY LEADERSHIP AND

INDUSTRY KNOW-HOW

SUSTAINABLE GROWTH STRATEGY

AND STRONGPORTFOLIO

4

Incorporated in 1953 as government monopoly for all hydrocarbon activities. Little or no reserves, production or refining.

A history of organic, operated, self funded growth. Transition from a refiner of imported crude to integrated self sufficiency.

End of monopoly and opening of oil sector to international participants. Petrobras status as an operator, without privileged position.

Brazilian Government (directly and indirectly), owns 48% of Petrobras, and maintains control with 54% of voting shares.

Independent financial structure, with investment grade foreign currency ratings notched above the sovereign.

Listing on NYSE and SEC registration in 2000. Full quarterly disclosure in IFRS and U.S. GAAP. Market cap year-end 2010 of USD 237 billion.

PETROBRAS:�AN�INVESTMENT�GRADE,�PUBLICLY�TRADED,�MAJOR�INTERNATIONAL�OIL�COMPANY�

Incorporation in 1953 as government monopoly:

Reserves: 16.8 million boe

Production: 2.6 Thous. BPD*

Refining Cap: 41 Thous. BDP*

Discovery of shallow water offshore fields

Reserves:800 million BOE

Production:177 Thous. BPD

Refining Cap: 823 Thous. BDP

Discovery of mega fields in deepwater Campos Basin.

Last refinery completed ‘81

Production:467 Thous.BPD

Elimination of Monopoly, creation of oil law. Full deregulation by 2002.

Production:1 MM BPD oil in Brazil in ‘98

Brazil achieves self sufficiency in oil production

Discovery of Santo Pre-salt

19531953 19741974 19841984 19951995--88Listing on NYSE, with market cap of $ 31 billion

1st Investment grade rating

20002000 20102010USD 70 bncapitalization and acquisition of rights to produce 5 bn BOE

Production: 2MM BPD oil in Brazil

20062006--77

* 1954

5

o Brazilian government, by law, must maintain control. Does so with 54% of voting shares.

o Petrobras 3RD most actively traded ADR on NYSE (by $ 893 billion), and among all stocks, the 14th most actively traded stock. On Bovespa, Petrobras most actively traded stock, by shares and by volume.

Oct/1992 Jul/2000 After Aug/00offering

After Jul/01offering

Dec/2009 Dec/2010

SHAREHOLDINGS�EVENLY�DISTRIBUTED�BETWEEN�GOVERNMENT,�AND�BRAZILIAN�AND�FOREIGN��OWNERS

Brazilian Non-Gov’tShareholders

Non-VotingVoting

Foreign ShareholdersNon-VotingVoting

Brazilian Gov’t *

Non-Voting

Voting

48%

20%

32%

40%

21%

39%

41%

23%

36%

45%

25%

30%

61%

18%

21%

55%

45%

*Includes: Republic, BNDES, BNDESPAR, Sov. Wealth Fund

6

2005 2006 2007 2008 2009 2010

NysePBR

PBR/A

BovespaPETR3PETR4

Turnover NYSE & Bovespa (Daily Average Turnover)

(US$ MM)

PETR4 (Bovespa) PBR/A (Nyse)PETR3 (Bovespa) PBR (Nyse)

(% category and US$MM)

1,308

1,930

992

483

219

Turnover 2010/2005 = 619%

o Turnover of PBR 3 times the volume of PBRA on the NYSE

o Turnover of PN 5 times the volume of the ON

o Probable explanation: Cultural. Brazilians familiar with PN´s and would not pay premium for ON´s

PETROBRAS�IS�ONE�OF�THE�MOST�LIQUID�STOCK�IN�VALUE�TRADED�ON�BOTH�THE�BOVESPA�AND�NYSE

31%

6% 5%6%

5% 6%7%

25% 21%20%

20% 19%19%

43% 47% 43%50% 52% 47%

26% 23%27% 27%25%

2005 2006 2007 2008 2009 2010

NysePBR

PBR/A

BovespaPETR3PETR4

1,359

7

FULLY�INTEGRATED�ACROSS�THE�HYDROCARBON�CHAIN

Our�Main�Segments:�Key�Statistics�and�Market�Positions�(2009)

Adjusted�EBITDA�US$�32.9�Billion1 (LTM2)

Exploration�and�Production

• 14.2�Bn boe�of�1P(SPE)

• 2.1�mm�boedproduction

• 576�concession�areas

• 318�production�fields

• 98.5%�of�Brazilian�production

• 20%�of�global�DW�and�UDW�production

RTM�(incl.�Petrochemicals)

• 11�refineries

• 1.9�mm�bbld refining�capacity

• 11.2�mty materials�nominal�capacity�(3)

• 92%�share�of�installed�capacity

Distribution

• 7,221�service�stations

• 19.2%�share�of�service�stations

• 38.6%�share�of�distribution�volume

Gas�and�Power

• 13,996�km�(8,698�mi)�of�pipelines

• Participation�in�20�of�the�27�gas�discos�in�Brazil

• 5,966�MW�of�generation�capacity

International

• 26�countries�

• 0.7�Bn boe�of�1P(SPE)

• 228�thous.�boedproduction�

• 276�thous.�bbl/d�refining�capacity�

•Petrochemicals,�Gas�&�Power�activities

RTM12%

G&P4%

Distribution3%International5%

E&P76%

Biofuels

• 3�new�Biodiesel�Plants

• Ethanol:�Opening�new�markets

• Responsible�for�10%�of�Brazilian�ethanol�exports

Notes:�(1)�Includes�Corporate�and�Elimination;�(2)�LTM�as�of�9/30/10;�(3)�Through�Braskem and�Quattor

2010�Proven�Reserves�(SPE)15.986�billion�boe

Shallow Water(0-300m)9%

Ultra-Deep Water(>1,500m)32%

Deep Water(300-1,500m)

50%Onshore9%

8

A�WORLD�CLASS�INTEGRATED�ENERGY�COMPANY

2010�Oil�&�Gas�Production�(mm�boe/d)

2009�Refining�Capacity�(mm�boe/d)

2009�Proven�Reserves�– SEC�(bln boe)

Notes:�Peer�companies�selected�above�have�a�majority�of�capital�traded�in�the�public�market;�*�2009;�(1) 2010Source:�PFC�Energy�WRMS�(barrels�per�calendar�day,�considering�company�%�shareholding�and�including�JVs)�and�Bloomberg

3.84.4

3.22.7 2.6

2.52.2

1.7

0.6

BPXOM RDS CVX COP TOT* ENI* BG*

Oil Gas

6.3

3.62.9 2.7 2.6

2.2 2.2

0.70.3

XOM RDS COP BP TOT CVX ENI STL

23.0

18.0

13.912.7(1) 11.3 10.3 10.1

6.45.2

XOM BP RDS CVX COP TOT ENI STL

Oil Gas

369

237209

184138 126

10067

44

XOM PBR RDS CVX BP TOT COP ENI STL

Market�Cap�(US$�bn)�� December�31th,�2010

9

20

25

30

billion boe ~ 28-30 bn boe

5

10

15

0

ENHANCING RESERVES

*SPE Criteria

Santos Pre-Salt announced recoverable volumes including the transfer of rights, can more than double Brazilian reserves.

Higher estimates10

Lower estimates8

5

Cumulative Production

from Petrobras

1953 - 2010

Proved Recoverable Volume BR1953 - 2010

Proved Reserves BR (SPE 2010)

Potential Recoverable (Lula,

Cernambi, Iara, Guará and Whales Park), ranging from

8.2 to 9.8

Transfer of Rights

Proved Reserves+

Potential Recoverable +

Transfer of Rights

29

14

15

10

Pro

duct

ion

(bpd

)

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55

1.800.00

1.600.00

1.200.00

1.000.00

800.00

400.00

0

Numbers of YearsProduction sinceincorporation of Petrobras (1953)

Discovery of Garoupa in the Campos basin (1974)

Discovery of giant fields in Campos basin including Albacora/Marlim(80´s & 90’s)

Discovery of the Pre-Salt, since Parati (2006)

2.000.000

IMPRESSIVE RECORD OF ACCELERATING DEVELOPMENT

12 a

nos

22 a

nos

16 a

nos

27 a

nos

45 a

nos

54 a

nos

11

INDUSTRY-LEADING PRODUCTION GROWTH

Source: Evaluate Energy

Petrobras Oil and Gas Production (000 boe/d)

2,525

2,0202,217

2,297 2,3012,400

2004 2005 2006 2007 2008 2009

4.6% CAGR

6,614,56 3,96 3,52 2,44

-3,26-2,59-1,380,001,66

-4,94

Con

ocoP

hillip

s

Petro

bras

Luk

oil

Pet

roC

hina

Che

vron

EN

I

BP

Exx

onM

obil

Tot

al

RD

She

ll

Rep

sol Y

PF

CAGR (2004-2009) - %

* *

* 9M09 Annualized

12

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

5500

6000

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Source: PFC Energy and Company reports

OIL AND GAS PRODUCTION TARGETSPetrobras has the highest growth rate target of the industry

ExxonMobil: Productiongrowth rate ~3-4% in 2010; ~2-3% p.y. up to 2013

BP: Production growth rate ~1-2% p.y. up to 2015

Shell: ~3.5 MM boe/d in 2012 and ~3.7 MM boe/d in 2014

Petrobras: 3.9 MM boe/d in 2014 and 5.4 MM boe/d in 2020

thou

sand

boe

/d

Chevron: production growthrate ~1% p.y. between 2010-2014 and 4.5% p.y. between 2014-2017

13

GDP�Growth�(%)

1,2

5,7

3,24,0

5,75,1

�1,2

7,6

4,5 4,5

�2

�1

0

1

2

3

4

5

6

7

8

9

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Forecast�

BRAZILIAN ECONOMY:Growing with stability and fiscal responsibility

Source: Brazilian Central Bank – 10.15.2010

Trade�Balance�(US$�Billion)

97119

138161

198

154

238

197

219 234211

180

130

173

121

917463

0

50

100

150

200

250

2004 2005 2006 2007 2008 2009 2010 2011 2012

Exports Imports

Forecast�

Brazilian�Debt�(as�%�of�GDP)

40,147,750,052,1

46,6 44,239,9 41,4

2,63,3

1,92,63,53,3

2,7

5,1

0

5

10

15

20

2003

2004

2005

2006

2007

2008

2009

nov/10

0

10

20

30

40

50

60

Net

Deb

t/GD

P (%

)

Nom

inal

Fis

cal D

efic

it/G

DP

(%)

International�Reserves�(US$�billion)

207239

289

180

86545349

0

100

200

300

400

2003

2004

2005

2006

2007

2008

2009

2010

14

E&P

RTM

G&P

Petrochemicals

Petrobras’ Corporate Strategy to 2020

Brazil95%

International5%

53%

33%

2%1%2%8%

1%US$ 224.1 billion

Total Capital Investment Plan2010-2014

Distribution

BiofuelsCorporate

Focus in oil, oil products, petrochemicals, gas &

energy, biofuels, refining and distribution with an

integrated and sustainable business model�

�Oil & gas production growth in a sustainable manner

that will approximately double our production in the

next 10 years

Integrated Growth, Profitability and Sustainability

Be recognized as a benchmark among integrated energy companies

Consolidate leadership in the Brazilian market of

natural gas, electricity generation and gas chemicals �

BUSINESS PLAN 2010-14: US$ 224 BILLIONIncreased investment for integrated operations in Brazil

15

ADJUSTMENTS TO THE 2010-2014 PORTFOLIOIncreased spending on infrastructure, logistics, value chain in Brazil

o New projects for pre-salt, logistics, increased utilization of domestic oil, and monetization of natural gas.

o Change in partnership participation reflecting uncertainty about participation of partners in downstream projects

E&P

Downstream

Gas & Energy

Corporate

0.3

6.5

5.1 19.7

62%16%

21%1%

5.1 19.7

6.50.3

CAPEX 2010-2014in 2009-2013

Business Plan

2010-2014Business Plan

New Projects

Projects Excluded

Change in project timeline

Change in project design and cost

Change in Stake

186.6

31.6 (17.0) (6.8) 19.210.3

224

16

PETROBRAS CAPEX NOW EXCEEDS ALL OTHER MAJORS

Capex�for�2010:�2009�vs.�2010E�

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

45.000

50.000

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

Source:�Evaluate Energy and Company Reports(1) R$�88.5�billion�converted�by�FX�rate�of�1,87�R$/US$�(Petrobras�forecast�to�2010)�

2009�Average�without�Petrobras

2010�Average�without�Petrobras

(1)

U$S�MM

Capex by�Quarter:�1Q07�– 4Q09��

0

2.000

4.000

6.000

8.000

10.000Petrobras

Super�Majors�Average�(Exxon,�Shell,�BP)

Peer�Group�Average�(without�Petrobras)

1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 4Q093Q092Q091Q09

U$S�MM

17

PETROBRAS CAPITALIZATION

Capitalization Rationale:

Payment of the Assignment AgreementUS$ 42.5 bnA Investment Plan

US$ 27.4 bn

Total OfferingUS$ 69.9 bn 1

Leverage Leverage after capitalization: 16%. In accordance to the targets established by the Company

Allocation of the book Brazil (39.3%); US (39.2%); Europe (10.6%), Canada (5.7%); Asia/ME (2.6%)

Participants Approximately 145,000 participants

Market Offering US$ 20.5 bi (88% for Institutional Investors and 12% for retail market)

Priority Offering US$ 49.4 bi

18

Net�Debt�/�Capitalization�(%)

Debt�levels�in�accordance�to�the�targets�established�by�the�Company

Net�Debt�/�Capitalization:�

25%�� 35%

25%

35%

2.5x

Limit�established�for�Net�

Debt�/�EBITDA:

2.5x(1)

1

28% 28% 30%32% 34%

16%

0%

10%

20%

30%

40%

2T09 3T09 4T09 1T10 2T10 3T10

1.0 1.01.2

1.4 1.5

1.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

2Q09 3Q09 4Q09 1Q10 2Q10 3T10

Notes:�(1)�Annualized�EBITDA

Net�Debt/�EBITDA

PETROBRAS’ FINANCIAL�PLANNING�BASED�ON�MAINTAINING�INVESTMENT�GRADE�RATINGS�WITH�PRUDENT�LEVERAGE

19

Largest Shares Offerings (US$ billion)

70.0

24.4 22.5 22.1 22.0 20.2 19.7 19.4 19.3 19.3 17.6

FO(2010)

FO(2007)

IPO(2008)

FO(2009)

FO(2007)

FO(2009)

FO(2009)(2009)

FO(2010)

IPO(2008)

FO

Source: Petrobras, Bloomberg and Thompson

IPO(2006)

ACCESS�TO�CAPITAL�ON�A�WORLD�AND�HISTORIC�SCALE

Largest Bond Issues(US$ billion)

16.013.5

9.5 8.0 6.3 6.0 6.0 6.0 6.0 5.5 5.1

RBS LloydsBank

AgriculturalBank ofChina

ICBC Barclays Visa Inc HSBC Fortis Bank ofAmerica

Citigroup Inc

Roche Holdings

Pfizer KraftFoods

BerkshireHathaway

LloydsBank

ConocoPhillips

INGBank

The DowChemicalCompany

Anheuser-Busch

NBC

**

* *

*Related to acquisitions**Issued "by a corporation"

** **

o Excluding the offers related to acquisitions or capital raising and government debt raising program, Petrobras deal was the largest debt issuance for a corporation in the "ordinary course" of business

(2009) (2009) (2010) (2010) (2009) (2011) (2009) (2009) (2009) (2009) (2010)

o Petrobras had the largest share offering in history

20

Volume • 5,0 billion boe

Object • Acquisition of rights to conduct research, exploration and oil production activities in specific areas of the pre-salt that are not under concession.

Concession Area • 3,865 km2 in 7 blocks

Average Price • US$ 8,51 / boe

Initial Value • US$ 42.5 billion / R$ 74.8 billion

Duration • 40 years, extendable for additional 5 years.

CAPITALIZATION RATIONALE: PAYMENT OF TRANSFER OF RIGHTS

21

3.4895,82600380Iara

2.5547,9431990Sul de Guará

27.6449,043.058780Franco

8,53-664Peroba – “BlocoContingente”

3.6538,54428181Tupi Nordeste

42.5335.0002.042Total

4.2079,01467181Florim

1.0057,85128126Tupi Sul

Transfer of Rights Valuation (US$ MM)

Barrel Value (US$/boe)

Transfer of Rights Volume (mmboe)

Surrounding Area(Mi2)

Area

� No volume risk� Similar conditions, but more favorable than the current pre-salt concession areas

– Royalty payments of 10%– No Special Participation payment.

� Property of the volumes produced� 35% increase in current proved reserves� Increase in production potential

TRANSFER OF RIGHTS - AREAS

22



SOLIDRESULTS


INDUSTRY KNOW-HOW


AND STRONGPORTFOLIO

EXPLORATION & PRODUCTION

23

18TH CONSECUTIVE YEAR OF FULLY REPLACING BRAZILIAN PRODUCTION

o 240%�reserve�replacement�rate�in�2010.��Over�the�past�decade,�reserve�replacement�has�principally�been�driven�by�internal�additions�in�Brazil

o Targeting�a�reserves�to�production�life�over�18�years.�In�2010,�R/P�ratio�was�19.2�years.

12,52 13,04 13,17 13,31 13,37

0,881,91

1,23 0,92 0,86

2005 2006 2007 2008 2009 2010

Production(0.70�bn boe)

13,2313,75

Reserves�Replacement�

Index(174%)



Index(123%)



Index(124%)

13,92 14,09 14,17


Reserves�Replacement

Index(110%)



Index(240%)

15,28

Brazilian Reserves�� SPE�criteria�(Society�of�Petroleum�Engineers)�

24

OIL�AND�GAS�PRODUCTION�TARGETS�2010�2020Domestic�targets�unchanged,�international�targets�reduced

(Tho

us. b

oe/d

ay)

1,500 1,540 1,493 1,684 1,778 1,792 1,855 1,971 2,004

2,980

3,950252 251 265

274 277 273 321 316 327

623

1109

35 161 168163 142 126 124 141 151

176

203

85 94 96 101 110 100 97 101

128

120

22

2002 2003 2004 2005 2006 2007 2008 2009 2010 2014 2020

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

2,4002,3012,2972,2172,0202,0371,810

2,525

4.6% p.y.2,583

5,382

3,9077.6% p.y.

1.183152

Pre-Salt241

1, 078

o Production curve for domestic oil gas production consistent with prior Business Plan

o Projected international production reduced as a result of decrease in investment

o Production curve does not currently assume any contribution from Transfer of Rights

25

PETROBRAS CONTINUING TO DEVELOP TRADITIONAL POST-SALT HORIZONS, WHILE TRANSITIONING TO PRE-SALT

Prod

uctio

n�(m

illion�bo

e/d)

Cachalote.Baleia Franca

TupiPilot

UruguáTambaú

Mexilhão

Tupi�NE�EWT

Guará EWT

Tiro Pilot

Aruanã�EWT

P�57Jubarte

P�56Marlim�Sul

4�EWTPre�salt

P�63Papa�Terra

Guará Pilot

3�EWTPre�salt

FPSO�Espadarte

P55�Roncador

4�EWTPre�salt

Tiro /�Sidon

Aruanã�EWT

P�62�Roncador

Tupi�NEPilot

P�58�Whales�Park

Guaiamá

2�EWTPre�salt

Main�Projects�Scheduled�(2010�2014)

Pre�salt Post�Salt Natural�Gas Extended�Well�Test

2,980

2,004

E&P�Brazil�Investments(2010�2014)

Exploration Development Infrastructure

Pre�Salt:�US$�33.0�billion Post�Salt:�US$�75.2�billion

2010 2011 2012 2013 2014

84%

13%

3%

67%

18%

15%

26

RESERVES IN ULTRA-DEEP WATER CAN BE DEVELOPED AT A RELATIVELY LOW COST

Source: IEA – Outlook 2008

Expected Costs of Production

Prod

uction

�costs�(U

S$/bbl�200

8)

Reserves�(bn bbls)

1000 2000 3000 4000 5000 6000 7000 8000 9000 100000

20

40

60

80

100

120

140

Deepwater�and�Ultra�deep�water

Produced MENA

Other�convention

al�oil

CO��

EOR

EOR Arctic

Heavy�oil�and�

bitumen

Oil�Shales

Gas�to�liquids

Coal�to�liquids

Petrobras�expected�maximum�break�even�cost

27

137.2140.2

134.5129.7

127.7

Brent (in R$)

16.84

24.78

16.51

26.53

16.95

26.87

17.54

26.37

18.46

24.26

3Q09 4Q09 1Q10 2Q10 3TQ10

Lifting Cost Gov.Part.

76.2 78.3 76.974.6

68.3

Brent (in US$)

9.02

13.84

9.51

15.23

9.40

14.33

9.79

14.71

10.60

14.07

3Q09 4Q09 1Q10 2Q10 3Q10

Lifting�Cost Gov.Part.

DOMESTIC LIFTING COST:Increase explained by collective bargain and stoppages for maintenance

R$/barrel

41.62 43.04 43.82

US$/barrel

43.9122,86

24,74 23,73 24,5042.7224,67

Comparing 3Q10/2Q10:

o Collective Bargain Agreement (CBA), expenses with materials (equipments for platform maintenance) and 1% decrease in production increased lifting costs;

o Lower government take due to decrease in international oil price (4%);

28

DISTRIBUTION OF UPSTREAM REVENUES

Distribution of the Realization Price of a Barrel of Domestically Produced Oil

$ per Barrel Realization Price % Share of Realization Price

Net Income

Other COGS DD&A

R&D

Income TaxLiftingSG&A Exploratory Costs

OtherGovernment Take

-10

0

10

20

30

40

50

60

70

80

2001 2002 2003 2004 2005 2006 2007 2008 2009 9M10

-20%

0%

20%

40%

60%

80%

100%

2001 2002 2003 2004 2005 2006 2007 2008 2009 9M10

29

UTB: 15 th.bpdMXL.: 1Q11

18 th. bpd

17 th. bpd

26 th. bpd

58 th. bpd

51 th. bpd

3Q10

15 th. bpd30 th. bpdSS-11 (TLD de Tiro)

28.2 th. bpd35 th. bpdFPSO Espírito Santo

Parque das Conchas (1)

17 th. bpd30 th. bpdFPSO Frade (2)

Main units

-35 th. bpd and

25 million m3/d

FPSO Cidade de Santos (Uruguá-Tambaú) and

Mexilhão

60.9 th. bpd100 th. bpdFPSO Cidade de Vitória

(Golfinho)

9.7 th. bpd100 th. bpdFPSO Capixaba

Cachalote e Baleia Franca

2Q10CapacityProjects

Dec/201030 th. bpdGuará EWT

Oct/2010100 th. bpdFPSO Cidade de Angra dos Reis (Tupi)

New Units

Dec/2010180 th. bpdP-57 (Jubarte)

Jul/2011100 th. bpdP-56 (Marlim Sul)

Start-upCapacityProjetcs

Total:�185�th.�bpd

NEW PRODUCTION UNITS:Continued increase in capacity

(1) Projects in partnership, capacity and production refers to Petrobras share (35%)(2) Projects in partnership, capacity and production refers to Petrobras share (30%);

30

0

250

500

750

1.000

1.250

1.500

1.750

2.000

2.250

2.500

2.750

2002 2003 2004 2005 2006 2007 2008 2009�2013

0%

10%

20%

30%

40%

50%

60%

70%

Exploration Capex

US$ mmSuccess Rate

EXPLORING TO LEVERAGE EXCITING FRONTIER PLAYS IN OUR OWN BACKYARD

31

MAIN DISCOVERIES IN THE POST-SALT REGION (1)

(1) 2008 to 2010* Volume in place

3,850Not disclosedLight OilBR(60%), STL(40%)

BM-ES-32IndraDec-10

2,200Not disclosedLight OilBR(80%), Karoon(20%)BM-S-41Nov-10

2,341Not disclosed(new frontier)OilBR(60%), IBV-

Brasil(40%)BM-SEAL-11Oct-10

3,950105 million barrelsLight OilBR(100%)CaratingaMay-10

Not disclosed

150 million barrels

150 millionbarrels

Not disclosed

Not disclosed

280 millionbarrels

25 million barrels

25 millionbarrels

40 millionbarrels

15 millionbarrels

Estimated Recoverable

Volume

235Light Oil BR (100%)BM-S-40/TiroMay-2008

200OilBR (100%)PampoFeb-2010

860OilBR (100%)BarracudaFeb-2010

800Light OilBR (100%)PiranemaMar-2010

400Light OilBR(100%)Rig FenceMarimbáNov-2009

976Light OilBR (100%)BM-C-36AruanãAug-2009

Date Field Participation Fluids Water Depth (m)

May-2009 BM-S-48Panoramix

BR(35%),Repsol(40%),Vale(12,5%),

Voodside(12,5%)

N. Gas andCondensate 161

Nov-2008 BM-J-3Jequitinhonha

BR (60%), STATOIL (40%) Oil 2,354

Sep-2008 BM-S-40/Sidon BR (100%) Light Oil 274

Jul-2008 Golfinho BR (100%) Light Oil 1,374

MarimbáAruanãCaratinga

Piranema

BM-S-41

BarracudaPampo

BM-SEAL-11

Indra

32

EXPLORATION PORTFOLIO AT DIFFERENT STAGES OF DEVELOPMENT

Potiguar

SEAL& REC & TUC

Bahia Sul

EspíritoSantoCampos

Santos

Ceara & Potiguar

Pelotas

Margem Equatorial

Solimões

São Francisco

PetrobrasOthers

o Brazil�Exploration:�2009�13��US$�13.8�bn

o Exploratory�Area:�155.0�thousand�km²

o 265�exploratory�blocks

o 35�appraisal�plans

o 313�production�concessions�

33

INCREASE IN THE NUMBER OF FIELDS ANDS BLOCKS HELD WITH PARTNERS

Exploration +�EvaluationConcessions (54)

53%

47%

Petrobras�(100%)

Petrobras�in�Partnerships 34�Oil and Gas Companies (2008)

Production DevelopmentConcessions (66)

38%62%

Concessions Under Production(247)

3%

97%

o Petrobras’ current domestic production comes mainly from concessions (97%) owned by the company alone

o For the areas under development, the percentage of concession held without partners falls to 62%

o More than half (53%) of the blocks under exploration or appraisal are joint ventures

SINN, July 2009

34



SOLIDRESULTS


INDUSTRY KNOW-HOW


AND STRONGPORTFOLIO

PRE-SALT OVERVIEW

35

PRE-SALT JOINT VENTURES

EXX (40%), HES (40%) e BR (20%)

Blocks ConsortiumBMS-8

BMS-9

BMS-10

BMS-11

BMS-21

BMS-22

BMS-24

BR (66%), SH (20%) e PTG (14%)

BR (45%), BG (30%) e RPS (25%)

BR (65%), BG (25%) e PAX (10%)

BR (65%), BG (25%) e PTG (10%)

BR (80%), PTG (20%)

BR (80%), PTG (20%)

Blocks ConsortiumBC-60 BR (100%)

JubarteCachaloteBalia FrancaBaleia AzulBaleia Anã

Shore�Distance�=�300�kmTotal�Area�=�15.000�km2

Shore�Distance�=�60�kmTotal�Area�=�3.000�km2

• Total Area: 149,000 km2• Area Under Concession: 41,772 km2 (28%)• Area Not Under Concession: 107,228 km² (72%)• Area With Petrobras Interest: 35,739 km2 (24%)

1.1�2�bi�boer

JUBARTEESS-103 CHL-4

BFR-1

BAZ-1

1-2Bi boer

BMBM��SS��1111(Tupi)(Tupi)

8,3�bi�boer

(Cernambie�Lula)

36t

USA

OFFSHORE BRAZIL IS A VAST AREA, STILL RELATIVELY UNDEREXPLORED

37

MacunaímaMacunaMacunaíímama

Libra

Petrobras

ANPo Acquisition of the rights to produce 5 billion boe in specific areas of the pre-salt that are not under concession;

o Start up of FPSO Cidade de Angra dos Reis in Lula (Pilot Project);

o Start up of Guara EWT

o 20 wells drilled and completion of 3 wells;

o Nine rigs operating in the pre-salt;

o Tupi NE EWT scheduled to start up in 1Q11 (FPSO Cidade de São Vicente).

Tupi NETupiTupi NENE

TupiSudoeste

TupiTupiSudoesteSudoeste

Tupi OesteTupiTupi OesteOesteCarioca

NECarioca Carioca

NENE

Tupi SulTupiTupi SulSul

Piloto de Tupi IG1PilotoPiloto dedeTupiTupi IG1IG1

Under Concession

Transfer of Rights

Santos Basin

37

PRE-SALT UPDATEWells**:

** Drilling or completion or test.

38

UTGCAUGN

RPBC

TEFRAN

LULA Area

URG

PMXL

PMLZ-1

170 Km

248 Km

212 Km

145 Km

To service the Pilot

GAS PIPELINE FOR LULA`S PILOT SYSTEM

PlannedExisting

Under Construction

39

18%26%

56%Gathering Completion + Drilling Units

CAPEX DISTRIBUTION:PRE-SALT VS. CAMPOS BASIN

33.3%

33.3%

33.3%

Gathering Completion + Drilling Units

PrePre--salt salt CAPEX DISTRIBUTIONCAPEX DISTRIBUTION

Deepwater Projects in Campos Basin*Deepwater Projects in Campos Basin*CAPEX DISTRIBUTIONCAPEX DISTRIBUTION

* Generic example, considering that these rates can change among the different existing projects in Campos Basin

o Additional drilling and completion cost in the pre-salt compared with an generic deepwater project in Campos basin can be partially or fully offset by higher quality and quantity of oil that is expected in the pre-salt area.

40

BIDs�2�and 3:�Acquisition of Santos�Basin Pre�Salt blocks

PRE�SALT�ACCOMPLISHMENTS�TIMELINE

20002000 2002 2003 2004 20052005 2006200620012001 20072007 20082008

20092009

Largest seismic acquisition andinterpretation in�the world

1st��wildcatwell:�Parati

Next exploratory results:�Carioca,�Tupi�(5�to�8�Bi�boe )�and

Iara�(3�to�4�Bi�boe)

20102010

Information�gathering• Appraisal�well• Analyze�reservoir�flow• High�resolution�seismic,�reservoir�coring,�well�testing,�…• Small�scale�production�(EWTs)• Material�analysis�vs.�CO2

2017>�1�M�bopd

1st�phase�of�definitive�development• Use�of� consolidated�or� rapidly�consolidating�technologies�to�achieve�production�targets• Generate�cash�flow�to�support�Phase�1b• First�2�FPSOs to�be�chartered�(2013�2014):� Oil�Production:�120,000�bpd� Gas�Compression:�5�M�m³/d

• Additional�8�FPSOs (2015�2016)• Process�plant�under�study:� Oil�Production:�150,000�bpd� Gas�Compression:�5.5�M�m³/d� Water�Alternating�Gas�injection�capability

2nd�phase�of�definitive�development

• Significant�production�increase• Innovation�acceleration• Massive� use� of� new� technologies�specially� tailored� for� Pre�Salt�conditions

PHASE�1b

1.8�MM�bopd

2020

Lula�Pilot• 100.000��bopd and�5�M�m³/d�gas• CO2�separation�and�reinjection�• Wells:�3�injectors�and�5�producers

Tupi Extended�Well�Test

... ...20132013...

PHASE�1a

PHASE�0

41

CO2 separation / capture technology

Offshore logistical hub

Floating LNGOffshore gas

storage in salt caves

Offshore produced fluid handling hubs

Water-alternating-gas (HC or CO2)

injectionExtended-reach

and deviated wells (salt)

Dry completion systems (SPAR, TLP, FPDSO, …)

Reservoir Characterization

CO2 storage in saline aquifers,

depleted fields, salt caves

Deepwater CALM buoy

Flow Assurance and formation

damage control

PLANSAL PLANSAL -- PrePre--Salt Development Master PlanSalt Development Master Plan

MAJOR TECHNOLOGICAL DEVELOPMENTS UNDER EVALUATION

Pre-Salt Definitive

Development

42

MG

RJ

Espí

rito

Sant

oPeroá

Camarupim

Carapó

Canapu

JUB

Catuá

Baleia�Azul ABA

OST

ARG

PRBCXR

CHT

NAU

Golfinho

UTG�Cacimbas

UTG�Sul Capixaba

UPGN�Lagoa Parda

Cangoá

Baleia�Franca

Terminal�Barra do�Riacho

o Infrastructure in-place: diversified and flexible portfolio;

o P-34 at Jubarte field, first pre-salt production (Sep/08): excellent results/light oil (30ºAPI);

o FPSO Capixaba (100 Mb/d) moved from Golfinho field and is being adapted to produce in Cachalote (CHT)/Baleia Franca (BFR) in 1H10;

o Baleia Azul first definitive production unit by 4Q12;

o Natural gas production transported via pipeline.

Rio�Doce

Linhares

Aracruz

Marataizes

Anchieta

Guarapari

Vila�Velha

VITÓRIA

PresidenteKennedy

Sul-Norte CapixabaGas pipeline

12 a 24” – 160 km7 a 15 MM m3/d

24” – 66 km25 MM m3/d

ESPÍRITO SANTO PRE SALT

Sul CapixabaGas pipeline12” – 83 km4,5 MM m3/d

*Whales Park comprehends the fields: Jubarte, Cachalote, Baleia Franca, Baleia Azul and Baleia Anã

Whales�Park*

43



SOLIDRESULTS


INDUSTRY KNOW-HOW


AND STRONGPORTFOLIO

E&P REGULATORY FRAMEWORK

Pre-Salt and Strategic Areas

44

There�will�be�no�regulatory�changes�in�the�areas�under�concession,�including�the�pre�salt�area�already�granted

Petrobras 100%

Petrobras Operator

Other companies trough Bidding Process

Transfer of Rights with compensation

ProductionSharing

AgreementPre-salt

andStrategic Areas

NEW REGULATORY MODEL

Other AreasCurrent

Concession Model

45

PRODUCTION SHARING AGREEMENTS

Profit Oil

CostOil

Companies

Government

Production sharing agreementso Petrobras will operate all blocks under this regime, with a minimum stake of 30%

o Consortium between Petrobras, Petro-sal and the winning bidder will be managed by the Operational Committee

o Petrobras will be able to participate in the bidding process to increase its stake

o The winning bidder will be the company that offers the highest percentage of “profit oil” for the Brazilian Government

o Petrobras will have to follow the same percentage offered by the winning bidder

o The Brazilian Government will not assume the risks of the activities, except when it decides to invest directly

o Prior to contracting, the Government may evaluate the potential of the areas and may contract Petrobras directly

Graphs are showing only hypothetical values

46



SOLIDRESULTS


INDUSTRY KNOW-HOW


AND STRONGPORTFOLIO

EQUIPMENT AND SERVICES

47

NEW VESSELS AND PURCHASE OF NEW EQUIPMENTSPetrobras critical resources demand will drive Brazilian and international industry

26 RIGS CONTRACTED, 28 MORE TO BE BUILT BY 2020:26 RIGS CONTRACTED, 28 MORE TO BE BUILT BY 2020:o Until 2013: 13 rigs contracted before 2008 and 1 rig relocated from international operations*;

+12 new rigs contracted in 2008 , through international bidding;o 2013-2020: Bidding process in progress, to contract 28 rigs to be built in Brazil.

By 2013

79

41

254

5

Current Situation(Dec/09)

Others�(Jacket�and�TLWP)

Production�Platforms�SS�e�FPSO

Supply�and�Special�Vessel

Drilling�Rigs�Water�Depth�Above��2.000�m

Critical ResourcesDelivery Plan (to be contracted)

Accumulated Value

By 2015 By 2020

26 31 53*

465 491 504

53 63 84

81 83 85

Production

Platform (FPSO)Drilling RigsSupply Vessel

* The rig reallocated from international operations, expire in 2015, so it is not considered in the 2020 accumulated value

48

USING CONTRACTS AND LEASES TO SECURE NEEDED DRILLING ASSETS

Water Depth

Total per year

o 34 rigs operating in 2009

o 27 rigs contracted to be delivered until 2012

o Bids are out to construct 28 rigs in Brazil, being delivered between 2013 and 2018

500-1000m1000-1500m

2500-3000m

9

84

34

2000-2500m

12

1

1500-2000m

2009 2010 2011 2012 2013- 2018

+28 to be leased

+3+5+3

+12

+3+4

+7

+4+4

+8

+1

49

Imports

Current Demand

National Industry

Future Demand

GOOD AND SERVICES SUPPLY

National Industry

Imports

National Industry

Adequacy of The National Supply Industrial Complex

COMPETITIVE NATIONAL SUPPLY OF GOODS AND SERVICES

1. Increase�productivity�capacity�of�highly�competitive�sectors

2. Develop�competition��among�medium�competitive�sectors

3. Incentive�for�new�national��entrants

4. Incentive�for�association�between�national�and�international�companies

5. Incentive�for�international�companies�to�establish�operations�in�Brazil

PATH

Increase in National

Supply Capacity of

G&S

50

Itens Un. TOTAL

Reactors un 280Oil and water splitter un 50Storage Tankers un 1.800Turrets un 550

Itens Un. TOTAL

Power Generators un 500Filters un 300Flares un 30

Items Un. TOTALWet Christmas Tree un 500Well Head un 500Flexible Lines km 4.000Manifolds un 30Producing pipes t 42.000Umbilical km 2.200Dry Christmas Tree un 1.700Onshore well head un 1.700

Items Un. TOTALPumps un 8.000Compressors un 700Winch un 450Crane un 200Engines un 1.000Turbines un 350Structure Steel (Hull) t 240.000

Structure Steal (Platforms Hull) t 700.000

NEW EQUIPMENT TO BE CONTRACTED

51

CAMPOS BASIN: A GIANT TECHNOLOGY LAB

Petrobras’ Offshore Facilities

EquipmentInstalledDec/2009

Planned(2010)

733 72

2

633

358

35

3

2

74

4,425

3,391

1,630

40

2

Subsea�Trees

Subsea�Manifolds

Flexible�Flowlines

(km)

Umbilicals(km)

Rigid�Pipelines(km)

Floating�Production

Units

Mono�buoys

ManifoldSubsea Trees

UmbilicalsFlexible Flowlines

52



SOLIDRESULTS


INDUSTRY KNOW-HOW


AND STRONGPORTFOLIO DOWNSTREAM

53

8,63

4,40

3,182,79 2,70 2,61 2,42 2,36 2,33 2,20 1,94 1,94 1,83 1,74 1,61 1,58

�

1

2

3

4

5

6

7

8

9

10

US

China

Japan

India

Brazil�2020

Russian�Federation

Saudi�A

rabia

Germany

Brazil�2014

South�Korea

Canada

Brazil�2009

Mexico

France

Iran

United�Kingdom Italy

2009�Total�Oil�Consumption�by�Country�(mmbo/d)�

BRAZIL�AS�A�LARGE�AND�GROWING�EMERGING�MARKET

Source:�BP�Statistical�Review�2010,�PFC�EnergyNote:�*�Estimates�for�2014�and�2020

� Brazil�is�world’s�tenth�largest�oil�consumer.

� Brazil�oil�consumption�growing�at�2.38%�p.a;

� OECD�oil�consumption�growing�at��0.04%�p.a.

18,7

Total�Oil�Consumption�mb/d (index)�

53

95

100

105

110

115

120

125

130

1999 2001 2003 2005 2007 2009

Brazil

US

OECD

World

* *

54

DOMINANT POSITION IN THE BRAZILIAN MARKET

Upstream Operations Downstream Operations

Logistical Synergies Stable Cash FlowsGrowing MarketDominant Position

• Leadership in all segments of the value chain

• Market position ensures economies of scale and efficient business model

• Strong organic demand in one of the fastest growing global markets

• Attractive domestic market opportunities for upstream, downstream and other energy segments

• Main oil producing basins and refining located in S.E. Brazil, near GDP centers

• Logistical infrastructure fully developed

• Diversified cash flows with several growth drivers

• Reduced volatility of cash flows due to ability to smoothen prices fluctuations in the domestic market

PetrobrasOther Companies

Existing PipelinesRefineriesMarine Terminal In Land Terminal

55

2,7943,196

3,9502,3562,260

2,980

1,9331,791

1,971

1,0361,393

181

2009 2014E 2020E

kbpd

110%

132%

o Oil Production and the Brazilian market demand currently exceed refining capacity

o By 2014, exports are projected to reach nearly 1 million bpd, even as refining capacity is expanded to process Brazilian production to meet demand

BRAZILIAN PRODUCTION, REFINING AND DEMAND Long term plans to achieve greater balance and integration

ThroughputProduction Oil�Product�Demand

124%

1980

13%

Production as a % of refining

56

BRAZILIAN DEMAND AND REFINING CAPACITYStrong Brazilian GDP growth projected to increase demand 3.4% p.y.

o Domestic production will represent 91% of refinery throughput by 2020

o Comperj’s first phase is now a new refinery

403

769937

826

452338

1,187

1,155

1,016

0

1000

2000

3000

Thousand bpd

1,933

PREMIUM I(1ª phase)

300 thou. bpd(2014)

2,356

1,831

2,260REPLANRevamp

U200+PAM33 thous. bpd

(2010)

COMPERJ(1º phase)

165 thous. bpd(2013)

RNE230 thous. bpd

(2013)

2020

...

3,196

2,794

2009 20142010

Gasoline Diesel Others

PREMIUM I(2ª fase)

300 thous. bpd

(2016)

...

COMPERJ(2º phase)

165 thous. bpd(2018)

Throughput

Clara Camarão

2010

PREMIUM II300 thous.

bpd(2017)

57

MOST OF THE INVESTMENTS UNTIL 2014 ARE ALREADY MATURED WHILE MOST INVESTMENTS AFTER 2014 ARE STILL IN PHASE I

22%

73%

8% 18%

7%

4%11%

1%

54%

2%

(2010-14) (2015-20)

No Phase

Phase IV

Phase III

Phase II

Phase I

58

UPGRADING TO OPTIMIZE PERFORMANCE AND ENSURE SUSTAINABILITY THROUGH CLEANER FUELS

o QUALITY OF GASOLINE o QUALITY OF DIESEL

o Improving gasoline and diesel quality to comply with stricter environmental regulations and reduce emissions & pollutant streams

2010 2011 2012 2013 2014

RECAP REPAR REMAN

REDUC REPLAN

REVAP

REGAP REFAP

RLAM

RPBC

Regular Gasoline 0,005% SRegular Gasoline

2010 2011 2012 2013 2014

Diesel S-1800Diesel S-500Diesel S-50Diesel S-10

REVAP RLAM REPAR REPLAN

RECAP RPBC

REGAP REMAN

REFAP

REGAP

59

50%

29%

11%

6% 3%1%

Additional capacity Quality and conversionOperational Improvement Fleet expansionLogistics for oil International

RTM AND PETROCHEMICALS INVESTMENTS 2010-2014New refineries, fuel quality, and modernization account for 70% of capex

• Additional capacity:• Refinery NE• Premium I• Comperj

• Quality and conversion• Sulfur removal• Modernization• Upgrading (coker)

• Operating improvement and logistics:• Maintenance• HSE• Logistics for oil and biofuels

US$ 73.6 Billion

• Investments of US$ 5.1 Billion in Petrochemical (includes acquisition of Quattor)

60

Investiments 9M10 R$ 56.5 billion

5,6

6,1

24,710,1

0,05

1,3

1,1

3,8

Investiments 9M09R$ 50.7 billion

6.5

0.4

5.5

4.5

10.6

23.2

3.7

0.54.4

24.1

20.6

3.4 E&P

Downstream

Gas & Power

International

RTC

Others

Investments in Downstream for 9M10: R$ 20,582 million

INVESTMENTS 9M10 vs 9M09:

19%

13%

27%

2%

12%

27%

Quality/Sulfer Content

Conversion

New Units

Fleet Expansion

Investments in Braskem

Plangas, Maintenance,infrastructure,HSEand others

•Quality improvements (sulfur removal);

•Maintenance, HSE, operating efficiencies logistics;

•Expansion of refining capacity.

61

DOWNSTREAM UPDATES

Refap – Acquisition 30% Repsol´s stake (Dec/10)

Abreu e Lima

•Amount of acquisition: US$ 350 million (includes the Repsol´s 30% stake in therefinery’s stock : US$ 130 million)

•Repsol´s shares in the 2010 results will be completely retained by Petrobras (US$ 40 million up to 3Q10)

•Repsol’s portion of US$ 500 million in the current Refap´s debt had already beenconsolidated in Petrobras’s Balance Sheet

•Between 2001 and 2010, US$ 1.4 billion was invested at the refinery, increasingproduction capacity from 130.000 bpd to 190.000 bpd and the refinery’s complexityfrom 2.0 to 6.9 (Nelson Index).

•Main projects that were developed: Residue Catalytic Cracking Unit (RFCC), Retarded Coking Unit (UCR), Hydrotreatment Unit (HDT) and Hydrogen GeneratingUnit (UGH)

•The market that is being supplied by the refinery is growing (South of Brazil), whichcreates a different expectation of return of this refinery

•The acquisition adds synergies to Petrobras refining operations, as well as to theallocation of the oil produced in Brazil (for example, it is expected an increase in theprocessing of domestic oil from 43% to 93% in this refinery, as well as a gain in logistics and in the production of oil products to supply the market)

62

DOMESTIC OIL PRODUCTS :Significant sales growth in the domestic market

Domestic SalesThous. bpd

769

327

222

507

802

374

221

501

859

379

230

565

Others

LPG

Gasoline

Diesel

2,0331,898

+11%

1,825

3Q093Q10

2Q10

o Oil product sales in the domestic market grew 11% versus year earlier.- Diesel (increase of 12%): growing economic activity and improved grain harvest;- Gasoline (increase of 16%): substitution with ethanol due to higher ethanol prices;- Other: (increase of 9%): largely from jet fuel, asphalt sales, and LPG

o Refinery output increased quarter over quarter as a result of restart of Replan

755

338134

640

702

334134

637

740

342128

634

Refinery Output-1%

3Q093Q10

2Q10

1,8441,8071,867

63

3Q084Q081Q092Q093Q09 4Q09 1Q10 2Q10 3Q10

115

55 4459 68 75 76 78 77

101

4832

49 64 70 73 7472

20

40

60

80

100

120

Petrobras Oil Price Brent

AVERAGE REALIZATION PRICE:Stable price in the domestic market

o Average Realization Price remains stable.o In the comparison 3Q10/2Q10, the gap between ARP USA and ARP Petrobras increased, due to

lower oil prices, Real strengthening and price stability in Brazil.

US$/bbl

4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10

20

70

120

170

220

ARP USA

ARP Petrobras

R$/bbl

Avg.3Q10

Avg.3Q09

144.47132.87

152.34 158.17

Avg.2Q10

152.64

158.60

64

POSITIVE MARGINS GUARANTEES REFININGS’ GOOD RESULTS

*Petrobras Margins = PMR-WTI (in US$/barrel) * * USGC Margins Bloomberg

o Although diesel and gasoline prices were down in June 2009, Petrobras margins are still above international market reference margins

81.2576.4574.4175.7371.0549.82

39.1641.45

76.62

116.58133.93112.63

95.39

-20

0

20

40

60

80

100

120

140

jan/

08

abr/

08

jul/0

8

out/0

8

jan/

09

abr/

09

jul/0

9

out/0

9

jan/

10

(US$

barr

el)

WTI Petrobras Margins* US Gulf Coast Margins**

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10

PBR:+12.61

USGC: +4.85

PBR:+18.91

USGC: +3.26

PBR:+8.62

USGC: + 7.14

PBR:+27.56

USGC: +9.61

65

516

196

331

336

45

TRADE BALANCE 9M10 vs. 9M09

9M10

712 667

9M09

8,84510,640

14,480 14,599

Import Export

US$ 119

US$ 1,795

562714

9M09 9M10

Financial Volume (US$ Million)

Thous bpd

Export Import Net�Export Export Import Net

Export

483

231

405

157

152

Oil Oil�Products

o Higher oil product imports due to increase in demand (diesel, jet fuel, and gasoline), as a result of increasing economic activity.

66

DOWNSTREAM SUPPLY CHAIN: INTEGRATING THROUGH TARGETED INVESTMENTS

Investment decisions in this segment are based on the need to:o Secure a natural hedge between petrochemical and

refining cycles

o Diversify into higher value-added products

o Maintain flexibility and access to competitive feedstock

o Develop cost leadership

o Improve competitiveness

BRK Petrochemical Investmentsi) The incorporation of a holding company which will hold

100% of Braskem common stocks

ii) Capital contribution in BRK to be paid in cash by Petrobras (R$ 2,5billion) and Odebrecht (R$ 1 billion)

iii) Capital increase at Braskem through a private subscription (between R$4,5 and R$ 5 billion)

iv) Acquisition by Braskem of the stock in Quattor held by Unipar

v) Acquisition by Braskem of 100% of the stock in UniparComercial and 33% of the stock in Polibutenos

vi) Merger by Braskem of Petrobras stake at Quattor

vii) Stock tender offer for the indirect sale of the controlling interest in Quattor Petroquímica SA

67

DOWNSTREAM

COMPERJ: CONTRIBUTING TO THE PETROBRAS VALUE CHAIN

Products Production(kta)

Polypropylene 850Polyethylene 800Styrene 500Ethylene glycol 600PTA 500PET 600

BASICS

Products Production(kta)

FuelsDiesel 535Naphtha 284Coke 700

Petrochemicals

Ethylene 1,300Propylene 881Benzene 608Butadiene 157p-Xylene 700Sulphur 45

o Expand the domestic petrochemical market

o Utilize Marlim crude as feedstock

o Capture synergies from existing regional infrastructure

o Improve the balance within the commercial value chain for oil, oil products and petrochemicals

Comperj will:

68



SOLIDRESULTS


INDUSTRY KNOW-HOW


AND STRONGPORTFOLIO BIOFUELS

69

EthanolIncrease 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

ETHANOL

INVESTMENTS 2010-2014:US$ 3.5 Billion

2.0

0.4

0.4

0.7

Ethanol Biodiesel R&D Logistics

Thou

s. m

³/yea

r

Ethanol Exports

1,055

449

2010 2014

+135%2.600

886

2010 2014

+193%

747

507

2010 2014

+47%

Ethanol Production Production Capacity of Biodiesel in Brazil

BIOFUEL TARGETS AND INVESTMENTS 2010-2014Continued expansion and integration with oil products

70

LOGISTCS INVESTMENTS TO EXPORT ETHANOL

71



SOLIDRESULTS


INDUSTRY KNOW-HOW


AND STRONGPORTFOLIO GAS & POWER

72

NG PipelineFertilizerThermo Power PlantLNG Terminal

15%

32%

30%

23%

LNG

Electrical Energy

Chemical Gas Facilities

Pipeline Network

Gas and Power Total Investment: US$ 17.8 billion

• Complete natural gas transport and processing infrastructure

• Consolidate investments in power generation• Invest in LNG • Increase flexibility by converting natural gas to

fertilizers

INSTALLATION OF NATURAL GAS TRANSPORT AND PROCESSING INFRASTRUCTURE IN BRAZIL

• 5th largest country in the world in total area (8.5 mln km²)• More than 9,000 km of coast

73

NATURAL GAS MARKET AND POWER CAPACITY Growth in natural gas demand, consolidation in Thermo Power capacity

41

32

53

5,324,32,0

4

14,4

2009 2014

Electrical Generation Industrial Fertilizers Other uses

137 365

1,090 1,093

6,437 5,997

2010 2014International Thermoelectrical and Co-generation Renewables Sources

Installed Capacity of Electrical Energy Generation (MW)

+9%7,227 7,892

* 2014 – Thermooelectrical generationa refers to full and simultaneous dispatch of plants

Natural Gas Demand

46

130*

Mill

ion

m3/

day

74

NATURAL GAS BASED FERTILIZERSFertilizer plants to take advantage of available gas and infrastructure

8441,076

2,104

807

298274

2010 2014 2015Ammonia Urea

+160%

Th. t

on/y

ear

1,374

2,911

1,118

UFN III (sep/14)Ammonia:

81th. ton/yearUrea:

1.210 th. ton/year

UFN IV (dec/15)

Urea 763 th. ton/year

Ammonia Plant(Dec/14)

519 th. ton/year

• Manage total demand for gas by transforming natural gas into fertilizers needed by Brazilian agriculture (substituting demand that is currently imported)• In 2009, Brazil imported:

• 2.1 million ton of urea, 65% of total domestic demand;• 424 thousand ton of methanol, 65% of total domestic demand;• 320 thousand ton of ammonia, 687% of total domestic demand.

• New Fertilizer units will allow to increase urea, methanol and ammonia production, meeting domestic demand

Electronic model of ammonia and urea plants

75



SOLIDRESULTS


INDUSTRY KNOW-HOW


AND STRONGPORTFOLIO INTERNATIONAL

76

2009�� Brazil�� Production:��• Oil�and�LNG:�1.971�thous.�bpd• Natural�Gas:�317�thous.�bpd�• Oil�Products:�1.823�thous.�bpd� Proven�Reserves:�14,2�million�boe�(SPE�Criteria)� Distribution�market�share:�38.6%�� Ethanol�Exportation:�362.000�m³

2009�� Brazil�� Production:��• Oil�and�LNG:�1.971�thous.�bpd• Natural�Gas:�317�thous.�bpd�• Oil�Products:�1.823�thous.�bpd� Proven�Reserves:�14,2�million�boe�(SPE�Criteria)� Distribution�market�share:�38.6%�� Ethanol�Exportation:�362.000�m³

76

77

INTERNATIONAL STRATEGYReduced allocation of capex, with focus on upstream

o Ramp up of existing developments, stable production in long term

o Reduced investment and production a reflection of greater opportunities in Brazil

o Development focus: Gulf of Mexico, West Coast of Africa and Latin America

o Exploration focus: Atlantic Project, West coast of Africa, aligned with domestic E&P

o Reduced emphasis on refining

o Reduced emphasis on LNG, alignment with domestic Gas and Power segment

RTCP615�5%

E&P10,330�90%

CORPORATE123�1%G&E

186�2%

DISTRIBUTION221�2%

INTERNATIONAL PRODUCTION OF OIL AND GASINTERNATIONAL PRODUCTION OF OIL AND GASBP 2010 BP 2010 -- 20142014

INVESTMENTS 2010INVESTMENTS 2010--2014: 2014: US$ 11.5 biUS$ 11.5 bi

Thousand bpd

239 304

146 176 20393 128 120

0

200

400

600

800

2010 2014 2020

Oil and NGL Natural Gas BP 2009-2013 Target

323

632BP 2009-2013

Target

- 49%

78

CASCADE - CHINOOK DEVELOPMENT

Cascade

Chinook

FPSOShuttleTanker

FSHR

Tree

Control Umbilical Power

Umbilical

Flow line

Gas Export Pipeline

Manifold

FIRST OIL: March,2011Petrobras America operated fields - Water Depth ~ 2,500 meters (8,200 feet).

US regulators approved Petrobras plans to bring first FPSO (*) to the US Gulf of Mexico.

Technologies new to US Gulf of Mexico, including disconnectableturret buoy, allowing the vessel to 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 with fifteen units currently under operation offshore Brazil.

Source: Petrobras America inc

79

6 blocks (1 in production)Operator in prolific Block 18 with 30% stake (First oil: 2010)

INTERNATIONAL – WEST AFRICA

AGBAMI (PB 13%, Operator: 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)

6 blocks (1 in production)Operator in prolific Block 18 with 30% stake (First oil: 2010)

Petrobras Stake in Akpoand Agbami: 64,000 bpd by end of 2009.

Proven Reserves (SEC -2008): 131,3 MM boe (% Petrobras)

80



SOLIDRESULTS


INDUSTRY KNOW-HOW


AND STRONGPORTFOLIO

81

LONG HISTORY OF TECHNOLOGICAL AND OPERATIONAL LEADERSHIP IN DEEPWATER

Deepwater Production2009 Gross Global Operated¹ Offshore Production Facilities

100

5

8

8

9

10

12

12

13

15

15

45

0 20 40 60 80 100

Others

ENI/Agip

ConocoPhillips

CNOOC

Total

Anadarko

Chevron

BP

ExxonMobil

StatoilHydro

Shell

Petrobras

FPSO Semi Spar TLP OtherPetrobras operates 20% of global deepwater production

1977Enchova

410ft125m

1988Marimbá1,610ft491m

1994Marlim3,370ft1,027m

1997Marlim Sul

5,600ft1,707m

2003Roncador

6,180ft1,884m

2009Tupi

7,125ft2,172m

Source: PFC EnergyNote: 1. These 15 operators account for 98% of global deepwater production in 2009. Minimum water depth is 1,000 feet (about 300 meters)

PBR20%

ExxonMobil13%

Shell12%

BP12%

Statoil12%

Chevron7%

Total7%

BG4%

Anadarko3%

Other10%

82

1.90.2

0.9

29%

25%

46%

HSE IT R&D

Petrobras�Investments�in�HSE,�IT�and�R&D�(2010�14)

US$�11.4�Billion

INVESTING IN TECHNOLOGY LEADERSHIP

Petrobras´s partnerships with 120 universities and research centers has created one of the greatest concentrations of energy research in the world

Expansion�of�CENPES�makes�it�one�of�the�largest�research�center�in�the�world

In�the�Technological�Park�of�the�Rio�de�Janeiro�Federal�University,�four�R&D�centers�for�major�equipment�and�services�suppliers�is�currently�under�construction�:

Others� companies� are� schedule� to� come� to� Brazil� to�develop�technological�centers:

•TenarisConfab

• Vallourec &�Mannesman•Weatherford

•Wellstream

• FMC�Technologies

• Usiminas

• Schlumberger

• Baker�Hughes

• Cameron• General�Electric• Halliburton�• IBM• Technip

83

NEW TECHNOLOGIES TO INCREASE RECOVERY FACTOR

TLWP

Subsea ChristmasTree.

“Piggy-back”(Marimbá; Barracuda)

SBMS - SubseaMultiphase Pumping

System(Marlim)

RWI – RawWater Injection

(Albacora)

Oil WaterSubsea

Separation(Marlim)

Multifractured Well(Bonito)

4D Seismic(Marlim; Marlim Sul;

Albacora)VASPS

CAISSON

Vertical Annular Separation and Pumping System

(Congro; Malhado; Corvina)

ESP in a skid on the sea-bed(Espadarte-Fase III)

(Papa-terra)

(Parque dos Temperos; )

Bonito

2009 2010 2011 2012

84

LOCAL CONTENT PARTICIPATION 2010-2014

Capex in Brazil (US$ billion)

Brazilian Content0 %

40 %

60 %

80 %

100 %

20 %

E&P(53%)

Gas & Energy (82%)

Distribution and Biofuels (100%)

Downstream and

Corporate (80%)

100%2.32.3Biofuels

82%14.417.6Gas�&�Energy

100%2.32.3Distribution

80%2.63.3Corporate

Total

RTM�and�Petrochem

E&P

Business�unit

67%

80%

53%

Brazilian

content�

(%)

142.2

62.8

57.8

Purchased�in

Brazilian

Market

Investmentsin�Brazil

212.3

78.6

108.2

+US$ 46.4 billion from Partners

National Industry

Increase in National Supply

Capacity of G&S

1. Increase�productivity�capacity�of�highly�competitive�sectors2. Develop�competition��among�medium�competitive�sectors

3. Incentive�for�new�national��entrants4. Incentive�for�association�between�national�and�international�companies

5. Incentive�for�international�companies�to�establish�operations�in�Brazil

PATH

Brazilian suppliers expected to provide nearly 70% of total needBrazilian suppliers expected to provide nearly 70% of total needss

85

LONG TERM HR CHALLENGES

o Shortage of trained human resources and demand for local-content increase

o Competition with other projects for people

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

52,862Qualified

Professionals

207,643Human Resource Gap

BP 2009-13

Leasing of 19 Vessels

Refinery- Premium I

28 Rigs146 sSpply Vessels

New Production Platforms

Promef II

Refinery-Premium II

Business Plan 2008 – 2012

25,540Professionals

Selected

86



SOLIDRESULTS


INDUSTRY KNOW-HOW


AND STRONGPORTFOLIO

87

o Brazilian Corporate Law requires a minimum annual distributions equal to 25% of net income

o Dividends paid each year based on prior years income

o In 2009, Petrobras paid the dividends related to the 2008 results as well as a portion of the dividends (interest on capital) related to the 2009 results

* Dividends includes the Interest on own Capital (IOC)

2006

0.8

2007 2008 2009

0.70.9

2.0

2006 2007 2008 2009

2.9 3.0

4.33.5

US$�

Net Income per ADR

US$� US$�

Dividends per ADR Price per ADR (Max-Min)

HISTORICAL DIVIDEND PAYMENT

2006 2007 2008 2009

26.717.5

58.8

21.1

75.2

14.9

53.0

23.031.9

48.9

2010

3.0

9M10

88

21,077 22,664 28,220 24,920 25,548

�3,252

5,2225,993 17,912

�1,617

27.472

2006 2007 2008 2009 LTM

OCF Net�Debt Capitalization

INCREASING�INVESTMENTS�LEADING�TO�AN�ORGANIC�GROWTH�

14.470 20.76829.874 35.134

44.987

4.747

3.144

7.712

3.860

6.416

4 161.551

2006 2007 2008 2009 LTM�

CAPEX Dividends Acquisition

17,82527,886

34,213

18,03026,179

34,62142,846

42,832

Sources�(US$�million)�1

Uses�(US$�million)�1

51,403

51,403

Notes:��(1)�In�USGAAP;�(2)�LTM�as�of�9/30/10

2

2

89

-5,000

10,00015,000

20,00025,00030,00035,00040,00045,000

50,000

OCF�LTM�(1) Capex�2009� Capex�2010�(2) MaintenanceCapex�(Est.)

E&P Downstream Gas�&�Energy Others

US$�MM

35,134

44,525

16,000

CASH�FLOW�SUPPORTS�MAINTENANCE�PLUS�GROWTH

25,548

Notes:�(1)�LTM�as�of�9/30/10;�(2)�Based�on�9M10�Results�Annualized�

Assumptions�to�Maintain�Existing�Capacities:• $12�per�barrel�to�replace�830MMBBL´s of�production

• $1.5�bn.�� Exploration�• $1.5�bn.�� Refinery�maintenance•$1.5�bn.�� Gas�&�Power�maintenance• $1.5�bn.�� Other�Maintenance

90

63,929

38,73530,537

19,73815,865

0

10000

20000

30000

40000

50000

60000

70000

2005 2006 2007 2008 2009

US$ Million

11,3068,650

14,908

20,624

40,963

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

2005 2006 2007 2008 2009

US$ Million

Construction and Installations in ProgressConstruction and Installations in Progress

Net DebtNet Debt

CONSTRUCTION IN PROGRESS:Increase in net debt related to expansion

91

PROJECTED�FUNDING�NEEDS�FOR�2010�2014�BUSINESS�PLAN

� $26.6�billion��of�equity�and�$13�billion�of�debt�raised�during�2010

� $56�billion�of�debt�still�to�be�contracted,�of�which�$29�(1) are�amortizations

� 2011�2015�Business�Plan�Update�expected�late�Q1’11/early�2Q’11

PROJECTED�Operating�Cash�Flow(2010�– 2014)

OCF(after�dividends)US$�155�billion

Funding(debt�+�equity)US$�96�billion�

InvestmentsUS$�224�billion

CashUS$�11�billion� Amortization

US$�38�billion

*�Including�Capitalization�and�excluding�amortization�of�US$38�billion

Principal�Assumptions

FX�Rate�(R$/US$) 1.78

Brent�for�Funding�(US$/bbl)

2010�– 76

2011�– 78

2012– 82

2013�– 82

2014�– 82

Projected Investments (US$�bn) 224

Projected�Net�Cash�Flow�(After�dividends)�(US$�bn)

155

Net�Total�Capt.�(US$�bn) 58*

Leverage Up to�35%

Average�Realization�Price�(R$�barrel) 163

Notes:��(1)��Considers�2010�amortization��according�to�2010�14��Strategic�Plan�with��FX�rate�of�R$�1.87/US$

92

SUCCESSFUL�EFFORTS�TO�RAISE�CAPITAL�FROM�LONG�TERM�SOURCES

US$�26.6��billion�from�the�Capitalization�+�US$�9.6�billion�of�loans

1.47

26.6

7.49 0.61

Bilateral�Loans

Project�Finance

GIEK

6.5

10

13.3

22.75

(US$�bilion

)

Market�Capital�Bond�Issuance

China��Development��Bank

BNDES

U�S�Eximbank

Others

(1)

(1) R$�25�billions�converted�by�FX�tax�in�07.30.09(2) US$�3�billion�has�been�disbursed�in�2009�and�US$�4�billion�in�2010�(3) Still�not�disbursed

US$�34.8�billion�were�raised�with�an�average�life�of�10.6�years

(2)

(3)

US$�6�billion�issuance�of�5,�10�and�30�year�notes�in�the�international�capital�markets:

6.806%�5.401%3.950%Yield to�Investors

US$�1.0�billionUS$�2.5�billionUS$�2.5�billionAmount

2041�Notes�2021�Notes2016�NotesGlobal�Notes

Equity

20102009

January,�2011

93

FUNDING SOURCES

* Including Project Finance

-3,07,0China Dev. Bank

20%

66.9

7.8

0.520.42.31.81.0

12.1

14.1

Sep-10**(US$bn) Dec-09 Dec-08

Commercial Banks Debt 11.2 6.9

International Bonds 12.3 5.7

Local Bonds 1.7 1.6

ECA’s 1.2 1.4

Project Finance 2.8 4.5BNDES* 18.4 2.9Other 0.8 1.0

BB/CEF 5.7 3.4

Total Debt 57.1 27.4

% Capital Market 25% 27%

2%

24%

74%

US$ R$ JPY

** Based on 3Q10USGAAP Results

DEBT PORTFOLIO:A very diversified debt portfolio

43%57%

Fixed Floating

94

US$ 70.515 million: Public Offering

US$ 67,5 billion: 3Q10

US$ 3,0 billion : 4Q10 (GreenShoe)

US$ 39,8 billion : LFTs

US$ 27,7 billion : Cash

US$ 6.298 billion : LFTs (1)

US$ 21.402 billion : Cash

US$ Billion 06/30/2010

Cash and Cash Equivalents(Adjusted by LFT) 12,9

Net Debt 51,6

Net Debt / Net Capitalization 34%

Net Debt/Ebitda (2) 1,56X

09/30/2010

33,8

33,1

16%

1,03X

US$ 43.9 Billionto acquire rights

to 5 billion barrels

US$ 39,8 Billion: LFTs

US$ 4,1 Billion: Cash

US$ 26.6 billionRetained as cashand equivalents

Before Public Offering After Public Offering

Notes:�(1)�Government�securities�with�a�maturity�greater�than�90 days;�(2)�Annualized�EBITDA

SECONDARY�OFFERING�INCREASED�CAPITAL�BASE�BY�$70.5�BILLION�THROUGH�COMBINATION�OF�OIL�RIGHTS�AND�CASH

95

CAPITAL�STRUCTURE�AND�CREDIT�METRICS

1H(Million�US$) 12.31.2008 12.31.2009 09.30.2010

Cash�and�Cash�Equivalents 6,499 16,169 27,451

Total�Debt 27,123 57,132 66,945

Net�Debt� 20,624 40,963 33,155

Shareholders�Equity� 61,909 94,058 174,580

Net�Debt�/�Net�Capitalization 25% 30% 16%

Net�Debt/�Market�Capital 21% 21% 15%

Net�Debt�/�Boe�Production�(USD/boe) ��23.5� ��44.4� ��35.4�

Net�Debt�/�Proved�Reserves�(USD/boe) ��1.37� ��2.76� ��2.23�

Reserves/Production�(Years,�SPE�Criteria) ��17.22� ��16.13� ��15.87�

2008 2009 LTM

Net�Income 18,879 15,504 18,431

EBITDA 31,083 28,982 32,887

Net�Debt/EBITDA ��0.66� ��1.41� ��1.01�

*Based�on��2009��Proved�Reserves

Note:�LTM�as�of�9/30/10

*

*

96

CAPEX 2010 vs. 2009

Annual Business Plan 2010R$ 88.5 billion

CAPEX 2009 E&P Downstream CAPEX 2010G&E International Distribution, Biofuels and

Corporate

5.1

(0.7)(2.4) (0.9) 88.5

70.8

16.6

34,0

6,2

36,7

8,1

0,92,6

(R$

billi

on)

Investments 2009 R$ 70.8 billion

3,80,6

10,5 31,6

6,8

17,4

E &P

Downs tream

Gas �&�E nergy

International

D is tribuition

Others

25%25%

9797

Information:

Investor Relations

+55 21 3224-1510

[email protected]

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