CLSA Investors' Forum 2006

PETROBRAS

Almir Barbassa CFO and Investor Relations Officer September, 14 2006 1 PETROBRAS Cautionary Statement

The 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 SEC’s guidelines strictly prohibit us from including in filings with the SEC.

2 PETROBRAS

Petrobras at glance

3 PETROBRAS Publicly traded peer comparison

Proven reserves (SEC - billion boe) – Dec. 2005 Oil and gas production (million boe) - 2005 ExxonMobil 22,4 ExxonMobil 1.484 Lukoil* 20,1 BP 1.448 Petrochina* 18,5 Shell 1.267 BP 17,6 Petrochina* 945 Yukos* 13,0 Chevron Texaco 919 Chevron Texaco 12,1 7th Total 908 Petrobras 11,8 Petrobras 809 7th Shell 11,5 ConocoPhillips 660 Total 11,1 Yukos* 624 Lukoil* ConocoPhillips 9,4 614 ENI 593 ENI 6,8 Statoil 427 Statoil 4,3 Repsol 416 Sinopec* 3,8 Sinopec 309 Repsol 3,3 Reserve life (years) – Dec. 2005 Refining capacity (thousand bpd) - 2005 Lukoil* 32,7 XOM 6.343 Yukos* 20,8 RDS 4.026 Petrochina* 19,6 Sinopec 2.998 ExxonMobil 15,1 BP 2.747 Petrobras 14,6 TOT 2.708 ConocoPhillips 14,2 5th COP 2.275 Chevron Texaco 13,1 PetroChina 2.202 Sinopec 12,3 CVX 2.195 Total 12,2 Petrobras 2.114 9th BP 12,2 Yukos 1.223 ENI 11,5 Repsol 1.175 Statoil 10,1 Lukoil 1.139 Shell 9,0 ENI** 524 Re ps ol 8,0 Statoil 296

Source: Evaluate Energy and Company Reports 4 PETROBRAS Corporate Strategy

Corporate Strategy Social and Environmental Growth Profitability Responsibility

Lead the LatinLiderar American o mercado oil, de natural petróleo, gas, gás oil natural products e derivados and biofuels na América market Latina,, working as an integrated energyatuando company, como empresawith selective integrada expansion de energia, in petrochemical, com expansão renewable seletiva energy and da petroquímicainternational e da atividade activities. internacional.

Consolidate and Develop and lead Selectively Selectively Expand participation increase the domestic expand expand interest in biofuels market, competitive natural gas market international in the lead the domestic advantages in and perform in an activities in an petrochemicals biodiesel production the Brazilian and integrated manner integrated market and increase South American in the gas and manner with the participation in the oil and oil power market in Company’s ethanol business products market South America business

Operational, management, technological and human resources excellence

5 PETROBRAS Integration of the Company's Activities

Petrochemical Imported Imported Oil H - Bio Plants Oil Products

Biodiesel Oil Products Throughput Brazilian Oil sold in Brazil in Brazil Production Ethanol

International Oil International International Production Refining Sales

Domestic Natural Gas Other Production Renewables Energy

Imported Gas Infrastructure Industry LNG 66 PETROBRAS Vertical Integration Comparison Majors Average * 4,793

3,176

2,735

National Oil Companies Average **

1,579

1,630

4,329

2011: Petrobras New Refinery will add 200 thous. bpd capacity 2,296 2010: Pasadena Refinery revamp concluded – processing 70 2,114 thous. bpd of heavy oil Product Sales (thous. bpd) 2,217 Refining (thous. bpd) 3,400 Production (thous. boed) Year 2011 *** 2004 figures, except for Petrobras (2005) * Majors: BP, Exxon, Total, Royal Dutch Shell, Chevron, Conoco and Repsol-YPF 7 ** NOIC: PEMEX, PDVSA, Saudi Amraco, KPC, Pertamina and Sonatrach Source: PIW Intelligence and Petrobras PETROBRAS Investment Plan

Business Plan 2007-2011 US$ 87.1 billion

56% 14%

U 49.3 S $ 1 2 49,3 .1 b i

31.0

23,0 US$ 75.0 bi 1,81.8 2,22.3 23.0 3% 3,33.3 7,5 26% 7.5 1.0 3% 1.04% 12.4 9% 86%

E&P Downstream G&E Brazil International Petrochemical Distribution Corporate

Note: Includes International

8 PETROBRAS Financial Targets - Sources & Uses

Sources Uses

(US$ 99.3 billion) (US$ 99.3 billion) 12.6 12.2

87.1 86.7 (*)

2004-2010 2004-2010 Financing Debt Amortization Cash Flow Capex • Accrued Economic Profit (2006-2015): US$ 83.4 billion (US$ 53.9 until 2011).

9 PETROBRAS

Our Business

10 PETROBRAS Exploration & Production – Overview of E&P in Brazil

Reserves (at December 31, 2005) •Proven reserves of 13.23 billion boe (SPE) or 10.58 billion boe (SEC) •Reserve life of 19.7 years (SPE) and 15.7 (SEC) •Internal Reserve Replacement of 131.1% (SPE) and 101.3% (SEC)

Production (1H06) •2,030 thousand boed (1,754 thousand bpd oil) 5 - year CAGR of 5%. F&D Cost •US$ 3.45/boe (2003 – 2005) – SPE

Lifting Cost Petrobras & Partners •US$ 5.73/boe (2005) Other Companies Exploratory Area (Nov/2005) •160.5 thousand km2 (Petrobras + Partners) •186 thousand km2 (other Companies) •Total: 346.7 thousand km2.

11 PETROBRAS Exploration & Production – Reserves

• Strong investments to optimize the development of Petrobras’ proven reserves, aiming light oil production and a minimum reserve/production ratio of 15 years. • Petrobras had a 55% success ratio for our exploration wells during 2005.

Undeveloped Reserves / Total Reserves* (2005) 60,0% 54,3% 53,1% 51,5% 50,5% 50,0% 43,8% 40,5% 39,7% 40,0% 34,3% 30,0% 29,7% 30,0% 25,0% 20,3% 20,0% 12,9%

10,0%

0,0%

il a ell bil ec h otal OC o koil ron lips PF p bras O u -Y ro S T hev BP ol roChin et C oPhil P xxonM c eps L Stato E R CN ono Sino

C Pet

* Source: Evaluate Energy 12 PETROBRAS Exploration & Production - Production Targets Oil & NGL and Natural Gas (Thousand boed) 7.5% p.a. 4,556

278 7.8% p.a. 3,493 742

185 724 2,403 383 2,217 2,036 2,020 101 96 551 85 94 133 163 289 161 168 274 250 265 2,812 2,374 1,880 1,684 1,540 1,493

2003 2004 2005 T ar get 2006 Target 2011 2015 For ecast Oi l and NGL - Br azi l Natural Gas - Brazil

Oi l and NGL - I nter naci onal Natural Gas - Internacional 13 PETROBRAS Exploration & Production – 2005 Production Main projects that contributed to the production growth in 2005

P - 48 Caratinga P - 43 Capacity 150,000 bpd Barracuda February 05 Capacity 150,000 bpd FPSO Marlim Sul December 04 1,684 Capacity 100,000 bpd June 04

1,493 ∆ 12.8% Crude oil in Brazil

2004 2005 14 PETROBRAS Exploration & Production – 2006 Production Main Projects that will contribute to the production growth in 2006

Piranema PP -- 34 34 Piranema FPSO Capixaba Capacity 20,000 bpd FPSO Capixaba JubarteJubarte Phase Phase 1 1 Capacity 20,000 bpd GolfinhoGolfinho Mod. Mod. 11 DecemberDecember 2006 2006 PP -- 50 50 CapacityCapacity 60,000 60,000 bpdbpd CapactiyCapactiy 100,000 100,000 bpdbpd AlbacoraAlbacora LesteLeste OctoberOctober 2006 2006 MayMay 20062006 CapacityCapacity 180,000 180,000 bpdbpd AprilApril 2006 2006 1.880

1.684 ∆ 11.6% Crude oil in Brazil

2005A 2006E • P-50 is currently producing 55,000 bpd and should reach its production peak by the end of the year. • FPSO Capixaba is currently producing 41,000 bpd and peak production is expected by 1H07. • P-34 is being adapted in the Vitória shipyard and should start-up operation in October. • Piranema was constructed in China (Yantai Raffles shipyard) and is currently in the Netherlands concluding its conversion. Production should begin in December. 15 PETROBRAS

Exploration2.600 & Production - Main Projects Brazilian Oil & NGL production Thous. bpd

2.400 AlbacoraAlbacora Leste Leste RoncadorRoncador ESS-130ESS-130 P-50P-50 P-52P-52 GolfinhoGolfinho Mod Mod IIIIII ******** 180,000180,000 bpdbpd 180,000180,000 bpdbpd (FPSO)(FPSO) April/2006April/2006 20072007 100,000100,000 bpdbpd 2.374 JubarteJubarte 20082008 2.200 FaseFase 1 1 P-34 EspadarteEspadarte Mod Mod 22 P-34 2.368 ParqueParque das das FPSOFPSO RioRio dede Conchas*** 60,00060,000 bpdbpd JaneiroJaneiro Conchas*** 100,000100,000 bpdbpd Oct/2006Oct/2006 100,000100,000 bpdbpd 2.195 20112011 2.000 FPSOFPSO CapixabaCapixaba 20072007 GolfinhoGolfinho Mod.Mod. 11 FradeFrade 100,000100,000 bpdbpd RoncadorRoncador 100,000100,000 bpdbpd MayMay 20062006 2.061 Jubarte P-55**P-55** 20092009 Jubarte Phase 2 180,000180,000 bpdbpd 1.979MarlimMarlim SulSul Phase 2 RoncadorRoncador P-57 20112011 1.800 ModuleModule 22 P-57 P-54 180,000 bpd P-54 P-51P-51 180,000 bpd 180,000 bpd 2010 180,000 bpd 180,000180,000 bpdbpd 2010 20072007 1.880 20082008 PiranemaPiranema Marlim Leste 1.600 20,00020,000 bpdbpd GolfinhoGolfinho Mod Mod 22 Marlim Leste P-53* 1.684 OctOct 20062006 FPSOFPSO Cid.Cid. dede P-53* VitóriaVitória 180,000180,000 bpdbpd 100,000100,000 bpdbpd 20092009 20072007 1.400 2005 2006 2007 2008 2009 2010 2011

* In the previous plan, P-53 was scheduled to 2008 *** Abalone, Ostra, Argonauta and Nautilus (former BC10): Petrobras share 35% ** In the previous plan, P-55 was scheduled to 2010 **** In the previous plan, Golfinho Mod. 3 was scheduled to 2010 16 PETROBRAS Exploration & Production – Projects for 2007

4 new platforms will provide additional production capacity of 560,000 bpd FPSO Cidade Vitória This leased FPSO with capacity of 100,000 bpd is currently being constructed by Saipem in Dubai. It is scheduled to start operation May/2007 in the Golfinho Field.

FPSO Cidade Rio de Janeiro With a capacity of 100,000 bpd, this leased unit is being converted by Modec in Singapore. Production will begin May/2007 in the Espadarte field.

P-54 Petrobras constructed this platform in the Jurong shipyard, in Singapore, Cidade Rio de Janeiro and currently it is in Mauá-Jurong shipyard, in Niterói (RJ). It should be operating by October/2007 in the Roncador field with a capacity of 180,000 bpd.

P-52 This platform was constructed by Petrobras, in Singapore (Keppel Fels shipyard) and will have the capacity to produce 180,000 bpd. Currently it is in Angra dos Reis (RJ) concluding its construction to operate in the Roncador field (December/2007). P-52 17 PETROBRAS Exploration & Production - 2011-2015 Main Brazilian Projects

• To sustain production growth, 15 large projects will be implemented between 2011 to 2015. The highlights are: 2900 Oil Production in Brazil (Thous. bbl) 2.812 2800 Main Projects 2700 Marlim Sul P-56 Roncador P-55 2600 Papa-Terra Mód. 1 e 2 Marlim Sul Mód. 4 2500 Roncador Mód. 4 Cachalote and Baleia Franca 2400 2.374 Baleia Azul 2300

2200

2100 2011 2015

18 PETROBRAS Exploration & Production - Petrobras’ Drilling Rigs

2003 2004 2005

Total Total Brazil International Total

Onshore 25 47 22 19 41

Offshore 41 43 42 4 46 Owned Rigs: 31 Total 66 90 64 23 87 Leased: 56

• Petrobras’ leasing contracts are long term, averaging a 5 years length; • In 2005, 18 offshore drilling rigs were owned by Petrobras; • In August 2005, Petrobras renovated 24 drilling rigs contracts. • In July 2006, Petrobras signed contracts worth R$ 10.5 billion for the charter of six drilling units: • 4 rigs will operate in water depths of up to 2,000 meters (seven-year term contract, renewable for further seven years); • 2 rigs will operate at depths down to 2,400 meters (units chartered for 5 years, renewable for the same period);

19 PETROBRAS Downstream – 2007-2011 Investments

US$ 23.1 billion in the downstream segment… ...of which US$ 14.2 billion in refining

14% 6% 26% U S $ 0 US$ 3.2 .9 US$ 3.7 19% US$ 2.7 US$ 2.8 61% 12% US$ 2.5 US$ 14.2 18% .0 3 US$ 4.4 $ S U

13% 31% Refining Pipelines & Terminals Transport Gasoline and Diesel Quality Expansion Ship Transport Petrochemical HSE Conversion Others • Aggregating value to our heavy oil and producing diesel and gasoline according to international standards.

20 PETROBRAS Downstream – New Refineries New Refinery in Pernambuco • Investment: US$ 2.5 billion

• Throughput capacity: 200 thousand heavy oil barrels (50% Petrobras oil / 50% PDVSA oil) New Refinery in the USA • Petrobras has acquired 50% of the Passadena Refinery System Inc. (PRSI), located in Texas, USA.

• Total Investment: US$ 370 million

• The refinery, which already has a capacity of 100,000 bbl/day, will be upgraded to handle 70,000 bbl/day of heavy oil and feedstock (including Marlim field’s production) Rio de Janeiro Petrochemical Complex • Total Investment: US$ 6.5 billion

• Expected Annual Production:

• 1.3 million tons of Ethane;

• 900,000 tons of propane;

• 360,000 tons of benzene and 700,000 tons of p-xylene. 21 PETROBRAS Transportation – Fleet renovation

Main Projects

Fleet Modernization and Expansion Program (PROMEF): 26 vessels PROMEF 16 vessels

1 FSO (Floating, Storage & Offloading)

10 PSV (Platform Supply Vessels)

Between 2007 and 2011, investment of US$ 2.8 billion.

22 PETROBRAS Natural Gas – Main Challenges

Challenges Business Plan 2007-2011 Targets

Over 75% of Petrobras’ current natural Investments to develop production of gas production is associated gas non-associated gas

Risk of gas supply failure due to LNG to provide flexibility to mitigate abnormalities such risk

Lack of infrastructure to develop Total investment (Petrobras and Brazilian market partners) in Brazilian natural gas chain adds up to US$ 22.1 billion

23 PETROBRAS Natural Gas – Main Projects

Main Projects LNG – Liquefied Natural Gas Gasene – Northern Segment Urucu-Coari-Manaus Gas Pipeline NG infra-structure maintenance Southeast Gas Pipeline Network Gasbel Extension Extension of Gasbol Southern Segment (LNG distribution) Northeast Gas Pipeline Network

Construction Current US$ 6.5 billion investments between Under evaluation GASBOL 2007-2011

• Natural gas prices to accompany international differentials to oil products.

24 PETROBRAS

Petrobras in the World

25 PETROBRAS International – Business Strategies

• Add value to Petrobras’ heavy oil production ;

•Seek leadership position as an integrated energy company in Latin America;

• Expand Petrobras’ Focus Areas through businesses that contribute to growth and portfolio diversification;

• Expand operations in Gulf of Mexico and West Africa;

•Accelerate natural gas reserves monetization ;

• Make the Petrobras brand international and valuable.

26 PETROBRAS International – Investments 2007-2011

70% will be directed to the E&P

US$ 12.1 billion Distribution by Geographic Area 0.8% 1.7% 0.8% 23% 1.7% 1,4 1,4 24.8% 1,42.8 1,4 33% 16% 2.0 4.0 3,1 3,1 70.2% 3.3

E&P Refining and Marketing Petrochemical Gas & Energy 28% Distribution Corporate South America Africa North America Others(*) Investments in E&P accompanied by growth in refining investiments (*) Including investiments in Angola under consideration 27 PETROBRAS International – Latin America

Activities in 9 countries: Brazil, Argentina, Bolivia, Colombia, Ecuador, Peru, Venezuela, Paraguay and Uruguay. Highlights:

Argentina : • Exploration, production, refining and distribution

Mexico : • Service Contracts – Cuervito & Fronterizo blocks Bolivia : • Natural Gas exports to Brazil (up to 30 MMm3/d)

Uruguay : • Natural Gas distribution and gas stations

Colombia : • First oil production abroad (1972) and 3rd private producer • 6 production blocks, 11 exploration blocks and gas stations Venezuela : • 4 assets in production and 2 in exploration

28 PETROBRAS International – North America

Participation in 287 blocks 5 production fields 50% stake in Pasadena Refiniry 1 field in development (Cottonwood) 3 discoveries (Cascade, Chinook and Sant Malo)

29 PETROBRAS International – West Africa

Operator of new Block OPL Start up / Production Peak: 315 with stake of 45% AGBAMI: - First oil: 2008 / Peak: 250,000 bpd in 2009 (total) AKPO: - First oil: 2008 / Peak: 175,000 bpd in 2009 (total) Petrobras stake: from 70,000 to 100,000 bpd

1,000m

2,000m 6 blocks (1 in production) Operator in prolific Block 18 with 30% stake

30 PETROBRAS