1. PETROBRAS
CLSA Investors' Forum 2006
Almir Barbassa
CFO and Investor Relations Officer
September, 14 2006
1

2. 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

3. PETROBRAS
Petrobras at glance
3

4. 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 Total 908
7th 809
Petrobras 11,8 Petrobras
ConocoPhillips 660
7th
Shell 11,5
Total 11,1 Yukos* 624
ConocoPhillips 9,4
Lukoil* 614
ENI 6,8
ENI 593
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
12,3 CVX 2.195
Sinopec
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
Repsol 8,0 Statoil 296
Source: Evaluate Energy and Company Reports 4

5. PETROBRAS
Corporate Strategy
Corporate Strategy
Social and Environmental
Growth Profitability Responsibility
Lead the Latin American oil, natural gas, oil products and biofuels market, working as an
Liderar o mercado de petróleo, gás natural e derivados na América Latina,
integrated energy company, empresa integrada de energia, com expansão renewable energy and
atuando como with selective expansion in petrochemical, seletiva
international activities.
da petroquímica e da atividade 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

6. PETROBRAS
Integration of the Company's Activities
Petrochemical Imported Imported Oil
Plants H - Bio
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 Energy
Renewables
Imported Gas Infrastructure
Industry
LNG
6

7. 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
* Majors: BP, Exxon, Total, Royal Dutch Shell, Chevron, Conoco and Repsol-YPF *** 2004 figures, except for Petrobras (2005)
** NOIC: PEMEX, PDVSA, Saudi Amraco, KPC, Pertamina and Sonatrach Source: PIW Intelligence and Petrobras 7

8. PETROBRAS
Investment Plan
Business Plan 2007-2011
US$ 87.1 billion
56% 14%
49.3 U
S$
12
49,3 .1
bi
31.0
23,0 US$ 75.0 bi
1.8
1,8
2.3 3.3
3% 2,2 3,3 7,5 23.0
26%
7.5
1.0
3% 1.0
4% 12.4
9% 86%
E&P Downstream G&E Brazil International
Petrochemical Distribution Corporate
Note: Includes International
8

9. PETROBRAS
Financial Targets - Sources & Uses
Sources Uses
(US$ 99.3 billion) (US$ 99.3 billion)
12.6 12.2
86.7 (*) 87.1
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

10. PETROBRAS
Our Business
10

11. 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

12. 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%
n
C
na
l
as
il
c
BP
l
s
PF
l
il
ta
el
oi
ro
ko
pe
ob
llip
O
i
To
Sh
at
br
ev
Ch
-Y
O
Lu
no
nM
i
St
tr o
Ph
CN
ol
Ch
tr o
Si
xo
ps
Pe
co
Pe
Ex
Re
no
Co
* Source: Evaluate Energy 12

13. PETROBRAS
Exploration & Production - Production Targets
Oil & NGL and Natural Gas (Thousand boed)
7.5% p.a. 4,556
278
7.8% p.a.
742
3,493
185
383 724
2,403
2,036 2,020 2,217
101
96 551
85 94 133
163 289
161 168
274
250 265
2, 812
2, 374
1, 880
1, 540 1, 684
1, 493
2003 2004 2005 T a r get 2 006 T a rg e t 2 0 1 1 2015
For ecast
Oi l and N GL - B r az i l N at ur al Gas - B r az i l
Oi l and N GL - I nt er naci ona l N at ur al Gas - I nt e r naci onal
13

14. 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

15. PETROBRAS
Exploration & Production – 2006 Production
Main Projects that will contribute to the production growth in 2006
P -- 34 Piranema
Piranema
P 34
FPSO Capixaba
FPSO Capixaba Jubarte Phase 1 Capacity 20,000 bpd
Capacity 20,000 bpd
Jubarte Phase 1
Golfinho Mod. 1
Golfinho Mod. 1 Capacity 60,000 bpd December 2006
December 2006
P -- 50
P 50 Capacity 60,000 bpd
Capactiy 100,000 bpd
Capactiy 100,000 bpd October 2006
Albacora Leste
Albacora Leste October 2006
May 2006
May 2006
Capacity 180,000 bpd
Capacity 180,000 bpd
April 2006
April 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

16. PETROBRAS
Exploration & Production - Main Projects
Brazilian Oil & NGL production
Thous. bpd
2.600 Albacora Leste
Albacora Leste Roncador
Roncador ESS-130
ESS-130
P-50
P-50 Golfinho Mod III ****
P-52
P-52 Golfinho Mod III ****
180,000 bpd
180,000 bpd (FPSO)
180,000 bpd
180,000 bpd (FPSO)
April/2006
April/2006 2007
2007 100,000 bpd
100,000 bpd 2.374
2.400 Jubarte 2008
Jubarte 2008
Fase 1
Fase 1
P-34
P-34
Espadarte Mod 2
Espadarte Mod 2 2.368 Parque das
Parque das
60,000 bpd FPSO Rio de
FPSO Rio de Conchas***
60,000 bpd Janeiro
Janeiro Conchas***
2.200 Oct/2006 100,000 bpd
100,000 bpd
Oct/2006 100,000 bpd
100,000 bpd
FPSO Capixaba 2007
2007
2.195 2011
2011
FPSO Capixaba
Golfinho Mod. 1
Golfinho Mod. 1
Frade
Frade
2.000
100,000 bpd
100,000 bpd 2.061 100,000 bpd
100,000 bpd
Roncador
Roncador
May 2006
May 2006 Jubarte P-55**
P-55**
1.979 2009
2009 Jubarte
Phase 2 180,000 bpd
180,000 bpd
Marlim Sul
Marlim Sul Phase 2
Roncador
Roncador P-57 2011
2011
Module 2
Module 2 P-57
P-54
P-54 P-51 180,000 bpd
180,000 bpd
P-51
1.800 1.880 180,000 bpd
180,000 bpd 180,000 bpd
180,000 bpd
2010
2010
2007
2007 2008
2008
Piranema
Piranema
20,000 bpd Golfinho Mod 2
Golfinho Mod 2 Marlim Leste
Marlim Leste
20,000 bpd
1.600 1.684 Oct 2006
Oct 2006 FPSO Cid. de
FPSO Cid. de
P-53*
P-53*
Vitória
Vitória 180,000 bpd
180,000 bpd
100,000 bpd
100,000 bpd 2009
2009
2007
2007
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

17. 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

18. 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
Marlim Sul P-56
2700
Roncador P-55
2600 Papa-Terra Mód. 1 e 2
Marlim Sul Mód. 4
2500 Roncador Mód. 4
2400
2.374 Cachalote and Baleia Franca
Baleia Azul
2300
2200
2100
2011 2015
18

19. 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

20. PETROBRAS
Downstream – 2007-2011 Investments
US$ 23.1 billion in the downstream segment… ...of which US$ 14.2 billion in refining
14% 6% 26%
US
$
US$ 3.2 US$ 3.7
0.
9
19%
US$ 2.7
12% US$ 2.8 61%
US$ 2.5
US$ 14.2 18%
0
US$ 4.4
3.
$
US
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

21. 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

22. 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

23. 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

24. 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
Under evaluation
US$ 6.5 billion investments between
GASBOL
2007-2011
• Natural gas prices to accompany international differentials to oil products.
24

25. PETROBRAS
Petrobras in the World
25

26. 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

27. 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
24.8%
1,4
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

28. 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

29. 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

30. PETROBRAS
International – West Africa
Start up / Production Peak:
Operator of new Block OPL
AGBAMI:
315 with stake of 45%
- 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

31. PETROBRAS
Recent Results
31

32. PETROBRAS
Recent Results – Income Statement 1H05 vs. 1H06
1H05 1H06
73.834
Net Revenue 19%
62.256
40.904
COGS 19%
R$ Million
34.489
27.727
EBITDA 22.174 25%
Operating 23.277
Profit 18.268 27%
13.634
Net Income 9.951 37%
• Net income growth was supported by a 7% increase in the domestic production of oil and NGL´s and
higher international oil prices.
• Operating cash flow (EBITDA) generates sufficient resources to meet the Company’s investment plan,
while reducing debt.
32

33. PETROBRAS
Recent Results – Net exports of oil and oil products
600 527
486 451
432
Thousand bpd
400
200 76
54
0
1 H 2005 1 H 2006
Exports Imports Net Exports
• Net exports growth limited by:
• Production stability due to scheduled stoppages (2Q06);
• Domestic gasoline consumption increase due to ethanol reduction (mix
reduced from 25% to 20%);
• Oil inventories stored in new production units.
2006 includes undergoing exports 33

34. PETROBRAS
Recent Results – Leverage
Petrobras’ Leverage Ratio R$ million 06/30/2006 06/30/2005
(1)
32% Short Term debt 12.213 9.645
28%
(1)
26% Long Term Debt 31.306 40.866
26%
24%
Total Debt 43.519 50.511
19% 20%
19% 23% 18%
Cash and Cash
22.713 17.195
Equivalents
(2)
Net debt 20.806 33.316
6/30/2005 9/30/2005 12/31/2005 3/31/2006 6/30/2006
Net Debt/Net Capitalization
Short-Term Debt/Total Debt
• Net Debt/Net Capitalization was 14 p.p. lower than reported in the same
period last year, refleting long term financing amortization and higher cash
position.
• Increase in the short-term debt due to reclassification adjustments from long
term to short term (debts with lower than 12 months to maturity).
(1)Includes debt contracted through leasing contracts of R$ 3.300 million on December 31, 2005, and R$ 4.021 million on December 31, 2004.
(2)Total debt - cash and cash equivalents 34

35. PETROBRAS
Recent Results – Consolidated Cash Flow Statement
R$ million
1H06 1H05
(=) Net Cash from Operating Activities 21.509 14.731
(-) Cash used in Cap. Expend. (12.660) (11.061)
(=) Free Cash Flow 8.849 3.670
(-) Cash used in Financing and Dividends (9.553) (6.462)
Financing (1.971) (1.574)
Dividends (7.582) (4.888)
(=) Net Cash Generated in the Period (704) (2.792)
Cash at the Beginning of Period 23.417 19.987
Cash at the End of Period 22.713 17.195
• R$ 5.179 million increase in Free Cash Flow.
As of January 1, 2005, the Special Purpose Companies whose activities are directly or indirectly controlled by Petrobras were
included in the Consolidated Financial Statements, as per CVM Instruction No. 408/2004.
35

36. PETROBRAS
Market Capitalization
Petrobras’ Market Cap increased 6x since 2002
100,0
90,0
80,0
US$ bilhões
70,0
60,0
50,0
94,1
40,0
74,3
30,0
20,0 42,0
30,9
10,0
15,5
0,0
2002 2003 2004 2005 8/31/2006
36

37. PETROBRAS
Final Remarks
Global dependence on oil Few industrialized countries
and natural gas are self-sufficient in crude oil
“Brazil (our main market) is self-sufficient in a period of
relative oil scarcity and increasing prices”
“Exploratory portfolio and proven reserves will reduce the
vulnerability of natural gas in a few years”
Technical and managing
There are no financial
capacity for the execution of
restrictions for the
oil and natural gas
accomplishment of the goals
production projects
37

38. PETROBRAS
QUESTION AND ANSWER
SESSION
Visit our website: www.petrobras.com.br/ri/english
For further information please contact:
Petróleo Brasileiro S.A – PETROBRAS
Investor Relations Department
E-mail: petroinvest@petrobras.com.br
Av. República do Chile, 65 - 22nd floor
20031-912 – Rio de Janeiro, RJ
(55-21) 3224-1510 / 3224-9947