1. PETROBRAS AMERICA INC.
BUSINESS STRATEGY AND RESULTS
Presentation to
Global Energy Conference
Merrill Lynch
NYC – October 06
Renato T Bertani
rbertani@petrobras-usa.com
713 917 3718

2. PETROBRAS GROUP
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 23.0
3% 2,2 3,3 7,5 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

3. PETROBRAS GROUP Upstream
Production targets – Oil & NGL and Natural Gas
Thousand boed 7.5% p.a.
4,556
278
7.8% p.a.
3,493 742
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

4. Liquid products flow
Thous. bpd
International Production Brazilian Production 80 Brazilian Oil Products
383 2.374 Consumption 2.099
584 1.710
Brazilian Throughput
1.877
Oil Oil Products (*)
167 142
Imports
383 + 584
309
International Sales
967
(*) Domestic Imports and Private Refineries

5. STRATEGIC DRIVERS FOR INVESTMENTS
IN THE USA
• INVESTMENT OPPORTUNITIES
• PETROBRAS EXPERTISE AND TECHNOLOGY
• PORTFOLIO DIVERSIFICATION
• LONG TERM GROWTH OPTIONS
• MARKET POSITION
• OIL (AND BIO FUELS) SURPLUS

6. EXPLORATION AND PRODUCTION
EXPLORATION AND PRODUCTION
LEADING PLAYER
SMALL PLAYER INNOVATION
LARGE RESERVES
SHALLOW WATERS TECHNOLOGY
NEW FRONTIERS
RISK MITIGATION
• OPTIONALITY
• MATERIALITY
• REPEATABILITY

7. • New frontier, new province
• New frontier, mature province
• Challenging paradigms, inactive province
• Improving seismic resolution, active province
UNITED STATES
New Orleans
Houston
Coulomb North
Deep Shelf Gas Prospects Zion
Big Bend
Aquila Aquarius Goliad Bryce Sedona
Cottonwood
Pegasus Andromeda Aransas Monte Belo
Centaurus Cascade
Crater Flavian
Scorpio
HadrianSt Malo Chinook
Cygnus
Claudius
Aurelian Hadrian S
PRODUCING FIELDS
DISCOVERIES
MEXICO
PROSPECTS

8. The Lower Tertiary Play
SEA LEVEL
Williams Tower
Height 901 ft

10. Shuttle FPSO
Tanker
Gas Export FSHR
Pipeline
CASCADE AND Chinook
Chinook
CHINOOK Control
Flowline
Power
DEVELOPMENT Umbilical Umbilical
FIRST OIL: Manifold
Cascade
Cascade Tree
2009
T u rre t
F la r e b o o m
L iv in g
Q u a rte rs
T o p s id e
P r o c e s s in g
O f f lo a d in g

11. BLACKBEARD WELL MEGAMATA WELL
• Interrupted before target at 30,070ft • Drilling, 21,000ft
• Confirmed geological model • $ 18 MM
• Extreme P&T • TARGET REACHED!!!
• Technological challenges

12. Andromeda Prospect A’
A ANDROMEDA
WELL PROJ.
NW SE
6.000’
9.000’
C.
12.000’ MIO
O W.
L
16.000’
(?)
O LIG.
TOP
20.000’
TVD=22.000’

13. • ON BUDGET
• ON SCHEDULE (FIRST OIL 1Q 2007)
• PRODUCTION RATE: 20 KBOE/D

14. UPSTREAM SUMMARY
LEASE 4 FOCUS AREAS ASSETS
POSITION 320 LEASES • 6 Producing fields
• 170 operated • 1 field under development
• 200 deep and ultra deep • 3 discoveries under app/devl
water • 30-40 prospects inventory
• 2 expl wells drilling
RESULTS
2002 Cascade Appr/Devel
2003 Chinook, St Malo Appr/Devel
2004 Coulomb Producing
2005 Cottonwood Devel (first oil 1Q07)
2006 Deep gas, WGoM Expl Megamata, Andromeda

15. INVESTMENTS & EBITDA
1400
1200
DEVELOPMENT
1000
EXPLORATION
EBITDA
MMUSD
800
600
400
200
0
2006 2008 2010 2012 2014

16. PRODUCTION
160
140 EXPL
120 APPRAISAL
FIELDS
100
MBOE/day
80
60
40
20
0
2006 2008 2010 2012 2014

17. PETROBRAS ANNOUCES PURCHASE OF
50% OF TOTAL SHARES OF
PASADENA REFINERY SYSTEM

18. PRSI
STRATEGIC LOCATION
LAND FOR EXPANSION
SHIP CHANNEL
INDUSTRIAL AREA
MAIN PRODUCT PIPES

19. REFINING INVESTMENTS & EBITDA
400
350 EXPANSION REVAMP
300 EBITDA
250
MMUSD
200
150
100
50
0
2006 2008 2010 2012
••Investments 2007 --2011:
Investments 2007 2011:
US$ 1072mm
US$ 1072mm

20. REFINING THROUGHPUT
120
100 HEAVY CRUDE
LIGHT CRUDE
80
MBOE/day
60
40
20
0
2006 2008 2010 2012 2014

21. FISCAL SYNERGIES
UPSTREAM TAX POSITION
1000
800
600 Taxable Rev Tax Credits
400
M US$
200
M
0
20 20 20 20 20
-200 06 08 10 12 14
-400
-600
REFINING TAX POSITION
160
140
120 Taxable Rev Tax Credits
100
M U $
M S
80
60
40
20
0
2006 2008 2010 2012 2014

22. THANK YOU VERY MUCH
The ride is rough...
but it may be rewarding!