PETROBRAS AT A GLANCE

January, 2011

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 Companys 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 Companys 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 in making 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.

WORLD-CLASS INTEGRATED ENERGY COMPANY FOCUSED IN BRAZIL

SOLID RESULTS

SUSTAINABLE GROWTH STRATEGY AND STRONG PORTFOLIO

TECHNOLOGY LEADERSHIP AND INDUSTRY KNOW-HOW

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

Incorporated in 1953 as government monopoly for all hydrocarbon activities. Little or no reserves, production or refining. Brazilian Government (directly and indirectly), owns 48% of Petrobras, and maintains control with 54% of voting shares.

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

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. 1995-8
Elimination of Monopoly, creation of oil law. Full deregulation by 2002. Production: 1 MM BPD oil in Brazil in 98

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

1953
Incorporation in 1953 as government monopoly: Reserves: 16.8 million boe Production: 2.6 Thous. BPD* Refining Cap: 41 Thous. BDP* * 1954

1974
Discovery of shallow water offshore fields Reserves: 800 million BOE Production: 177 Thous. BPD Refining Cap: 823 Thous. BDP

1984
Discovery of mega fields in deepwater Campos Basin. Last refinery completed 81 Production: 467 Thous.BPD

2000
Listing on NYSE, with market cap of $ 31 billion 1st Investment grade rating

2006-7
Brazil achieves self sufficiency in oil production Discovery of Santo Pre-salt

2010
USD 70 bn capitalization and acquisition of rights to produce 5 bn BOE Production: 2MM BPD oil in Brazil

SHAREHOLDINGS EVENLY DISTRIBUTED BETWEEN GOVERNMENT, AND BRAZILIAN AND FOREIGN OWNERS

21% 45% 18%

30%

36%

39%

Foreign Shareholders Non-Voting 32% Voting Brazilian Non-Govt Shareholders 20% Non-Voting Voting

25%

23%

21%

55%

61% 45% 41% 40%

48%

Brazilian Govt * Non-Voting Voting

Oct/1992

Jul/2000

After Aug/00 offering

After Jul/01 offering

Dec/2009

Dec/2010

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.

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

PETROBRAS IS ONE OF THE MOST LIQUID STOCK IN VALUE TRADED ON BOTH THE BOVESPA AND NYSE
Turnover NYSE & Bovespa
(Daily Average Turnover)
(US$ MM) Turnover 2010/2005 = 619% 1,930 (% category and US$MM)

1,308

1,359

43%

47%

43%

50%

52%

47%

Nyse PBR PBR/A

992
Nyse PBR PBR/A

25%

21% 5%

20% 20% 6% 5% 31% 6% 19%

19% 7%
Bovespa PETR3 PETR4

483 219
Bovespa PETR3 PETR4

6%

25%

27%

26%

23%

27%

2005

2006

2007

2008

2009

2010

2005

2006

2007

2008

2009

2010

PETR4 (Bovespa)

PETR3 (Bovespa)

PBR/A (Nyse)

PBR (Nyse)

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 PNs and would not pay premium for ONs
6

FULLY INTEGRATED ACROSS THE HYDROCARBON CHAIN

Adjusted EBITDA US$ 32.9 Billion1 (LTM2)
RTM 12% G&P 4% Distribution 3% International 5% E&P 76%
Ultra-Deep Water (>1,500m) 32%

2010 Proven Reserves (SPE) 15.986 billion boe

Deep Water (300-1,500m) 50% Shallow Water (0-300m) 9% Onshore 9%

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

Exploration and Production

14.2 Bn boe of 1P(SPE) 2.1 mm boed production 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. boed production 276 thous. bbl/d refining capacity Petrochemicals, Gas & Power activities

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

A WORLD CLASS INTEGRATED ENERGY COMPANY

2010 Oil & Gas Production (mm boe/d)
4.4 3.8 3.2 2.7 2.6 2.5 2.2 1.7 0.6 23.0 18.0 13.9 12.7(1) 11.3

2009 Proven Reserves SEC (bln boe)

10.3

10.1 6.4 5.2

XOM

BP

RDS

CVX Oil

COP Gas

TOT*

ENI*

BG*

XOM

BP

RDS
Oil

CVX

COP
Gas

TOT

ENI

STL

2009 Refining Capacity (mm boe/d)

369

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

6.3

237

3.6 2.9 2.7 2.6 2.2 2.2 0.7 0.3 STL

209 184 138 126 100 67 44

XOM

RDS

COP

BP

TOT

CVX

ENI

XOM

PBR

RDS

CVX

BP

TOT

COP

ENI

STL

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

ENHANCING RESERVES

Santos Pre-Salt announced recoverable volumes including the transfer of rights, can more than double Brazilian reserves.
billion boe 30 25 20 15 10 5 0 Proved Recoverable Volume BR 1953 - 2010 Cumulative Production from Petrobras 1953 - 2010 Proved Reserves BR (SPE 2010) Potential Recoverable (Lula, Cernambi, Iara, Guar and Whales Park), ranging from 8.2 to 9.8 Transfer of Rights Proved Reserves + Potential Recoverable + Transfer of Rights

~ 28-30 bn boe
5
Higher estimates

14 29 15

10 8

Lower estimates

*SPE Criteria

IMPRESSIVE RECORD OF ACCELERATING DEVELOPMENT

2.000.000

16 anos

1.800.00

1.600.00

Production (bpd)

1.200.00 1.000.00

22 anos

12 anos

27 anos

800.00

400.00

0 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

Numbers of Years
Production since incorporation of Petrobras (1953) Discovery of Garoupa in the Campos basin (1974) Discovery of giant fields in Campos basin including Albacora/Marlim (80s & 90s) Discovery of the Pre-Salt, since Parati (2006)

45 anos

54 anos

10

INDUSTRY-LEADING PRODUCTION GROWTH

CAGR (2004-2009) - %
6,61 4,56 3,96 3,52 2,44 1,66 0,00
PetroC hina Luk oil C onoc oPhillips Petrobras C hev ron EN I BP

-1,38
Ex x onM obil

-2,59
T otal

-3,26
R D Shell

-4,94
R eps ol YPF

* 9M09 Annualized

Petrobras Oil and Gas Production (000 boe/d)

4.6% CAGR

2,400 2,297 2,020 2,217 2,301

2,525

2004

2005

2006

2007

2008

2009

Source: Evaluate Energy

11

OIL AND GAS PRODUCTION TARGETS Petrobras has the highest growth rate target of the industry
6000 5500 5000 4500
Petrobras: 3.9 MM boe/d in 2014 and 5.4 MM boe/d in 2020 ExxonMobil: Production growth rate ~3-4% in 2010; ~2-3% p.y. up to 2013
BP: Production growth rate ~1-2% p.y. up to 2015

thousand boe/d

4000 3500 3000 2500 2000 1500 1000 500 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

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

Chevron: production growth rate ~1% p.y. between 20102014 and 4.5% p.y. between 2014-2017

2016

2017

2018

2019

2020

Source: PFC Energy and Company reports

12

BRAZILIAN ECONOMY: Growing with stability and fiscal responsibility

GDP Growth (%)
9 8 7 6 5 4 3 2 1 0 1 2

Forecast

Trade Balance (US$ Billion)

250 200

Forecast

7,6 5,7 4,0 3,2 1,2 5,7 5,1

Exports

Imports 219 198 197 173 154 121 91 130 211 180

238 234

4,5

4,5
150

161 138 119 97

100

63
50 0 2004

74

1,2 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

2005

2006

2007

2008

2009

2010

2011

2012

Nominal Fiscal Deficit/GDP (%)

52,1
15

400 300

50,0

47,7

46,6

44,2

39,9

41,4

50

40,1

289 239 180 86 49 53 54 207

40 10 30

200 100 0

5,1
5

2,7

3,3

20

3,5

3,3 2,6 1,9

2,6

10 0

0 nov/10 2003 2004 2005 2006 2007 2008 2009

2003

2004

2005

2006

2007

2008

2009

2010

Source: Brazilian Central Bank 10.15.2010

Net Debt/GDP (%)

13

International Reserves (US$ billion)

20

Brazilian Debt (as % of GDP)

60

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

Petrobras Corporate Strategy to 2020

Total Capital Investment Plan 2010-2014

Integrated Growth, Profitability and Sustainability

1% 1%2% 2%
Oil & gas production growth in a sustainable manner

US$ 224.1 billion

8%
International 5%

9 9 9

that will approximately double our production in the next 10 years Focus in oil, oil products, petrochemicals, gas & energy, biofuels, refining and distribution with an integrated and sustainable business model

53% 33%
Brazil 95%

Consolidate leadership in the Brazilian market of natural gas, electricity generation and gas chemicals
E&P RTM G&P Petrochemicals

Distribution Biofuels Corporate

Be recognized as a benchmark among integrated energy companies

14

ADJUSTMENTS TO THE 2010-2014 PORTFOLIO Increased spending on infrastructure, logistics, value chain in Brazil
31.6 (17.0) (6.8) 19.2 10.3

186.6

224

CAPEX 2010-2014 in 2009-2013 Business Plan

New Projects

Projects Excluded

Change in project timeline

Change in project design and cost

Change in Stake

2010-2014 Business Plan

1% 21%
E&P Downstream Gas & Energy Corporate 5.1 5.1 0.3 0.3

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

6.5 6.5 19.7 19.7 62%

16%

15

PETROBRAS CAPEX NOW EXCEEDS ALL OTHER MAJORS

U$S MM
10.000 8.000 6.000 4.000 2.000 0

Capex by Quarter: 1Q07 4Q09

Petrobras
Super Majors Average (Exxon, Shell, BP) Peer Group Average (without Petrobras)

1Q07
50.000 45.000 40.000 35.000 30.000 25.000 20.000 15.000 10.000 5.000 0 2009 2010

2Q07

3Q07

4Q07

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

Capex for 2010: 2009 vs. 2010E

U$S MM

2009 Average without Petrobras 2010 Average without Petrobras

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

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

2010

(1)

16

PETROBRAS CAPITALIZATION
Capitalization Rationale:

Payment of the Assignment Agreement US$ 42.5 bn Total Offering US$ 69.9 bn 1

Investment Plan US$ 27.4 bn

Priority Offering

US$ 49.4 bi

Market Offering

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

Participants

Approximately 145,000 participants

Allocation of the book

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

Leverage

Leverage after capitalization: 16%. In accordance to the targets established by the Company
17

PETROBRAS FINANCIAL PLANNING BASED ON MAINTAINING INVESTMENT GRADE RATINGS WITH PRUDENT LEVERAGE
Net Debt / Capitalization (%)
40%

30%

28%

28%

30%

32%

34%

35% 25%
16%

20%

10%
1

Net Debt / Capitalization: 25% 35%

0%

2T09

3T09

4T09

1T10

2T10

3T10

3.0 2.5 2.0 1.5 1.0 1.0 0.5 0.0 1.0

Net Debt/ EBITDA

2.5x

1.4 1.2

1.5 1.0

Limit established for Net Debt / EBITDA:

2Q09

3Q09

4Q09

1Q10

2Q10

3T10

(1)

2.5x

Debt levels in accordance to the targets established by the Company

18

Notes: (1) Annualized EBITDA

ACCESS TO CAPITAL ON A WORLD AND HISTORIC SCALE

Largest Shares Offerings (US$ billion)

70.0

Largest Bond Issues (US$ billion)

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

o Petrobras had the largest share offering in history

24.4

22.5

22.1

22.0

20.2

19.7

19.4

19.3

19.3

17.6

16.0 *

13.5 * 9.5 * 8.0 * 6.3** 6.0 6.0 6.0** 6.0 5.5 5.1

RBS

Lloyds Agricultural ICBC Bank Bank of China

FO (2009) IPO (2010) IPO (2006)

Barclays Visa Inc HSBC

Fortis Bank of America

FO (2007) FO (2009)

Citigroup Inc
FO (2009)

Roche Pfizer Kraft Berkshire Lloyds Foods Hathaway Bank Holdings

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

Conoco ING Anheuser- The Dow NBC Phillips Bank Busch Chemical Company
(2009) (2009) (2009) (2009) (2010)

FO (2010)

FO (2008)

FO (2007)

IPO

FO

(2008) (2009)

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

Source: Petrobras, Bloomberg and Thompson

19

CAPITALIZATION RATIONALE: PAYMENT OF TRANSFER OF RIGHTS

Object Volume Concession Area Average Price Initial Value Duration
Acquisition of rights to conduct research, exploration and oil production activities in specific areas of the pre-salt that are not under concession. 5,0 billion boe 3,865 km2 in 7 blocks US$ 8,51 / boe US$ 42.5 billion / R$ 74.8 billion 40 years, extendable for additional 5 years.

20

TRANSFER OF RIGHTS - AREAS

Area Tupi Sul Florim Tupi Nordeste Peroba Bloco Contingente Sul de Guar Franco Iara Total

Surrounding Area (Mi2) 126 181 181 664 90 780 380 2.042

Transfer of Rights Volume (mmboe) 128 467 428 319 3.058 600 5.000

Barrel Value (US$/boe) 7,85 9,01 8,54 8,53 7,94 9,04 5,82

Transfer of Rights Valuation (US$ MM) 1.005 4.207 3.653

2.554 27.644 3.489 42.533

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

21

WORLD-CLASS INTEGRATED ENERGY COMPANY FOCUSED IN BRAZIL

SOLID RESULTS

SUSTAINABLE GROWTH STRATEGY AND STRONG PORTFOLIO

TECHNOLOGY LEADERSHIP AND INDUSTRY KNOW-HOW

EXPLORATION & PRODUCTION

22

18TH CONSECUTIVE YEAR OF FULLY REPLACING BRAZILIAN PRODUCTION

Brazilian Reserves SPE criteria (Society of Petroleum Engineers) 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.

13,23

13,75
1,23

13,92
0,88

14,09
0,92

14,17
0,86

15,28
1,91

Production (0.70 bn boe) Reserves Replacement Index (174%)

Production (0.70 bn boe) Reserves Replacement Index (124%)

Production (0.75 bn boe) Reserves Replacement Index (123%)

Production (0.79 bn boe) Reserves Replacement Index (110%)

Production (0.80 bn boe) Reserves Replacement Index (240%)

12,52

13,04

13,17

13,31

13,37

2005

2006

2007

2008

2009

2010

23

OIL AND GAS PRODUCTION TARGETS 2010 2020

Domestic targets unchanged, international targets reduced
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

5,382
120 203

7.6% p.y. (Thous. boe/day)

3,907
4.6% p.y.

1109

2,583
2,037
85 161 251

128 176 623

2,020
94 168 265

2,217
96 163 274

2,297
101 142 277

2,301
110 126 273

2,400
100 124 321

2,525
97 141 316 101 151 327

1,810
22 35 252

3,950 2,980

1,500

1,540

1,493

1,684

1,778

1,792

1,855

1,971

2,004

1, 078 241

Pre-Salt
2020

2002

2003

2004

2005

2006

2007

2008

2009

2010

2014

1.183
Oil Production - Brazil Gas Production - Brazil Oil Production - International Gas Production - International 152

24

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

E&P Brazil Investments (2010 2014)

Pre Salt: US$ 33.0 billion Post Salt: US$ 75.2 billion
15%
3% 13%

Main Projects Scheduled (2010 2014)

2,980

2,004
Urugu Tamba Mexilho

Production (million boe/d)

Tupi Pilot Cachalote. Baleia Franca Tupi NE EWT Guar EWT P 57 Jubarte Tiro Pilot Aruan EWT 2010 4 EWT Pre salt P 56 Marlim Sul 2011 4 EWT Pre salt FPSO Espadarte P55 Roncador Tiro / Sidon Aruan EWT 2012 3 EWT Pre salt Guar Pilot P 63 Papa Terra 2013 2 EWT Pre salt Tupi NE Pilot P 62 Roncador P 58 Whales Park Guaiam 2014

18%

84%

67%

Exploration

Development

Infrastructure

Pre salt

Post Salt

Natural Gas

Extended Well Test

25

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

Expected Costs of Production

140 Production costs (US$/bbl 2008) 120 100 80 60 40 20

Produced MENA Oil Shales Gas to liquids Coal to liquids

Deepwater and Ultra deep water

EOR Arctic

EOR

Heavy oil and bitumen

Other convention al oil

CO

Petrobras expected maximum break even cost

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Reserves (bn bbls)

Source: IEA Outlook 2008

26

DOMESTIC LIFTING COST:

Increase explained by collective bargain and stoppages for maintenance R$/barrel
74.6
140.2 137.2 134.5 127.7 129.7

US$/barrel
76.2 78.3 76.9

68.3
24,67

41.62

43.04

43.82

43.91

42.72

24,74 22,86

23,73

24,50

24.78 26.53 26.87 26.37 24.26

13.84

15.23

14.33

14.71

14.07

16.84 16.51 16.95 17.54 18.46

3Q09 4Q09 1Q10 2Q10 3TQ10
Brent (in R$)

9.02 3Q09

9.51

9.40 1Q10

9.79

10.60

4Q09

2Q10

3Q10
Brent (in US$)

Lifting Cost

Gov.Part.

Lifting Cost

Gov.Part.

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%);
27

DISTRIBUTION OF UPSTREAM REVENUES

Distribution of the Realization Price of a Barrel of Domestically Produced Oil
$ per Barrel Realization Price
100%

% Share of Realization Price

80 70 60 50 40
40% 60%

80%

30 20
20%

10 0
0%

2001
-10

2002

2003

2004

2005

2006

2007

2008

2009

9M10

2001 2002 2003 2004 2005 2006 2007 2008 2009 9M10
-20%

Lifting SG&A

Other COGS Net Income

DD&A R&D

Income Tax Exploratory Costs

Other Government Take

28

NEW PRODUCTION UNITS: Continued increase in capacity

Main units Projects
FPSO Cidade de Vitria (Golfinho) FPSO Capixaba Cachalote e Baleia Franca FPSO Esprito Santo Parque das Conchas (1) SS-11 (TLD de Tiro)

Capacity
100 th. bpd 100 th. bpd 35 th. bpd 30 th. bpd

2Q10
60.9 th. bpd 9.7 th. bpd 28.2 th. bpd 15 th. bpd

3Q10
51 th. bpd 58 th. bpd

26 th. bpd 17 th. bpd

FPSO Frade

(2)

30 th. bpd 35 th. bpd and 25 million m3/d

17 th. bpd

18 th. bpd UTB: 15 th.bpd MXL.: 1Q11

FPSO Cidade de Santos (Urugu-Tamba) and Mexilho

(1) (2)

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

Total: 185 th. bpd

New Units Projetcs FPSO Cidade de Angra dos Reis (Tupi) Guar EWT P-56 (Marlim Sul) P-57 (Jubarte) Capacity 100 th. bpd 30 th. bpd 100 th. bpd 180 th. bpd Start-up Oct/2010 Dec/2010 Jul/2011 Dec/2010
29

EXPLORING TO LEVERAGE EXCITING FRONTIER PLAYS IN OUR OWN BACKYARD

Exploration Capex US$ mm

Success Rate

70%

2.750 2.500 2.250 2.000 1.750 1.500 1.250 1.000 750 500 250 0 2002 2003 2004 2005 2006 2007 2008 2009 2013 0% 20% 30% 50% 60%

40%

10%

30

MAIN DISCOVERIES IN THE POST-SALT REGION (1)

Estimated Water Recoverable Depth (m) Volume
Not disclosed Not disclosed Not disclosed (new frontier) 105 million barrels 15 million barrels 40 million barrels 25 million barrels 25 million barrels 280 million barrels 3,850 2,200 2,341 3,950 800 860 200 400 976
Indra Marimb Aruan Caratinga Barracuda Pampo BM-S-41 BM-SEAL-11 Piranema

Date
Dec-10 Nov-10 Oct-10 May-10 Mar-2010 Feb-2010 Feb-2010 Nov-2009 Aug-2009

Field
BM-ES-32 Indra BM-S-41 BM-SEAL-11 Caratinga Piranema Barracuda Pampo Rig Fence Marimb BM-C-36 Aruan BM-S-48 Panoramix

Participation
BR(60%), STL(40%) BR(80%), Karoon(20%) BR(60%), IBVBrasil(40%) BR(100%) BR (100%) BR (100%) BR (100%) BR(100%) BR (100%)

Fluids
Light Oil Light Oil Oil Light Oil Light Oil Oil Oil Light Oil Light Oil

May-2009

BR(35%), Repsol(40%), N. Gas and Condensate Not disclosed Vale(12,5%), Voodside(12,5%) Oil Light Oil Light Oil Light Oil Not disclosed 150 million barrels 150 million barrels Not disclosed

161

Nov-2008 Sep-2008 Jul-2008 May-2008

(1) *

BM-J-3 BR (60%), Jequitinhonha STATOIL (40%) BM-S-40/Sidon Golfinho BM-S-40/Tiro BR (100%) BR (100%) BR (100%)

2,354 274 1,374 235

2008 to 2010 Volume in place

31

EXPLORATION PORTFOLIO AT DIFFERENT STAGES OF DEVELOPMENT

Margem Equatorial Ceara & Potiguar Solimes Potiguar SEAL& REC & TUC Bahia Sul So Francisco Esprito Santo Campos Petrobras Others Santos Pelotas

o Brazil Exploration: 2009 13 US$ 13.8 bn o Exploratory Area: 155.0 thousand km o 265 exploratory blocks o 35 appraisal plans o 313 production concessions

32

INCREASE IN THE NUMBER OF FIELDS ANDS BLOCKS HELD WITH PARTNERS

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

Concessions Under Production (247)

97% 3%

Production Development Concessions (66)

Exploration + Evaluation Concessions (54)

53%

38%

62%

47%

Petrobras (100%) Petrobras in Partnerships

34 Oil and Gas Companies (2008)

SINN, July 2009

33

WORLD-CLASS INTEGRATED ENERGY COMPANY FOCUSED IN BRAZIL

SOLID RESULTS

SUSTAINABLE GROWTH STRATEGY AND STRONG PORTFOLIO

PRE-SALT OVERVIEW

TECHNOLOGY LEADERSHIP AND INDUSTRY KNOW-HOW

34

PRE-SALT JOINT VENTURES

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

JUBARTE ESS-103

CHL-4

1-2 Bi boer BAZ-1

BFR-1

Blocks
BC-60

Consortium
BR (100%) Jubarte Cachalote Balia Franca Baleia Azul Baleia An

Shore Distance = 60 km Total Area = 3.000 km2

Blocks
8,3 bi boer
BM S 11 (Tupi)

Consortium
BR (66%), SH (20%) e PTG (14%) BR (45%), BG (30%) e RPS (25%)

BMS-8 BMS-9

BMS-10 BR (65%), BG (25%) e PAX (10%) BMS-11 BR (65%), BG (25%) e PTG (10%) BMS-21 BR (80%), PTG (20%)

(Cernambi e Lula)

Shore Distance = 300 km Total Area = 15.000 km2

1.1 2 bi boer

BMS-22 EXX (40%), HES (40%) e BR (20%) BMS-24 BR (80%), PTG (20%)

35

OFFSHORE BRAZIL IS A VAST AREA, STILL RELATIVELY UNDEREXPLORED

USA

36

PRE-SALT UPDATE
Wells**:

Santos Basin
o Acquisition of the rights to produce 5 billion boe in specific areas of the pre-salt that are not under concession; Start up of FPSO Cidade de Angra dos Reis in Lula (Pilot Project); Start up of Guara EWT 20 wells drilled and completion of 3 wells; Nine rigs operating in the pre-salt; Tupi NE EWT scheduled to start up in 1Q11 (FPSO Cidade de So Vicente).
Carioca NE Tupi Oeste

Petrobras

ANP
** Drilling or completion or test.

Libra

o
o o o o

Under Concession Transfer of Rights

Macunama Macuna Macunama Tupi NE Piloto de Tupi IG1

Tupi Sul Tupi Sudoeste

37

GAS PIPELINE FOR LULA`S PILOT SYSTEM

UGN RPBC

UTGCA
14 5 Km

PMXL
m 2K 21

170 Km URG

To

se rv i ce

24 8
the

Km

PMLZ-1

Pi l ot

LULA Area Existing Planned

TEFRA N

Under Construction

38

CAPEX DISTRIBUTION: PRE-SALT VS. CAMPOS BASIN Pre-salt

CAPEX DISTRIBUTION
26% 18%

56% Gathering Completion + Drilling Units

Deepwater Projects in Campos Basin*

CAPEX DISTRIBUTION

33.3%

33.3%

33.3%
Gathering Completion + Drilling Units

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.

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

39

PRE SALT ACCOMPLISHMENTS TIMELINE

2000 2001 2002 2003 2004 2005
1st wildcat well: Parati

2006

2007

2008

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

Largest seismic acquisition and interpretation in the world

Next exploratory results: Carioca, Tupi (5 to 8 Bi boe ) and Iara (3 to 4 Bi boe)

2009
Tupi Extended Well Test

2010
Lula Pilot

...

2013

...

2017
>1M bopd

...

2020
1.8 MM bopd

100.000 bopd and 5 M m/d gas CO2 separation and reinjection Wells: 3 injectors and 5 producers

PHASE 1a
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 m/d Additional 8 FPSOs (2015 2016) Process plant under study: Oil Production: 150,000 bpd Gas Compression: 5.5 M m/d Water Alternating Gas injection capability

PHASE 1b
2nd phase of definitive development
Significant production increase Innovation acceleration Massive use of new technologies specially tailored for Pre Salt conditions

PHASE 0
Information gathering Appraisal well
Analyze reservoir flow High resolution seismic, reservoir coring, well testing, Small scale production (EWTs) Material analysis vs. CO2

40

MAJOR TECHNOLOGICAL DEVELOPMENTS UNDER EVALUATION

PLANSAL - Pre-Salt Development Master Plan Pre-

Offshore logistical hub Water-alternatinggas (HC or CO2) injection Extended-reach and deviated wells (salt) Flow Assurance and formation damage control Dry completion systems (SPAR, TLP, FPDSO, ) Floating LNG CO2 separation / capture technology Offshore gas storage in salt caves Offshore produced fluid handling hubs
CO2 storage in saline aquifers, depleted fields, salt caves

Pre-Salt Definitive Development

Deepwater CALM buoy Reservoir Characterization

41

ESPRITO SANTO PRE SALT

oS an

to

UTG Cacimbas
Linhares Rio Doce

MG

Cango

Pero

o Infrastructure in-place: diversified and flexible portfolio; o P-34 at Jubarte field, first pre-salt production (Sep/08): excellent results/light oil (30API); 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.

Es pr it

UPGN Lagoa Parda

Aracruz

24 66 km 25 MM m3/d Camarupim Canapu Golfinho VITRIA

Vila Velha

Terminal Barra do Riacho

Carap

UTG Sul Capixaba

Guarapari Anchieta Presidente Kennedy Marataizes

Sul Capixaba Gas pipeline 12 83 km 4,5 MM m3/d

Sul-Norte Capixaba Gas pipeline 12 a 24 160 km 7 a 15 MM m3/d

CHT

RJ

JUB Baleia Azul CXR PRB

ARG Baleia Franca OST NAU ABA

Catu

Whales Park*

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

42

WORLD-CLASS INTEGRATED ENERGY COMPANY FOCUSED IN BRAZIL

SOLID RESULTS

SUSTAINABLE GROWTH STRATEGY AND STRONG PORTFOLIO

E&P REGULATORY FRAMEWORK

Pre-Salt and Strategic Areas

TECHNOLOGY LEADERSHIP AND INDUSTRY KNOW-HOW

43

NEW REGULATORY MODEL

Production Sharing Agreement Petrobras 100%

Pre-salt and Strategic Areas

Transfer of Rights with compensation

Petrobras Operator Other companies trough Bidding Process

Other Areas

Current Concession Model

There will be no regulatory changes in the areas under concession, including the pre salt area already granted
44

PRODUCTION SHARING AGREEMENTS Production sharing agreements

o 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

Companies

Profit Oil

Government

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

Cost Oil

Graphs are showing only hypothetical values

45

WORLD-CLASS INTEGRATED ENERGY COMPANY FOCUSED IN BRAZIL

SOLID RESULTS

SUSTAINABLE GROWTH STRATEGY AND STRONG PORTFOLIO

EQUIPMENT AND SERVICES

TECHNOLOGY LEADERSHIP AND INDUSTRY KNOW-HOW

46

NEW VESSELS AND PURCHASE OF NEW EQUIPMENTS

Petrobras critical resources demand will drive Brazilian and international industry

Critical Resources
Drilling Rigs Water Depth Above 2.000 m Supply and Special Vessel

Current Situation (Dec/09)

Delivery Plan (to be contracted) Accumulated Value By 2013 26 465 By 2015 31 491 By 2020 53* 504

5 254

Production Platforms SS e FPSO Others (Jacket and TLWP)

41 79

53 81

63 83

84 85

Production Supply Vessel Drilling Rigs Platform (FPSO)

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.

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

47

USING CONTRACTS AND LEASES TO SECURE NEEDED DRILLING ASSETS

Water Depth

2009

2010

2011

2012

2013- 2018

500-1000m 1000-1500m 1500-2000m 2000-2500m 2500-3000m

Total per year

9 12 8 4 1 34

+1 +3 +5 +3 +12

+3 +4 +7

+4 +4 +8 +28 to be leased

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

48

COMPETITIVE NATIONAL SUPPLY OF GOODS AND SERVICES

Adequacy of The National Supply Industrial Complex

PATH
5. Incentive for international companies to establish operations in Brazil 4. Incentive for association between national and international companies 3. Incentive for new national entrants 2. Develop competition among medium competitive sectors 1. Increase productivity capacity of highly competitive sectors

GOOD AND SERVICES SUPPLY

Imports

National Industry

Increase in National Supply Capacity of G&S

Imports

National Industry

National Industry

Current Demand

Future Demand
49

NEW EQUIPMENT TO BE CONTRACTED

Items Wet Christmas Tree Well Head Flexible Lines Manifolds Producing pipes Umbilical Dry Christmas Tree Onshore well head

Un. un un km un t km un un

TOTAL 500 500 4.000 30 42.000 2.200 1.700 1.700 Pumps

Items Compressors Winch Crane Engines Turbines Structure Steel (Hull) Structure Steal (Platforms Hull)

Un. un un un un un un t t

TOTAL 8.000 700 450 200 1.000 350 240.000 700.000

Itens

Un.

TOTAL

Itens

Un.

TOTAL

Reactors Oil and water splitter Storage Tankers Turrets

un un un un

280 50 1.800 550

Power Generators Filters Flares

un un un

500 300 30

50

CAMPOS BASIN: A GIANT TECHNOLOGY LAB Petrobras Offshore Facilities

Subsea Trees Manifold
Equipment Installed Dec/2009 Planned (2010)

Subsea Trees Subsea Manifolds Flexible Flowlines (km)

Flexible Flowlines

733 74 4,425

72 2 633

Umbilicals (km) Umbilicals Rigid Pipelines (km) Floating Production Units Mono buoys

3,391 1,630

358 35

40 2

3 2
51

WORLD-CLASS INTEGRATED ENERGY COMPANY FOCUSED IN BRAZIL

SOLID RESULTS

SUSTAINABLE GROWTH STRATEGY AND STRONG PORTFOLIO

DOWNSTREAM

TECHNOLOGY LEADERSHIP AND INDUSTRY KNOW-HOW

52

BRAZIL AS A LARGE AND GROWING EMERGING MARKET

2009 Total Oil Consumption by Country (mmbo/d)
18,7

10 9 8 7 6 5 4 3 2 1 Russian Federation Mexico Japan Brazil 2020 Brazil 2014 Brazil 2009 Saudi Arabia South Korea Canada France China India Iran United Kingdom Germany Italy US
4,40 3,18 2,79 2,70 2,61 2,42 2,36 2,33 2,20 1,94 1,94 1,83 1,74 1,61 1,58 8,63

Brazil is worlds tenth largest oil consumer.

Total Oil Consumption mb/d (index)

130 125

Brazil oil consumption growing at 2.38% p.a; OECD oil consumption growing at 0.04% p.a.

120 115 110 105 100 95 1999 2001 2003 2005 2007 2009

Brazil US OECD World

Source: BP Statistical Review 2010, PFC Energy Note: * Estimates for 2014 and 2020

5353

DOMINANT POSITION IN THE BRAZILIAN MARKET

Upstream Operations Downstream Operations

Petrobras Other Companies

Existing Pipelines Refineries Marine Terminal In Land Terminal

Dominant Position
Leadership in all segments of the value chain Market position ensures economies of scale and efficient business model

Growing Market
Strong organic demand in one of the fastest growing global markets Attractive domestic market opportunities for upstream, downstream and other energy segments

Logistical Synergies
Main oil producing basins and refining located in S.E. Brazil, near GDP centers Logistical infrastructure fully developed

Stable Cash Flows

Diversified cash flows with several growth drivers Reduced volatility of cash flows due to ability to smoothen prices fluctuations in the domestic market

54

BRAZILIAN PRODUCTION, REFINING AND DEMAND Long term plans to achieve greater balance and integration
124% Production as a % of refining 110%

132%

kbpd

13%
1,971 1,791 1,393 1,036 181 1,933

2,980 3,950 2,260 2,356 3,196 2,794

1980

2009

2014E

2020E

Production

Throughput

Oil Product Demand

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

55

BRAZILIAN DEMAND AND REFINING CAPACITY Strong Brazilian GDP growth projected to increase demand 3.4% p.y.
Thousand bpd
3000
Clara Camaro 2010
REPLAN Revamp U200+PAM 33 thous. bpd (2010) RNE 230 thous. bpd (2013) PREMIUM I (1 phase) 300 thou. bpd (2014)

PREMIUM I (2 fase) 300 thous. bpd (2016)

3,196 2,794

COMPERJ (1 phase) 165 thous. bpd (2013)

2,356

2,260

PREMIUM II 300 thous. bpd (2017)

1,155

2000

1,933

1,831

1,016

826

COMPERJ (2 phase) 165 thous. bpd (2018)

1000

1,187 937 769

...
338
0

403

...
2014

452

2009

2010
Gasoline Diesel

2020
Throughput

Others

o Domestic production will represent 91% of refinery throughput by 2020 o Comperjs first phase is now a new refinery
56

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

8%

18%
2%
1%

No Phase Phase IV Phase III Phase II

7%

54%

11%
4%

73%

Phase I

22%

(2010-14)

(2015-20)

57

UPGRADING TO OPTIMIZE PERFORMANCE AND ENSURE SUSTAINABILITY THROUGH CLEANER FUELS

o QUALITY OF GASOLINE
2010 2011 2012 2013 2014
Diesel Diesel Diesel Diesel

o QUALITY OF DIESEL
2010 S-1800 S-500 S-50 S-10
REVAP RLAM REPAR REPLAN

2011

2012

2013

2014

Regular Gasoline

Regular Gasoline 0,005% S

RECAP

REPAR

REMAN

REDUC

REPLAN

RECAP

RPBC

REVAP
REGAP REMAN

REGAP

REFAP
REFAP

RLAM
REGAP

RPBC

o Improving gasoline and diesel quality to comply with stricter environmental regulations and reduce emissions & pollutant streams
58

RTM AND PETROCHEMICALS INVESTMENTS 2010-2014 New refineries, fuel quality, and modernization account for 70% of capex
US$ 73.6 Billion
6% 11%

Additional capacity:
Refinery NE Premium I Comperj

3%1%

50%

Quality and conversion Sulfur removal Modernization Upgrading (coker) Operating improvement and logistics: Maintenance HSE Logistics for oil and biofuels

29%

Additional capacity Operational Improvement Logistics for oil

Quality and conversion Fleet expansion International

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

59

INVESTMENTS 9M10 vs 9M09:

Investiments 9M10 R$ 56.5 billion
0.5 3.4 3.7 4.4 E&P
0,05 5,6 1,1

Investiments 9M09 R$ 50.7 billion

6.5 0.4 5.5 23.2 4.5

Downstream 24.1 Gas & Power International RTC Others

1,3 3,8

20.6
10,1 24,7

6,1

10.6

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

Quality improvements (sulfur removal); Maintenance, HSE, operating efficiencies logistics; Expansion of refining capacity.
Quality/Sulfer Content

27%

27%

Conversion New Units

12% 19% 2%

13%

Fleet Expansion Investments in Braskem Plangas, Maintenanc e,infrastructure,HSE and others

60

DOWNSTREAM UPDATES

Refap Acquisition 30% Repsols stake (Dec/10)

Amount of acquisition: US$ 350 million (includes the Repsols 30% stake in the refinerys stock : US$ 130 million) Repsols shares in the 2010 results will be completely retained by Petrobras (US$ 40 million up to 3Q10) Repsols portion of US$ 500 million in the current Refaps debt had already been consolidated in Petrobrass Balance Sheet Between 2001 and 2010, US$ 1.4 billion was invested at the refinery, increasing production capacity from 130.000 bpd to 190.000 bpd and the refinerys complexity from 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 Generating Unit (UGH) The market that is being supplied by the refinery is growing (South of Brazil), which creates a different expectation of return of this refinery The acquisition adds synergies to Petrobras refining operations, as well as to the allocation of the oil produced in Brazil (for example, it is expected an increase in the processing 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) Abreu e Lima

61

DOMESTIC OIL PRODUCTS : Significant sales growth in the domestic market

Thous. bpd

Refinery Output
-1%

Domestic Sales
+11%

1,867

1,807

1,844

Others LPG Gasoline

1,825

1,898

2,033

640 134 338 755

3Q09

637 134 334 702

2Q10

634 128 342 740

3Q10

507 222 327 769

3Q09

501 221 374 802

2Q10

565 230 379

Diesel

859
3Q10

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
62

AVERAGE REALIZATION PRICE: Stable price in the domestic market

US$/bbl

120 100 80 60 40 20

115 101 75 76 78 74

R$/bbl
220 170 120

Avg. 3Q09
152.34

Avg. Avg. 2Q10 3Q10

158.60 158.17 152.64 144.47

55 48 32
3Q084Q08 1Q09

59 68 44 49

77 72

64 70 73

132.87
70 20

2Q09 3Q09

4Q09 1Q10

2Q10 3Q10

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

ARP Petrobras
Petrobras Oil Price Brent

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.
63

POSITIVE MARGINS GUARANTEES REFININGS GOOD RESULTS

WTI
140 120 100 (US$barrel) 80 60 40 20 0 -20 jul/08

Petrobras Margins*
116.58

US Gulf Coast Margins**

112.63 95.39

133.93

76.62 41.45
PBR:+18.91 USGC: +3.26

75.73 39.16
PBR:+27.56 USGC: +9.61

49.82

71.05

74.41

76.45 81.25

PBR:+12.61 USGC: +4.85

PBR:+8.62 USGC: + 7.14

jul/09

out/08

out/09

jan/08

jan/09

1Q08

abr/08

2Q08

3Q08

4Q08

1Q09

abr/09

2Q09

3Q09

4Q09

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

jan/10

1Q10

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

* * USGC Margins Bloomberg

64

TRADE BALANCE
Thous bpd 9M09

9M10 vs. 9M09

9M10

714
231

Oil
562
157

Oil Products

712
196

667
336

483

405

152

516 331

45
Net Export

Export

Import

Net Export

Export

Import

Financial Volume (US$ Million)

US$ 119 US$ 1,795

14,480 14,599

10,640 8,845

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

9M09

9M10

Import

Export
65

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 Investments

i) ii) iii) iv) v) vi) vii) The incorporation of a holding company which will hold 100% of Braskem common stocks Capital contribution in BRK to be paid in cash by Petrobras (R$ 2,5billion) and Odebrecht (R$ 1 billion) Capital increase at Braskem through a private subscription (between R$4,5 and R$ 5 billion) Acquisition by Braskem of the stock in Quattor held by Unipar Acquisition by Braskem of 100% of the stock in Unipar Comercial and 33% of the stock in Polibutenos Merger by Braskem of Petrobras stake at Quattor Stock tender offer for the indirect sale of the controlling interest in Quattor Petroqumica SA
66

COMPERJ: CONTRIBUTING TO THE PETROBRAS VALUE CHAIN Comperj will:

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

BASICS
Products Diesel Naphtha Coke Ethylene Propylene Benzene Butadiene p-Xylene Sulphur Production (kta) 535 284 700 1,300 881 608 157 700 45

DOWNSTREAM
Production (kta) 850 800 500 600 500 600

Products Polypropylene Polyethylene Styrene Ethylene glycol PTA PET

Fuels

Petrochemicals

67

WORLD-CLASS INTEGRATED ENERGY COMPANY FOCUSED IN BRAZIL

SOLID RESULTS

SUSTAINABLE GROWTH STRATEGY AND STRONG PORTFOLIO

BIOFUELS

TECHNOLOGY LEADERSHIP AND INDUSTRY KNOW-HOW

68

BIOFUEL TARGETS AND INVESTMENTS 2010-2014 Continued expansion and integration with oil products
Strategy Act globally, on biofuels production, with relevant participation in biodiesel and ethanol bussiness
Ethanol Production
2.600
Thous. m/year

Ethanol Exports

Production Capacity of Biodiesel in Brazil

% +47
507 747

% 193 +
886

5 +13
449

1,055

2010
ETHANOL BIO DIESEL

2014

2010

2014

2010

2014

Ethanol
Increase 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 So Martinho, creating a new company, called Nova Fronteira (49% BR).

INVESTMENTS 2010-2014: US$ 3.5 Billion

0.7

0.4 2.0 0.4

Ethanol

Biodiesel

R&D

Logistics
69

LOGISTCS INVESTMENTS TO EXPORT ETHANOL

70

WORLD-CLASS INTEGRATED ENERGY COMPANY FOCUSED IN BRAZIL

SOLID RESULTS

SUSTAINABLE GROWTH STRATEGY AND STRONG PORTFOLIO

GAS & POWER

TECHNOLOGY LEADERSHIP AND INDUSTRY KNOW-HOW

71

INSTALLATION OF NATURAL GAS TRANSPORT AND PROCESSING INFRASTRUCTURE IN BRAZIL

Gas and Power Total Investment: US$ 17.8 billion
15% LNG Electrical Energy Chemical Gas Facilities Pipeline Network 32% 23% 30%

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

Complete natural gas transport and processing infrastructure Consolidate investments in power generation Invest in LNG Increase flexibility by converting natural gas to fertilizers NG Pipeline Fertilizer Thermo Power Plant LNG Terminal
72

NATURAL GAS MARKET AND POWER CAPACITY

Growth in natural gas demand, consolidation in Thermo Power capacity
Natural Gas Demand
Million m3/day

130*
32 4

46
14,4 2,0 24,3 5,3

41

53

2009 Electrical Generation Industrial Fertilizers

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

2014 Other uses

Installed Capacity of Electrical Energy Generation (MW) 7,227

137
+9%

7,892
365

5,997

6,437

1,093
2010 International Thermoelectrical and Co-generation

1,090
2014 Renewables Sources

73

NATURAL GAS BASED FERTILIZERS

Fertilizer plants to take advantage of available gas and infrastructure
UFN III (sep/14) Ammonia: 81th. ton/year Urea: 1.210 th. ton/year UFN IV (dec/15) Urea 763 th. ton/year

Electronic model of ammonia and urea plants

2,911
2,104

Ammonia Plant

Th. ton/year

+160%

(Dec/14) 519 th. ton/year

1,374
1,076 807 298

1,118
844 274

2010
Ammonia

2014
Urea

2015

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
74

WORLD-CLASS INTEGRATED ENERGY COMPANY FOCUSED IN BRAZIL

SOLID RESULTS

SUSTAINABLE GROWTH STRATEGY AND STRONG PORTFOLIO

INTERNATIONAL

TECHNOLOGY LEADERSHIP AND INDUSTRY KNOW-HOW

75

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

76

76

INTERNATIONAL STRATEGY Reduced 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

INTERNATIONAL PRODUCTION OF OIL AND GAS BP 2010 - 2014

Thousand bpd

800 600 400 200 0

239 93 146 304 128
176

632
BP 2009-2013 Target

323 120
203

- 49%

INVESTMENTS 2010-2014: 2010US$ 11.5 bi

DISTRIBUTION 221 2% G&E RTCP 186 615 2% 5%

2010

2014 Oil and NGL Natural Gas

2020 BP 2009-2013 Target

CORPORATE 123 1% 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
E&P 10,330 90%

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

77

CASCADE - CHINOOK DEVELOPMENT

FIRST OIL: March,2011

Shuttle Tanker Gas Export Pipeline FPSO

Petrobras 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 disconnectable turret buoy, allowing the vessel to move offsite during hurricanes, and transportation via shuttle tanker.

FSHR Chinook

Control Umbilical

Flow line Power Umbilical

Manifold

Cascade

Tree

(*) 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

78

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

with 30% stake (First oil: 2010)

Petrobras Stake in Akpo and Agbami: 64,000 bpd by end of 2009. Proven Reserves (SEC 2008): 131,3 MM boe (% Petrobras)

79

WORLD-CLASS INTEGRATED ENERGY COMPANY FOCUSED IN BRAZIL

SOLID RESULTS

SUSTAINABLE GROWTH STRATEGY AND STRONG PORTFOLIO

TECHNOLOGY LEADERSHIP AND INDUSTRY KNOW-HOW

80

LONG HISTORY OF TECHNOLOGICAL AND OPERATIONAL LEADERSHIP IN DEEPWATER

1977 Enchova 410ft 125m

1988 Marimb 1,610ft 491m 1994 Marlim 3,370ft 1,027m 1997 Marlim Sul 5,600ft 1,707m 2009 Tupi 7,125ft 2,172m

2003 Roncador 6,180ft 1,884m

Deepwater Production 2009 Gross Global Operated

Petrobras
Anadarko 3% BG 4% Total 7% Chevron 7% ExxonMobil 13% Other 10%

Offshore Production Facilities

45 15 15 13 12 12 10 9 8 8 5 100 0 20 FPSO Semi 40 Spar 60 TLP Other 80 100 Shell

PBR 20%

StatoilHydro ExxonMobil BP Chevron Anadarko Total CNOOC ConocoPhillips

Statoil 12% BP 12%

ENI/Agip
Shell 12%

Others

Petrobras operates 20% of global deepwater production

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

81

INVESTING IN TECHNOLOGY LEADERSHIP

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

Petrobrass partnerships with 120 universities and research centers has created one of the greatest concentrations of energy research 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 :
Petrobras Investments in HSE, IT and R&D (2010 14) US$ 11.4 Billion
29% 46%
0.2 0.9 1.9

Schlumberger Baker Hughes

FMC Technologies Usiminas

Others companies are schedule to come to Brazil to develop technological centers: Cameron General Electric Halliburton IBM Technip TenarisConfab Vallourec & Mannesman Weatherford Wellstream

25%
HSE IT R&D

82

NEW TECHNOLOGIES TO INCREASE RECOVERY FACTOR

4D Seismic
(Marlim; Marlim Sul; Albacora) ESP in a skid on the sea-bed (Espadarte-Fase III) Vertical Annular Separation and Pumping System (Congro; Malhado; Corvina) (Parque dos Temperos; ) Bonito

VASPS

CAISSON

2009

2010

2011
Oil Water Subsea Separation
(Marlim)

2012

Subsea Christmas Tree. Piggy-back

(Marimb; Barracuda)

TLWP
(Papa-terra)

SBMS - Subsea Multiphase Pumping System

(Marlim)

RWI Raw Water Injection

(Albacora)

Multifractured Well
(Bonito)
83

LOCAL CONTENT PARTICIPATION 2010-2014 Brazilian suppliers expected to provide nearly 70% of total needs
Capex in Brazil (US$ billion)
Distribution and Biofuels (100%) Business unit Investments in Brazil 108.2 78.6 17.6 2.3 2.3 3.3 Purchased in Brazilian Market 57.8 62.8 14.4 2.3 2.3 2.6 Brazilian content (%) 53% 80% 82% 100% 100% 80%

100 %
Gas & Energy (82%) Downstream and Corporate (80%)

E&P

80 % 60 %

RTM and Petrochem Gas & Energy Distribution Biofuels

E&P (53%)

40 %

Corporate

Total

212.3

142.2

67%

20 % 0% Brazilian Content

+
US$ 46.4 billion from Partners

PATH
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
84

National Industry

Increase in National Supply Capacity of G&S

LONG TERM HR CHALLENGES

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Business Plan 2008 2012 28 Rigs 146 sSpply Vessels New Production Platforms Promef II Leasing of 19 Vessels Refinery- Premium I Refinery-Premium II

207,643
Human Resource Gap
BP 2009-13

52,862
Qualified Professionals

25,540
Professionals Selected

o Shortage of trained human resources and demand for local-content increase o Competition with other projects for people

85

WORLD-CLASS INTEGRATED ENERGY COMPANY FOCUSED IN BRAZIL

SOLID RESULTS

SUSTAINABLE GROWTH STRATEGY AND STRONG PORTFOLIO

TECHNOLOGY LEADERSHIP AND INDUSTRY KNOW-HOW

86

HISTORICAL DIVIDEND PAYMENT

Dividends per ADR

US$ US$

Net Income per ADR

US$

Price per ADR (Max-Min)

2.0 2.9 0.8 0.7 0.9 3.0

4.3 3.5 3.0 26.7 17.5

75.2 58.8 53.0 21.1 23.0 48.9 31.9 14.9

2006

2007

2008

2009

2006

2007

2008

2009

9M10

2006

2007

2008

2009

2010

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)
87

INCREASING INVESTMENTS LEADING TO AN ORGANIC GROWTH

Sources (US$ million) 1
51,403 42,832 27,886 17,825
21,077 3,252 2006 2007 OCF 2008 Net Debt 2009 Capitalization 5,222 22,664

34,213
5,993 28,220 17,912 24,920 27.472

25,548 1,617 LTM 2

Uses (US$ million) 1

51,403 42,846 34,621 26,179 18,030
3.144 14.470 2006
4 16

6.416

7.712 35.134 44.987

3.860 20.768 2007 CAPEX 29.874

1. 551

4.747

2008 Dividends

2009 Acquisition

LTM 2

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

88

CASH FLOW SUPPORTS MAINTENANCE PLUS GROWTH

US$ MM

50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 -

44,525 35,134 25,548

Assumptions to Maintain Existing Capacities: $12 per barrel to replace 830MM BBLs of production $1.5 bn. Exploration $1.5 bn. Refinery maintenance $1.5 bn. Gas & Power maintenance $1.5 bn. Other Maintenance

16,000

OCF LTM (1)

Capex 2009

Capex 2010 (2)

Maintenance Capex (Est.)

Others

E&P

Downstream

Gas & Energy

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

89

CONSTRUCTION IN PROGRESS: Increase in net debt related to expansion

Construction and Installations in Progress
US$ Million
70000 60000 50000 40000 30000 20000 10000 0

63,929

38,735 30,537 15,865 19,738

US$ Million

Net Debt
40,963

2005

2006

2007

2008

2009
45000 40000 35000 30000 25000 20000 15000 10000 5000 0

20,624 14,908 11,306 8,650

2005

2006

2007

2008

2009

90

PROJECTED FUNDING NEEDS FOR 2010 2014 BUSINESS PLAN

PROJECTED Operating Cash Flow (2010 2014)
Cash US$ 11 billion Funding (debt + equity) US$ 96 billion
FX Rate (R$/US$)

Principal Assumptions
1.78 2010 76 2011 78 Brent for Funding (US$/bbl) 2012 82 2013 82 2014 82

Amortization US$ 38 billion

OCF (after dividends) US$ 155 billion

Investments US$ 224 billion

Projected Investments (US$ bn) Projected Net Cash Flow (After dividends) (US$ bn) Net Total Capt. (US$ bn) Leverage Average Realization Price (R$ barrel)

224 155 58* Up to 35% 163

* Including Capitalization and excluding amortization of US$38 billion

$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 Q111/early 2Q11

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

91

SUCCESSFUL EFFORTS TO RAISE CAPITAL FROM LONG TERM SOURCES

2009
US$ 34.8 billion were raised with an average life of 10.6 years
Market Capital Bond Issuance U S Eximbank

2010
US$ 26.6 billion from the Capitalization + US$ 9.6 billion of loans

2(3) 6.5 2.75

Others

26.6
Equity

(US$ bilion)

10(2)
BNDES

13.3 (1)

China Development Bank

7.49
Bilateral Loans

1.47 0.61 Project Finance GIEK

(1) (2) (3)

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

January, 2011
US$ 6 billion issuance of 5, 10 and 30 year notes in the international capital markets:
Global Notes Amount Yield to Investors 2016 Notes US$ 2.5 billion 3.950% 2021 Notes US$ 2.5 billion 5.401% 2041 Notes US$ 1.0 billion 6.806%
92

DEBT PORTFOLIO: A very diversified debt portfolio

2%

FUNDING SOURCES (US$bn)

Sep-10**
14.1 12.1 1.0 1.8 2.3 20.4 0.5 7.8 7,0 66.9 20%

Dec-09
11.2 12.3 1.7 1.2 2.8 18.4 0.8 5.7 3,0 57.1 25%

Dec-08
6.9 5.7 1.6 1.4 4.5 2.9 1.0 3.4 27.4 27%

24% 74%

Commercial Banks Debt International Bonds

US$

R$

JPY

Local Bonds ECAs Project Finance BNDES* Other BB/CEF

43% 57%

China Dev. Bank Total Debt

Fixed

Floating

% Capital Market
* Including Project Finance ** Based on 3Q10USGAAP Results

93

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

US$ 70.515 million: Public Offering

US$ 67,5 billion: 3Q10 US$ 39,8 billion : LFTs US$ 27,7 billion : Cash US$ 21.402 billion : Cash US$ 6.298 billion : LFTs (1) US$ 3,0 billion : 4Q10 (GreenShoe)
Before Public Offering
US$ Billion Cash and Cash Equivalents(Adjusted by LFT) Net Debt Net Debt / Net Capitalization Net Debt/Ebitda
(2)

US$ 39,8 Billion: LFTs US$ 4,1 Billion: Cash

US$ 43.9 Billion to acquire rights to 5 billion barrels

US$ 26.6 billion Retained as cash and equivalents

After Public Offering
09/30/2010 33,8 33,1 16% 1,03X

06/30/2010 12,9 51,6 34% 1,56X

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

94

CAPITAL STRUCTURE AND CREDIT METRICS

1H

(Million US$) Cash and Cash Equivalents Total Debt Net Debt Shareholders Equity Net Debt / Net Capitalization Net Debt/ Market Capital Net Debt / Boe Production (USD/boe) Net Debt / Proved Reserves (USD/boe) Reserves/Production (Years, SPE Criteria)

12.31.2008 6,499 27,123 20,624 61,909 25% 21% 23.5 1.37 17.22 2008

12.31.2009 16,169 57,132 40,963 94,058 30% 21% 44.4 2.76 16.13 2009 15,504 28,982 1.41

09.30.2010 27,451 66,945 33,155 174,580 16% 15% 35.4 2.23 * 15.87 * LTM 18,431 32,887 1.01

Net Income EBITDA Net Debt/EBITDA

18,879 31,083 0.66

*Based on 2009 Proved Reserves Note: LTM as of 9/30/10 95

CAPEX 2010 vs. 2009

Investments 2009 R$ 70.8 billion
0,6 3,8 6,8 31,6

25%
E &P

Annual Business Plan 2010 R$ 88.5 billion

0,9 2,6 6,2

D owns tream
8,1

10,5

G as & E nergy International

36,7

17,4

D is tribuition Others

34,0

16.6 70.8 5.1

(2.4)

(0.7)

(0.9)

88.5

(R$ billion)

CAPEX 2009

E&P

Downstream

G&E

International Distribution, CAPEX 2010 Biofuels and Corporate

96

Information: Investor Relations +55 21 3224-1510 petroinvest@petrobras.com.br

97

97