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José Sergio Gabrielli de AzevedoPetrobras CEO

March 8th, 2010

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.

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.

CAUTIONARY STATEMENT FOR US INVESTORS

DISCLAIMER

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THE PRE-SALT REGION

Legend:

Drilled wells (BR non operator)Drilled wells (BR operator)Pre-Salt reservoirsProduction fieldsExploratory blocks

Total Area: 149,000 km2Area Under Concession: 41,772 km2 (28%)

Area Not Under Concession: 107,228 km² (72%)Area With Petrobras Interest: 35,739 km2 (24%)

Vision for 2013Vision for 2013

• 9,629 km of gas pipelines• 7,484 MW of capacity of thermal power generation• 3 LNG terminals in 2013

Natural Gas Supply Growth Natural Gas Supply Growth 2008: Brazil - 29 MM m3/d 2013: Brazil - 73 MM m3/d

Bolivia -29 MM m3/d Bolivia - 30 MM m3/dLNG - 32 MM m3/d

OIL AND GAS PRODUCTIONOIL AND GAS PRODUCTION

GAS AND ENERGYGAS AND ENERGY

RNE230 th bpd

UPB150 th

bpd

REPARRev amp25 th bpd

Clara Camarão

REVAP10 th bpd

REPLANRev amp33 th bpd

DOMESTIC CRUDE THROUGHPUTDOMESTIC CRUDE THROUGHPUT

1.7 92 1.8 55 1.9 712.68 0

3.92 0316

634

1.177

141

2 10

409

273 32112 6 12 4110 100 9 7

131

2 23

2007 2008 2009 2013 2020Oil Production - Brazil Gas Production - Brazil

Oil Production - International Gas Production - International

2,4002,301

4.8% p.y.

5,729

7.7% p.y.

3,655

2,525

9.7% p.y.

Premium I(600 th bpd)and Premium II (300 th bpd)

1st Phase: 20132nd Phase: 2015

25% 59%

7%

3%2% 2% 2% CAPEX 2009CAPEX 2009--2013:2013: US$174.4 billionUS$174.4 billion

104.6 *43.4

11.85.6 3.0

2.83.2

E&P

RTC

G&E

Petrochemicals

Distribution

Biof uels

Corporate

* US$ 17.0 billion allocated to Exploration

BUSINESS PLAN 2009-2013

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

Petrobras 100%

Petrobras Operator

Other companies Trough Bidding Process

Transfer of Rights with compensation

Production Sharing

AgreementPre-salt

andStrategic Areas

NEW REGULATORY MODEL

Other AreasCurrent

Concession Model

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INDICADORES DE DESEMPENHO

Data refers to 3rd quarter 2009

BUSINESS PLAN X PETROBRAS’ INVESTMENTS

Actual Investment Year Average – PN 2008-2012 Year Average – PN 2009-2013

Year Average – PN 2003-2007 Year Average – PN 2006-2010 Year Average – PN 2007-2011

CL(%)

6Target for Local Content

12.4

7.76.65.6

21.2

25.0

19.9

70.6%69.8%68.4%68.5%67.2%66.0%64.0%59.9%

63.1%59.7%

57.3%

0

5

10

15

20

25

30

35

40

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

US

$ bi

llion

-5%

5%

15%

25%

35%

45%

55%

65%

75%

LC (%

)

5.8

9.9

15.0

19.5

31.6

7

3 3,4 5,

3 6,1

11

15

17,4

22,4

21,5 22

,5 25,3

5,2

5,7 8,

4 10,2

17,2

22,7 25

,9

32,7

31,4

32,2

35,9

3,5 4,6 6,

7 9,2

15

18,9

15,8

6,2 7,4 9,

6 12,4

19,9

25

21,2

59%63% 59%

64% 66% 67% 69% 68% 70% 71%

57%62%

70%74% 75% 76% 74%

0

10

20

30

40

50

60

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130%

20%

40%

60%

80%

100%

Target- National Target- Total Accrued NationalAccrued- Total Target- LCI Accrued- LCI

LOCAL CONTENT INCREASE

o Increase on local content from 57% (2003) to 75% (3rd quarter 2009)

o The increase brought an additional capital of US$ 15.8 bi due to Brazilian economy acquisitions

o Generation of 690,000 additional jobs in the industry

Sources: Prominp LCI= Local Content Index

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New VesselsDelivery Plan

Critical Resources2009 to

20132013 to 2015

2016 to 2020

Large Vessels (1) 44 5 0Supply and Special Vessel 92 50 53

Production Platforms(2) 15 8 22Others (Jack-ups and TLWP) 2 2 3

Total 153 65 78

(1)Promef 1 and Promef 2(2)FPSO and SS

OPPORTUNITIES FOR NEW PLAYERS: NEW VESSELS, EQUIPAMENTS AND DRILLING RIGS

Supply VesselLarge Vessel (VLCC)

Production Platform (FPSO)

75426

98426

48470

3

2440

22161

2793434

7143

4171280

2291280

140629

60931

256133

89106

645

410278

23603

Wet Christmas Tree

Dry Christmas Tree

Wet WellheadDry Wellhead

Manifolds

CompressorsFilters

Flares

Generators

Drawork

CraneReactors

Tanks

TowersTurbines

Oil-Water Separator

Ignition Combustion Engines

2009 2010-2013

NEW EQUIPAMENTS PURCHASES

58 New Drilling Rigs until 201858 New Drilling Rigs until 2018o 23 being delivered between 2009 and 2011o 9 will be chartered via international bidding, being

delivered in 2012: Meeting Petrobras’ short-term needs, while the national industry prepares itself for additional orders

o 28 will be built in Brazil and being delivered between 2013 and 2018

COMPETITIVE ADVANTAGE IN THE DEEPWATER

XOM

APC6%

MUR

o Petrobras operates 22% of global deepwater production and 18% of all operating vessels

Source: (1) PFC Energy | Note: Estimated v olumes abov e ref lect what operators are responsible f or producing, not what they keep on a net working interest or entitlement basis. Minimum water depth is 300 meters; twelv e operators abov e account f or 94% of global deepwater production in 2008. (2) Copy right © 2008 ODS-Petrodata, Inc.

2008 Gross Global Operated 2008 Gross Global Operated Deepwater Production Deepwater Production

PBR22%

XOM14%

RDS14%

STL14%

BP9%

TOT8%

CVX6%

APC5%

BG4%

MUR2%

REL1%

HES1%

2%

HES

1%1%REL

45

8

1515

13

1210

8

5

12

9

100

0 20 40 60 80 100 120

Petrobras

ShellStatoilHydro

ExxonMobil

BPChevron

AnadarkoTotal

CNOOCConocoPhillips

ENI/AgipOthers

FPSO Semi Spar TLP Other

FPS OperatorsFPS OperatorsAll Contracted Vessels (252 Vessels Total)All Contracted Vessels (252 Vessels Total)

COMPETITIVE ADVANTAGE IN DEEPWATER

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Investments in Technology2009-2013

US$ 4.0 billion

47%

23%

5%

25%

E&P Downstream G&E Corp.(Cenpes)

Partnership with over 120 universities and research centers in Brazil, and 70

Institutions abroad.

PETROBRAS RESEARCH CENTER: TECHNOLOGICAL INNOVATION FOR THE NEXT DECADES

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New Laboratories Building

PETROBRAS Operational Units

National Research and Educational Institutions

Equipment purchases

Infrastructure increase Regional Centers

Research Infrastructure building following international standards

7 Regional CentersRJ - Rio de Janeiro(2) and Macaé(1)BA - SalvadorRN - NatalSE - AracajuES - Vitória

2006 200938 Thematic Networks 50 Thematic Networks

71 Institutions in 19 states 80 Institutions in 19 states

2006 – 2008422 signed agreements with 52 national research and educational institutions

Contracts worth R$ 724 Millions

THEMATIC NETWORKS AND REGIONAL CENTERS

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Technological BottleneckIdentification of needs

Search for: ready solutions or capabilities to be developed Cooperation term with supplier

Engineer development Models manufactory and laboratory tests

Prototypes manufactory and field tests

Register

oDevelopment of 600 suppliers (70% nationals) in 16 years of CTs use

o Between 1993 and 2008: US$ 2.2 bi in the development of new suppliers and materials

SUPPLIERS DEVELOPMENT

Material and/or supplier homologation

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LocalIndustry

Industry Competitiveness Purchase Power

• Association with local companies

• Implementation of industrial plants in

Brazil

SUPPLY

G&S Demand(Scale)

O&GOperators

(Supply Chain)

DEMAND-DRIVEN INDUSTRIAL POLICY

Sustainable Actions

Support ActionsInfra

Structure PeopleTechnology

Promotion Actions

Assessment Financing

Industry

O&G Operators

Government

Combined agents (Prominp)

Inte

rna t

iona

l C

ompa

n ies

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Imports

Current Demand

National Industry

Future Demand

GOOD AND SERVICES SUPPLY

National Industry

Imports

National Industry

Adequacy of The National Supply Industrial Complex

COMPETITIVE NATIONAL SUPPLY OF GOODS AND SERVICES

1. Increase productivity capacity of highly competitive sectors

2. Develop competition  among medium competitive sectors

3. Incentive for new national  entrants

4. Incentive for association between national and international companies

5. Incentive for international companies to establish operations in Brazil

PATH

Increase in National

Supply Capacity of

G&S

G&S Demands(Scale)

O&GOperators

Sub-component/Auxiliary Services

Implementation/ C&A

Sub-Suppliers

SuppliersEPC

Integrator

Shipyard

Goods & Services

G&S Supply Chain

Plant/ UnitEquipments

/MaterialsSub-Components

Supply Chain

DemandDemand Demand

DEMAND DECOMPOSITION AND SUPPLY CHAIN

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SUPRIMENTOIndústriaNacional

(Cadeia de Suprimento)

Implementation/ C&A

Demandas de B&S(Escala)

Operadorasde P&GEPC

Integrator

Shipyard

Goods & Services

G&S Supply Chain

Sub-component/Auxiliary Services

Plant/ UnitEquipments

/MaterialsSub-Components

Supply Chain

DemandDemand Demand

Demand Organization:

Demand Decomposition

Supply Chain Visibility

Tool ( Special website for the supply chain)

Important Questions

Suppliers

Sub-Suppliers

DEMAND DECOMPOSITION AND SUPPLY CHAIN

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SPECIAL WEBSITE FOR OIL AND GAS SUPPLY CHAIN SECTOR

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2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

52,862Qualified

Professionals

207,643Human Resource Gap

BP 2009-13

Leasing of 19 Vessels

Refinery- Premium I

28 Rigs146 supply vessels

New Production Platforms

Promef II

Refinery-Premium II

Business Plan 2008 – 2012

25,540Professionals

Selected

PROMINP - NEW HUMAN RESOURCES DEMAND

CO2 separation / capture technology

Offshore logistical hub

Floating LNGOffshore gas

storage in salt caves

Offshore produced fluid handling hubs

Water-alternating-gas (HC or CO2)

injectionExtended-reach

and deviated wells (salt)

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

Reservoir Characterization

CO2 storage in saline aquifers,

depleted fields, salt caves

Deepwater CALM buoy

Flow Assurance and formation

damage control

PLANSAL - Pre-Salt Development Master Plan

MAJOR TECHNOLOGICAL DEVELOPMENTS UNDER EVALUATION

Pre-Salt Definitive

Development

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Thank You