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Petrleo Brasileiro S.A. - Petrobras

Financial StatementsDecember 31, 2012 and 2011

(Free translation of the original report in Portuguese)

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Petrleo rasileiro S!"! # Petrobras

Contents

$eport of %ndependent $egistered Public "ccounting Firm !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Statement of Financial Position !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Statement of %ncome !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Statement of *omprehensi+e %ncome !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Statement of *hanges in Shareholders- ./uit !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Statement of *ash Flo s !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Statement of "dded alue !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!*onsolidated Segment %nformation !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Social alance !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Notes to the Financial Statements1 The Company and its operations !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!2 Basis of preparation of the financial statements !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Basis of Consolidation !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

! S"mmary of si#nificant acco"ntin# policies !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!$ Cash and cash e%"i&alents !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!' (ar)etable sec"rities !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!* Trade recei&ables !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!+ ,n&entories !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! (er#ers split-offs and other information abo"t in&estments !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

1/ ,n&estments !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!11 Property plant and e%"ipment !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!12 ,ntan#ible assets !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1 0 ploration for and e&al"ation of oil and #as reser&es !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1! Trade payables !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1$ Finance ebt !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1' 3eases !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1* 4elated parties !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1+ Pro&ision for decommissionin# costs !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1 Ta es !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!2/ 0mployee benefits 5Post-employment6 !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!21 Profit sharin# !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!22 Shareholders7 e%"ity !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!2 Sales re&en"es !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!2! 8ther operatin# e penses net !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!2$ 0 penses by nat"re !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!2' Net finance income 5e pense6 !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!2* Pro&isions for le#al proceedin#s contin#ent liabilities and contin#ent assets !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! &2+ Nat"ral 9as P"rchase Commitments !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!2 9"arantees for concession a#reements for petrole"m e ploration !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! / 4is) mana#ement and deri&ati&e instr"ments !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1 Fair &al"e of financial assets and liabilities !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!2 ,ns"rance !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

S"bse%"ent 0&ents !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!,nformation on reser&es 5"na"dited6 !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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Independent auditor's report

To the Board of Directors and ShareholdersPetrleo Brasileiro S.A. - Petrobras

We have audited the accompanying financial statements of Petrleo Brasileiro S.A. Petrobras !"ompany! or!Petrobras!#$ %hich comprise the balance sheet as at December &'$ ()'( and the statements of income$comprehensive income$ changes in e*uity and cash flo%s for the year then ended$ and a summary ofsignificant accounting policies and other e+planatory information.

We have also audited the accompanying consolidated financial statements of Petrleo Brasileiro S.A. -Petrobras and its subsidiaries !"onsolidated!#$ %hich comprise the consolidated balance sheet as atDecember &'$ ()'( and the consolidated statements of income$ comprehensive income$ changes in e*uityand cash flo%s for the year then ended$ and a summary of significant accounting policies and othere+planatory information.

Management's responsibilityfor the financial statements

,anagement is responsible for the preparation and fair presentation of the parent company financialstatements in accordance %ith accounting practices adopted in Bra il$ and for the consolidated financialstatements in accordance %ith the nternational /inancial 0eporting Standards /0S# issued by thenternational Accounting Standards Board ASB# and accounting practices adopted in Bra il$ and for suchinternal control as management determines is necessary to enable the preparation of financial statementsthat are free from material misstatement$ %hether due to fraud or error.

Auditor's responsibility

1ur responsibility is to e+press an opinion on these financial statements based on our audit. We conductedour audit in accordance %ith Bra ilian and nternational Standards on Auditing. Those standards re*uirethat %e comply %ith ethical re*uirements and plan and perform the audit to obtain reasonable assuranceabout %hether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditor2s 3udgment$ including the assessment ofthe ris4s of material misstatement of the financial statements$ %hether due to fraud or error.

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%ncome Statementecember 1 2/12 and 2/11

(In millions of reais, except earnings per share)

See the accompan ing notes to the financial statements!

7

Note 2/12 2/11 2/12 2/11

Sales re&en"es 23 2+1 * 2!! 1*' 21* !' 1+ +21*os t of s al es (210,& 2) (1 , 3 ) (1 , 2) (12&,320) 9ross profit */ /* ** 2 * ! !'! $ $/1

,ncome 5e penses6S el l in g e 7p en s es ( , 0&) ( , '0) (11, 1 ) ( , 1') ; en e ra l an d ad min is tra ti+e e7p enses ( , &2) ( , & ) ( , &3) ( ,02 ) .7p lora ti o n co s ts ( , 1) (&,&2 ) ( ,131) (3, &) $ esea rch an d d e+e lo pm ent e7p enses (2,23 ) (2,&&&) (2,21 ) (2,3 1) 8the r ta 7e s ( 0) ( ) (33 ) (2 ) 8 ther operat ing e7penses , net 2& ( ,1 ') ( ,' ) ( ,2&') ( ', 0 )

5 + $1/6 5 1 + !6 5 $ $ 6 52+ /2*6

Net income before financial res"lts profit sharin# and income ta es 2 * !$ !/ 1 +*1 1 !*!

Financial income (e7pens es), net 2 (3, 23) 122 1, ' ,' 1

Share of profit of e /ui t #accounted in+es tments & 3 ,' 1 ', 0

Pro fi t sh a rin g 21 (1,00') (1,' 0) ( 1') (1,2 ')

Net income before income ta es 2* *$ !! $1 2 2' !1 $'+

% nco me ta 7 a n d s o ci a l co ntri bu ti on 1 !3 ( , &) (11,2&1) (2,&31) ( ,& )

Net income 2/ $ 11/ 2/ + $ 1/1

Attrib"table to;

Sha rehol de rs of Petrobras 21,1 2 33,313 20, ' 33,101

9 on #co ntro ll i ng i nte re s ts ( 223) (203) # #

2/ $ 11/ 2/ + $ 1/1

Basic and dil"ted earnin#s per share in 4< 22! 1.'2 2.$$ 1.'/ 2.$!

Consolidated Parent Company

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Statement of *omprehensi+e %ncomeecember 1 2/12 and 2/11

(In millions of reais)


8

2/12 2/11 2/12 2/11

Net income 2/. $ .11/ 2/.+ $ .1/1

8ther comprehensi&e income*ummulati+e trans la tion ad

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Statement of *ash Flo secember 1 2/12 and 2/11



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2/12 2/11 2/12 2/11Cash flo>s from 8peratin# acti&ities 9et income a ttributa ble to the s hareholders of Petrobra s 21,1 2 33,313 20, ' 33,101

Ad?"stments for;

9on#control l ing interes ts (223) (203) # # Pens i on and medica l benefits (actuarial e7pense) &,0 & 2, 3 3, 3& 2, 3'

Share of profi t of e/ui t #accounted in+es tments ( &) (3 ) ( ,' 1) (', 0 ) Deprecia tion, depletion and amorti>a tion 21, 1 , 3 1', 3 12, 02 %mpairment 1, & 1, 2& & 1 && .7plora tor e7pendi tures ri tten off ', 2 2,'0& ',2 2,2&3

;a ins ? (Aoss es ) on disposa l of non#current assets 0 ' 113 1 ' Foreign .7change +aria tion, inde7ation and finance charges ,' & ,23 2, & (231) Deferred income ta7es , ne t &,2' ,1' &,& ' ,20

,ncrease @ 5 ecrease6 in assets 4 rade and other rece i+ables , ne t (3,0 ) (3, & ) &,& 0 (3,12 )

%n+entories (3,' 0) ( ,33') (2, 00) ( ,& 3) 8ther ass ets (&,0'1) (&,20 ) ( ,0' ) (&,0 )

,ncrease @ 5 ecrease6 in l iabilities4rade pa ables 2,11' &,112 2,32 ( 01) 4a7es pa able (2,3&1) (3,&0') (2,'23) ( 1) Pens ion and medica l benefi ts (1,&&3) (1,&10) (1,3&') (1,31&)

8ther l iabi l i ties ('1 ) 2,&'1 2&' ( 1) Net cash pro&ided by @ 5"sed in6 operatin# acti&ities $! 1!$ $' 22 12! $ !1 Cash flo>s from ,n&estin# acti&ities %n+es tments in e7ploration and production of oi l and gas (&1, 33) (31,&12) (33, & ) (2&,&'')

%n+es tments in refining, trans porta tion and mar6eting (2 , 32) (2 ,33 ) (3&,2 ) (1 ,' ) %n+es tments in gas and po er acti+i ties (3, &) (&,'1 ) (2, 0) (2,&'&) %n+es tment in i nterna tiona l acti+i ti es (&, ') (3, ) ( ) (11) %n+es tments in dis tribution acti+ities (1,213) (1,0 0) # # in+es tments in biofuel a cti+ities (2 ) ('0&) (&0 ) ( 11) 8ther in+es tments ( 22) (2,31 ) ( 1 ) (2,1 3) %n+es tments in mar6etable securi ties &,32& 11, 0 , 2 13,030

Di+idends recei+ed & ' 0 3,200 2,&3& Net cash pro&ided by @ 5"sed in6 in in&estin# acti&ities 5*! 6 5$* + +6 5'/ * 6 5 2 !'6

Parent CompanyConsolidated

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Statement of *ash Flo s (continued)ecember 1 2/12 and 2/11



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2/12 2/11 2/12 2/11Cash flo>s from Financin# acti&ities "c/ui s i tion of non#control l ing i nteres t '20 & # #

Financing and loans, net Proceeds from long#te rm financing & , 31 &0,&33 & ,1 '', 2

$epa ment of principa l (22,31 ) (1&,'23) (1 ,3'0) (3 ,'2') $epa ment of inte res t ( ,2 ) ( , 33) (3,2 3) (3,0'3)

"s s ignment of recei+ables (F%D* 9P) # # (' ) ( ,2 ') Di+i dends pa id ( ,1 ) (10, ' ) ( ,1 ) (10, ' )

Net cash pro&ided by @ 5"sed in6 financin# acti&ities 11 '! * ''! 1 * / 5 '/!6

0ffect of e chan#e rate chan#es on cash and cash e%"i&alents 1 /2' 1+ - -

Net increase @ 5decrease6 in cash and cash e%"i&alents in the year 5+ 11 6 ' 1 51 !'$6 51 1 *6

Cash and cash e%"i&alents at the be#innin# of the year $ *!* 2 !1' 1+ +$+ 1 $

Cash and cash e%"i&alents at the end of the year 2* '2+ $ *!* 1* 1+ +$+

2/12 2/11 2/12 2/11Additional information on cash f lo>s;Amo"nts paid and recei&ed d"rin# the year%ncome ta7 and social contribution paid 2,1 0 3,&3 (2&) (1,1 ) Cithhol din g income ta7 pai d for third#part 3, 0' 3, 3 (3,33 ) (3,3 )

' /*$ * !/1 5 ' 6 5! $'$6

Non-cash Transactions 5,n&estin# and Financin#6Purchase of propert , pl ant and e/ui pment on credi t 3 1 1 # # Finance l eases # 3' # 3&2 Pro+is i on for decommis s ioning cos ts # recogni tion 10, 1 2,'32 10,& 1 2,3 2

Parent CompanyConsolidated

Consolidated Parent Company

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Statement of "dded alueecember 1 2/12 and 2/11



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2/12 2/11 2/12 2/11,ncome Sales of products, ser+ices pro+ided and other re+enues 3'3,0 312, &1 #E 2 2,''1 2&', 3

Pro+isi on for impairment of trade recei+abl es ( ) 22 #E (10) & $e+enues related to construction of ass ets for o n use 3, 1 , '3 #E '',10& & , 3

&2 , 1 3 , 1 #E 33 , &' 2 ', ,np"ts ac%"ired from third parties # # # #

5aterials consumed (121,0 &) #E ( ',& &) #E ( ', 2 ) ( ,'2 ) Po er, third#part s er+ices and other operating e7penses ( , 3&) #E ( 0,1&') #E ( ,0 ) ('&,'0 ) 4a7 credits on inputs ac/uir ed from third parties (21,2 ) #E (21,2 2) #E (1 , ) (1 ,2 3) %mpairment (1, & ) #E (1, 2&) #E (& 1) ( &&)

(230, 22) (1 , &') (1 3, '&) (1&0,0 2)

9ross added &al"e 1 ', 3 1 0, 1 1'3, 1 1'', 3&

4etentions # # # # Deprecia tion, depletion and amorti>ation (21, ) #E (1 , 3 ) #E (1', 3 ) (12, 02)

# # # # Net added &al"e prod"ced by the Company 1 &,1 3 1 3,232 13 ,0'3 1&2, 32

Transferred added &al"e # # # # Share of profit of e/uit #accounted in+estments & #E 3 #E ,' 1 ', 0 Finance income # including inde7ation and foreign e7change +ariation charges ,2&1 #E ,'&3 #E , ' ,' 0 $ents, ro al ties and others 2 1 #E 20 #E 03 2

, 1 , & 1 ,1 1',10

Total added &al"e to be distrib"ted 1+1 *+ 1+1 /+1 1$$ 222 1$* +

istrib"tion of added &al"e #

Personnel and officers # Direct compensation # Salaries 1', 1 13,'13 11, 2' 10,213

Profit sharing 1,00' 1 1,' 0 1 1' 1 1,2 ' 11 , 21 #E 1',0 3 #E 12,'&0 #E 11,'0 #E

enefits Short#term benefits 3 1 23 0 ' 1 0 '2 0 Pension plan 2,& 0 1 1,'2 1 2,31' 1 1,3 ' 1 5edical plan 2,' 0 1 2,1 1 1 2,2 ' 2 1, 2

F;4S 1,00 1 1 0 0 1 & 023, 2 1& 20,& & 10 1 , 11 13 1 ,1'3 10

Ta es FederalG ' ,22 32 1,0 3& '2,1 ' 3& ' ,033 3 State 3 ,'0 22 3 ,3' 20 2&, 1' 22,3 1& 5unicipal 21 0 1 0 & 0 0 "broadG ,3 0 & ,3&0 & # 0 # 0

10&,3&3 ' 103, 2 ' , ' & ,& '0

Financial instit"tions and s"ppliers

%nterest, and e7change and inde7ation charges 1 ,3 & 10 13, 1 11,' ' , 13 $ental and affrei ghtment e7penses 1&,& , && ' 2 ,1 3 1 20,3 2 1332, 1 1 23,'2' 13 3 , ' 2' 2 ,20' 1

Shareholders %nterest on capital , ' 10,&3 , 10,&3 Di+idends # 0 1,' ' 1 # 0 1,' ' 1 9on#controlli ng interests (223) 0 (203) 0 # 0 # 0 $etained earnings 12,30 21,312 12 12,01 21,100 13

20, ' 12 33,110 1 20, ' 13 33,101 21

Added &al"e distrib"ted 1+1 *+ 1// 1+1 /+1 1// 1$$ 222 1// 1$* + 1//

G % ncludes go+ernment holdings!

Consolidated Parent company

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Social balance

ecember 1 2/12 and 2/11


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1 - Calc"lation basis*onsolidated sales re+enues (S$) 2 1,3 2&&,1*onsolidated net income before profit sharing and ta7es (8%) 2 , ' &', 11*onsolidated gross pa roll (;P) 1','11 13,02

2 - ,nternal Social ,ndicators 5i6 9P S4 9P S45eal and food 0 '! & 0!32 &' !& 0!3'*ompulsor pa roll charges , 0 & ! 2! & ,& & ! 2 2! 'Pension &!&2 0!2& 32 2!'2 0!13Health *are 2, 1 ! 2 1!03 2,&2 1 ! 3 0!Health and Safet 201 1!30 0!0 1 0 1!3 0!0.ducation 1 ' 1!13 0!0 133 1!02 0!0'*ulture 10 0!0 0!00 11 0!0 0!00Profess ional training and de+elopment '01 3!23 0!1 &1 3!21 0!1Da #care ass is tance 0! & 0!0& 0 0! 0!0&Profit sharing 1,00' !& 0!3 1,' 0 11! 0! &8ther 2 0!'3 0!03 0!' 0!03Total - ,nternal social indicators 1&,2&& 1! & '!0 12,'&' !30 '!12

- 0 ternal Social ,ndicators 5i6 8, S4 8, S4

%ncome and Cor6 8pportunities ;enerated '1 0!1 0!02 & 0!10 0!02.ducation for Professiona l S6ill s 1 0!21 0!02 ' 0!12 0!02$ights of *hildren and "doles cents ;uarantee (%) 0 0!21 0!02 0 0!1' 0!03*ulture 1 0! 0!0 1 2 0!&0 0!0Sport 1 0!21 0!02 0 0!1 0!038ther 2 0!10 0!01 33 0!0 0!01Total contrib"tions for the comm"nity &'1 1!' 0!1 & 0 1!02 0!14a7es (e7cluding pa rol l charges) 100,0 3& !03 3'!' , 2 213!0 &0!0Total - 0 ternal social indicators 100,'3 3& ! 0 3'! ,2 21&!10 &0!2

! - 0n&ironmental ,ndicators 5i6 8, S4 8, S4

%n+es tments related to the *ompan -s production?operation 2, 2 ! 3 1!00 2,''0 '!'' 1!0&%n+es tments in e7terna l programs and?or proi ng astage,input general consumption i n production?operation and for increas ingefficienc in the use of natural resou rces, the *ompan B

( ) attains from '1 to ' ( ) attains from '1 to '

(7) attains from to 100 (7) attains from to 100

Consolidated

of of

of of

2/12 2/11

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Social balance



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5i6 na"dited information

* - 8ther information16 4he *ompan does not use child or sla+e labor, it is not in+ol+ed in prostitution or se7ual e7ploitation of children or adolescents and is not in+ol+ed in corruption!

26 4he *ompan +alues and respects di+ersit , both internall and e7ternall !

,. %t includes $K 3!3 transferred to the Fund for %nfanc and "dolescence (F%")!

,,. %nformation for the Petrobras ;roup in ra>il, related to hiring through public selection processes!

,,,. %nformation related to the emplo ees of the Parent *ompan , Petrobras Distribuidora, 4ranspetro and Ai/uigLs ho declared to be 9egroes!

,D. 8f the total leadership positions in the Parent *ompan held b emplo ees ho informed their color?race, 2&! are held b people ho declared to be 9egroes!

$ - ,ndicators for the staff 5i6

9M of emplo ees at the end of the period ',0 ' 1, 19M of hirings during the period (%%) &,01 3,&&9M of contracted emplo ees (outsourcing) 3 0,3 2 32 ,1339M of student trainees 1, '2 1, 2'9M of emplo ees older than &' 3 ,3 3 3', 29M of omen that or6 in the *ompan 1&,'3 13, 0 of leadership pos itions held b omen 1' 1&!&09M of 9egroes that or6 in the *ompan (%%%) 20,1' 1 ,& of leadership pos itions held b 9egroes (% ) 2' 2&! 0

9M of handica pped or6ers ( ) 1,120 1,10&

' - Si#nificant information >ith respect to the e ercise of corporatecitiEenship 5i6

$atio bet een the *ompan -s highest and lo est compensation ( %) 20!'& 20!'&

4otal number of or6 accidents ( %%) , 0 ,3'0

4he socia l and en+ironmental proes andencourages

( ) ill not bein+ol+ed

( ) ill gi+esupport

(N) ill organi>eand encourage

4otal number of complaints and criticisms from in the Company in Procon in co"rt in the Company in Procon in co"rt

consumersB ( %%%) 1 , '2 10 32 ,300 # #

in the Company in Procon in co"rt in the Company in Procon in co"rt

&!2 30 '3 # #

4otal a dded +alue to be distri buted (consol idated) # amountB ,n 2/12; ,n 2/11;

Distribution of added +alue' go+ernment 10 emplo ees

shar eholders 13 third parties 12 retained

1+1 *+ 1+1 /+1

of claims and cri ticis ms attended or resol+edB ( %%%)

' go+ernment 1& emplo ees' shareholders 1 third parties retained

Consolidated2/12 2/11

2/12 9oals 2/1

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Social balance



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D. %nformation related to the Parent compan , Petrobras Distribuidora and 4ranspetro, hich correspond to '! of the permanent staff in

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Petrleo rasileiro S!"! # Petrobras9otes to the financial statements (*onsolidated and Parent *ompan )

(In millions of reais, except when indicate otherwise)

20

1 The Company and its operations

Petrleo rasileiro S!"! # Petrobras is dedicated, directl or through its subsidiaries (referred to il!

2 Basis of preparation of the financial statements

4he financial statements includeB

Consolidated financial statements

4he consolidated financial statements ha+e been prepared and are being presented in accordance ith the%nternational Financial $eporting Standards (%F$S) as issued b the %nternational "ccounting Standardsoard (%"S ) and in accordance ith accounting practices adopted in ra>il!

,ndi&id"al financial statements

# 4he indi+idual financial statements ha+e been prepared in accordance ith accounting practicesadopted in ra>il, obser+ing the pro+isions contained in the ra>ilian *orporation Aa , and theincorporate the changes introduced through Aa 11, 3 ?0 and Aa 11, &1?0 , complemented b thestandards, interpretations and orientations of the "ccounting Pronouncements *ommittee (*P*),appro+ed b resolutions of the Federal "ccounting *ouncil (*F*) and b rules of the ra>ilian Securities*ommission (* 5)!

# 4he standards, interpretations and orientations of the "ccounting Pronouncements *ommittee (*P*),appro+ed b resolutions of the Federal "ccounting *ouncil (*F*) and rules of the ra>ilian Securities*ommission (* 5) con+erge ith the %nternational "ccounting Standards issued b the %nternational"ccounting Standard oard (%"S )! "ccordingl , the indi+idual financial statements do not presentdifferences ith respect to the consolidated financial statements under %F$S, e7cept for themaintenance of deferred assets, as established in *P* &3 ($1) appro+ed b * 5 deliberation '1?10!See note 3!1 for a reconciliation bet een the parent compan -s shareholders- e/uit and net incomeith the consolidated financial statements!

4he financial statements ha+e been prepared under the historical cost con+ention, as modified b certainnon#current assets and liabilities and non#current financial instruments!

*ertain amounts from prior periods ha+e been reclassified for comparabilit purposes relati+el to thecurrent period presentation! 4hese reclassifications did not affect the net income or the shareholders@e/uit of the *ompan !

4he annual financial statements ere appro+ed and authori>ed for issue b the *ompan -s oard ofDirectors in a meeting held on Februar &, 2013!

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2.1 B"siness se#ment reportin#

4he information related to the operating segments (business areas) of the *ompan is prepared based onitems directl attributable to each segment, as ell as items that can be allocated to each segment on areasonable basis!

4he measurement of segment results includes transactions carried out ith third parties and transactionsbet een business areas hich are charged at internal transfer prices defined bet een the areas usingmethods based on mar6et parameters!

%nformation per business area are prepared and reported in accordance ith the pre+ailing organi>ationalstructure, including the business areas set out belo B

a) .7ploration and ProductionB 4his segment co+ers the acti+ities of e7ploration, de+elopment andproduction of crude oil, 9;A (natural gas li/uid) and natural gas in ra>il, for the purpose of suppl ing,primaril , our domestic refineries and also selling the crude oil surplus and oil products produced in thenatural gas processing plants to the domestic and foreign mar6ets! 4he e7ploration and productionsegment also operates through partnerships ith other companies!

b) $efining, 4ransportation and 5ar6etingB 4his segment co+ers the refining, logistics, transport andtrading of crude oil and oil products acti+ities, e7porting of ethanol, e7traction and processing of shale, asell as holding interests in companies from the petrochemical sector in ra>il!

c) ;as and Po erB 4his segment co+ers the acti+ities of transportation and trading of natural gas producedin ra>il and imported natural gas, transportation and trading of A9; (li/uid natural gas), generation andtrading of electricit , as ell as holding interests in transporters and distributors of natural gas and in

thermoelectric po er stations in ra>il, in addition to being responsible for the fertili>er business!d) iofuelB 4his segment co+ers the acti+ities of production of biodiesel and its co#products, as ell as theethanol#related acti+itiesB e/uit in+estments, production and trading of ethanol, sugar and the surpluselectric po er generated from sugarcane bagasse!

e) DistributionB 4his segment includes mainl the acti+ities of Petrobras Distribuidora, hich operatesthrough its o n retail net or6 and holesale channels to sell oil products, ethanol and +ehicle natural gasin ra>il!

f) %nternationalB 4his segment co+ers the acti+ities of e7ploration and production of oil and gas, refining,transportation and mar6eting, gas and po er, and distribution, carried out outside of ra>il in a number of

countries in the "mericas, "frica, .urope and "sia!4he corporate segment comprises the items that cannot be attributed to the other segments, notablthose related to corporate financial management, corporate o+erhead and other e7penses, includingactuarial e7penses related to the pension and medical benefits for retired emplo ees and theirdependents!

2.2 Statement of added &al"e

4he statements of added +alue present information related to the +alue added b the *ompan ( ealthcreated) and ho it has been distributed! 4hese statements are presented as supplementar informationunder %F$S and ere prepared in accordance ith *P* 0 Q Statement of "dded alue appro+ed b * 5

deliberation '' ?0 !

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2. Social balance

4he Social alance presents social and en+ironmental indices, number of emplo ees and relatedinformation, as ell as rele+ant information ith respect to the e7ercise of corporate citi>enship! Someinformation as obtained through the *ompan -s subsidiar records and managerial information! Socialbalance is presented as additional information!

2.! F"nctional c"rrency

4he functional currenc of Petrobras (Parent *ompan ) and all ra>ilian subsidiaries is the ra>ilian $eal!4he functional currenc of certain subsidiaries and special purpose entities that operate in the internationaleconomic en+ironment is the =!S! dollar and the functional currenc of Petrobras "rgentina is the"rgentine Peso!

4he income statements and statement of cash flo s of non# ra>ilian $eal functional currenc subsidiaries, ilian $eal using themonthl a+erage e7change rates pre+ailing during the ear! "ssets and liabilities are translated intora>ilian $eal at the closing rate at the date of the financial statements and the e/uit items are translatedusing the e7change rates pre+ailing at the dates of the transactions or +aluation here items areremeasured!

"ll e7change differences arising from the translation of the financial statements of non# ra>ilian $ealsubsidiaries, ed as cumulati+e translation adation, decommissioning costs, pro+isions for legalproceedings, fair +alue of financial instruments, present +alue ad

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Basis of Consolidation

4he consolidated financial statements include the financial information of Petrobras, its subsidiaries andspecial purpose entities! "ccounting policies of subsidiaries and special purpose entities ha+e beenchanged, here necessar , to ensure consistenc ith the policies adopted b the *ompan ! 4hesubsidiaries and special purpose entities set out in the table belo are consolidated!

S"bsidiaries Co"ntry 2/12 2/11

Pet robra s Dis tr i bu idora S!"! # $ a nd i ts subs i di a ri es r a >i l 100!00 100!00

raspetro 8i l Ser+ices *ompan # rasoil and i ts subsi diaries (i ) *a man %sl ands 100!00 100!00

raspetro 8i l *ompan # 8* and its subs idiaries (i ) *a man %sl ands 100!00 100!00Petrobras %nternational ras petro ! ! # P% and its subsi diar ies (i) (ii) Hol land 100!00 100!00Petrobras *omerciali>adora de .nergia Atda! # P .9 (iii) ra>i l 100!00 100!00

Petrobras 9egcios .letrRni cos S!"! Q .#P.4$8 (i+) ra>i l 100!00 100!00

P etr ob ra s ;L s S!"! # ;a s petr o a nd i ts s ub si di a ri es r a>i l ! !

Petrobras %nternational Fi nance *ompan # Pif*o and i ts s ubsidiaries (i ) *a man %sl ands 100!00 100!00Petrobras 4ransporte S!"! # 4ranspetro and i ts subs idiari es ra>i l 100!00 100!00

Do ns trea m Pa rti ci pa Tes Atda ! r a>i l ! !

Pet robra s 9ether l a nds !! # P9 a nd i ts subs i di a r ies (i ) Ho l la nd 100!00 100!00

'2 3 Participa Tes Atda! ra>i l 100!00 100!00

Fundo de %n+estimento %mobiliLrio $ Aog s tica # F%% ra>i l !00 !00

a i7 ada Sa nti sta .ner gi a S!"! r a>i l 1 00 !00 10 0!0 0

Soc i edade Fl umi nense de .nergi a Atda! Q SF. r a >i l 100!00 100!00

4er mocea rL Atda ! ra >i l 100!00 100!00

4er moma ca U Atda ! ra >i l 100!00 100!00

4ermomacaU *omercial i>adora de .nergi a Atda! ra>i l 100!00 100!00

4ermobahia S!"! ra>i l ! ' ! '

%biri termo S! "! ra>i l '0!00 '0!00

P etr ob ra s i oc ombu st + el S !"! r a>i l 1 00 !0 0 1 00 !0 0

$efinaria "breu e Aima S!"! ra>i l 100!00 100!00

*ompanhia Aocadora de . /uipamentos Petrol feros S!"! Q *A.P ra>i l 100!00 100!00

*omper< Partici pa Tes S!"! ra>i l 100!00 100!00*omper< .sti rVnicos S!"! ra>i l 100!00 100!00

*omper< 5.; S!"! ra>i l 100!00 100!00

*omper< Pol iolefinas S!"! ra>i l 100!00 100!00

*ordoba Financia l Ser+ices ;mbh # *FS and i ts subsi diar (i ) "ustria 100!00 100!00

rei tener .nergUtica S!"! and its subs idiaries ra>i l 3! '!00

*a man *abiunas %n+es timent *8! (i ) *a man %sl ands 100!00 100!00

%nno+a S!"! ra>i l 100!00 100!00

*ompanhia de Desen+ol+imento de Plantas =til idades S!"! # *DP= (+) ra>i l 100!00 100!00

*ompanhia de $ecupera Wo SecundLria S!"! # *$S.* ra>i l 100!00 100!00

Petrobras Xu mica S!"! # Petro/uisa and i ts subsi diaries (+i) ra>i l - 100!00

"rembepe .nergia S!"! (+i i ) ra>i l 100!00 30!00

.nergUtica *ama ari 5uri c S!"! (+ii ) ra>i l 1! 0 & !00

*ompanhia %ntegrada 4V7ti l de Pernanbuco S!"! # *%4.P. (+i ii ) ra>i l 100!00 -

*ompanhia Petro/u mi ca de Pernanbuco S!"! # S="P. (+i i i) ra>i l 100!00 -

Petrobras Aog stica de .7plora Wo e Produ Wo S!"! # P #A8; (+ii i ) and (i7) ra>i l 100!00 -

Ai/uigLs S!"! (+ii i ) ra>i l 100!00 -

0%"ity capital - S"bscribed paidin and &otin#

(i) Foreign#%ncorporated *ompanies ith non# ra>ilian $eal consolidated financial statements!(ii) 11! interest of '2 3 Participa Tes Atda!(iii) 0!0 interest of Petrobras ;Ls S! "! # ;aspetro!(i+) 0!0' interest of Do nstream!(+) 20 interest of *omper< Participa Tes S!"!(+i) *ompanies merged into Petrleo rasileiro S!"!(+ii) "c/uisition of control ( usiness combinations)!(+iii) Direct subsidiaries as from 2012(indirect in 2011) resulting from o nership restructuring!

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Special p"rpose entities - SP0 Co"ntry

*harter De+elopment AA* Q *D* (i) =S"

*ompa nhi a de Des en+ol +i mento e 5oder ni >a Wo de P la nta s %nd us tri ai s Q *D5P% r a>i l

PD.4 8ffsh ore S!"! ra>i l9o+a 4ransportadora do 9ordeste S!"! # 949 ra>il

9o+a 4ransportadora do Sudeste S!"! # 94S ra>il

Fundo de %n+estimento em Direitos *reditrios 9Wo#padroni>ados do Sistema Petrobras ra>il

(ain acti&ity

.7ploration and Production

$efining

.7ploration and Production

Aogistics*orporate

Aogistics

(i) Foreign#%ncorporated *ompanies ith non# ra>ilian $eal consolidated financial statements!

4he consolidation procedures in+ol+e combining assets, liabilities, income and e7penses, according to theirnature and eliminating all intragroup balances and transactions, including unreali>ed profits arising fromintragroup transactions!

.1 4econciliation bet>een the parent company7s shareholders7 e%"ity and net income >ith

the consolidated financial

2/12 2/11 2/12 2/11Consolidated - ,F4S !$ ! 2 22! 2/ $ 11/ 9on#controll ing interests (2,3'&) (2,3 ') 22 3 20 3 Deferred e7penses , net of income ta7 3 1 3 (2 ) (212)

! !!/ / !*$ 2/ + $ 1/1

Shareholders: e%"ity Net income

Parent company - CPC

! S"mmary of si#nificant acco"ntin# policies

4he accounting policies set out belo ha+e been consistentl applied to all periods presented in theseindi+idual and consolidated financial statements!

!.1 Financial assets and liabilities

4.1.1 Cash and cash equivalents

*ash and cash e/ui+alents comprise cash in hand, term deposits ith ban6s and short#term highl li/uidfinancial in+estments that are readil con+ertible to 6no n amounts of cash, are subed in profit or lossY

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# Held#to#maturit securities # financial assets for hich management has the abilit and intent to hold untilmaturit ! Held#to#maturit securities are initiall recogni>ed at ac/uisition cost and are carried atamorti>ed cost using the effecti+e interest rate method! %nterest and inflation inde7ation charges arerecogni>ed in profit or lossY

# "+ailable#for#sale securities # non#deri+ati+e financial assets that are classified as a+ailable#for#sale or thatare not classified in an other categor ! "+ailable#for#sale securities are measured at fair +alue! %nterest andinflation inde7ation charges are recogni>ed in profit or lossY and gains or losses arising from measurementat fair +alue are recogni>ed ithin other comprehensi+e income, in the shareholders- e/uit andreclassified to profit or loss, in the periods hen securities are sold!

4.1.3 Trade receivables

4rade recei+ables are initiall measured at the fair +alue of the consideration to be recei+ed and,

subse/uentl , at amorti>ed cost using the effecti+e interest rate method and ades a pro+ision for impairment of trade recei+ables hen there is e+idence that someof its accounts recei+able are uncollectible, due to insol+enc , defaults or to a significant probabilit of adebtor filing for ban6ruptc or ban6ruptc protection!

4.1.4 Loans and financing (Debt

Aoans and financing are initiall recogni>ed at fair +alue less transaction costs incurred and, after initialrecognition, are measured at amorti>ed cost using the effecti+e interest rate method!

4.1.! Derivative financial instru"ents and hedge o#erations

Deri+ati+e financial instruments are recogni>ed in the statement of financial position as assets or liabilitiesand are measured at fair +alue!

4he gains or losses arising from measurement at fair +alue of deri+ati+e instruments, other than hedgingrelationships /ualified for hedge accounting are recogni>ed in profit or loss as a finance income (financee7pense)!

%n hedging relationships hich /ualif for cash flo hedge accounting, gains or losses relating to theeffecti+e portion of the hedge are recogni>ed ithin other comprehensi+e income, in the shareholders-e/uit and reclassified to profit or loss in the periods hen the hedged item affects profit or loss! 4he gainsor losses relating to the ineffecti+e portion are recogni>ed in profit or loss!

!.2 ,n&entories

%n+entories are determined b the eighted a+erage cost method and compriseB

# $a material # mainl comprises crude oil and is stated at the lo er of the a+erage cost of crude oilproduction and imports, and their net reali>able +alueY

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# Products # comprise oil products and biofuels, and are stated at the lo er of the a+erage refining orpurchase costs and their net reali>able +alueY

# 5aintenance materials and supplies Q comprise materials and supplies used in the operation of the*ompan and consumed, other than ra material, and are stated at the a+erage purchase cost, note7ceeding replacement cost!

9et reali>able +alue is the estimated selling price of in+entor in the ordinar course of business, lessestimated cost of completion and estimated e7penses to complete its sale!

%mports in transit are stated at the identified cost!

!. ,n&estments in other companies

4he *ompan accounts for its in+estments in ed as good ill inintangible assets! %n the case of a bargain purchase, a gain is recogni>ed in profit or loss hen theac/uisition cost is lo er than the ac/uisition#date fair +alue of the net assets ac/uired!

*hanges in o nership interest in subsidiaries that do not result in loss of control of the subsidiar aree/uit transactions! "n e7cess of the amounts paid?recei+ed o+er the carr ing +alue of the o nershipinterest ac/uired?disposed is recogni>ed in shareholders- e/uit as an additional paid in capital!

;ood ill arising from in+estments in associates and ed ac/uisitioncosts) are initiall capitali>ed!

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# *osts directl associated ith e7plorator ells pending determination of pro+ed reser+es are capitali>edithin propert , plant and e/uipment! .7plorator ells that ha+e found oil and gas reser+es, but thosereser+es cannot be classified as pro+ed, continue to be capitali>ed if the ell has found a sufficient /uantitof reser+es to ed lease assets are depreciated on a s stematic basis consistent iththe depreciation polic the *ompan adopts for propert , plant and e/uipment that are o ned! Cherethere is no reasonable certaint that the *ompan ill obtain o nership b the end of the lease term,capitali>ed lease assets are depreciated o+er the shorter of the lease term or the estimated useful life ofthe asset!

.7penditures on maed if the recognition criteriaare met! 4hese comprise the cost of replacement assets or parts of assets, e/uipment assembl ser+ices, asell as other related costs! Such maintenance occurs, on a+erage, e+er four ears and the respecti+ee7penses are depreciated as production costs through the date of the beginning of the follo ing stoppage!

orro ing costs directl attributable to the ac/uisition or construction of /ualif ing assets are capitali>edas part of the costs of these assets! orro ing costs of funds borro ed generall are capitali>ed based onthe *ompan -s eighted a+erage of the cost of borro ings outstanding applied o+er the balance of assetsunder construction! orro ing costs are amorti>ed during the useful life or b appl ing the unit#of#production method to the related assets!

Depreciation, depletion and amorti>ation of pro+ed oil and gas producing properties are accounted forpursuant to the unit#of#production method applied to the depreciable amount of the asset as set out asfollo sB i) Depreciation (amorti>ation) of oil and gas producing properties, including related e/uipment andfacilities is computed based on a unit#of#production basis o+er the pro+ed de+eloped oil and gas reser+es,applied on a field b field basisY ii) the straight#line method is used for other assets, such as assets ith a

useful life shorter than the life of the field or related to fields ith different de+elopment stages! iii)"morti>ation of amounts paid for obtaining concessions for e7ploration of oil and natural gas of producingproperties, such as signature bonus (capitali>ed ac/uisition costs) is recogni>ed using the unit#of#

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production method, computed based on the units of production o+er the total pro+ed oil and gas reser+es,applied on a field b field basis!

.stimates of reser+es, prepared in manner consistent ith =!S! Securities and .7change *ommission (S.*)definitions b the *ompan -s technicians, are re+ie ed at least annuall and on interim basis if materialchanges occur (for depreciation, depletion and amorti>ation purposes)!

.7cept for land ( hich is not depreciated), other propert , plant and e/uipment are depreciated on astraight line basis! See note 11 for further information about the estimated useful life b class of assets!

!.* ,ntan#ible assets

%ntangible assets are measured at the ac/uisition cost, less accumulated amorti>ation and impairmentlosses and comprise rights and concessions, including the signature bonus paid for obtaining concessionsfor e7ploration of oil and natural gas (capitali>ed ac/uisition costs) and the 8nerous "ssignment"greement, referring to the right to carr out prospection and drilling acti+ities for oil, natural gas andother li/uid h drocarbons located in bloc6s in the pre#salt area (I*essWo 8nerosaJ)Y public ser+iceconcessionsY trademar6sY patentsY soft are and good ill! %n the indi+idual financial statements, good illarising from in+estments in subsidiaries, associates and ed ithin intangible assets and aretransferred to propert , plant and e/uipment upon recognition of pro+ed reser+es!

Signature bonuses and amounts related to the 8nerous "ssignment "greement are not amorti>ed until

the are transferred to propert , plant and e/uipment! %ntangible assets ith a finite useful life, other thanamounts paid for obtaining concessions for e7ploration of oil and natural gas of producing properties, areamorti>ed o+er the useful life of the asset on a straight#line basis!

%nternall generated intangible assets other than de+elopment costs meeting recognition criteria are notcapitali>ed and are e7pensed as incurred!

%ntangible assets ith an indefinite useful life are not amorti>ed but are tested annuall for impairmentconsidering indi+idual assets or cash#generating units! 4heir useful li+es are re+ie ed annuall to determinehether e+ents and circumstances continue to support an indefinite useful life assessment for those assets!%f the do not, the change in the useful life assessment from indefinite to finite is accounted for on aprospecti+e basis!

!.+ eferred Assets

4he balance of deferred assets as of December 31, 200 is presented in the indi+idual statement offinancial positions for the parent compan and ill be amorti>ed in up to 10 ears, sub

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4he impairment test comprises a comparison of the carr ing amount of an indi+idual asset or a cash#generating unit ith its reco+erable amount! Chether the reco+erable amount of the unit is less than thecarr ing amount of the unit, an impairment loss is recogni>ed to reduce the carr ing amount to thereco+erable amount! 4he reco+erable amount of an asset or a cash#generating unit is the higher of its fair+alue less costs of disposal and its +alue in use! *onsidering the specificit of the *ompan -s assets, +alue inuse is generall used b the *ompan for impairment testing purposes, e7cept hen specificall indicated!

alue in use is estimated based on the present +alue of the ris6#aded impairment losses is permitted for assets other than good ill!

!.1/ 3eases

Aeases in hich the *ompan has substantiall all the ris6s and re ards incidental to o nership arerecogni>ed as finance lease liabilities! Chen the *ompan is the lessor the finance lease is recogni>ed as arecei+able!

%f a lease does not transfer all the ris6s and re ards, it is classified as an operating lease! 8perating leasesare recogni>ed as e7penses on a straight#line basis o+er the period of the lease!

!.11 ecommissionin# costs

Decommissioning costs are future obligations to perform en+ironmental restoration, dismantle andremo+e a facilit as it terminates operations due to the e7haustion of the area or to economic conditions!*osts related to the abandonment and dismantling of areas are recogni>ed as part of the cost of an asset(associated ith the obligation) based on the present +alue of the e7pected future cash outflo s,discounted at a ris6#free credit ad

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!.12 ,ncome ta 5,46 and social contrib"tion on profits 5CS336

%ncome ta7 e7pense for the period comprises current and deferred ta7! 4he *ompan has adopted the4ransition 4a7 $egime in ra>il ($44) in accordance ith Aa 11, &1?0 and therefore the ta7able profit iscomputed based on the criteria of Aa ,&0&? before the amendments introduced b Aa 11, 3 ?0 !4emporar differences arising from the 4ransition 4a7 $egime ere recogni>ed as deferred income ta7esand liabilities!

4a7able profit differs from accounting profit due to certain aded for temporar ta7 differences, a+ailable ta7 lossesand ta7 credits! Deferred ta7 assets are recogni>ed onl to the e7tent that it is probable that ta7able profitill be a+ailable against hich the deductible temporar differences can be utili>ed!

!.1 0mployee benefits 5Post-0mployment6"ctuarial commitments related to post#emplo ment benefit plans and health#care plans are recogni>ed asliabilities in the statement of financial position based on actuarial calculations hich are re+ised annuallb an independent actuar , using the proed in profit or loss!

=nder the pro

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%nterest on capital is a form of di+idend distribution hich is deductible for ta7 purposes in ra>il! 4a7benefits from the deduction of interest on capital are recogni>ed in profit or loss!

!.1$ 9o&ernment #rants

" go+ernment grant is recogni>ed hen there is reasonable assurance that the grant ill be recei+ed andthe *ompan ill compl ith the conditions attached to the grant!

;o+ernment grants are recogni>ed in profit or loss on a s stematic basis o+er the periods in hich the*ompan recogni>es the related costs hich the are intended to compensate as e7penses! ;o+ernmentgrants related to assets are initiall recogni>ed as deferred income and thereafter are transferred to profitor loss o+er the useful life of the asset on a straight#line basis!

!.1' 4eco#nition of re&en"e costs and e penses

$e+enue is recogni>ed hen it is probable that the economic benefits associated ith the transaction illflo to the *ompan and the amount of re+enue and the costs incurred or to be incurred in thetransaction can be reliabl measured! $e+enue is measured at the fair +alue of the consideration recei+edor recei+able for products sold and ser+ices pro+ided in the normal course of business, net of returns,discounts and sales ta7es!

$e+enue from the sale of crude oil and oil products, petrochemical products, natural gas, biofuels andother related products are recogni>ed hen the *ompan retains neither continuing managerialin+ol+ement nor effecti+e control o+er the products sold and the significant ris6s and re ards ofo nership ha+e been transferred to the customer, hich is usuall hen legal title passes to thecustomer, pursuant to the terms of the sales contract! Sales re+enues from freight and other ser+icespro+ided are recogni>ed based on the stage of completion of the transaction!

Finance income and e7pense mainl comprise interest income on financial in+estments and go+ernmentbonds, interest e7pense on debt, gains and losses on mar6etable securities measured at fair +alue, as ellas net e7change and inflation inde7ation charges! Finance e7pense does not include borro ing costsdirectl attributable to the construction of assets that necessaril ta6e a substantial period of time tobecome operational, hich are capitali>ed as part of the costs of these assets!

$e+enue, costs and e7penses are recogni>ed on the accrual basis!

!.1* Ne> standards and interpretations

9e standards and amendments to standards and interpretations issued b the %nternational "ccountingStandards oard (%"S ) effecti+e for annual periods beginning on :anuar 1, 2012, none of hich had asignificant effect on the consolidated financial statements for 2012, are set out belo B

"mendments to %F$S B IDisclosuresB 4ransfers of Financial "ssetsJ!

"mendments to %"S 12 Q IDeferred 4a7 $eco+er of =nderl ing "ssetsJ! %t establishes criteria for calculatingthe ta7 base of an asset!

" number of ne standards and amendments to standards and interpretations issued b the %nternational"ccounting Standards oard (%"S ) are effecti+e for annual periods beginning after :anuar 1, 2012 as set

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out belo ! 4he ha+e not been applied in preparing these consolidated financial statements at December31, 2012!

Standards Brief description 0ffecti&e ate 5 6

"mendment to %"S 1

ZFinancial statement presentation-, regarding other comprehensi+e income$e/uires for entities to group items presented in Zother comprehensi+e income- (8*%)

on the basis of hether the are potentiall reclassifiable to profit or loss subse/uentl(reclassification ading actuarial gains or losses, and re/uire

the calculation of finance costs on a net funding basis!Simplifies the presentation of changes in assets and liabilities of defined benefit plans

and e7pands the disclosure re/uirements!

:anuar 1, 2013

%F$S 10

[*onsolidated Financial Statements[Defines principles and re/uirements for the preparation and presentation of

consolidated financial statements hen an entit controls one or more other entities!.stablishes the concept of control as the basis for consolidation and sets out ho to

appl the principle of control to identif hether an in+estor controls an in+estee andtherefore must consolidate the in+estee!

:anuar 1, 2013

%F$S 11

I:oint "rrangementsJ.stablishes principles for disclosure of financial statements of entities that are partiesof

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Standards Brief description 0ffecti&e ate 5 6

%F$S

[Financial instruments[ and "mendments%F$S retains but simplifies the mi7ed measurement model and establishes t o

primar measurement categories for financial assetsB amorti>ed cost and fair +alue!4he basis of classification depends on the entit -s business model and the contractual

cash flo characteristics of the financial asset!4he guidance in %"S 3 on impairment of financial assets and hedge accounting

continues to appl ! 4he "mendment postpones the date of enforcement from 2013 to201' ! "lso eliminates the re/uirement for republication of comparati+e information

and re/uires additional disclosures about the transition to %F$S !

:anuar 1, 201'

(G) .ffecti+e for annual periods beginning on or after these dates!

4he estimated impact that initial application of "mendments to %"S 1 is e7pected to ha+e, due to theelimination of the corridor method ( hich allo ed companies to defer actuarial gains and losses) is anincrease of $K 21!1 billion in our net actuarial liabilit , as ell as a corresponding increase of $K !1 billion

in our deferred ta7 assets and a decrease of $K 1' billion in the shareholders@ e/uit of the *ompan !

9one of the other amendments and ne standards listed abo+e is e7pected to ha+e a significant effect onthe consolidated financial statements!

$ Cash and cash e%"i&alents

2/12 2/11 2/12 2/11

*ash at ban6 and in hand 2,02& 3, 31 2

Short#term financi al in+estments

- In Brazil

5utual funds # %nterban6 Deposit 1 ,' 10,301 1',' 0 ,210 8ther in+estment funds ' &,2 ' & 2, 23

1* !!$ 1! $*' 1' /'+ 11 +

- Abroad ,1' 1 ,&&0 1,2' ,3'3

4otal financial in+estments 2$ '/! 2 /1' 1* 2* 1+ 1+'

Total cash and cash e%"i&alents 2* '2+ $ *!* 1* 1+ +$+


Short#term financial in+estments in ra>il comprise mutual funds mainl composed b ra>ilian Federal;o+ernment onds! %n the Parent *ompan the also include in+estments in recei+ables in+estment funds(F%D*) of the Petrobras group!

Short#term financial in+estments abroad comprise time deposits that ha+e maturities of three months orless and other short#term fi7ed income instruments from highl #ran6ed financial institutions!

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' (ar)etable sec"rities

2/12 2/11 2/12 2/114rading securities 20, 1 , ' 20, 1 , ' "+ailable#for#sale securties & ',& 1 1 ',210 Held#to#maturit s ecurities 2 2 1 2,' , &

21 '*$ 22 $$$ 2 ''* 2+ +!! C"rrent 21 1' 1' +/+ 2 * 2 '2$ Non-c"rrent $ $ *!* 2++ $ 21


4rading and a+ailable#for#sale securities refer mainl to in+estments in go+ernment 4reasur notes thatha+e maturities of more than 0 da s! 4he current asset classification reflects the e7pectation of theirreali>ation in the short term!

"+ailable#for#sale securities include ra>ilian ;o+ernment 4reasur 9otes pre+iousl pledged as collateralto Petros (9ote 20!1)!

Held#to#maturit securities of the Parent *ompan include in+estments in the non#standardi>ed recei+ablesin+estment fund (F%D*#9P) in the amount of $K 2,3 0 at December 31, 2012 and are presented in currentassets!

* Trade recei&ables

*.1 Trade recei&ables net

2/12 2/11 2/12 2/11

4rade recei+ables 4hird parties 22,0&0 1 ,3& ',233 3,20

$elated parties (9ote 1 ) Subsidiaries,

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35

*.2 Chan#es in the pro&ision for impairment of trade recei&ables

2/12 2/11 2/12 2/118penin# balance 2 * / 2 '+1 !/2 !'' "dditions 5 6 ' ' 2 23 Crite#offs ? $e+ersals 5 6 (&10) (& ) (2 ) (302) Closin# balance 2 '* 2 * / !12 !/2

C"rrent 1 *!' 1 '+$ !12 !/2 Non-c"rrent 1 221 1 1/$ - -


(G) %t includes e7change differences arising from translation of the pro+ision for impairment of trade recei+ables in companies abroad!

*. Trade and other recei&ables o&erd"e 5Third parties6

2/12 2/11 2/12 2/11 =p to 3 months 1,' 2 1,&11 1,0 0 00 From 3 to months 31 21' 1 1 2 From to 12 months 3 0 2 & 210 & 5ore than 12 months 3,2&3 2, 2 & ' &&

$ $/! ! +*2 1 2' 1


+ ,n&entories

2/12 2/11 2/12 2/11ProductsB

8il products 5 6 12,01 ,1 10,21 ,''0 Fuel "lcohol 5 6 330 2 1'' 2

12,3& , & 10,3 1 , 3

$a materials, mainl crude oil 5 6 13,1 & 1&, & 11,200 11, 1

5aintenance materials and supplies 5 6 3, & 3,3 3,3 2, 11 8thers &'2 3 23 33

2 +2+ 2+ $ 1 2! +/ 22 $/1

C"rrent 2 * ' 2+ !!* 2! /+ 22 ! ! Non-c"rrent 2 +! *2 '*

=SD 0


5 6 %t includes imports in transit!

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36

(er#ers split-offs and other information abo"t in&estments

Merger of $etroquisa and s#lit%off of &'

8n :anuar 2 , 2012, the .7traordinar ;eneral 5eeting of Petrobras appro+ed the merger of PetrobrasXu mica S!"! (Petro/uisa) into Petrobras, the partial split#off of $\ %n+estimentos Petro/u micos S!"! ( $\)and the merger of the split#off portion into Petrobras, ithout capital increase!

)igning of settle"ent agree"ent * $asadena 'efiner+

8n :une 2 , 2012, the *ompan entered into an out#of#court settlement to terminate all e7isting la suitsbet een its subsidiaries and elgium-s 4ranscor?"stra ;roup, hich controls "stra 8il 4rading 9 ("stra),including those related to the arbitration process hich, in "pril 200 , recogni>ed the e7ercise of "stra-sput option for its sta6e ('0 ) in Pasadena $efining S stem %nc and P$S% 4rading *ompan to Petrobras"merica S!"! # P"%!

4he amount of =SK 0 ($K 1&0) as recogni>ed in profit or loss in the second /uarter of 2012, and theremaining portion had been recogni>ed in prior periods! 4he total determined in the agreement as =SK20!'! "fter the e7ecution of the settlement agreement and the pa ment of the respecti+e amount (paidhen the agreement as signed), both parties ga+e full and general release of all issues under disputebet een them!

,air -alue ##raisal of /&D

4he appraisal of the fair +alue of the assets ac/uired and the liabilities assumed from the subsidiar ;Ls

rasiliano Distribuidora S!"! Q ; D as concluded in :une 2012! Petrobras ;Ls S!"! # ;aspetro ac/uired100 of ; D-s shares in 2011! 4his appraisal resulted in a purchase price allocation of the total amount of$K &&& (e/ui+alent to =SK 2 0 million) to intangible assets of $K 332 and other assets and liabilities, net of$K 112! 4herefore, no good ill as recogni>ed!

$etrobras Log0stica de #lora o e $rodu o ). . % $&L5/

8n :ul 31, 2012, "lberto Pas/ualini S!"! # $.F"P as renamed .mpresa de Aog stica de .]P S!"!, aftertransferring its refining assets to Petrobras, ith the obil! 4he shareholders- e/uit of the compan (that has not etstarted to operate) as not affected b the transfer of assets! 8n 9o+ember 1, 2012 .mpresa de Aog stica

de .]P S!" as renamed Petrobras Aog stica de .7plora Wo e Produ Wo S!"! # P #A8;!

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37

1/ ,n&estments

1/.1 ,nformation abo"t s"bsidiaries ?ointly controlled entities and associates

Commonshares

Preferredshares Shareholders7

e%"ity 5deficit6

Net income5loss6 for the

year

S"bsidiariesPetrobras 9etherlands ! ! # P9 100!00 10,&' &1, 0 # # 21,0&& ',0' $efinaria "breu e Ai ma S!"! 100!00 11,01& 11,013, 1' # # 10,' (''') Petrobras Dis tribuidora S!"! # $ 100!00 &,1 2 3&, , & # # 10,3' 1, 1 Petrobras ;Ls S!"! # ;aspetro ! , ' 3,1 0 # & 10,322 1,'3 Petrobras 4ransporte S!"! # 4ranspetro 100!00 2, & 2, & ,300 # # 3, 0 20 Petrobras Aog s ti ca de .7plora Wo e Produ Wo S!"! # P #A8; 100!00 3,1 2 2,3 , # # 3,&3' Petrobras %nternati onal Finance *ompan # Pi f*o 100!00 '31 300,0'0 # # (2,' ) (1,013) Petrobras i ocombust +el S!"! 100!00 2,' 2' ,''0 # # 1, 1 (21 ) *ompanhia %ntegrada 4V7ti l de Pernambuco S!"! # *i tepe 100!00 2,12 2,12 ,22 # # 1, 01 11 *ompanhia Aocadora de ./uipamentos Petrol feros S!"! # *A.P 100!00 2 1 , # # 1,'03 3 *ompanhia Petro/u mi ca de Pernambuco S!"! # Petro/u micaSuape 100!00 1, 2 1, 1,'20 # # 1,&0& ( 3) Petrobras %nternati onal raspetro # P% !12 2, 3 # # '' Ai /ui gLs Di stri bui dora S!"! 100!00 ' 1 ,1&' # # & 1

4ermomacaU Atda! ! 3& 3&,01' (G) # 1 *omper< Pol iol efinas S!"! 100!00 '1 ',10 # # '1 # rei tener .nergUtica S!"! 3! ' 2 & &,& 0 # # '0 30 %998 " S!"! 100!00 30 ' , 00 # ', & &31 4ermocearL Atda! 100!00 2 ' 2 ',22 (G) # 3&3 & Petrobras *omercial i>adora de .nergia Atda! # P .9 ! 1 21 21 , '2 (G) # 2' 2' "rembepe .nergia S!"! 100!00 2 1 ,2 0,21 # # 22 3' ai7ada Santi s ta .nergia S!"! 100!00 2 2 ,13 # # 21 (2&) Sociedade Fluminense de .nergia Atda! # SF. ! ' '','' (G) # 1'3 11 4ermomacaU *omercial i >adora de .nergia Atda 100!00 ,' (G) # 1& '2 3 Parti ci pa Tes Atda! 100!00 1,&23 1,&22, 03 (G) # 11' .nergUtica *ama ari 5uri % Atda! 1! 0 120, 3' # # 101 & *omper< .s tirVnicos S!"! 100!00 , 3 # # # Fundo de %n+es timento %mobi l iLrio $ Aog s tica # F%% !00 1 11 ,12 (G) # ( 2) ( 3) *omper< 5.; S!"! 100!00 , # # # 4ermobahia S!"! ! ' 312 '2 # # 1 20 *ordoba Financi al Ser+ices ;mbH 100!00 ' 1 (GG) # & (1) *a man *abiunas %n+estment *o! 100!00 # 100 (GG) 2','00 &3 21 Petrobras 9egcios .l etrRnicos S!"! # .#Petro ! ' 21 21,000 # # 2 1

*ompanhia de Desen+ol+i mento de Plantas =ti l idades S!"! # *DP= 0!00 2' 2',001 # # 2& # raspetro 8i l Ser+ices *ompan # rasoi l 100!00 3'1 10 ,210 # # (1&) (2&&) *ompanhia de $ecupera Wo SecundLria S!"! # *$S.* 100!00 # &3,&' # # # *omper< Parti cipa Tes S!"! 100!00 22 2,1'0 # # (2) (1&) Do nstream Parti cipa Tes Atda! ! 1 1,&12 (G) # (1) 2' raspetro 8i l *ompan # 8* 100!00 # 1 (GG) # # #

=ointly controlled entities=4. 9orte Fluminense S!"! 10!00 & 1 & 1,&32 # # 3' 131 4ermoa u S!"! ! 00 , 3 # # &0 1 FLbrica *ari oca de *atal i>adores S!"! # F** '0!00 120 '02,1&' # # 2 2 '' Aogum Aog s ti ca S!"! 20!00 300 &30,'' # # 212 ('2) ras il P*H S!"! & !00 10 &,1 # 1&, && 1 & *ia .nergUtica 5anauara S!"! &0!00 '0 &',000 # # 1'' 1 %bi ri termo S!"! '0!00 , '2 # # 112 &2 Petroco/ue S!"! %nd^stria e *omUrci o '0!00 '0 30,222 # # 10 1 ras mpe .nergia S!"! 20!00 2 2 0,000 # # 3 Parti cipa Tes em *ompl e7os i oenergUti cos S!"! # P* %8S '0!00 3 2, '0 # # 2 # $efinaria de Petrleo $iograndense S!"! 33!20 32 ',1' # 1',2 ' 12 5.4"98$ S!"! # 5etanol do 9ordeste 3&!'& , 3 # 1 ,3 &' ( ) *ompanhia de *o/ue *alcinado de Petrleo S!"! # *8X=.P"$ &'!00 2 2,0' # # &' (2) .l ica 5angue Seco & # ;eradora e *omerci ali >adora de .nergi a .l Utri ca S!"! & !00 &0 3 , 1 # # &2 1 rentech .nergia S!"! 30!00 30 2', 01 # # &0 13 .l ica 5angue Seco 3 # ;eradora e *omerci ali >adora de .nergi a .l Utri ca S!"! & !00 3 3 , 11 # # 3 (2) .l ica 5angue Seco 2 # ;eradora e *omerci ali >adora de .nergi a .l Utri ca S!"! '1!00 3' 3',3'3 # # 3' (3) .l ica 5angue Seco 1 # ;eradora e *omerci ali >adora de .nergi a .l Utri ca S!"! & !00 3' 3',&33 # # 3& (1) ;9A do 9ordeste Atda! '0!00 # ,'0 (G) # # #

S"bscribedcapital at

ecember 12/12

Tho"sands of shares

Petrobras:o>nership

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38

Commonshares

Preferredshares

Shareholders7e%"ity 5deficit6

Net income5loss6 for the

year

Associates

ras6em S!"! 3 !20 ,0&3 &'1, 3&',' ,2 ' (GGG) ( 2) (GGG)

Fundo de %n+estimento em Participa Tes de Sondas '!00 1, 1 ', & (G) # 1, 20 Sete rasil Participa Tes S!"! '!00 2,021 101,0'0 # 1, 2 ('1) =.; "raucLria Atda! 20!00 0 0 ,&&0 (G) # 2 Deten Xu mica S!"! 2 ! 213 ,32 , # 313 '& .nergUtica S="P. %% 20!00 1&0 13 , # 1& 3 4ermoelUtrica Potiguar S!"! # 4.P 20!00 3 11,2' # & ( ) *ompanhia .nergUtica Potiguar S!"! 20!00 1 # & ' 9itroclor Atda! 3 ! 0 10 10,330 (G) # 1 # ioenergUtica ritarumW S!"! 30!00 # 110 # # #

Petrobras:o>nership

S"bscribedcapital at

ecember 12/12

Tho"sands of shares

(G)Xuota(GG) Aot of one share(GGG) "s of 0 ?30?12 Q Date from latest financial reports a+ailable to the mar6et!

1/.2 Chan#es in the ,n&estments 5Parent Company6

Balance at12@ 1@2/11

Ac%"isitionand payin# in

of capitalAdditional

paid in capitalCorporate restr"ct"rin#@share capital decrease

0%"ityacco"ntin#

8thercomprehensi&e

income i&idendsBalance at

12@ 1@2/12

S"bsidiariesP9 13, &0 2 & # ',1 1 1,'3 # 20,'12$efinaria "breu e Aima 2, ,12' # # (''') # # 10,'Petrobras Distribuidora , 0 # # ( 1) 1, 1 32 ( ) 10,22&;aspetro 10,' & 2 2 3 (12) 1,'3 # (2,0 ) 10,3224ranspetro 3,1& 3' # # 1 (&2&) 3,P Aog # # # 3,&21 22 # ( ) 3,&3'P %8 1,& 3 (22) # (21 ) (') # 1, 1*itepe # 1,1 0 # 10 11 # # 1, 01*A.P 1,& 3 # # # 3 # (10) 1,'02Petro/u micaSuape # 2 # ' ( 3) # # 1,&0&

P% &00 # # & 1 (12 ) # '3Ai/uigLs # # # ' 1 # (11) &4ermomacaU Atda &3 # # # 1 # (13 ) '*85P.$: Poliolefinas '1 # # # # # # '1reitener 30 &33 (&) # 1 # # &%998 " 3 # # # # (1&) &314ermocearL 31 # # # & # (&0) 3&3P .9 2 0 # # # 2' # (3 ) 2'"rembepe # 1 # # 3 # # 223ai7ada Santista 2&1 # # # (2&) # # 21Petro/uisa &,'1 # # (&,'1 ) # # # #Do nstream 1,12& 2,300 # (3,&' ) 3' # # #8ther s"bsidiaries ' 1 2 & 2 # 3 & ( ) (1 23 ) 0

=ointly controlled entities 1,0'1 & # 20 11& # ( ) 1,2

Associates 1 , &3 1 ' (' ) 2,1 3 (2 31 ) 2 & (1 0 ) 3 ,' '$$ 2 1! $ * 1*/ 51 / '$6 '1 / 1 !* / 5 +! 6 * ' 2$ '

2/12 2/11

Subs idi ari es , < oi ntl control led enti ti es and as soci ates ,2 ' '',323 ;ood ill 3,1 0 3,0' =nreali>ed profits # Parent compan (1,1&3) (1,3&0) 8ther in+estments 1 ' 200 Total in&estments *+ !++ $* 2

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39

1/. ,n&estments 5Consolidated62/12 2/11

Associates and ?ointly controlled entitiesPetrochemical in+estments ', 3 ,22 ;as distributors 1,13& 1,0' ;uarani S!"! ' & 4ermoa u S!"! '& '3 Petroritupano # 8rielo & &' 9o+a Fronteira ionergia S!"! &1& &3& Petro a u # Aa *oncepcin 3 & 330 Distrilec S!"! & 21 Petro6ari_a # 5ata 1'& 1 ' =.; "raucLria 131 12

4ransierra S!"! 1&2 122 8ther associates and ation of profit reser+es, as appro+ed b an.7traordinar ;eneral 5eeting held along ith the "nnual ;eneral 5eeting on 5arch 2 , 2012! 4his capitali>ation as carried out b theissuance of 1,00 , 1 ,&10 ne class common shares! 4his transaction did not affect the *ompan @s shareholders@ e/uit !

4he mar6et +alue of these shares does not necessaril reflect the reali>able +alue of a large bloc6 of shares!

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40

1/.$ S"mmariEed information on ?ointly controlled entities and associates

4he *ompan in+ests in il and abroad, hose acti+ities arerelated to petrochemical companies, gas distributors, biofuels, thermoelectric po er stations, refineriesand other acti+ities! Summari>ed accounting information is set out belo B

,n BraEil Abroad ,n BraEil Abroad

*urrent assets &,333 1,' 1 1&, 10 ','' 9on#current assets 1, '0 3&& ,' 1 3& Propert , plant and e/uipment, net ,& &, 21 2&,21 &,1&1 8ther non#current assets 2, 11 13& ,1 1

1$ '*2 ' *+/ $! */1 1/ /$!

*urrent liabilities &,2'' 2, 0 1&,13 &, &3 9on#current liabilities 3,' ' 1, 3 22,& ' 1, 3' Shareholders@ e/uit , &2 1, ' 1 , 3, 9on#controlling interest 0 '2 #

1$ '*2 ' *+/ $! */1 1/ /$!

Sales re+enues 11,2& 2,&1 3 ,0 1 1,2'0 9et %ncome for the ear & 11 ( 0) 2&3 8 nership interest # From 10 to 3 From 22 to '0 From ' to &3 From 22 to '0

2/12=ointly controlled entities Associates

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41

11 Property plant and e%"ipment

11.1 By class of asset

Parent company

3and b"ildin#sand

impro&ements0%"ipment and

other assetsAssets "nder

constr"ction 5 6

0 ploration andde&elopment

costs 5oil and #asprod"cin#

properties6 Total TotalBalance at =an"ary 1 2/11 + *$' * 1*! 1 + $*+ ' 22 2+/ * * 1+ 12 "ddi tion s 1 2, 30 '3, 0 3,2 0 ' , &2,222 "ddi ti ons to decommi ss ioni ng a ss ets ? re +i e of es ti ma t # # # 2,'32 2,'32 2,3 2 *api ta l i >ed b orro in g cos ts # # ,32' # ,32' ', us ines s combi na tio ns # # 2& # 2& #

Crite#offs (&1) (&21) (2,221) (' 1) (3,2 &) (2,2' ) 4rans fers &,20' 31,2 3 (&0,2 &) 12,3 & ,' 2,221

Depreciation , amorti>ation and depl etion ( ) ( , ) # ( , 0) (1 ,22 ) (12,3 ) %mpa irment # recogni tion # ( 1) (2 ) (3 1) ( ' ) (& 3) %mpa irment # re+ers a l 3 2 # 1 *umul a ti +e tra ns la tio n adation and depletion 5$ !$'6 5+ '$+6 - 5$ 22'6 51!+ !/6 511/ '126 Balance at ecember 1 2/12 1' '+! 1'' *2 1'' +*+ '+ 1+2 !1+ *1' 2* +2!

Hei#hted a&era#e of "sef"l life in years 2' (2' to &0) 20 (3 to 31)=nits of

productionmethod

e7cep t l a nd (GG)

Consolidated

5 6 %t includes oil and gas e7ploration and de+elopment assets!(GG) %t includes assets depreciated based on the units of production method!

"t December 31, 2012, consolidated and parent compan propert , plant and e/uipment include assetsunder finance leases of $K 20 and $K 10,2 , respecti+el ($K 1 and $K 10, 21 at December 31, 2011)!

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42

11.2 0stimated "sef"l life - Consolidated

0stimated "sef"l life CostAcc"m"lateddepreciation

Balance at12@ 1@2/12

' ears or l ess 10, '3 ( ,& &) &,& # 10 ears &1,1 2 (1 , 03) 22,&

11 # 1' ears &,033 (1, 0 ) 2,32& 1 # 20 ears ,20& (1 ,03 ) '1,1 21 # 2' ears '0, 1 (13, 0) 3 ,201 2' # 30 ears & ,10 ( ,'&2) &0,' '

30 ears on ards ',' (3,22 ) 2,3 =ni ts of production method &1,10& (1 , 0) 21,&&&

2*1 1 2 5+ 11!6 1+2 /1+

ui ldings and i mpro+ements 20,'02 (',&' ) 1',0&

./uipment and other assets 2'0, 30 ( 3, ' ) 1 , 2

B"ildin#s and impro&ements e%"ipment and other assets

11. ,mpairment of assets

,mpairment

%n 2012 the *ompan recogni>ed impairment losses relating primaril to mature producing fields in ra>il($K 2 &) and to the re+ie of the cash flo s e7pected to be generated b the =!S! Pasadena $efineroperations ($K & &)!

$e+ersals of impairment ere recogni>ed in 2012 as the assessments re+ealed that impairment lossesrecogni>ed in prior periods related to certain oil and gas fields in ra>il ($K 22&) and in the SuapePetrochemical *omple7 ($K 2 ) decreased or no longer e7ist!

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43

12 ,ntan#ible assets

12.1 By class of AssetsParent company

Ac%"iredBalance at ecem ber 1 2 /1 / *+ 1 / 2 / 1 '1 / ' +/ + * ** /$ "ddition 11 0 33 1 1,1&3 &1 1 "c /uis i tion through bus ines s combina tion # # # & & # *ap i ta l i>ed bor ro ing costs # # 3 # 3 3

C ri te#offs (2 3) (' ) (12) # (2 0) (1 2) 4ra ns fers ( 2) 1 (3 ) (& ) (113) ( 2) "morti>a tion (&&) (113) (3&1) # (& ) (3 )

%mpa irment # recognition (2) # # # (2 ) # *umula ti+e tra ns la tion a ded borro ing cos ts # # 30 # 30 30 C ri te#offs (22 ) (3 ) ( ) # (23 ) (231) 4ra ns fers (1 ) 23 (1 ) (2 ) (3 ) (2' ) "morti>a tion ( 1) (11 ) (2 ) # (& ) (3 0) %mpa irment # re+ersa l 12 # # # 12 # *umula ti+e tra ns la tion a d

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44

%f the re+ie determines that the +alue of ac/uired rights are greater than initiall paid, the *ompan mabe re/uired to pa the difference to the Federal ;o+ernment, or ma proportionall reduce the total+olume of barrels ac/uired in the terms of the agreement! %f the re+ie determines that the +alue of theac/uired rights are lo er than initiall paid b the *ompan , the Federal ;o+ernment ill reimburse the*ompan for the difference b deli+ering cash or bonds, sub

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45

12.$ Ser&ice concession a#reement - istrib"tion of piped nat"ral #as

"t December 31, 2012, intangible assets include ser+ice concession agreements related to piped naturalgas distribution in ra>il, in the amount of $K & maturing bet een 202 and 20&3, hich ma bee7tended! "ccording to the agreements, distribution ser+ice can be pro+ided to industrial, residential,commercial, automoti+e, air conditioning, transport, and other sectors!

4he consideration recei+able is a factor of a combination of operating costs and e7penses and returns oncapital in+ested! 4he rates charged for gas distribution are sub

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46

1 0 ploration for and e&al"ation of oil and #as reser&es

4he e7ploration and e+aluation acti+ities include the search for oil and gas from obtaining the legal rightsto e7plore a specific area until the declaration of the technical and commercial +iabilit of the reser+es!

5o+ements on capitali>ed costs directl associated ith e7plorator ells pending determination of pro+edreser+es and the balance of amounts paid for obtaining rights and concessions for e7ploration of oil andnatural gas (capitali>ed ac/uisition costs) are set out in the table belo B

2/12 2/11

CapitaliEed 0 ploratory Hell Costs @ CapitaliEed Ac%"isition Costs 5 6

Property plant and e%"ipment

Balance at =an"ary 1 1 , 3 12, "ddi ti ons to capi ta li >ed cos ts pendi ng determi nati on of pro+ed res er+es 12, 2 10,& ' *apitali>ed e7plorator costs charged to e7pense (',&3 ) (2,33&) 4ransfers upon recognition of pro+ed reser+es (',13 ) (2, ) *umulati+e translation aded and subse/uentl e7pensed in the same period ha+e been e7cluded from the table abo+e!(GG) 4he balance of intangible assets comprises mainl the amounts related to the 8nerous "ssignment "greement (note 12!2)!

.7ploration costs recogni>ed in profit or loss and cash used in oil and gas e7ploration and e+aluationacti+ities are set out in the table belo B

2/12 2/11

0 ploration costs reco#niEed in profit or loss # #

;eological and geoph sical e7penses 1, & 1, 23 .7pl or ati on e7pendi tur es r itten off (i ncl udes dr el ls a nd si gna tur e bonus es ) ', 2 2,'0& 8ther e7ploration e7penses 1 ' 1 0 Total e penses * * * ! *

2/12 2/11Cash "sed in acti&ities

8perating acti+i ties 2,22 1, ' %n+estment acti+i ties 12, 2 10,& ' Total cash "sed 1$ 2/+ 12 !1

Consolidated

Consolidated

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47

1 .1 A#in# of CapitaliEed 0 ploratory Hell Costs

"n aging of the number of ells and the capitali>ed e7plorator ell costs based on the drilling completiondate, as ell as the number of proed for a periodgreater than one ear are set out in the table belo B

A#in# of capitaliEed e ploratory >ell costs 5 6@5 6

2/12 2/11*apitali >ed e7plorator ell costs that ha+e been capital i>ed for a period of one ear , 21 ', 3 *apitali >ed e7plorator ell costs that ha +e been capital i>ed for a period greaterthan one ea r 13,13 13,0&&

21, 0 1 , 3

N"mber of pro?ects that ha&e e ploratory >ell costs that ha&e been capitaliEedfor a period #reater t han one year 1& '

Consolidated

(G) "mounts paid for obtaining rights and concessions for e7ploration of oil and natural gas (capitali>ed ac/uisition costs) are not included!

,n tho"sand N"mber of4< >ells

2011 &,'23 2 2010 2,21& 2& 200 2,0 3& 200 1,20' 11 200 and pre+ious ea rs 3,12 1 0ndin# balance 13,13 1&

8f the amount of $K 13,13 for 1&' pro

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Petrleo rasileiro S!"! Q Petrobras9otes to the financial statements (*onsolidated and Parent *ompan )


48

1$ Finance ebt

2/12 2/11 2/12 2/11 2/12 2/11 2/12 2/11Abroad

Financial institutions ,&2 13, &1 '1,&0 3 ,' 0 10 3&& 1&,23 13,1 3 earer bonds # 9otes, ;lobal 9otes and onds 2,'1& 03 3,&13 3 ,&&1 1,'0 # 13 2,1 2 4rust *ertificates # Senior?:unior # # # ' # # # # %ntercompan Aoans (9ote 1 !1) # # # # # # 21, 2 # Prepa ment of e7ports (9ote 1 !1) # # # # &,033 # # # 8thers '00 12 ' 1 0 # # # #

12 !!2 1! !$' 11! +2! ** 22' $ '$1 !! ' 11 1$ !$

,n BraEil.7port *redit 9otes 2 1 13' 12, ' 12, 2 2 ' 13' 12, ' 12, 2 9D.S 1, 1& 1, 1 &&,111 3 ,3 ' 3 1 303 1 ,1 3 10,22& Debentures 2 1, '3 0' 3 2 1, 00 100 1 F%9"5. 31 31 an6 *redit *ertificate 102 '1 3, 0 3, 0 31 '2 3, 0 3, 0 "ss ignmet of non#performing recei+ables (F%D*#9P) (9ote 1 !2) # # # # ,0 0 , 3 # # 8thers 3 ' 1 &,111 3,& 2 # # # #

2 +!1 ! !2+ '$ ! $ 1* +'+ 11 /+ '/ 2* *1/ 1$ 2+ 1+ ++! 1+/ +1+ 1 ' !/$ 1$ $1 12 2$2 */ 2*1 ! /$$

%nterest e7pense on debt 2,0 1 1, & 0 '1& Aong#term debt due ithin one ear (principa l) ', 11 , 21 1, 20 2,0 Short#term debt ,& 1 10,31' 13,0 3 , 3

1$ 2+ 1+ ++! 1$ $1 12 2$2

Parent companyC"rrent liabilities Non-c"rrent

ConsolidatedC"rrent liabilities Non-c"rrent

1$.1 Sched"led mat"rity dates of non-c"rrent debt 5principal and interest accr"ed6

Consolidated Parent company201& ,'3' 2, & 201' 1&,' 0 3,31 201 2 , 2& 13, 201 1 ,1 ,12 201 and thereafter 110, 13 &3,1 2 4otal 1+/ +1+ */ 2*1

2/12

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b 6n &ra7il

Company ate Amo"nt (at"rity escription

Fundo de%n+estimento%mobiliLrio $Aog stica

:an?12 &02023,202and 202

%ssuanceof real state credit notes for the construction of a laboratorand an a dminis trati+e buildi ng # %P*" O a+erage spread of '!3 p!a!

Fundo de%n+estimento%mobiliLrio F*5

5a ?12 '1&202' and

2032

%ssuanceof real state credi tnotes for theconstruction of the assets of Por to 9ac ional and Por to * ru>ei r o do Sul p roilian ship ards in the amount of $K 11,11 , hich 0 isfinanced b 9D.S, anco do rasil and *ai7a .conRmica Federal Q *.F!

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1$.* 9"arantees

Petrobras is not re/uired to pro+ide guarantees to financial institutions! *ertain 9D.S loans are securedb the assets being financed!

4he loans obtained b Special Purpose .ntities (SP.) are guaranteed b the proed as a period e7pense!

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1* 4elated parties

1*.1 Commercial transactions and other operationsPetrobras carries out commercial transactions ith its subsidiaries, special purpose entities and associatesat normal mar6et prices and mar6et conditions! "t December 31, 2012 and December 31, 2011, no lossesere recogni>ed on the balance of related part accounts recei+able!

18.1.1 &+ transaction

Profit or 3oss C"rrent Non-c"rrent Total C"rrent Non-c"rrent TotalProfit or 3oss

4e&en"es 5mainly sales re&en"es6 12 ,1 ' Forei#n e chan#e and inflation inde ation char#es net (1, ' )

Financial income 5e penses6 net (1,0 ) Assets

Trade and other recei&ables 1 1 ' ++' 1' /** 4rade and other recei+ables (mainl from sales) , '' # , '' Di+idends recei+able 1,001 # 1,001 %ntercompan loans # &,' ' &,' ' *apital increase (ad+ance) # 1,1'0 1,1'0 $elated to construction of natural gas pipelines # &1 &1 $eimbursements recei+able # 302 302 8ther operations &3' 10 '&3

3iabilities

Finance leases 51 *!16 5$ * 6 5* *1!6 Financin# on credit operations 51 $/ 6 5 1 6 52 !226 ,ntercompany loans - 521 *'26 521 *'26 Prepayment of e po

dfp_2012_r$ inglês

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