1. PETROBRAS
23rd World Gas Conference
Amsterdam
Brazilian Oil and Gas Perspectives
A National Oil Company Approach
José Sérgio Gabrielli de Azevedo
CEO and President
9th June 2006
1

2. PETROBRAS
The presentation may contain forecasts about future events. Such forecasts
merely reflect the expectations of the Company's management. Such terms
as "anticipate", "believe", "expect", "forecast", "intend", "plan", "project",
"seek", "should", along with similar or analogous expressions, are used to
identify such forecasts. These predictions evidently involve risks and
uncertainties, whether foreseen or not by the Company. Therefore, the future
results of operations may differ from current expectations, and readers must
not base their expectations exclusively on the information presented herein.
The Company is not obliged to update the presentation/such forecasts in
light of new information or future developments.
Cautionary Statement for US investors
The United States Securities and Exchange Commission permits oil and gas
companies, in their filings with the SEC, to disclose only proved reserves that
a company has demonstrated by actual production or conclusive formation
tests to be economically and legally producible under existing economic and
operating conditions. We use certain terms in this presentation, such as oil
and gas resources, that the SEC’s guidelines strictly prohibit us from
including in filings with the SEC.
2

3. PETROBRAS
Petrobras: Overview
3

4. PETROBRAS
Petrobras Overview: Petrobras 2015 – Mission and Vision
Mission Vision 2015
Operate in a safe and profitable
Petrobras will be an
manner in the oil, gas and
integrated energy company
energy industry in Brazil and
with a strong presence in
abroad, with social and
the international market
environmental responsibility,
and as a leading force in
providing products and
Latin America, focusing on
services that meet clients’
profitability and social and
needs and that contribute to the
environmental
development of Brazil and the
responsibility.
countries in which it operates.
4

5. PETROBRAS
Petrobras in the World – Activities in 24 countries
United Kingdom.
New York
USA
Houston Turkey
Tokyo
Iran Beijing
Lybia
Mexico Trinidad &
Tobago Nigeria
Venezuela
Colombia
Equatorial Guinea Tanzania Singapore
Ecuador
BRAZIL Angola Mozambique
Peru
Bolivia
Rio de
HEAD OFFICE Paragay
Janeiro
Uruguay
REPRESENTATIVE OFFICE Chile
REFINING Argentina
TRADING
EXPLORATION AND PRODUCTION
5

6. PETROBRAS
Company Overview
An integrated energy company with US$ 74 billion in gross revenue (2005 US GAAP)
Exploration • Proven Reserves: 11.8 billion boe (SEC 2005)
and Production • Oil and Gas Production: 2.22 million boed (2005)
Refining, • 16 Refineries • Capacity: 2,114 thousand bpd
Transport
and Marketing • Pipelines: 18,854 miles • Vessels (own fleet): 50
• 6,933 service stations (34% share in the Brazilian
Distribution market), 746 in Argentina and 105 in Bolivia
Natural Gas • Sales of Natural Gas: 1.83 bcf/day
• Ethene Production: 460,000 tons/year
Petrochemicals • Styrene Production: 250,000 tons/year
• Polystyrene Production: 120,000 tons/year
Operational data includes Petrobras Energia
6

7. PETROBRAS
(1) 2005 figures not available yet.
Publicly traded peer comparison (2) Oil and Gas Production
(3) Proforma for acquisition of Burlington Resources
Proven reserves (SEC - billion boe) – Dec. 2005 Oil and gas production (million boe) - 2005
ExxonMobil
22,4
ExxonMobil 921 563
Lukoil* 20,1 BP 912 543
Petrochina* 18,5
Shell 764 505
Petrochina 823 187
BP 17,6 Total 592 291
Yukos* 13,0 Chevron 609 259
Chevron Texaco 12,1 ConocoPhillips (3) 507 342
11,8
7th Petrobras 643 118
Petrobras
Eni 406 228
8th
Shell 11,5
Yukos (1) (2) 624
Total 11,1 Lukoil (1) (2) 614 5th Oil Production
ConocoPhillips 9,4 Statoil (2) 427
ENI 6,8 Repsol-YPF 194 222
Statoil 4,3 Sinopec 279 37
Sinopec* 3,8 0 200 400 600 800 1.000 1.200 1.400 1.600
Repsol 3,3 Oil Gas
Reserve life (years) – Dec. 2005 Refining capacity (thousand bpd) - 2004
Lukoil* 32,7
XOM 6.343
Yukos* 20,8
RDS 4.026
Petrochina* 19,6
Sinopec 2.998
ExxonMobil 15,1
BP 2.747
Petrobras 14,6 TOT 2.708
ConocoPhillips 14,2 5th COP 2.275
Chevron Texaco 13,1 PetroChina 2.202
Sinopec 12,3 CVX 2.195
Total 12,2
12,2
Petrobras
Yukos
2.114
1.223
9th
BP
ENI 11,5 Repsol 1.175
Statoil 10,1 Lukoil 1.139
ENI** 524
Shell 9,0
Statoil 296
Repsol 8,0
Source: Evaluate Energy and Company Reports 7

8. PETROBRAS
Oil Production in Brazil
2.000
Oil and NGL Natural Gas
1.500
million boe
1.000 3
d
p
b
0
1
500
-
1954 1958 1962 1966 1970 1974 1978 1982 1986 1990 1994 1998 2002
7
6
4
3
G
Source: Petrobras 8

9. PETROBRAS
E&P Brazil - Domestic production units
• Domestic production will grow at an average of 6.4% per year
• 15 new projects until 2010
Roncador
Roncador
Roncador
Roncador P-55
P-55
2,400 Albacora Leste
Albacora Leste P-52
P-52 Frade 180,000 bpd
180,000 bpd
Frade
P-50
P-50 180,000 bpd
180,000 bpd 100,000 bpd 2010
2010
100,000 bpd
180,000 bpd
180,000 bpd 2007
2007 2009
2009
April 2006
April 2006
Cidade de Vitória
Cidade de Vitória 2,300
Thousand boed
2,200 Jubarte
Jubarte (Golfinho Mod. 2)
(Golfinho Mod. 2)
Phase 1
Phase 1 100,000 bpd
100,000 bpd 2,200 Jubarte
Jubarte
P-34
P-34 2007 Phase 2
Phase 2
2007
60,000 bpd
60,000 bpd 2,100 P-57
P-57
September 180,000 bpd
180,000 bpd
2,000 September
2006
2006 2,000 2010
2010
Marlim Leste
Marlim Leste
P-53
P-53
Golfinho
Golfinho
Rio de janeiro 180,000 bpd
180,000 bpd
Rio de janeiro FPSO Mod. 3
FPSO Mod. 3
1,910 Espadarte
Espadarte
2008
2008
100,000 bpd
1,800 Piranema 100,000 bpd
Piranema 100,000 bpd
100,000 bpd 2010
20,000 bpd 2010
20,000 bpd 2007
2007
October
October Marlim Sul Albacora
Marlim Sul Albacora
2006
2006 Roncador
Roncador Module 2 Extension
1,684 Module 2 Extension
1,600 P-54
P-54 P-51 100,000 bpd
FPSO Capixaba
FPSO Capixaba P-51 100,000 bpd
180,000 bpd
180,000 bpd 180,000 bpd 2010
2010
Golfinho Mod. 1
Golfinho Mod. 1 180,000 bpd
2007
2007 2008
100,000 bpd
100,000 bpd 2008
May 2006
May 2006
1,400
2005 2006 2007 2008 2009 2010
9

10. PETROBRAS
Upstream Portfolio at Home
2005 Reserves
Ceará &
Ceará & • Proven Reserves of 14.9
Potiguar
Potiguar
billion boe (SPE)
• Reserve life (SPE) = 19.7
Solimões &
Amazonas Sergipe &
Sergipe & years
Alagoas
Alagoas
Recôncavo
Recôncavo
11%
89%
Espírito Santo,
Espírito Santo,
Campos & Santos
Campos & Santos Brazil International
• 10.6 billion boe (SEC)
2005 Production
• 1.969 million boed
• 1.684 million bpd oil
10

11. PETROBRAS
Recent Acquisitions
United States (Gulf of Mexico)
• Petrobras America successfully tendered for 10 blocks in the US sector of the Gulf of
Mexico;
• This year’s estimated capital expenditures are US$ 305 millions, and by 2010, US$ 1.5
billion.
Angola
• Petrobras has recently obtained a stake in 4 Angolan exploratory blocks and will be
operator in 3.
• The company has now interests in six blocks, including a production one (6,500 bpd).
• Petrobras aims at increasing its exploratory projects portfolio in Angola, one of the most competitive
countries in the oil industry.
Turkey
•Petrobras presented the winning bid for two deepwater blocks in the Black Sea;
• The company will sign a 50-50 partnership with the Turkish oil company (TPAO) for the
exploration and production of the blocks.
Equatorial Guinea
• Petrobras acquired a 50% participating interest in a deepwater block
• The company has the option of becoming operator in the case of a commercial discovery
11

12. PETROBRAS
Downstream Strategies
• Domestic oil production will exceed throughput;
• In 2010 oil products sales will be equal to throughput;
• Increase of the domestic oil participation in throughput, reaching 91% in 2010.
2,300
2,250 High operational flexibility
Thousand boed
2,050
Low operational
flexibility
1,895
1,850
1,712 1,869
1,650
1,596
1,450 Brazilian
Self-sufficiency
1,250
1,271
1,050
2000 2001 2002 2003 2004 2005 2010
Oil Production Oil Products Sales Throughput
12

13. PETROBRAS
Gas and Power
13

14. PETROBRAS
Brazilian Energy Matrix Development
Natural gas participation in the Brazilian energy matrix rose from 5.4%, in 2000, to 9.3% in 2005,
inspite of low thermal electric use
100%
90% 5.4% 6.5% 7.5% 7.7% 8.9% 9.3%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2000 2001 2002 2003 2004 2005
Oil and Oil products Biomass Hydro Natural Gas Coal Nuclear
Source: MME (2005: preliminar) 14

15. PETROBRAS
Gas & Power - Brazil Current Situation
• High potential for growth in gas demand:
• Gas represents only 9% of the Brazilian energy matrix
• 80% of total power generation is hydro
• Residential-industrial- thermal consumption are likely to increase
• Installed capacity of
thermoelectric and
cogeneration plants will
be 4,857 MW in 2010
• Energy investments:
US$ 1.3 billion slated
primarily for conclusion
of projects already
underway
15

16. PETROBRAS
Natural Gas Market in Brazil
2010
(99.3)
4000 3,506.8
487,4
MMcfd / (Million m3/day)
3000
(40.9) 1.380,8
2000 (37.9)
(30.7) 1,444.4
1,338.4
1,084.3
190,7 226,0
1000 162,5
808,7 875,8 1.638,6
692,2
229,6 339,0 342,6
0
2003 2004 2005** BP 2006/10*
Thermoeletric Industrial Other
(*) Considers the total supplying capacity, including bi-fuel conversion, contingency demand managing and isolated system in
the North region. In the previous plan only the forecasted shipping of the thermo-electric demand was contemplated.
(**) Source: ABEGAS
Note: does not include Petrobras direct consumption
16

17. PETROBRAS
Natural Gas Production in Brazil
(million m3/day)
50
Associated Non associated .
45
p.y
% 10,7
40 7,5 10,9
9,4 10,4
35
6,3 7,8
30 7,0
25 7,8
8,0
7,5
37,3
20 6,1
34,9
3,3 4,0 5,3
33,3
32,8
3,4
30,4
30,1
15 0,2 2,2 2,5 2,2 2,7 3,1
25,5
0,4
21,7
10 0,3
18,9
17,7
15,7
16,3
14,7
14,7
16,1
15,8
14,3
13,4
14,1
13,8
12,9
14
10,7
5
0
1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005
Increasing non-associated natural gas participation in production.
17

18. PETROBRAS
2005 Natural Gas Proven Reserves and Production
Natural Gas Reserves Natural Gas Production
• Total Petrobras: 420.2 billion m3 • Total Petrobras: 59,816 thous. m3/day
• Brazil: 296.9 billion m3 • Brazil: 43,532 thous. m3/day
• International: 123.3 billion m3 • International: 16,284 thous. m3/day
•Bolivia: 84.1 billion m3 • Bolivia: 7,753 mil thous. m3/day
International International
9,3% 14,3%
Brazil
70,7%
Brazil
72,8%
Bolivia
20,0% Bolivia
13,0%
Bolivia to
Brazil
18

19. PETROBRAS
Gas Pipelines
New investments will reduce the country’s dependence on imported gas.
Business Plan 2006-10 US$ 56.4 billion
60%
US$ 34.1 billion
6,7 US$ 11.4
billion
2%
2.1 6.7
2% 20%
4%
12%
E&P Downstream
G&E Petrochemical
Distribution Corporate
• Production in Southeast will raise
from the current 15.8 million to 40
million m3 per day in 2008.
• Demand Flexibilization
Construction • Refineries, Distributors and flex-
Current
Under evaluation fuel thermoelectric plants ( LNG,
GASBOL
diesel and alcohol)
19

20. PETROBRAS
Expected Production Growth
Southeast Natural Gas Supply Expansion
•Two new fields in Espírito Santo
•Increase of supply from Marlim field
•Expansion of production in Merluza field
80 Roncador
Frade BS-500
(P-54) 2010
Urucu 2009 69.6
70 Natural gas
2007
Mexilhão
sales Golfinho Marlim Leste
2007 Mod 2 (P-53) 2009 61.5
60 Golfinho Mod 1
2007 2008
54.3
2006 58.3 59.0
50 Manati
50.8 Roncador
NG non associated
NG associated
Barracuda (P-43) 2006 (P-55)
Caratinga (P-48) 2010
43.0
40 Jubarte Phase 2
Roncador (P-57)
31.4 (P-52) 2010 Golfinho
30 26.5 2007
RJS-409
Espadarte
(FPSO 3)
Marlim Sul Albacora 2010
2007 Mod 2
Piranema Extension
20 Peroá-Cangoa Albacora
2006 Peroá-Cangoa (P-51)
2008
2010
Phase 2
(PPER) Leste Jubarte – 2007
(P-50) Pase 1
10 (P-34)
2006
0
2005 2006 2007 2008 2009 2010
20

21. PETROBRAS
Espírito Santo and Campos Basin: 2006-2008
Cacimbas
Peroá/Cangoa
Golfinho +
ESS-164 Canapu
Esp. Santo Basin
Actual: 1,3 MM m3/dia
2008: 18 MM m3/dia
Parque das Baleias
+ 16,7 MM m3/dia
ESS-130
120 km Bacia de Campos
Roncador
Cabiúnas Actual: 13,5 MM m3/dia
2008: 19,5 MM m3/dia
Namorado
+ 6 MM m3/dia
120 km
21

22. PETROBRAS
Santos Basin: 2006-2008
Caraguatatuba
BS-500
2,
5
21
MEXILHÃO
MM
TAMBAÚ
5k
m3
m
URUGUA
/d
Merluza
Lagosta SPS-25
SPS-44
Santos Basin
Actual: 1,0 MM m3/dia
2008: 2,5 MM m3/dia
+ 1,5 MM m3/dia
22

23. PETROBRAS
Flexible LNG Project
Facilitates the adjustment of the offer to the market’s characteristic:
Flexible Offer (with guarantee) to the thermoelectric plants.
More efficient than Diesel in the thermo plants;
Mitigates the risk of failing to supply the gas due to abnormalities;
Diversifies the sources of imported gas;
Projects under evaluation:
Purchase or freight of floating storage and regasification units (FSRU);
Maritime terminal in Pecém (Ceará) - 6 MM m³/day (estimate Jul/2008 ± 3 months)
Maritime terminal in the Guanabara Bay (Rio de Janeiro)– 12/14 MM m³/day (estimate Jul/2008 ± 3
months)
FSRU
Floating Storage and Regasification Unit
23

24. PETROBRAS
Situation in Bolivia
• As a consequence to the measures adopted by the Bolivian Government, Petrobras will
act to:
• Protect its interests through negotiations by all legal means;
• Suspend all new investments in Bolivia as well as those related to the Bolivia-Brazil Gas Pipeline
(GASBOL);
• Immediately initiate studies to diversify supply sources, including LNG regasefication project(s);
Natural Gas Offer - Million m3/day
Substitution of additional imports from Bolivia
120
11.0
100 11.0
4.0
80 30.0
30.0
30.0
60 30.0
30.0 30.0
40
61.5 69.6
54.3
20 43.0
26.5 31.4
0
2005 2006 2007 2008 2009 2010
Domestic Production Imports from Bolivia as of existing GSA
National Production Increase or LNG
24

25. PETROBRAS
Gas exports from Bolivia (MM m3/dia)
30,0
28,0
26,0
24,0
22,0
20,0
Volume LUMEN [MMm 3/día]
18,0
16,0
VO (MMm3/day)
14,0
12,0
10,0
8,0
6,0
4,0
2,0
0,0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
TIEMPO [AÑOS]
Exports to Argentina (MMm3/day)
EXPORTACIÓN ARGENTINA [MMm3/día] EXPORTACIÓNto Brazil (MMm3/day)
Exports BRASIL [MMm3/día]
Source: YPFB 25

26. PETROBRAS
Gas Purchase: contractual structure
Bolivia Brazil
YPFB - PETROBRAS BOLIVIA/OTHER PRODUCERS - YPFB - PETROBRAS
Shared Risk Contract Back-to-back contracts GSA contract
(exploratory and production concession) (gas sales) (gas exports)
Bolivian Legislation Bolivian Legislation
Forum: Santa Cruz Forum: Santa Cruz
Court of Arbitration: International Court of Arbitration: International
Chamber of Commerce (ICC) Chamber of Commerce (ICC)
Forum: New York
Court of Arbitration: American
Arbitration Association
Investment Protection Treaty between Bolivia and the Netherlands
ICSID (International Center for Settlement of Investments Disputes)
26

27. PETROBRAS
Renewable Energy and New
Technologies
27

28. PETROBRAS
Research Center – Natural Gas Main topics
Budget: US$ 42 million
19% 27%
9%
7%
19%
19%
GTL Cogeneration & Thermoelectric
Transportation Industrial Application
Hydrogen Automotive Application
GTL Main Projects Transportation
FT Synthesis: Catalyst Development Marine CNG
FT Reactor design ( Fixed Bed) GtS ( Hydrates)
GTL Offshore ANG (Adsorbed Natural Gas)
GTL Pilot Plant Construction Expert System
DME LNG Offshore Regasification
Cogeneration & Thermoelectric Hydrogen
Fuel Cells ATR (autothermal Reforming)
Microturbines Plasma pyrolysis of NG
Optimization of Thermal Cycles Fuel Cell application
Gas Turbine Development Fueling station
Development of a Bus with Fuel Cell
Blend of Natural Gas and Hydrogen
28

29. PETROBRAS
Ethanol Market
• Ethanol global market is 46.5 Billion Liters (2005)
• Ethanol as a Fuel is 30.6 Billion Liters (67% of total ethanol production)
• Today the ethanol consumption is 2.6% of gasoline MKT
• 10% of ethanol in gasoline will represent 118 Billion Lt
Brazil-Japan Ethanol Inc.
• Recently, Petrobras incorporated Brazil-Japan Ethanol Inc.
• The company will import and distribute Brazilian-produced
ethanol in Japan;
• Development of technical and commercial solutions for the
reliable and long term supply of alcohol in the Japanese market;
• Petrobras will break into one of the most complex and
important energy markets in the World:
• ethanol logistics distribution
• fuel distribution sector in Japan.
29

30. PETROBRAS
Biofuel Production
• H-Bio: refining process that utilizes vegetable oils as an input, in order to obtain diesel oil
• Hydrogenation of a blend of diesel and vegetable oils
Hydrogen Diesel
Agribusiness Fractions
Processed
Seeds Oil
Farming Crushing Refinery
or Diesel
or
Transerestification Biodiesel
Ethanol
Distributors
or or
B2 or B5 Diesel
Methanol mixture
Stations
Glycerin + Others
Complementary and not competitive processes
30

31. PETROBRAS
Rio de Janeiro Petrochemical Complex
• Investment: US$ 6,5 billion
• Expected Annual Production:
• 1,3 million tons of Ethane;
• 900,000 tons of propane;
• 360,000 tons of benzene;
Petrochemical • 700,000 tons of p-xylene.
• The Complex will add value to São Gonçalo Liquids
Complex – Itaboraí 150,000 barrels/day of heavy Outflow Unit
oil form the Campos Basin.
Basic Fuels
Fuels
Marlim oil
Production Unit
150,000 bbl/d São Gonçalo
- Itaboraí Basic Liquids Outflow
petrochemicals Unit
P-Xylene Intelligence
Center
Ethylene
Propylene
Benzene
Styrene Ethylene Glycol PTA
Phenol
Polyethylene Polypropylene
Polyethylene
31

32. PETROBRAS
Records in Completion/Production and Exploration Drilling Offshore
OTC OTC
1992 2001
Exploration Wells Vs. Maximun
Water-Depths by year
32

33. PETROBRAS
QUESTION AND ANSWER
SESSION
Visit our website: www.petrobras.com.br/ri/english
For further information please contact:
Petróleo Brasileiro S.A – PETROBRAS
Investor Relations Department
Raul Adalberto de Campos– Executive Manager
E-mail: petroinvest@petrobras.com.br
Av. República do Chile, 65 - 22nd floor
20031-912 – Rio de Janeiro, RJ
(55-21) 3224-1510 / 3224-9947
33