1. Almir G. Barbassa
Chief Financial Officer
Rio de Janeiro, September 2008
Supply Chain for the Pre-Salt
Development
1

2. DISCLAIMER
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. CORPORATE ORGANIZATION AND KEY OPERATING RESULTS
Exploration & Downstream Gas &
Distribution International Biofuels
Production (Supply) Energy
Petrochemicals
Income from Operations(2)
Distribution
Summary Financials (US$ billion) 3%
Downstream
2006 2007 LTM 16%
Net Revenues 72.3 87.7 108.6
EBITDA 22.9 25.3 31.8
2006 2007 1H08
Capex 14.9 21.0 24.3
Total Debt (1) 21.3 21.9 25,9 Domestic
Cash & Cash Equivalents 12.7 7.0 6.6 E&P
Net Debt 8.7 14.9 19.2
Total Equity 44.3 65.2 83.0
81%
Total Assets 98.7 129.7 156.9
NOTES: 1 Includes capital leases
2 For tthe year ended December 31, 2007. Excludes losses in gas and energy, corporate results and eliminations
3

4. INVESTMENT PLAN BY BUSINESS SEGMENT
2008-12 Period
58% 13%
US$ 112.4 billion
15.0
65.1
1.5 29.6 97.4
1% 2.6 2.6
4.3
2% 6.7 26% 87%
2% Brasil Internacional
4% 6%
E&P RTC G&E
Petrochemical Distribution Corporate Biofuel
US$ 65.1 billion directed to E&P
Exploration: US$ 13.8 billion
Production: US$ 51.3 billion Note: Includes International
4

5. CASH FLOW
YEAR ENDED DECEMBER 31
2007 2006 2005
Cash Flow from Operating Activities
Net Income $ 13.138 $ 12.826 $ 10.344
Depreciation $ 5.544 $ 3.673 $ 2.926
Other (inc.W.C.) $ 3.982 $ 4.578 $ 1.845
CFFO $ 22.664 $ 21.077 $ 15.115
Net Cash used in Investing Activities
Capex and other $ (20.768) $(14.470) $ (10.376)
Acquisitions $ (1.551) $(416)
Puchase Marketable Seceurities $ (1.707) $ 205 $ 169
Total Investments $ (24.026) $(14.681) $ (10.207)
Cash Flow From Financing Activities
Amortizations $ (6.670) $(4.167) $ (2.652)
Additions to Debt $ 4.542 $ 2.957 $ 2.131
Dividends and other $ (3.860) $ (3.144) $ (2.104)
Net from Financing $ (5.988) $ (4.354) $ (2.625)
Increase (decrease) in cash and $ (7.350) $ 2.042 $ 2.283
cash equivalents
Effect of exchange rate changes on
cash and cash equivalents $ 1.649 $ 775 $ 732
5

6. BALANCED VERTICAL INTEGRATION
Upstream Operations Downstream Operations
Áreas de Concessão
(outubro/2005)
Dutos existentes
Refinaria
Petrobras Terminal aquaviário
Other Companies Terminal terrestre
Proved Domestic Reserves of 13,92 Billion BOE (SPE) 11 refineries in Brazil
Southeast Basins responsible for more than 80% of 2007 domestic throughput of 1,795 k bpd
Brazil’s oil production 2007 oil products domestic consumption of 1,725 k bpd
2007 domestic oil average daily Production of 1,792 k bpd
6

7. PRE SALT PROVINCE
Total area of the Province: 112,000 km2
Area under concession: 41,000 km2 (38%)
Area not under concession: 71,000 km2 (62%)
Area with Petrobras interest: 35,000 km2 (31%)
line
hinge
Well Tested
HC Campus
Exploratory blocks
Pre-salt Reservoirs
7

8. E&P - RAPIDLY GROWING PRODUCTION PROFILE
7.7% p.y.
4,153
8.7% p.y. 18 3
3,494 515 *
151
285* 643
Natur al Gas - Inter nati onal
Oi l and NGL - Inter nati onal 637
. y.
8.3% p
Natur al Gas - Br azi l
Oi l and NGL - Br azi l
2,298 2,300
2,217
1,810 2,036 2,020 1 01 1 09
1,636 96
1,565 23 85 94 14 2 12 6
1,505 24 16 3 2 .8 12
1,238 35 1 61 27 7 2 73
20 1 68
1,008 1,090 16 44 27 4 2 .4 2 1
885 53 252 2 50 2 65
10 60
11 2 32
9 22 1
Thousand boed
10 45
38 47 1 97
25 17 9
16 3 1. 7 78 1. 7 92
15 2 1 . 6 84
13 4 1 . 5 00 1. 54 0 1. 4 93
1 . 271 1. 3 36
1 . 00 4 1. 1 32
80 9 86 9
7 16
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2012 Target 2015 Forecast
* Includes non consolidated production
8

9. MAIN PROJECTS IN BRAZIL – 2007-2012
Marlim Sul Espadarte
Tupi Módulo 3 –
Rio de Janeiro EWT Módulo 3
P-56
2.600 Espadarte Mód II Up to 100.000 bpd
100.000 bpd
100.000 bpd 30.000 bpd Tupi 2012
2011
6/jan/07 2009 Pilot System
Up to 100.000 bpd
Cidade Niterói 2010
Piranema
Jabuti (FPSO)
30.000 bpd
2.400 10/oct/07 100.000 bpd Frade
2008 100.000 bpd
2009 2.421
Cidade de Vitória
Golfinho Mód. 2
Marlim Sul Módulo 2
P-51
2.374
2.200
100.000 bpd
November 2007
180.000 bpd
2008
2.296
Roncador
Roncador Jubarte Module 4
P-52 2.191 P-57
180.000 bpd
P-62
180.000 bpd
November 2007 1.950* Cachalote & Baleia 2011
100.000 bpd
2012
2.000 Franca
FPSO Capixaba
Parque das
100,000 bpd
Conchas
2010
100.000 bpd
1.792 Marlim Leste
P-53
2009
1.800 180.000 bpd
Roncador 2008
P-54
180.000 bpd
November 2007
1.600
2007 2008 2009 2010 2011 2012
Obs.: This curve does not include Tupi’s Pilot System Production
* Target may vary +/- 2.5%
9

10. E&P: UPCOMING UNITS
UNITS FIELD CAPACITY STATUS START-UP SHIPYARD
FPSO Cidade Oil: 100.000 bpd Modec
Jabuti Under construction 2S08
de Niterói* Gas: 3,5 MM m3/dia Sipem - Dubai
Oil: 180.000 bpd Nuclep/Brasfels
P-51 Marlim Sul Under construction 2S08
Gas: 6MM m3/dia Angra/RJ
Oil: 180.000 bpd Quip
P-53 Marlim Leste Under construction 2S08
Gas: 6MM m3/dia Rio Grande/RS
Cidade São Oil: 35.000 bpd Prosafe
Camarupim Under construction 2S08
Mateus* Gas: 10 MM m3/dia Keppels - Cingapura
Mauá-Jurong
PMXL-1 Mexilhão Gas: 15MM m3/dia Under construction 2009
Niterói/RJ
Oil:100.000 bpd Under construction Brasfels -FSTP Keppel &
P-56 Marlim Sul 2011
Gas: 6MM m3/dia (P-51 Clone) Technip - Angra/RJ
Oil: 180.000 bpd SBM
P-57 Jubarte Contracted 2011
Gas: 2MM m3/dia Shipyard N/A
Oil:100.000 bpd Mauá-Jurong
P-62 Roncador Contracted 2012
Gas: 6MM m3/dia Niterói/RJ
Oil: 180.000 bpd Hull contracted. Basic Atlântico Sul
P-55 Roncador 2013
Gas: 6MM m3/dia project under revision. Suape/PE - Rio Grande/RS
10
* Leased

11. The Pre-Salt Supply Chain
Challenge
11

12. CRITICAL RESOURCES
CHALLENGES
Equipments
Human Resources
Cost Inflation
HOW PETROBRAS IS DEALING
Aggressive bidding program for rigs, support vessels and anchor handlers,
mainly new built units
Long-term contract with service providers
Anticipating the renew of current contracts
Supporting the expansion of the suppliers installed capacity
Training programs for its own employees and for the supply chain workforce
12

13. NEW RIGS
Water Operating Start Up Start Up Start Up Start Up Start Up From 2013
Depth 2007 2008 2009 2010 2011 2012 to 2017
• Pride South
Atlantic
• O. Yorktown
•Petrobras XIV
0-999m 5 • Pride Mexico
• Borgny Dolphin
• Ocean Concord
• Falcon-100
Olinda Star
1000-1999m 18 Ocean Worker
• Delba V
• Delba VI
• Scorpion
• Lone Star
• Gold Star • Delba VII
• Schahin III
• Schahin I • Delba VIII
• Petrorig II
• Norbe VI • Norbe IX + 28 new units
≥ 2000m 5 • Sevan Driller
• Delba III
•Delba IV
• Schahin 1 to be leased
• West Taurus
• SSV Victoria • Schahin 2
• West Eminence
• West Orion • Norbe VIII
• Dave Beard
• Petroserv
• Etesco 8
• Sevan Brasil
Total per year 28 6 9 6 2 12 28
Cumulative 6 15 21 23 35 63
Stena Drillmax e Dep Water Millennium are not being considered since they are being negotiated in the Spot Market
13

14. NEW VESSELS TO BE CONTRACTED
LEASED/ BEING LEASED TO BE LEASED TOTAL
Large Vessels (VLCC/Tankers) 26 44 70
Supply Vessels 24 122 146
FPSO/SS 6 8 14
Others (jack-ups, TLWP) 3 1 4
Total 59 175 234
Forecasted investments meet Petrobras’
needs regarding exploratory and
production development portfolio
14

15. HUMAN RESOURCES
PETROBRAS EMPLOYEES
Participants in the 2.468
Number of employees Training Programs 2.101
80.931
68.931
62.266
52.037 53.904 1.213
46.723 48.798
989 1.043
774
2002 2003 2004 2005 2006 2007 2012 2002 2003 2004 2005 2006 2007
22,000 new employees since 2002 and 12,000 more up to 2012 The superior level professionals, who were recently admitted,
without the required previous experience, spend up to a year in
classrooms before starting to effectively work at the company
Forecasted demand for
112.625 workers
workers at Petrobras supply
chain in Brazil
CIVIL CONSTRUCTION &
The Brazilian Government, with ENGENEERING MAINTENANCE
CONSTRUCTION PROCUREMENT
Petrobras support has a specific 5.967 15.020 84.576 7.062
training program to meet this demand
15

16. BRAZILIAN OIL INDUSTRY MAIN CHALLENGES
• Infrastructure Enhancement
• Critical Items Supply (imports)
• Drilling Equipment
• Dynamic Positioning and Brasfels Shipyard at Angra dos Reis. P-51 and P-56
construction sites.
Propulsion Systems
• Steel Manufacturing Process and
Supply
• Skilled Work Force for
Construction and Operation
• Financiability
Rio Grande Shipyard under construction.
Designed for platforms construction.
16

17. SUPPLY STRATEGIES FOR GOODS AND SERVICES
• Manufacturers •Equipment
•Chemicals
US$ 5.2 Bi • Distributors
•Spare parts
• Retailers
•Etc.
• Seismic
• Service •Drilling
US$ 23.6 Bi providers
•Transport
•Etc.
• Platform
• EPC
US$11.0 Bi •Refinery
•Shipyards
•Revamps
•Constructors
As per 2007 •Etc.
17

18. RELEVANT EQUIPMENT DEMAND FOR THE PERIOD 2008 - 2015
Units of Total Amount
Items
Measurement ( 2008 ~ 2015 )
Structural Steel t 1.252.000
Air Coolers un 721
Mooring Cables km 2.726
Christmas Trees un 3.930
Safety boats un 344
Pumps un 10.264
Lifeboats un 1.978
Well Heads un 3.657
Compressors un 969
Fan Coils un 2.818
Heat Furnaces un 252
Heat Reformers Furnace un 8
Eletric Generator un 439
Crane un 220
Flexible Pipes m 7.200
Diesel Engines un 717
Eletric Motors un 17.035
Reactors un 317
Storage Tanks un 2.824
Process Towers un 732
Eletric Transformers un 1.236
Heat Exchangers un 5.913
Pipe lines t 1.542.266
Turbines un 441
Production Rigs un 36
Pressure Vessels un 4.829
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19. MATERIALS AND EQUIPMENT TO BE DEVELOPED IN NEXT YEARS
Technological Development
• Submarine sensor for measuring oil and grease degree in water;
• Signal optical cable for well temperature and pressure monitoring;
• Submarine optical connectors;
• Intelligent sensor network for natural gas flow measurement;
• Internal for piping in the radiation zone of industrial furnaces;
• Co-generation system using biomass as fuel;
• Submarine sphere valves;
• Monitored Cathodic protection system for pipelines.
19

20. CRITICAL SERVICES - OTHERS
Petrobras Vision
Area Services
• Drilling;
• Wokover services;
• Flexible lines and umbilical's laying services;
• Support to diving;
E&P
• Support to ROV vehicles;
• Support to mooring activities;
• Special vessels;
• Submarine interconnection services.
ACTION
Attendance by Specific Demand
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21. COMPETITIVE NATIONAL SUPPLY OF GOODS AND SERVICES
Suitability of National Supplier Park
GOOD AND SERVICES SUPPLY PATH
5. Incentive for settling down
imports international companies in Brazil
4. Incentive for association between
national and international
Increase in companies
National Supply
Capacity of G&S 3. Incentive for new national entrants
imports
2. Develop competition among
medium competitive sectors
1. Increase productivity capacity of
National
highly competitive sectors
Industry
Current Demand Future Demand
21

22. NATIONAL INDUSTRY COMPETITIVENESS DIAGNOSIS
High Level Competitiveness Sectors CRITICAL EQUIPMENTS (Non Exhaustive)
1 Special Steel (for boilers) and forged steel
Pipelines in the range of 14-42 inches
2
1 diameter with longitudinal welding
2 Polished connecting rod with guided
3
centralizer (ongoing action)
Polyester Mooring cables;
3
Drilling pipelines and Fiber glass
4 pipelines;
5 Electrical cables for CSP;
4 Control Systems for well control, oil and
gas metering systems, drilling activities;
Offshore drilling rigs
Gravel Packing
Drilling bits
6 Production pipelines alloy coatings(13 Cr,
Super13 Cr);
5 Pumps API standard
6 Dry Transformers
Expansion of Encourage domestic Stimulate R&D in Brazil
ACTIONS Production Capacity components production (not a priority)
22
Sources: UFRJ – Economy Institute and Petrobras

23. NATIONAL INDUSTRY COMPETITIVENESS DIAGNOSIS
High Level Competitiveness Sectors
1
2 IMPORTED COMPONENTS
(Non Exhaustive)
A Christmas Trees: Forged Steel and
3 electronics
4 A Umbilical: Nylon 11, flexible inox tubes
and kevlar
5
Flexibles Pipes: External Polymers and
some steels
B Package Import
Bearings and automation
B
Steel plate and copper
6
Encourage domestic
Expansion of components Stimulate R&D in Brazil
ACTIONS Production Capacity production (not a priority)
23
Sources: UFRJ – Economy Institute and Petrobras

24. NATIONAL INDUSTRY COMPETITIVENESS DIAGNOSIS
Medium Level Competitiveness Sectors
EQUIPAMENTOS CRÍTICOS (Não exaustivo)
HCC Reactors (250-300 mm wall width,
40 Kgf/cm2);
Boiler works with special alloys
(reactors, towers, pressure vessels);
7
7 Boilers (steam generators);
Heat exchangers working with H2S
traces (ASTM A 387 degree11);
Structural packing for refining process
towers;
8
8 Moto Compressor and bare compressor
9
9 Large Engines
10 10 Offshore crains
11 Special sphere submarine valves
11
Forged Valves
12 Basic projects and thermal projects
12
Expansion of Technology update /
ACTIONS Production Capacity Association with foreign companies
24
Sources: UFRJ – Economy Institute and Petrobras

25. COMPARATIVE TABLE OF PRICES AND DELIVERY TIME
Brazilian Market x International Market
Price Delivery Time
Products Families
(Brazilian market ) (Brazilian market)
Pumps Similar Better
Valves 10 – 30% more expensive Better
Pipes 20 – 40% more expensive Similar
Pipes Accessories 30 – 50% more expensive Better
Pressure Vessels 30 – 50% more expensive Good
Heat Exchanger 30 – 40% more expensive Good
Instrumentation 20% more expensive Good
Electrical
• Panels Similar Better
• Cables 10 – 15% more expensive Good
Source: ABEMI
25

26. For more information, visit our website:
http://www.petrobras.com.br/ri/english
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