Petrobras (PBR)

Agreement between Petrobras and YPFB

Rio de Janeiro, December 18, 2009 – Petróleo Brasileiro S/A – Petrobras announces that it signed today an amendment to the gas purchase & sale agreement with Yacimientos Petrolíferos Fiscales Bolivianos (YPFB).

The amendment is a result of the agreement between the two companies, announced on February 2007, which consider the payment for the liquid hydrocarbon fractions of the natural gas imported from Bolivia after May 2^nd, 2007, that increase the calorific content above 8900 kilocalories (kcal) per cubic meter (m3). The amendment termination date is the same of the original contract and the monthly payments will be calculated based on the international market price, considering an annual minimum amount of USD 100 million and maximum of USD 180 million.

Regarding the payments related to the period before the execution of this agreement, it was already calculated the 2007 payment amount of USD 100 million and the other payments will be calculated after an agreement about the gas volume imported and its calorific content.

Petrobras reiterates the information that the gas sale agreements, already executed with distribution companies in Brazil, will not be amended.

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