Petrobras (PBR)

a.1) Agreement with Teikoku Oil Co. Ltd. on operations in Ecuador

On January 11, 2007, the Ministry of Mines of Ecuador approved the agreement previously signed in January 2005, for the sale by Petrobras Energia S.A. (Pesa) to Teikoku of 40% of the rights and obligations of the contracts for participation in blocks 18 and 31 in Ecuador and the transfer of 40% of the contract for transfer of oil with Oleoducto de Crudos Pesados Ltd. (OCP). The parties are carrying out the necessary actions in order to amend these sharing agreements, which must be approved by Petroecuador, to incorporate Teikoku Oil Ecuador S.A. as a partner in these agreements. Once these contractual amendments have been made, they will begin to have an effect on the economic terms and conditions of the aforementioned transaction.

In March 2008, Petroecuador notified EcuadorTLC S.A. of a request for prescription of the contract for block 18, requested by the State Attorney General (Equador), based on supposed irregularities in the process of assignment to Teikoku Oil Ecuador of its 40% share in block 18 and in Palo Azul, as well as on a supposed absence of registration that the Attorney General understands is necessary for the setting up of a consortium between the different members of the sharing agreement and, in addition, for repeated sanctions for infractions committed against the Hydrocarbons Law.

a.1) Agreement with Teikoku Oil Co. Ltd. on operations in Ecuador

On January 11, 2007, the Ecuadorian Ministry of Mines approved the previous agreement executed in January 2005 for the sale by Petrobras Energia S.A. (Pesa) to Teikoku of 40% of the rights and obligations of the participation agreements in blocks 18 and 31 in Ecuador and the assignment of 40% of the oil transportation contract with Oleoducto de Crudos Pesados Ltd. (OCP). The parties are currently carrying out the necessary procedures to obtain the amendments to these participation agreements, which have to be approved by Petroecuador, to incorporate Teikoku Oil Ecuador S.A. as a partner in these blocks. Once these amendments have been made, the economic terms and conditions of this transaction will start to take effect.

a.1) Agreement with Teikoku Oil Co. Ltd. on operations in Ecuador

On January 11, 2007, the Ecuadorian Ministry of Mines approved the previous agreement executed in January 2005 for the sale by Petrobras Energia S.A. (PESA), an indirect subsidiary of Petrobras, to Teikoku of 40% of the rights and obligations of the participation contracts in blocks 18 and 31, in Ecuador and the transfer of 40% of the oil transportation contract with Oleoducto de Crudos Pesados Ltd. (OCP). As a result of this approval, the parties are currently carrying out the necessary actions to obtain the amendments to these participation contracts, which have to be approved by Petroecuador, to incorporate Teikoku as a partner in these blocks. Once these amendments have been made, the economic terms and conditions of this transaction will start to take effect