This excerpt taken from the PBR 20-F filed Jun 30, 2005.
Our deepwater technological expertise
While developing Brazils offshore basins over the past 35 years, we have gained expertise in deepwater drilling, development and production techniques and technologies. We are currently in the process of developing technology to permit production from wells at water depths of up to 9,842 feet (3,000 meters).
Our deepwater development and production expertise has allowed us to achieve high production volumes and relatively low lifting costs (excluding royalties, special government participation and rental of areas, which we refer to as government take). Our aggregate average lifting cost for crude oil and natural gas products in Brazil for 2004, excluding government take, increased to U.S.$4.33 per barrel of oil equivalent, as compared to U.S.$3.48 per barrel of oil equivalent for 2003. Including government take, our lifting costs increased to U.S.$10.77 per barrel of oil equivalent for 2004, as compared to U.S.$8.62 per barrel of oil equivalent for 2003.