Petrobras (PBR)

24. ENVIRONMENTAL, HEALTH AND SAFETIES

Petrobras’ continuous improvement in its environmental policy, as defined in the Strategic Plan, is associated with the implementation of two major programs: the Process Security Program (PSP) and the Program for Excellency in Environmental Management and Operational Safety (Pegaso).

In the first quarter of 2007, excluding the costs with employees medical assistance and external environmental project support, the security, environmental and health (SMS) investments of the company totaled R$ 845 millions. Of this value, R$ 194 millions refers to investments in the Program for Excellency in Environmental Management and Operational Safety (Pegaso), which also received about R$ 79 millions in resources from the subsidiary Transpetro.

23. ENVIRONMENTAL, HEALTH AND SAFETIES

The volume of oil leaked in PETROBRAS operations in Brazil and overseas remains among the lowest in the global oil industry. Between January and September 2006 no significant events occurred. During this period, the Rate of Accidents requiring Leave - TFCA was 0.82, continuing the falls recorded in recent years.

In September, PETROBRAS joined the Dow Jones Sustainability Index (DJSI), obtaining important international acknowledgment of the actions the company is carrying out in the areas of safety, the environment and occupational health. This placed the Company among just six companies in Brazil comprising this index, and in the global oil and gas sector, the only company in Latin America.

From January to September of 2006, the Company’s investments and operations on operating, environmental and occupational safety stand at R$ 2.167.513 thousand, not including outlays on medical assistance for employees and sponsorship of external environmental projects. The Environmental Management and Operating Safety Excellence Programme (PEGASO) received funds of R$ 833.868 thousand, including R$ 252.759 thousand from the subsidiary TRANSPETRO.

23) ENVIRONMENTAL, HEALTH AND SAFETIES

In the first half of 2006, the volume of oil leaked during Petrobras’ operations in Brazil and overseas remained among the lowest recorded in the global oil industry, and no more significant occurrences were recorded.

The second edition of the Petrobras Environmental Programme was launched at the company’s headquarters in Rio de Janeiro in April, which was open to the public and received R$ 48,000 thousand. The chosen theme was "Water: freshwater and sea water courses, and their biodiversity”.

In this half, the company’s investments and operations on operating, environmental and occupational safety stand at R$ 1,468,078 thousand, not including outlays on medical assistance for employees and sponsorship of external environmental projects. The Environmental Management and Operating Safety Excellence Programme (PEGASO) received funds of R$ 591.037 thousand, including R$ 178.934 thousand from the subsidiary Transpetro.