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This excerpt taken from the PBR 6-K filed Sep 9, 2009. Exploration and Production Our Exploration and Production segment includes our exploration, development and production activities in Brazil, sales and transfers of crude oil in domestic and foreign markets, transfers of natural gas to our Gas and Energy segment and sales of oil products produced at natural gas processing plants. The reduction in net income from Exploration and Production segment for the first half of 2009 compared to the first half of 2008 reflects a decline in international prices and increased exploration costs due to higher geology and geophysics costs. These effects were offset by a 6.7% increase in oil and NGL production and lower production taxes. The spread between the average domestic oil sale/transfer price and the average Brent price fell from U.S.$ 13.25/bbl in the first half of 2008 to U.S.$ 10.86/bbl in the first half of 2009. 10
This excerpt taken from the PBR 6-K filed Jun 1, 2009. Exploration and Production Our Exploration and Production segment includes our exploration, development and production activities in Brazil, sales and transfers of crude oil in domestic and foreign markets, transfers of natural gas to our Gas and Energy segment and sales of oil products produced at natural gas processing plants. The reduction in net income from Exploration and Production for the first quarter of 2009 compared to the first quarter of 2008 reflects the decline in international prices, the decrease in natural gas sale/transfer volume due to reduced demand, increased exploration costs due to write-offs of dry or economically unviable wells and higher geology and geophysics costs. These effects were offset by the 7.5% increase in oil and NGL production and a decrease in production taxes. The spread between the average domestic oil sale/transfer price and the average Brent price rose from U.S.$ 10.77/bbl in the first quarter of 2008 to U.S.$ 12.17/bbl in the first quarter of 2009. 10 This excerpt taken from the PBR 20-F filed May 22, 2009. Exploration
and Production
Our Exploration and Production segment includes our exploration,
development and production activities in Brazil, sales and
transfers of crude oil in domestic and foreign markets,
transfers of natural gas to our Gas and Energy segment and sales
of oil products produced at natural gas processing plants.
Consolidated net income for our Exploration and Production
segment increased 17.8% to U.S.$14,072 million for 2007
compared to U.S.$11,942 million for 2006.
This result was primarily attributable to a
U.S.$6,253 million increase in net operating revenues,
primarily related to:
methodology that takes into consideration natural gas
substitutes such as fuel oil as well as international natural
gas prices.
These effects were partially offset by:
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amendments in Petros Plan regulations.
This excerpt taken from the PBR 6-K filed Mar 31, 2009. Exploration and production The assets were grouped in cash generating units for identification of possible losses through devaluation of assets. Each field corresponds to one cash generating unit. During 2008 the Exploration and Production segment recorded expenses with a provision for loss through the valuation of assets in the amount of R$ 602.675. 77 The loss was related mainly to the assets in production in Brazil. In 2008 two factors negatively influenced the field results: the price of Brent at December 31, 2008 and the operating costs (equipment and services) which did not have such a sharp fall as Brent. These two factors had reducing effects during the economic analysis which led to the recording of a provision for loss for devaluation in some fields. This excerpt taken from the PBR 6-K filed Mar 30, 2009. Exploration and Production Our Exploration and Production segment includes our exploration, development and production activities in Brazil, sales and transfers of crude oil in domestic and foreign markets, transfers of natural gas to our Gas and Energy segment and sales of oil products produced at natural gas processing plants. Consolidated net income for our Exploration and Production segment increased 49.5% in 2008 compared to 2007, primarily due to higher average domestic oil prices and a 3.5% increase in oil and NGL production. These effects were partially offset by higher production taxes, impairment charges in Brazil as a result of decreased international prices at the end of 2008, which affected future projections and increased exploration costs due to write-offs of dry or economically unviable wells. The spread between the average domestic oil sale/transfer price and the average Brent price rose from U.S.$ 10.95/bbl in 2007 to U.S.$ 15.44/bbl in 2008. 12
This excerpt taken from the PBR 6-K filed Nov 28, 2008. Exploration and Production Our Exploration and Production segment includes our exploration, development and production activities in Brazil, sales and transfers of crude oil in domestic and foreign markets, transfers of natural gas to our Gas and Energy segment and sales of oil products produced at natural gas processing plants. Net income for our Exploration and Production segment, for the nine-month period ended September 30, 2008, increased 98.2% compared to the same period of 2007, primarily due to higher average domestic oil prices and increased oil and NGL production. These effects were partially offset by higher production taxes and increased exploration costs, the latter due to write-offs of dry or economically unviable wells. The spread between the average domestic oil sale/transfer price and the average Brent price widened to U.S.$13.51/bbl in the nine-month period ended September 30, 2008, from U.S.$10.61/bbl in the nine-month period ended September 30, 2007. 11
This excerpt taken from the PBR 6-K filed Sep 4, 2008. Exploration and Production Our Exploration and Production segment includes our exploration, development and production activities in Brazil, sales and transfers of crude oil in domestic and foreign markets, transfers of natural gas to our Gas and Energy segment and sales of oil products produced at natural gas processing plants. The net income from our Exploration and Production segment increased by 120.0% in the first half of 2008, as compared to the first half of 2007, due to the increase in average domestic oil prices and the 2.2% increase in daily oil and NGL production. These effects were partially offset by higher expenses from production taxes and the increase in exploration cost, the latter mainly due to write-off of dry and economically unviable wells.
The spread between the average domestic oil sale/transfer price and the average Brent price rose from U.S.$10.84/bbl in the first half of 2007 to 9 
This excerpt taken from the PBR 6-K filed May 22, 2008. Exploration and Production Our Exploration and Production segment includes our exploration, development and production activities in Brazil, sales and transfers of crude oil in domestic and foreign markets, transfers of natural gas to our Gas and Energy segment and sales of oil products produced at our natural gas processing plants. The net income from our Exploration and Production segment for the first quarter of 2008 increased by 126.0% over the first quarter of 2007 due to the increase in average domestic oil prices and the 0.9% upturn in daily oil and NGL production. These effects were offset by higher expenses from government participations and the write-off of economically unviable wells. The spread between the average domestic oil sale/transfer price and the average Brent price widened to US$10.77/bbl in the first quarter of 2008 from US$9.96/bbl in the first quarter of 2007. 10
This excerpt taken from the PBR 6-K filed Mar 18, 2008. Exploration and Production Our Exploration and Production segment includes our exploration, development and production activities in Brazil, sales and transfers of crude oil in domestic and foreign markets, transfers of natural gas to our Gas and Energy segment and sales of oil products produced at natural gas processing plants. Consolidated net income for our Exploration and Production segment increased 17.8% to U.S.$14,072 million for 2007, as compared to U.S.$11,942 million for 2006. This result was primarily attributable to the increase of U.S.$6,253 million in net operating revenues, primarily related to: (1) the increase in average sales prices of oil in Brazil; (2) 0.8% increase in crude oil and NGL production; and (3) the increase in average transfer prices to our other segments for natural gas due to new methodology that takes into consideration natural gas substitutes such as fuel oil as well as international natural gas prices. These effects were partially offset by: • an increase of U.S.$1,492 million in cost of sales as a result of higher lifting costs and production taxes when expressed in U.S. dollars, as well as slightly increased production; • an increase of U.S.$1,169 million in depreciation, depletion and amortization primarily as result of increased capital expenditures, depletion expenses associated with our increased crude oil and natural gas production; and • the increase of U.S.$214 million in other operating expenses, mainly attributable to a one-time charge of U.S.$104 million related to the amendments in Petros Plan regulations. 8
This excerpt taken from the PBR 6-K filed Dec 21, 2007. Exploration and Production - Major efforts will be taken to develop complementary technologies necessary for implementing the appropriation of reserves and the development of production from the new geological pre-salt frontier.
www.petrobras.com.br/ri/english 
This document may contain forecasts that merely reflect the expectations of the Company’s management. Such terms as “anticipate”, “believe”, “expect”, “forecast”, “intend”, “plan”, “project”, “seek”, “should”, along with similar or analogous expressions, are used to identify such forecasts. These predictions evidently involve risks and uncertainties, whether foreseen or not by the Company. Therefore, the future results of operations may differ from current expectations, and readers must not base their expectations exclusively on the information presented herein. This excerpt taken from the PBR 6-K filed Nov 29, 2007. Exploration and Production Our Exploration and Production segment includes our exploration, development and production activities in Brazil, sales and transfers of crude oil in the domestic and foreign markets, transfers of natural gas to our Gas and Energy segment and sales of oil products produced at their natural gas processing plants. Consolidated net income for our Exploration and Production segment remained relatively constant, increasing 0.4% to U.S.$ 9,632 million for the nine-month period ended September 30, 2007, as compared to U.S.$ 9,593 million for the nine-month period ended September 30, 2006. This result was primarily attributable to the increase of U.S.$ 1,432 million in net operating revenues, primarily related to: (1) the 1.9% increase in crude oil and NGL production; and (2) the increase in average transfer prices for natural gas due to new methodology that takes into consideration the international natural gas prices as one of the variables. These increases in net operating revenues were partially offset by the fact that the spread between the average price of sold/transferred domestic oil and the average Brent price rose from U.S.$ 10.08/bbl in the nine-month period ended September 30, 2006, to U.S.$ 10.61/bbl in the nine-month period ended September 30, 2007. These effects were partially offset by:
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This excerpt taken from the PBR 6-K filed Sep 6, 2007. Exploration and Production Our Exploration and Production segment includes our exploration, development and production activities in Brazil, sales and transfers of crude oil in the domestic and foreign markets, transfers of natural gas to our Gas and Energy segment and sales of oil products produced at their natural gas processing plants. Consolidated net income for our Exploration and Production segment decreased 10.9% to U.S.$ 5,689 million for the first half of 2007, as compared to U.S.$ 6,388 million for the first half of 2006. This decrease was primarily attributable to:
These effects were partially offset by the increase of U.S.$ 144 million in net operating revenues, primarily related to: (1) the 2.3% increase in crude oil and NGL production; and (2) the increase in average transfer prices for natural gas due to new methodology that takes into consideration the international natural gas prices as one of the variables. These increases in net operating revenues were partially offset by the decline in average oil sales prices and the fact that the spread between the average price of sold/transferred domestic oil and the average Brent price rose from U.S.$ 9.77/bbl in the first half of 2006, to U.S.$ 10.84/bbl in the first half of 2007. 13 This excerpt taken from the PBR 6-K filed Jun 13, 2007. Exploration and Production Our Exploration and Production segment includes our exploration, development and production activities in Brazil, sales and transfers of crude oil in the domestic and foreign markets, transfers of natural gas to our Gas and Energy segment and sales of oil products produced at their natural gas processing plants. Consolidated net income for our Exploration and Production segment decreased 28.1% to U.S.$ 2,416 million for the first quarter of 2007, as compared to U.S.$ 3,361 million for the first quarter of 2006. This decrease was primarily attributable to: • a decrease of U.S.$ 700 million in net operating revenues, primarily related to: (1) the 10.9% decrease in the average domestic price for sale/transfer (U.S.$/bbl) due to the decline in international oil prices and the spread between the average price of sold/transferred domestic oil and the average Brent price rose from U.S.$ 8.07/bbl in the first quarter of 2006, to U.S.$ 9.96/bbl in the first quarter of 2007; (2) the 3.9% increase in the value of the Real against the U.S. dollar in the first quarter of 2007, as compared to the first quarter of 2006; and • an increase of U.S.$ 234 million in depreciation, depletion and amortization primarily as result of: (1) an increase in capital expenditures related to property, plant and equipment associated with our crude oil and natural gas production; and (2) a U.S.$ 96 million increase in depletion related to property, plant and equipment associated with our crude oil and natural gas production, primarily related to Roncador, Golfinho and Albacora Leste fields. 14
This excerpt taken from the PBR 6-K filed Apr 10, 2007. Exploration and Production Our exploration and production segment includes our exploration, development and production activities in Brazil, sales and transfers of crude oil in the domestic and foreign markets, transfers of natural gas to our Gas and Energy segment and sales of oil products produced at their natural gas processing plants. Consolidated net income for our exploration and production segment increased 26.3% to U.S.$ 11,958 million for 2006, as compared to U.S.$ 9,469 million for 2005. This rise was primarily attributable to: (1) a U.S.$ 6,914 million increase in net operating revenues, primarily related to the 5.6% increase in oil and NGL production; (2) an increase of 27.4% in oil exports; and (3) the 20.5% increase in the average domestic price for sale/transfer (U.S.$/bbl), despite the fact that the spread between the average price of sold/transferred domestic oil and the average Brent price rose from U.S.$ 8.96/bbl in 2005, to U.S.$ 10.43/bbl in 2006. These effects were partially offset by the following items:
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This excerpt taken from the PBR 6-K filed Nov 28, 2006. Exploration and Production Our exploration and production segment includes our exploration, development and production activities in Brazil, sales and transfers of crude oil in the domestic and foreign markets, transfers of natural gas to our Gas and Energy segment and sales of oil products produced at their natural gas processing plants. Consolidated net income for our exploration and production segment increased 31.3% to U.S.$ 9,603 million for the nine-month period ended September 30, 2006, as compared to U.S.$ 7,312 million for the nine-month period ended September 30, 2005. This increase was primarily attributable to a U.S.$ 6,311 million increase in net operating revenues, primarily related to the 5.8% increase in oil and NGL production, and the positive effects of higher international oil prices on the sales/transfer prices of domestic oil, despite the fact that the spread between the average price of sold/transferred domestic oil and the average Brent price rose from U.S.$ 8.37/bbl in the nine-month period ended September 30, 2005, to U.S.$ 10.08/bbl in the nine-month period ended September 30, of 2006. These effects were partially offset by the following items:
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This excerpt taken from the PBR 6-K filed Sep 6, 2006. Exploration and Production Our exploration and production segment includes our exploration, development and production activities in Brazil, sales and transfers of crude oil in the domestic and foreign markets, transfers of natural gas to our Gas and Energy segment and sales of oil products produced at their natural gas processing plants. Consolidated net income for our exploration and production segment increased 55.7% to U.S.$ 6,395 million for the first half of 2006, as compared to U.S.$ 4,107 million for the first half of 2005. This increase was primarily attributable to a U.S.$ 5,112 million increase in net operating revenues, primarily related to the 7.1% increase in oil and NGL production, and the positive effects of higher international oil prices on the sales/transfer prices of domestic oil, despite the fact that the spread between the average price of sold/transferred domestic oil and the average Brent price rose from U.S.$ 9.15/bbl in the first half of 2005, to U.S.$ 9.77/bbl in the first half of 2006. These effects were partially offset by the following items: • an increase of U.S.$ 1,388 million in cost of sales as a result of: (1) an increase in our production costs due to the 7.1% increase in oil and NGL production; (2) an increase in the government take as a result of an increase expenses from special governmental participation due to the higher average reference price for domestic oil, which is based on international market prices; and (3) the 15.0% 14 
increase in the value of the Real against the U.S. dollars in the first half of 2006, as compared to the first half of 2005; • an increase of U.S.$ 227 million in depreciation, depletion and amortization as result of: (1) an increase in capital expenditures related to property , plant and equipment associated with our crude oil and natural gas production; and (2) the 15.0% increase in the value of the Real against the U.S. dollars in the first half of 2006, as compared to the first half of 2005; and • an increase of U.S.$ 104 million in research and development expenses primarily as a result of a provision for ANP research and development investment (U.S.$ 56 million), related to regulation ANP 05/2005.
This excerpt taken from the PBR 6-K filed Jun 28, 2006. Exploration and Production Our exploration and production segment includes our exploration, development and production activities in Brazil, sales and transfers of crude oil in the domestic and foreign markets, transfers of natural gas to our Gas and Energy segment and sales of oil products produced at their natural gas processing plants. Consolidated net income for our exploration and production segment increased 68.4% to U.S.$ 3,361 million for the first quarter of 2006, as compared to U.S.$ 1,996 million for the first quarter of 2005. This increase was primarily attributable to a U.S.$ 3,348 million increase in net operating revenues, primarily related to the 13.5% increase in oil and NGL production, and the 1.5% increase in natural gas production, the higher value of heavy crude oil in the international market compared to lighter crude oil, and the positive effects of higher international oil prices on the sales/transfer prices of domestic oil, considering the fact that the spread between the average price of sold/transferred domestic oil and the average Brent price declined from U.S.$ 10.02/bbl in the first quarter of 2005, to U.S.$ 8.07/bbl in the first quarter of 2006. These effects were partially offset by the increase of U.S.$ 1,244 million in cost of sales as a result of: (1) an increase in our production costs due to the 13.5% increase in oil and NGL production; (2) the 1.5% increase in natural gas production; (3) an increase in the government take as a result of an increase expenses from special governmental participation due to the higher average reference price for domestic oil, which is based on international market prices; and (4) the 17.7% increase in the value of the Real against the U.S. dollars in the first quarter of 2006, as compared to the first quarter of 2005 about the part of costs originated in Reais. 14
This excerpt taken from the PBR 6-K filed Nov 23, 2005. Exploration and Production Our exploration and production segment includes our exploration, development and production activities in Brazil, sales and transfers of crude oil in the domestic and foreign markets and transfers of natural gas to our Gas and Energy segment. Consolidated net income for our exploration and production segment increased 69.4% to U.S.$ 7,458 million for the nine-month period ended September 30, 2005, as compared to U.S.$ 4,402 million for the nine-month period ended September 30, 2004. This increase was primarily attributable to: • a U.S.$ 7,203 million increase in net operating revenues, primarily related to the positive effects of higher international oil prices on the sales/transfer prices of domestic oil, the 12.1% increase in oil and NGL production, and the 3.4% increase in natural gas production, despite the more moderate price increases of heavy crude oil in the international market compared to lighter crude oil and the 16.0% increase in the value of the Real against the U.S. dollar in the nine-month period ended September 30, 2005, as compared to the nine-month period ended September 30, 2004. The spread between the price of domestic oil sold/transferred and the average Brent price rose from U.S.$ 3.34/bbl in the nine-month period ended September 30, 2004, to U.S.$ 8.37/bbl in the nine-month period ended September 30, 2005. These effects were partially offset by a U.S.$ 2,757 million increase in cost of sales as a result of: (1) an increase in our production costs due to the 12.1% increase in oil and NGL production; (2) the 3.4% increase in natural gas production; and (3) an increase in the government take as a result of an increase expenses from special governmental participation due to the higher average reference price for domestic oil, which is based on international market prices; and (4) the 16.0% increase in the value of the Real against the U.S. dollar in the nine-month period ended September 30, 2005, as compared to the nine-month period ended September 30, 2004. Page: 15 This excerpt taken from the PBR 6-K filed Aug 25, 2005. Exploration and Production Our exploration and production segment includes our exploration, development and production activities in Brazil, sales and transfers of crude oil in the domestic and foreign markets and transfers of natural gas to our Gas and Energy segment. Consolidated net income for our exploration and production segment increased 67.5% to U.S.$ 4,103 million for the first half of 2005, as compared to U.S.$ 2,450 million for the first half of 2004. This increase was primarily attributable to: • a U.S.$ 3,858 million increase in net operating revenues, primarily related to the positive effects of higher international oil prices on the sales/transfer prices of domestic oil, the 11.5% increase in oil and NGL production, and the 5.0% increase in natural gas production, despite the more moderate price increases of heavy crude oil in the international market compared to lighter crude oil. The spread between the price of domestic oil sold/transferred and the average Brent price rose from U.S.$ 2.49/bbl in the first half of 2004, to U.S.$ 9.16/bbl in the first half of 2005. These effects were partially offset by a U.S.$ 1,530 million increase in cost of sales as a result of an increase in our production costs due to the 11.5% increase in oil and NGL production, the 5.0% increase in natural gas production and the 13.4% increase in the value of the Real against the U.S. dollar in the first half of 2005, as compared to the first half of 2004. This excerpt taken from the PBR 20-F filed Jun 30, 2005. Exploration and Production
During 2004 we conducted significant international exploration activities in Angola, Argentina, Bolivia, Colombia, Nigeria, the United States and Venezuela. In addition, we are currently performing studies to evaluate blocks where we hold interests in Angola, Argentina, Colombia, Mexico, Nigeria and the United States. Production activities were conducted in Angola, Argentina, Bolivia, Colombia, Ecuador, Peru, the United States and Venezuela. Collectively, these activities represented approximately 12.7% of our total capital expenditures for crude oil and natural gas exploration and production. Our capital expenditures for international exploration and development were U.S.$666 million for 2004, U.S.$428 million for 2003 and U.S. $224 million for 2002. The following table provides information about the allocation of such expenditures for each of 2004, 2003 and 2002:
This excerpt taken from the PBR 6-K filed Jun 13, 2005. Exploration and Production
Our exploration and production segment includes our exploration, development and production activities in Brazil, sales and transfers of crude oil in the domestic and foreign markets and transfers of natural gas to our Gas and Energy segment.
Consolidated net income for our exploration and production segment increased 53.5% to U.S.$ 1,804 million for the first quarter of 2005, as compared to U.S.$ 1,175 million for the first quarter of 2004. This increase was primarily attributable to:
These effects were partially offset by the following items:
This excerpt taken from the PBR 6-K filed Jun 8, 2005. Exploration and Production
Our exploration and production segment includes our exploration, development and production activities in Brazil, sales and transfers of crude oil in the domestic and foreign markets and transfers of natural gas to our Gas and Energy segment.
Consolidated net income for our exploration and production segment increased 8.3% to U.S.$ 5,961 million for 2004, as compared to U.S.$ 5,504 million for 2003. This increase was primarily attributable to:
• a U.S.$ 3,173 million increase in net operating revenues, primarily related to the positive effects of higher international oil prices on the sales/transfer prices of domestic oil and the 6.0% increase in natural gas production, despite the 3.1% decrease in oil and NGL production and the more moderate price increases of heavy crude oil in the international market compared to lighter crude oil. The spread between the price of domestic oil sold/transferred and the average Brent price rose from U.S.$ 1.75/bbl in 2003, to U.S.$ 4.72/bbl in 2004.
These effects were partially offset by the following items:
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