Petrobras (PBR)

15.5 Financing for P-51 Platform

In 2005, PNBV contracted a loan with the BNDES, to be used to build the P-51 platform, of which US$ 204 million was withdrawn.

On June 15, 2007, PNBV opted to repay the loan early, and to cancel the balance of funds available at BNDES, in line with the strategic objectives of the Petrobras Group and to optimize its financial structure.

13.5. Financing for P-51 Platform

On December 05, 2005, Petrobras Netherlands B.V. - PNBV, a wholly owned subsidiary of Petrobras, entered into a financing agreement with BNDES, in the amount of up to US$ 402 million, to purchase assets and contract services in Brazil to build the P-51 platform that will be used in oil production in the Marlim Sul field. Of the total funds available for withdrawal, PNBV used the amount of US$ 204 million, which was invested in the construction of the asset.

Considering its favorable cash position, the present economic scenario and the higher rates of interest at the time the financing was contracted, the company opted to repay the debt earlier, and to cancel the balance of funds available at BNDES, in line with the strategic objectives of the Petrobras Group and to optimize its financial structure.

On June 15, 2007, PNBV settled the loan amounting to US$ 205 million, including interest incurred up to that date.

e) Financing for P-51 Platform

On December 05, 2005, Petrobras Netherlands B.V. - PNBV, a wholly-owned subsidiary of Petrobras, entered into a financing agreement with BNDES, in the amount of US$ 402 million (equivalent to R$ 824.261 thousand as of March 31, 2007, for the national share of the P-51 semi-submersible platform that is being built in Brazil.

e) Financing of P-51 Platform

On December 5, 2005, PETROBRAS NETHERLANDS B.V. - PNBV, a wholly-owned subsidiary of PETROBRAS, entered into a financing agreement with BNDES, in the amount of US$ 402 million (equivalent to R$ 874.000 thousand on September 30, 2006), for the national share of the P-51 semi-submersible platform that is being built in Brazil.

Financing will be amortized over 10 years once construction of the platform has been concluded, which is expected to occur in the last quarter of 2007.

The platform will be built through contracts executed totaling some USD 810 million (R$ 1.761.000 thousand as of September 30, 2006). The P-51 will be one of PETROBRAS’ platforms having the largest oil extraction capacity in the Marlim Sul field, located in the Campos Basin, expected to commence operations in 2008.

Although the funding for P-51 construction is mainly provided by BNDES financing, there is other credit lines to finance foreign equipments for the

e) Financing of P-51 Platform

On December 5, 2005, PETROBRAS NETHERLANDS B.V. - PNBV, a wholly-owned subsidiary of PETROBRAS, entered into a financing agreement with BNDES, in the amount of US$ 402 million (equivalent to R$ 870.000 thousand on June 30, 2006), for the national share of the P-51 semi-submersible platform that is being built in Brazil.

Financing will be amortized over 10 years once construction of the platform has been concluded, which is expected to occur in the last quarter of 2007.
The platform is being built in accordance with an engineering, procurement and construction agreement entered into with the Fels Setal/Technip consortium, an agreement for the construction and assembly of gas compression modules, entered into with Nuovo Pignone, and an agreement for the construction and assembly of turbo-generators, entered into with Rolls Royce, totaling approximately US$ 810 million (R$ 1.753.000 thousand on June 30, 2006). The P-51 will be one of PETROBRAS’ platforms having the largest processing capacity in the Marlim Sul field, located in the Campos Basin, expected to commence operations in 2008.

Althoug the funding for P-51 construction is mainly provided by BNDES financing, there is other credit lines to finance foreign equipments for the plataform that are

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granted by BNP Paribas, and assured by Nordic Investment Bank and by Credit Agencies that support European Exports.

e) Financing of P-51 Platform

On December 5, 2005, PETROBRAS NETHERLANDS B.V. - PNBV, a wholly-owned subsidiary of PETROBRAS, entered into a financing agreement with BNDES, in the amount of US$ 402 million (equivalent to R$ 941 million), for the national share of the P-51 semi-submersible platform that is being built in Brazil.

Financing will be amortized over 10 years once construction of the platform has been concluded, which is expected to occur in the last quarter of 2007.

The platform is being built in accordance with an engineering, procurement and construction agreement entered into with the Fels Setal/Technip consortium, an agreement for the construction and assembly of gas compression modules, entered into

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with Nuovo Pignone, and an agreement for the construction and assembly of turbo-generators, entered into with Rolls Royce, totaling approximately US$ 810 million (R$ 1.896.000) . P-51 will be one of PETROBRAS’ platforms having the largest processing capacity in the Marlim Sul field, located in the Campos Basin, expected to commence operations in 2008.

Althoug the funding for P-51 construction is mainly provided by BNDES financing, there is other credit lines to finance foreign equipments for the plataform that are granted by BNP Paribas, and assured by Nordic Investment Bank and by Credit Agencies that support European Exports.

Financing for the P-51 platform

The financing will be amortized over 10 years after the end of the construction period of the platform, which is scheduled for the last quarter of 2007.

The construction of the platform is being performed through three contracts: Engineering, Supply and Construction with the consortium FELS SETAL/TECHNIP; Construction and Assembly of the motor-compressors with Nuovo Pignone; and Construction and Assembly of the turbo-generators with Rolls Royce. These three contracts amount to approximately US$ 810 million. The P-51 will be one of the company platforms with the largest processing capacity. It will produce 180,000 barrels of petroleum daily, in the Marlim Sul Field in the Campos Basin, with operations due to start in 2008. The P-51 construction project estimates a global minimum national content, including assets and services, of 60% and a minimum assets content of 40%.

The BNDES financing is the main source of funds for the P-51 construction. At the same time there are others credit lines, already agreed, with Banco BNP Paribas, guaranteed by the credit agencies for European exports and with the Nordic Investment Bank, for the funding of the imported equipment for the platform. BNP Paribas will also be the mandatory financing bank of BNDES.

The Marlim Sul Field was discovered in November 1987 and is located approximately 120 kilometers off shore the north of the state of Rio de Janeiro, in water depths ranging from 850 to 2,400 meters and covering an area of about 600 km² . The current development concept for the field comprises four production stages, known as Modules 1, 2, 3 and 4. Module 2 includes the installation of the P-51 in a water depth of 1,250 meters. The flow of the oil will be realized by an oil pipeline to a fixed platform in shallow waters, the Rebombeio Autônoma Platform 1 (PRA-1); an oil pipeline to the P-38 platform (a Floating Storage and Offloading vessel), located in the Marlim Sul Field; and an oil pipeline to the FPSO-MLS (a Floating Production Storage and Offloading vessel), also situated in the Marlim Sul Field. The gas produced will flow to land using two gas pipelines: one from P-51 to the P-40 platform, located in the Marlim Sul Field; and one from P-51 to the gas pipeline in the Barracuda Field.

Currently, the Marlim Sul Field has 57 wells in production and 42 Injectors. The production peak of 390,000 bpd should occur in 2013. The average oil production in 2004 was 179,000 bpd.

Since the entry into operation of the P-43 and P-48 platforms, Petrobras is close to national self-sufficiency in petroleum. The average in 2005 should reach 1,700,000 barrels per day for a demand of approximately 1,800,000 barrels. By the first half of 2006, Petrobras crude oil roduction should equal or even surpass the levels of internal consumption, with an average annual forecast of 1,910,000 barrels per day.

This level will be sustainable and will rise due to the entry into operation of the P-51 and the 35 other major projects that the company has in its portfolio. These will allow annual increases in production, arriving at 2,300,000 barrels in 2010, without taking into account any future discoveries.

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.