Petrobras (PBR)

3. Government Participations

Government participations in the country increased by 53% year-on-year, due to the 42% upturn in the reference price for local oil, which averaged R$ 139.57 (US$ 80.45) in the 1Q-2008, versus R$ 98.20 (US$ 46.62) in the 1Q-2007, reflecting the average Brent price on the international market, and the increase in output, chiefly due to the operational start-up of the P-34 (Jubarte), FPSO-Cidade do RJ (Espadarte), FPSO-Cidade de Vitória (Golfinho), P-52 (Roncador) and P-54 (Roncador) platforms, offsetting the natural decline in production

In comparison with the 4Q-2007, government participations in the country moved up 11%, due to the 5% upturn in the reference price for local oil which averaged R$ 139.57 (US$ 80,45) in the 1Q-2008, versus R$ 133.54 (US$ 74.84) in the 4Q-2007, reflecting the average Brent price on the international market, plus increased output from the recently installed platforms in the Golfinho and Roncador fields.

3. Government Participations

Government participations in the country fell by 7% over 2006, reflecting the 10% appreciation of the Real and the reduction in the Special Participation tax rate due to the natural decline in production from the leading productive fields: Marlim, Marlim Sul, Barracuda and Caratinga.

In the country in the 4Q-2007 Government participations increased by 10% over the previous quarter due to the 12% increase in the reference price for local oil, which averaged R$ 133.84 (US$ 74.84) in the 4Q-2007, versus R$ 118.96 (US$ 62.15) in the 3Q-2007, reflecting the average Brent price on the international market.

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PETROBRAS SYSTEM	Appendices

3. Government Participations

Third-quarter government participations in the country increased by 15% over the 2Q-2007, due to the 10% increase in the reference price for local oil, which averaged R$ 118.83 (US$ 62.08) in the 3Q-2007, versus R$ 108.12 (US$ 56.81) in the previous three months, reflecting the average Brent price on the international market, associated with higher Marlim Field productivity, increasing the royalties and special participation levels.

Year-to-date government participations in the country fell by 13% over the 9M-2006, due to the 9% decrease in the reference price for local oil, which averaged R$ 108.38 (US$ 54.43), versus R$ 119.56 (US$ 54.77) in the same period in 2006, reflecting the average Brent price on the international market, associated with the reduction in the tax rate, especially in the Marlim field, due to the natural decline in production.

3. Government Participations

Third-quarter government participations in the country increased by 15% over the 2Q-2007, due to the 10% increase in the reference price for local oil, which averaged R$ 118.83 (US$ 62.08) in the 3Q-2007, versus R$ 108.12 (US$ 56.81) in the previous three months, reflecting the average Brent price on the international market, associated with higher Marlim Field productivity, increasing the royalties and special participation levels.

Year-to-date government participations in the country fell by 13% over the 9M-2006, due to the 9% decrease in the reference price for local oil, which averaged R$ 108.38 (US$ 54.43), versus R$ 119.56 (US$ 54.77) in the same period in 2006, reflecting the average Brent price on the international market, associated with the reduction in the tax rate, especially in the Marlim field, due to the natural decline in production.

30

PETROBRAS SYSTEM	Appendices

3. Government Participations

Government participation in Brazil declined by 16% in relation to 1Q-2006, due to the 12% decrease in the reference price for local oil, which averaged R$ 98.40 (US$ 46.72), versus R$ 111.80 (US$ 50.93) in 1Q-2006, reflecting the lower average Brent price on the international market, as well as the lower tax rate bracket use to calculate Special Participation, especially in relation to the Marlim and Marlim Sul fields due to the natural decline in production, as well as the scheduled maintenance stoppage in the P-37 (Marlim) platform in January 2007.

3. Government Participations

Government participation in Brazil declined by 16% in relation to 1Q-2006, due to the 12% decrease in the reference price for local oil, which averaged R$ 98.40 (US$ 46.72), versus R$ 111.80 (US$ 50.93) in 1Q-2006, reflecting the lower average Brent price on the international market, as well as the lower tax rate bracket use to calculate Special Participation, especially in relation to the Marlim and Marlim Sul fields due to the natural decline in production, as well as the scheduled maintenance stoppage in the P-37 (Marlim) platform in January 2007.

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