Petrobras (PBR)

Income Tax (Expense) Benefit

Income before income taxes and noncontrolling interest decreased 34.2% to U.S.$10,246 million in the first half of 2009 compared to U.S.$15,568 million in the first half of 2008. Income tax expense decreased 47.6% to U.S.$2,498 million in the first half of 2009, compared to U.S.$4,765 million in the first half of 2008, due primarily to the reduction of taxable income and certain tax benefits related to the provisioning of interest on shareholders’ equity that amounted to U.S.$459 million in the first half of 2009. The reconciliation between the tax calculated based upon statutory tax rates to income tax expense and effective rates is set forth in Note 4 of our unaudited consolidated financial statements as of June 30, 2009.

Income Tax (Expense) Benefit

Income before income taxes and noncontrolling interest decreased 39.0% to U.S.$4,047 million in the three-month period ended March 31, 2009 compared to U.S.$6,629 million in the three-month period ended March 31, 2008. Income tax expense decreased 37.1% to U.S.$1,297 million in the three-month period ended March 31, 2009, compared to U.S.$2,061 million in the three-month period ended March 31, 2008. The reconciliation between the tax calculated based upon statutory tax rates to income tax expense and effective rates is set forth in Note 4 of our unaudited consolidated financial statements for the three-month period ended March 31, 2009.

Income Tax (Expense) Benefit

Income before income taxes and minority interest increased 39.9% to U.S.$26,992 million for 2008 compared to U.S.$19,299 million for 2007. Income tax expense increased 57.3% to U.S.$9,259 million for 2008 compared to U.S.$5,888 million for 2007. The reconciliation between the tax calculated based upon statutory tax rates to income tax expense and effective rates is set forth in Note 3 of our consolidated financial statements for the year ended December 31, 2008.

Income tax (expense) benefit

Income before income taxes and minority interest increased 65.0% to U.S.$24,354 million in the nine-month period ended September 30, 2008, compared to U.S.$14,762 million in the nine-month period ended September 30, 2007. Income tax expense increased 81.4% to U.S.$7,603 million in the nine-month period ended September 30, 2008, compared to U.S.$4,191 million in the nine-month period ended September 30, 2007. The reconciliation between the tax calculated based upon statutory tax rates to income tax expense and effective rates is set forth in Note 4 of our unaudited consolidated financial statements for the nine-month period ended September 30, 2008.

Income tax (expense) benefit

Income before income taxes and minority interest increased 67.8% to U.S.$15,568 million in the first half of 2008, as compared to U.S.$9,277 million in the first half of 2007. Income tax expense increased 83.1% to U.S.$4,765 million in the first half of 2008, as compared to U.S.$2,602 million in the first half of 2007. The reconciliation between the tax calculated based upon statutory tax rates to income tax expense and effective rates is set forth in Note 4 of our unaudited consolidated financial statements for the six-month period ended June 30, 2008.

Income tax (expense) benefit

Income before income taxes and minority interest increased 76.6% to U.S.$6,629 million for the first quarter of 2008, as compared to U.S.$3,754 million for the first quarter of 2007. Income tax expense increased 44.3% to U.S.$2,061 million for the first quarter of 2008, as compared to U.S.$1,428 million for the first quarter of 2007. The reconciliation between the tax calculated based upon statutory tax rates to income tax expense and effective rates is set forth in Note 4 of our consolidated financial statements for the three-month period ended March 31, 2008.

Income tax (expense) benefit

Income before income taxes and minority interest increased 0.7% to U.S.$19,299 million for 2007, as compared to U.S.$19,161 million for 2006. Income tax expense increased 3.5% to U.S.$5,888 million for 2007, as compared to U.S.$5,691 million for 2006. The reconciliation between the tax calculated based upon statutory tax rates to income tax expense and effective rates is set forth in Note 3 of our consolidated financial statements for the year ended December 31, 2007.

Income tax (expense) benefit

Income before income taxes and minority interest decreased 2.3% to U.S.$ 14,762 million for the nine-month period ended September 30, 2007, as compared to U.S.$ 15,113 million for the nine-month period ended September 30, 2006. Income tax expense decreased 9.9 % to U.S.$ 4,191 million for the nine-month period ended September 30, 2007, as compared to U.S.$ 4,649 million for the nine-month period ended September 30, 2006, primarily due to the decrease in income mentioned above and the additional tax benefits related to: (1) tax incentives in the Northeast, within the region covered by the Northeast Development Agency (ADENE), granting a 75% reduction in income tax payable, calculated on the profits of the exploration of the incentived activities, in the amount of U.S.$ 587 million; and (2) the provisioning of interest on shareholder’s equity in the amount of U.S.$ 788 million. The reconciliation between the tax calculated based upon statutory tax rates to income tax expense and effective rates is set forth in Note 4 of our unaudited consolidated financial statements for the nine-month period ended September 30, 2007.

Income tax (expense) benefit

Income before income taxes and minority interest decreased 10.2% to U.S.$ 9,277 million for the first half of 2007, as compared to U.S.$ 10,334 million for the first half of 2006. Income tax expense decreased 25.4 % to U.S.$2,602 million for the first half of 2007, as compared to U.S.$ 3,490 million for the first half of 2006, primarily due to the decrease in income mentioned above and the additional tax benefits related to: (1) tax incentives in the Northeast, within the region covered by the Northeast Development Agency (ADENE), granting a 75% reduction in income tax payable, calculated on the profits of the exploration of the incentived activities, in the amount of U.S.$ 494 million; and (2) the provisioning of interest on shareholder's equity in the amount of U.S.$ 365 million. The reconciliation between the tax calculated based upon statutory tax rates to income tax expense and effective rates is set forth in Note 4 of our unaudited consolidated financial statements for the six-month period ended June 30, 2007.

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Income tax (expense) benefit

Income before income taxes and minority interest decreased 26.6% to U.S.$ 3,754 million for the first quarter of 2007, as compared to U.S.$ 5,114 million for the first quarter of 2006. The income tax expense decreased 17.6 % to U.S.$ 1,428 million for the first quarter of 2007, as compared to U.S.$ 1,733 million for the first quarter of 2006, primarily due to the decrease in income mentioned above. The reconciliation between the tax calculated based upon statutory tax rates to income tax expense and effective rates is disclosed in Note 4 of our unaudited consolidated financial statements for the three-month period ended March 31, 2007.

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Income tax (expense) benefit

Income before income taxes, minority interest and extraordinary gain increased 31.3% to U.S.$ 19,161 million for 2006, as compared to U.S.$ 14,592 million for 2005. The income tax expense increased 28.1% to U.S.$ 5,691 million for 2006, as compared to U.S.$ 4,441 million for 2005, primarily due to the increase in income mentioned above. This increase was partially offset by the additional tax benefits related to the provisioning of interest on shareholders’ equity that amounted to U.S.$ 1,012 million for 2006 as compared to tax benefits related to the provisioning of interest on shareholders’ equity that amounted to U.S.$ 791 million for 2005. The reconciliation between the tax calculated based upon statutory tax rates to income tax expense and effective rates is disclosed in Note 3 to our consolidated financial statements for the year ended December 31, 2006.

Income tax (expense) benefit

Income before income taxes and minority interest increased 42.3% to U.S.$ 15,113 million for the nine-month period ended September 30, 2006, as compared to U.S.$ 10,618 million for the nine-month period ended September 30, 2005. The income tax expense increased 29.4% to U.S.$ 4,649 million for the nine-month period ended September 30, 2006, as compared to U.S.$ 3,593 million for the nine-month period ended September 30, 2005, primarily due to the increase in income mentioned above. This increase was partially offset by the additional tax benefits related to the provisioning of interest on shareholders’ equity that amounted to U.S.$ 683 million for the nine-month period ended September 30, 2006 as compared to tax benefits related to the provisioning of interest on shareholders’ equity that amounted to U.S.$ 317 million for the nine-month period ended September 30, 2005. The reconciliation between the tax calculated based upon statutory tax rates to income tax expense and effective rates is disclosed in Note 4 of our unaudited consolidated financial statements for the nine-month period ended September 30, 2006.

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Income tax (expense) benefit

Income before income taxes and minority interest increased 56.2% to U.S.$ 10,334 million for the first half of 2006, as compared to U.S.$ 6,614 million for the first half of 2005. The income tax expense increased 67.5% to U.S.$ 3,490 million for the first half of 2006, as compared to U.S.$ 2,083 million for the first half of 2005, primarily due to the increase in income, mentioned above. The reconciliation between the tax calculated based upon statutory tax rates to income tax

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expense and effective rates is disclosed in Note 4 of our unaudited consolidated financial statements for the six-month period ended June 30, 2006.

Income tax (expense) benefit

Income before income taxes and minority interest increased 58.0% to U.S.$ 5,114 million for the first quarter of 2006, as compared to U.S.$ 3,237 million for the first quarter of 2005. The income tax expense increased 44.3% to U.S.$ 1,733 million for the first quarter of 2006, as compared to U.S.$ 1,201 million for the first quarter of 2005, primarily due to the increase in income, mentioned above. The reconciliation between the tax calculated based upon statutory tax rates to income tax expense and effective rates is disclosed in Note 3 of our unaudited consolidated financial statements for the three-month period ended March 31, 2006.

Income tax (expense) benefit

Income before income taxes and minority interest increased to U.S.$ 10,618 million for the nine-month period ended September 30, 2005, as compared to U.S.$ 6,188 million for the nine-month period ended September 30, 2004. As a result, we recorded an income tax expense of U.S.$ 3,593 million for the nine-month period ended September 30, 2005, as compared to an expense of U.S.$ 1,604 million for the nine-month period ended September 30, 2004.

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The reconciliation between the tax calculated based upon statutory tax rates to income tax expense and effective rates is shown in Note 3 to our unaudited consolidated financial statements as of September 30, 2005.

Income tax (expense) benefit

Income before income taxes and minority interest increased to U.S.$ 6,614 million for the first half of 2005, as compared to U.S.$ 3,904 million for the first half of 2004. As a result, we recorded an income tax expense of U.S.$ 2,083 million for the first half of 2005, as compared to an expense of U.S.$ 1,333 million for the first half of 2004.

The reconciliation between the tax calculated based upon statutory tax rates to income tax expense and effective rates is shown in Note 3 to our unaudited consolidated financial statements as of June 30, 2005.

Income tax (expense) benefit

Income before income taxes, minority interest and accounting changes increased from U.S.$8,773 million for 2003 to U.S.$3,232 million for 2002. As a result, we recorded an income tax expense of U.S.$2,663 million for 2003, as compared to an expense of U.S.$1,153 million for 2002.

The reconciliation between the tax calculated based upon statutory tax rates to income tax expense and effective rates is discussed in Note 4 to our consolidated financial statements as of December 31, 2003.

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Income tax (expense) benefit

Income before income taxes, minority interest and accounting changes increased to U.S.$ 3,237 million for the first quarter of 2005, as compared to U.S.$ 1,901 million for the first quarter of 2004. As a result, we recorded an income tax expense of U.S.$ 1,201 million for the first quarter of 2005, as compared to an expense of U.S.$ 557 million for the first quarter of 2004.

The reconciliation between the tax calculated based upon statutory tax rates to income tax expense and effective rates is shown in Note 3 to our unaudited consolidated financial statements as of March 31, 2005.

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Income tax (expense) benefit

Income before income taxes, minority interest and accounting changes increased 1.8% to U.S.$ 8,935 million for 2004, as compared to U.S.$ 8,773 million for 2003. The income tax expense decreased 16.2% to U.S.$ 2,231 million for 2004, as compared to an expense of U.S.$ 2,663

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million for 2003, primarily due to the additional tax benefits related to interest on shareholders’ equity that amounted to U.S.$ 650 million for 2004, as compared to U.S.$ 364 million for 2003.

The reconciliation between the tax calculated based upon statutory tax rates to income tax expense and effective rates is shown in Note 4 to our audited consolidated financial statements for the year ended December 31, 2004.