Petrobras (PBR)

INTERNATIONAL OPERATIONS

Petrobras envisages investing US$ 3.2 billion in its international operations - 32% in the United States, 30% in Latin America, 19% in Africa and 19% in the remaining countries. Priority is to be given to the Exploration and Production segment in which about 66% of the total will be invested, followed by the Refinery segment, with a further 27%.

The main focus of the Company’s international investments next year will be the United States. In addition to substantial investments in exploration and production in the Gulf of Mexico, funding will be dedicated to the expansion of the Pasadena refinery in Texas.

Petrobras will continue to have an important presence in Latin America, where US$ 960 million will be invested in the consolidation of its various businesses in the areas of exploration and production, refining, distribution and gas and energy.

The increase on various operational fronts and the diversification of the international area’s portfolio are both aimed at providing greater sustainability for the Company’s overseas investments as envisaged in the Strategic Plan 2020. Petrobras is currently present in businesses in more than 20 countries, principal among which are Angola, Argentina, Bolivia, Colombia, Ecuador, the United States, Iran, Libya, Mexico, Mozambique, Nigeria, Paraguay, Peru, Uruguay, Tanzania, Turkey and Venezuela.

The Strategic Plan 2020 anticipates robust overseas growth. In the light of this and to reach the highest standards of competitiveness and profitability, the Company is implementing the International Integration Processes Program – Proani. Pronai aims to generate a blanket management model for its overseas activities, aligned with the corporation overall, as well as increasing the operational velocity for concluding business, sharing information and developing human capital. Following the first phase of implementation – at the Argentine unit in July 2007 - this program is to be extended to all other overseas units.

Investments will proceed for the opening of new business fronts in the areas of health, the environment and occupational safety, the integration of practices and processes, in information and telecommunications technology and in the enhancement of the brand name, among others.