Petrobras (PBR)

International Proved Reserves:

On December 31st, 2007 Proved Reserves of oil, condensate and natural gas, abroad, according to the SPE criteria, were 1.090 billion boe, representing a decrease of 14.2% in relation to 2006.

During 2007, the appropriation of proved reserves was supplemented by the period’s production, added to the contractual revisions that were made in Bolivia, and technical revisions occurred in Ecuador and in the United States. Therefore reserves were reduced by 180 million boe, as shown below:

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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.

According to SPE criteria, international Reserve/Production (R/P) ratio was 12.7 years.

The oil, condensate and natural gas proved reserves, based on SEC Criteria, as at December 31st, 2007, were 886 million boe. This volume represents a reduction of approximately 0.11% compared to the preceding year (885 million boe).

During 2007, the appropriation of proved reserves, mainly in Nigeria and Peru, was supplemented by the period’s production, as shown below:

Using the same criterion, the Reserve/Production (R/P) ratio is 10.6 years.

The main reasons for the difference between SPE and SEC criteria are:
• By SEC criteria only the gas volumes covered by natural gas sales contracts can be declared as proven reserves, and in Bolivia this excludes volumes of discovered gas still not commercialized.
• In Nigeria, because of the current state of production development, only a part of total discovered volumes can be booked to the company reserves.

International Proved Reserves:

On December 31^st, 2006 Proved Reserves of oil, condensate and natural gas, abroad, according to the SPE criteria, were 1.270 billion boe, representing a decrease of 24.4% .

During 2006, the appropriation of proved reserves was supplemented by the period’s production, added to the contractual revisions that were made, preponderantly in Venezuela. Therefore reserves were reduced by 411 million boe, as shown below:

According to SPE criteria, international Reserve/Production (R/P) ratio was 14.3 years.

The oil, condensate and natural gas proved reserves, based on SEC Criteria, as at December 31^st, 2006, were 885 million boe. This volume represents a reduction of approximately 26.1% compared to the preceding year (1.197 billion boe).

During 2006, the appropriation of proved reserves was supplemented by the period’s production, added to the contractual revisions that were made, preponderantly in Venezuela. Therefore reserves were reduced by 312 million boe, as shown below:

Using the same criterion, the Reserve/Production (R/P) ratio is 10.2 years.

The main reasons for the difference between SPE and SEC criteria are:

• By SEC criteria only the gas volumes covered by natural gas sales contracts can be declared as proven reserves, and in Bolivia this excludes volumes of discovered gas still not commercialized.
• In Nigeria, because of the current state of production development, only a part of total discovered volumes can be booked to the company reserves.

International Proved Reserves:

On December 31^st, 2006 Proved Reserves of oil, condensate and natural gas, abroad, according to the SPE criteria, were 1.270 billion boe, representing a decrease of 24.4% .

During 2006, the appropriation of proved reserves was supplemented by the period’s production, added to the contractual revisions that were made, preponderantly in Venezuela. Therefore reserves were reduced by 411 million boe, as shown below:

According to SPE criteria, international Reserve/Production (R/P) ratio was 14.3 years.

The oil, condensate and natural gas proved reserves, based on SEC Criteria, as at December 31^st, 2006, were 885 million boe. This volume represents a reduction of approximately 26.1% compared to the preceding year (1.197 billion boe).

During 2006, the appropriation of proved reserves was supplemented by the period’s production, added to the contractual revisions that were made, preponderantly in Venezuela. Therefore reserves were reduced by 312 million boe, as shown below:

Using the same criterion, the Reserve/Production (R/P) ratio is 10.2 years.

The main reasons for the difference between SPE and SEC criteria are:

• By SEC criteria only the gas volumes covered by natural gas sales contracts can be declared as proven reserves, and in Bolivia this excludes volumes of discovered gas still not commercialized.
• In Nigeria, because of the current state of production development, only a part of total discovered volumes can be booked to the company reserves.

International Proved Reserves:

On December 31^st, 2005 Proved Reserves of oil, condensate and natural gas, abroad, according to the SPE Criteria, were 1.681 billion boe.

During 2005, there was a reduction of about 10.2% in Proved Reserves, largely due to the reevaluation of reserves in Bolivia and Argentina, and the accumulated production of about 94 million boe in the period. The following table presents the principal factors contributing to the variation in Proved Reserves between 2004 and 2005.

According to SPE criteria, international Reserve/Production (R/P) ratio was 17.8 years.

The oil, condensate and natural gas proved reserves, based on SEC Criteria, as at December 31^st, 2005, were 1.197 billion boe. This volume represents a reduction of approximately 4.3% compared to the preceding year (1.251 billion boe).

According to this criteria, 0.040 billion boe were incorporated into Proved Reserves during 2005, compared with production of 0.094 billion boe, resulting in a Reserve Reposition Index – RRI of 42.5% . In other words, for each barrel of oil equivalent produced, 0.425 barrels were incorporated into Proved Reserves. Under the same criteria, the Reserve/Production (R/P) ratio was 12.7 years.

The main reasons for the difference between SPE and SEC criteria are: