Petrobras (PBR)

(ix) New projects abroad

• Petrobras América Inc., company controlled indirectly by PETROBRAS based in Houston, Texas, acquired ten blocks in the American Gulf of Mexico sector in an auction sponsored by Minerals Management Service, an American regulatory agency. PAI also acquired an additional interest of 25% in the Cascade field and 26,67% in the Chinook field, owned by BHP Billiton, both located in the US sector of the Gulf of Mexico. PETROBRAS also decided to acquire up to all of the 15% interest held by Hess Corporation in the Chinook field. After the conclusion of these two transactions, the Company will have a 50% interest in Cascade and up to 71,67% of Chinook.

• PETROBRAS acquired two of the three blocks offered in the bidding process by the state-owned Company Turkýye Petollerý Anonýn Ortaklidi (TPAO) from Turkey, to explore and produce in deep waters in the Black Sea.

• The government of Equatorial Guinea in Western Africa approved PETROBRAS’ acquisition of 50% interest in the shared-control agreement for production in Block L located in deep waters in the bay of Muni river.

• Petrobras Energia S.A. - PESA, a company indirectly controlled by PETROBRAS, entered into an agreement together with the companies Energia Argentina S.A. - ENARSA, YPF S.A. and Petrouruguay S.A. in order to establish a consortium that will have the objective of exploring, developing, exporting and commercializing hydrocarbons in two offshore areas located on the Argentine continental shelf. PESA will have a 25% interest in the consortium and the companies ENARSA, YPF and Petrouruguay will have 35%, 35% and 5%, respectively. On September 2006, PESA entered into an agreement together with ENARSA y YPF in order to establish a new consortium that will have the objective of exploring, developing, exporting and commercializing hydrocarbons in two offshore areas located on the Argentine continental shelf. PESA will have a 35% interest in the consortium and the companies ENARSA y YPF will have 35% and 30%, respectively;

• On November 3, 2006, PETROBRAS executed in Luanda (Angola), four production sharing contracts with Sociedade Nacional de Combustíveis de Angola – Sonangol, referring to blocks 6/06, 15/06, 18/06 and 26, in which PETROBRAS shall operate three (6/06, 18/06 and 26). Angola is one of the Company’s investment priorities. it has been operating in this country since 1979. Following the acquisition of these four exploration blocks, PETROBRAS has consolidated a further step to adhere to its Strategic Plan and is inaugurating a new phase in Angola, where it will work as an operator for the first time.

(viii) New projects abroad

Petrobras América Inc., company controlled by PETROBRAS based in Houston, Texas, acquired ten blocks in the American Gulf of Mexico sector in an auction sponsored by Minerals Management Service, an American regulatory agency. The block auctions include four prospects located in ultra-deep waters.

On February 3, 2006, the PETROBRAS Administrative Council approved a purchasing and selling agreement with Astra Oil Trading NV for the acquisition of 50% interest of the refinery Pasadena Refining System Inc. (PRSI), formerly Crown Refinery in Pasadena, Texas, for the approximate amount of US$ 370 million.

The PRSI refinery has a capacity for 100.000 bbl/day and is currently undergoing a moderization process in order to comply with the new environmental standards established by the Environmental Protection Agency (EPA) for gasoline.

With PETROBRAS entering as a partner in the enterprise, the refinery will be modified in order to process approximately 70.000 bbl/day of heavy oil and other batches, including production in the Marlim field. The refinery’s operational modernization process should be completed in four years and all of the by-products to be produced will comply with the highest standards of quality adopted in the United States.

PETROBRAS acquired two of the three blocks offered in the bidding process by the state-owned Company Turkýye Petollerý Anonýn Ortaklidi (TPAO) in Turkey, to explore and produce in deep waters in the Black Sea.

The government of Equatorial Guinea in Western Africa approved PETROBRAS’ acquisition of 50% interest in the shared-control agreement for production in Block L located in deep waters in the Rio Muni bay.

Petrobras Energia S.A. – PESA, a company indirectly controlled by PETROBRAS, entered into an agreement together with the companies Energia Argentina S.A. – ENARSA, YPF S.A. and Petrouruguay S.A. in order to establish a consortium that

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will have the objective of exploring, developing, exporting and commercializing hydrocarbons in two offshore areas located on the Argentine continental shelf at approximately 250 km west of the city of Mar del Plata in the province of Buenos Aires. PESA will have a 25% interest in the consortium and the companies ENARSA, YPF and Petrouruguay will have 35%, 35% and 5%, respectively.

Through the tender made by Angolan state company Sonangol, PETROBRAS acquired an interest in 3 exploration blocks in Angola, blocks 6, 26 and 15, where it shall operate blocks 6 and 26. In a consortium put together with Sonangol Sinopec International – SSI (40%), Sonangol P&P (20%), Falcon Oil (5%) and Grupo Gema (5%), in which it holds a 30% interest, PETROBRAS shall also operate Block 18 in Angola. The consortium, which has the right to explore the remaining area of Block 18, shall disburse execution bonuses worth US$ 1,1 billion for the concession rights, to be paid in proportion to each partners’ interest.