Petrobras (PBR)

e) New Projects Overseas

An indirect subsidiary of Petrobras, Petrobras Energia S.A. (PESA) acquired from Conoco Phillips for US$ 77,6 million, its interests of 25,67% and 52,37% in the assets in Sierra Chata and Parva Negra, respectively. This transaction is currently awaiting approval from the regulatory authorities. Following this acquisition, PESA will have an interest of 45,55% in Sierra Chata and 100% in Parva Negra. Sierra Chata is an active natural gas producer in Bacia Neuquina, with total proven reserves as of December 31, 2006 of 56 million barrels of oil and major potential reserves. Parva Negra is a lot adjacent to and north of the Sierra Chata block, which has two drilled wells with signs of natural gas.

On May 18, 2007, Petrobras signed an agreement with the Portuguese companies Galp Energia and Partex for oil exploration and production in four blocks in the Lusitanian basin, on the Portuguese coast, north of Lisbon. Petrobras will be the operator, with a 50% interest, Galp Energia holding 30% and Partex 20%. The contract specifies an eight-year exploration period, involving seismic acquisition and drilling of exploratory wells. This will be the first oil exploration and production activity ever carried out on the Portuguese coast.

On June 4, 2007, in New Delhi, Petrobras signed a partnership agreement with Oil and Natural Gas Corporation Ltda (ONGC), India’s largest oil and gas company. Six deep water exploration blocks will be operated, three of which in Brazil and three off the east coast of India.

At an auction held on August 20, 2007 by the North American regulatory body for activities at sea, Minerals Management Service, Petrobras secured a 100% share and the role of operator in 20 blocks, as well as a partnership (50%) with the US company, Devon Energy, which will be the operator in another 14 blocks in the Gulf of Mexico. Of the blocks purchased, 13 are located in shallow waters, for exploration of deep natural gas reserves, and 21 in deep and ultra-deep water, for oil exploration. As soon as these blocks receive confirmation from the MMS, they will be incorporated in the Petrobras’ portfolio of exploration projects.

At the Ronda Caribe auction held by the Agencia Nacional de Hidrocarburos (ANH) in Colombia on September 18, 2007, Petrobras bought four blocks, of which two as operator and with a 40% share (the other shareholders are Ecopetrol and Hess Corporation), and the other two as non-operator shareholder, with interests of 30% (with British Petroleum and Ecopetrol each holding 35%) and 20% (the other shareholders will be ONGC and Ecopetrol with 40% each).

e) New Projects Overseas

An indirect subsidiary of Petrobras, Petrobras Energia S.A. – PESA acquired from Conoco Phillips for US$ 77,6 million, its interests of 25,67% and 52,37% of the assets in Sierra Chata and Parva Negra, respectively. Following this acquisition, PESA held an interest of 45,55% in Sierra Chata and 100% in Parva Negra. Sierra Chata is an active natural gas producer in Bacia Neuquina, with total proven reserves as of December 31, 2006 of 56 million barrels of oil and major proven and potential reserves. Parva Negra is a lot adjacent to and north of the Sierra Chata block, which has two drilled wells with signs of natural gas. The area’s potential will be evaluated during the course of 2007.

On May 18, 2007, Petrobras signed an agreement with the Portuguese companies Galp Energia and Partex in Lisbon, for oil exploration and production in four blocks in the Lusitanian basin, on the Portuguese coast, north of Lisbon. Petrobras will be the operator, with a 50% interest, Galp Energia holding 30% and Partex 20%. The contract specifies an eight-year exploration period, involving seismic acquisition and drilling of exploratory wells. This will be the first oil exploration and production activity ever carried out on the Portuguese coast.

On June 4, 2007, in New Delhi, Petrobras signed a partnership agreement with ONGC, India’s largest oil and gas company. Six deep water exploration blocks will be operated, three of which in Brazil and three off the east coast of India.