Petrobras (PBR)

c) Other litigation for indemnification

In the construction/conversion of ships into vessels for Floating Production, Storage and Offloading (FPSO) and Floating, Storage and Offloading (FSO), Brasoil transferred financial resources in the amount of US$ 631 million, equivalent to R$ 1.122.546 thousand at September 30, 2009 (R$ 1.227.959 thousand at June 30, 2009) directly to its suppliers and subcontractors, with the aim of avoiding delays in the construction/conversion of vessels and, consequently, losses to Brasoil.

Based on the opinions of Brasoil's legal advisers, these expenditures are liable to reimbursement by the constructors, which is the reason why litigations for financial indemnification were filed in international courts. However, conservatively, the portion of this balance not covered by real guarantees, in the amount of US$ 559 million, equivalent to R$ 994.449 thousand at September 30, 2009 (R$ 1.087.362 thousand at June 30, 2009) is recorded as an allowance for doubtful accounts.

c) Other litigation for indemnification

In the construction/conversion of ships into vessels for Floating Production, Storage and Offloading (FPSO) and Floating, Storage and Offloading (FSO), Brasoil transferred financial resources in the amount of US$ 629 million, equivalent to R$ 1.227.959 thousand at June 30, 2009 (R$ 1.451.849 thousand at March 31, 2009) directly to its suppliers and subcontractors, with the aim of avoiding delays in the construction/conversion of vessels and, consequently, losses to Brasoil.

Based on the opinions of Brasoil’s legal advisers, these expenditures are liable to reimbursement by the constructors, which is the reason why litigations for financial indemnification were filed in international courts. However, conservatively, the portion of this balance not covered by real guarantees, in the amount of US$ 557 million, equivalent to R$ 1.087.362 thousand at June 30, 2009 (R$ 1.285.058 thousand at March 31, 2009) is recorded as an allowance for doubtful accounts.

c) Other litigation for indemnification

In the construction/conversion of ships into vessels for FPSO and FSO, Brasoil transferred financial resources in the amount of US$ 627 million, equivalent to R$ 1.451.849 thousand at March 31, 2009 (R$ 1.460.583 thousand at December 31, 2008) directly to its suppliers and subcontractors, with the aim of avoiding delays in the construction/conversion of vessels and, consequently, losses to Brasoil.

c) Other litigation for indemnification

In the construction/conversion of ships into vessels for Floating Production, Storage and Offloading (FPSO) and Floating, Storage and Offloading (FSO), Brasoil transferred financial resources in the amount of US$ 624 million, equivalent to R$ 1.460.583 at December 31, 2008 (R$ 1.092.067 at December 31, 2007) directly to its suppliers and subcontractors, with the aim of avoiding delays in the construction/conversion of vessels and, consequently, losses to Brasoil.

Based on the opinions of Brasoil’s legal advisers, these expenditures are liable to reimbursement by the constructors, which is the reason why litigations for financial indemnification were filed in international courts. However, conservatively, the portion of this balance not covered by real guarantees, in the amount of US$ 553 million, equivalent to R$ 1.292.223 at December 31, 2008 (R$ 964.460 at December 31, 2007) is recorded as an allowance for doubtful accounts.