Petrobras (PBR)

Petrobras exceeds production of 1.9 million barrels of oil per day in Brazil

(Rio de Janeiro, October 24, 2006). – PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international energy company, announces that on October 23 2006, domestic oil output reached a record production of 1,912,733 barrels. This surpasses by 30,000 barrels the previous record of 1,882 thousand barrels set at the end of May of this year.

This achievement is principally a reflection of the maintenance of production at the onshore fields and the start-up of activities at three new wells interconnected to platform P-50 in the Albacora Leste field in the Campos Basin. With these additional wells, P-50 has already reached a production of approximately 150,000 bopd. The interconnecting of a further four wells to this same platform is nearing completion, at which point over the next few weeks, P-50 should reach its maximum planned production capacity of 180,000 bopd.

For Petrobras, this most recent progress represents one more decisive step towards meeting the target of 2 million bopd forecasted for the end of the year, following the entry into operation of a further two platforms in the Campos Basin: P-34 in the Jubarte field, scheduled for November with a potential of 60,000 bopd and FPSO Cidade do Rio de Janeiro in the Espadarte field in December with a production capacity of up to 100,000 bopd.