Petrobras (PBR)

Petrobras’ Exploratory Rights in Libya

The Consortium bid for two more areas out of a total of 15 put out to tender in this round. Area 18, awarded to the consortium on January 29 2005, is made up of four blocks with a total of 10.307 km², and situated in the offshore northeastern segment of the Libyan coastline in the Mediterranean Sea at water depths of between 200 and 700 meters. Major oil and gas producing fields such as Bouri, Al-Jurf, Bahr Essalam, etc., are also located in the vicinity, being surrounded by various important discoveries of oil and gas such as those in the G1-NC35A, C1-NC35A and E1-NC41 areas and as yet undeveloped.

Oil Search Limited is a petroleum company, which has operated in Papua Nova Guinea since 1929 as well as in Australia, Yemen, Egypt and the United Arab Emirates. Under the terms of the agreement with this company, Petrobras will be the leader and operator with a 70% share in the Consortium.

The Production Sharing Contract is to be signed between the Consortium and NOC before the middle of February and provides for a five-year exploratory phase during which a minimum of US$ 21 million will be invested. During the second 25-year period, production rights will be shared with NOC.

Already operating in Nigeria, Angola and Tanzania, Libya will be the fourth African country where Petrobras has activities on the ground. The Company’s participation in this auction is aligned to the Group’s strategic plan which includes major international growth in certain key areas such as the deep and ultra-deep waters of the African coast.

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.

Petrobras’ Exploratory Rights in Libya

The Consortium bid for two more areas out of a total of 15 put out to tender in this round. Area 18, awarded to the consortium on January 29 2005, is made up of four blocks with a total of 10.307 km², and situated in the offshore northeastern segment of the Libyan coastline in the Mediterranean Sea at water depths of between 200 and 700 meters. Major oil and gas producing fields such as Bouri, Al-Jurf, Bahr Essalam, etc., are also located in the vicinity, being surrounded by various important discoveries of oil and gas such as those in the G1-NC35A, C1-NC35A and E1-NC41 areas and as yet undeveloped.

Oil Search Limited is a petroleum company, which has operated in Papua Nova Guinea since 1929 as well as in Australia, Yemen, Egypt and the United Arab Emirates. Under the terms of the agreement with this company, Petrobras will be the leader and operator with a 70% share in the Consortium.

The Production Sharing Contract is to be signed between the Consortium and NOC before the middle of February and provides for a five-year exploratory phase during which a minimum of US$ 21 million will be invested. During the second 25-year period, production rights will be shared with NOC.

Already operating in Nigeria, Angola and Tanzania, Libya will be the fourth African country where Petrobras has activities on the ground. The Company’s participation in this auction is aligned to the Group’s strategic plan which includes major international growth in certain key areas such as the deep and ultra-deep waters of the African coast.

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.