Petrobras (PBR)

Petrobras is the highest bidder in 26 blocks in the US Gulf of Mexico Lease Sale

(Rio de Janeiro, October 4, 2007). – PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international energy company, announces that acquired 26 blocks, on October 3rd, in Lease Sale 205, offered by the Minerals Management Service (MMS), the United States regulating agency that manages offshore oil and gas activities. Petrobras is among the top 10 companies based on total number of winner bids, with investment of US$ 108.1 million, offered for blocks located in the central and eastern Gulf of Mexico, in one of the most competitive lease sales experienced in the region.

A total of 73 oil and gas companies competed in the sale and bid for blocks, mainly those located in deep and ultra-deep waters. Out of these 26 blocks, Petrobras ensured 100% participation in 22 blocks where it will perform as Operator. The remaining 6 blocks were acquired in partnership with Devon Energy, from which 2 will be operated by Petrobras and 4 by the partner, where each company will hold 50% participating interest.

According to the auction rules, the MMS still needs to confirm the winner bids. After this confirmation, the blocks will be added to Petrobras exploratory projects portfolio, totaling 338 blocks, being 200 operated by the company.

As in the lease sale in August 2007, when 34 blocks were acquired, Petrobras sought to consolidate its position in the areas which are the main focus of its activities in the Gulf of Mexico, highlighting deep and ultra-deep waters in the quadrants of Walker Ridge, the Mississippi Canyon, Green Canyon, Garden Banks, Keathley Canyon and Lloyd Ridge, allowing the expansion of the portfolio with quality exploratory prospects.

The participation in the Lease Sale 205 is aligned with the demands of Petrobras Strategic Plan, which outlines strong international growth with investments in priority areas such as the American sector of the Gulf of Mexico. As a result, Petrobras is following the industry model, and underlines once again its willingness to compete and to invest in all environments which will capitalize on both its technologies and knowledge, and that offer added stability and profitability to its investments. Thus, Petrobras strengthens its position as one of the leaders of exploration in deep and ultra-deep waters in the region, where it is associated with other oil and gas companies.

Petrobras has participation in three of the most important discoveries in the Lower Tertiary reservoirs in the Cascade, Chinook and Saint Malo fields, located in the Walker Ridge Quadrant. Cascade and Chinook fields are operated by Petrobras, who will be the pioneering company, not only in producing this reservoir in ultra-deep waters, but also in the use of an FPSO (Floating Production, Storage and Offloading) platform, which is planned to be on stream in 2010.

The main contracts necessary for the beginning the production development projects of these fields will be signed still in 2007.

This document may contain forecasts that merely reflect the expectations of the Company’s management. Such terms as “anticipate”, “believe”, “expect”, “forecast”, “intend”, “plan”, “project”, “seek”, “should”, along with similar or analogous expressions, are used to identify such forecasts. These predictions evidently involve risks and uncertainties, whether foreseen or not by the Company. Therefore, the future results of operations may differ from current expectations, and readers must not base their expectations exclusively on the information presented herein.

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 is a highest bidder in 34 blocks in the US Gulf of Mexico Lease Sale

(Rio de Janeiro, August 23, 2007). – PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international energy company, announces that was the third highest bidder in the Western Gulf of Mexico Lease Sale 204, promoted by the federal agency that manages the offshore oil and gas activities, the Minerals Management Service (MMS).

The auction had as its focus the western region of the Gulf of México where the company presented proposals for 40 blocks, being the highest bidder in 34 blocks, in a total amount of US$ 29.3 million. With this result, Petrobras ensured 100% of participation, and the condition as Operator, in 20 blocks. The other 14 blocks, Petrobras was highest bidder in partnership with Devon Energy, holding 50% participating interest each company.

All the blocks are located in the company’s core areas in the US Gulf of Mexico: 13 in shallow waters, aiming at deep shelf natural gas reservoirs; and 21 in deep and ultra deepwater in the quadrants East Breaks, Alaminos Canyon and Keathley Canyon to target to oil bearing reservoirs. Once these blocks are awarded by the MMS, they will be integrated into company’s portfolio of exploration projects in the US Gulf, which shall amount 313 blocks, from which 177 Petrobras operated.

The success in the current lease sale addresses the priorities established by Petrobras in its Strategic Plan, which includes the US Gulf of Mexico as a priority for Petrobras investments overseas. In this respect, the company is consistently growing its oil and gas exploration and production activities in the deep and ultra deepwater in the US Gulf, where it is associated with oil and gas companies, already participating in 3 out of a number of major discoveries already made in that region. From these discoveries, Petrobras is the operator in Cascade and Chinook fields, holding 50% and 66.7%, respectively. In these two fields, Petrobras will pioneer the deployment of a Floating, Production, Storage and Offloading (FPSO) facility in the ultra deepwater US Gulf of Mexico. The remainder participations in Cascade and Chinook are respectively held by Devon Energy and Total E&P USA, Inc.

Petrobras America is currently working on an extensive geological and geophysical data base so as to evaluate blocks to participate in the forthcoming Central and Eastern Lease Sale 205, scheduled for October 3, 2007.

www.petrobras.com.br/ri/english
Contacts: PETRÓLEO BRASILEIRO S. A. – PETROBRAS
Investor Relations Department I Raul Adalberto de Campos - Gerente Executivo I E-mail: petroinvest@petrobras.com.br
Av. República do Chile, 65 – 22^nd floor - 20031-912 - Rio de Janeiro, RJ I Tel.: 55 (21) 3224-1510 / 994

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.