Petrobras (PBR)

Petrobras' Proved Reserves in Brazil:

On December 31st, 2007 the Proved Reserves of oil, condensate and natural gas in the fields under concession to Petrobras in Brazil amounted to 13.920 billion barrels of oil equivalent (boe) according to ANP/SPE Criteria, representing an increase of 1.2% in relation to 2006.

During 2007, 875 billion boe were incorporated into Proved Reserves, with production over the same period amounting to 708 million boe, as shown in the following table:

For each barrel of oil equivalent extracted in 2007, 1.236 boe were incorporated into Proved Reserves, resulting in a Reserve Reposition Index (RRI) of 123.6% . According to SPE criteria, Petrobras' Reserve/Production (R/P) ratio in Brazil was 19.6 years.

www.petrobras.com.br/ri/english
Contacts: PETRÓLEO BRASILEIRO S. A. – PETROBRAS
Investor Relations Department I E-mail: petroinvest@petrobras.com.br / acionistas@petrobras.com.br
Av. República do Chile, 65 – 22^nd floor - 20031-912 - Rio de Janeiro, RJ I Tel.: 55 (21) 3224-1510 / 9947

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.

In 2007 there were 53 discoveries notifications, onshore and in the continental platform. Some of theses discoveries already had its commerciality declaration in 2007. Besides those, other 24 areas were in evaluation phase. We highlight Tupi, in Santos Basin, that is currently in the Discovery evaluation phase – yet without commerciality declaration.

The highlights, in terms of Proved Reserves incorporation, were:
- Discoveries in Exploratory Blocks – Xerelete in Campos Basin; Guanambi in Recôncavo Terra Basin; Biguá, Cancã and Jacupemba, in Espírito Santo Basin - onshore; and Japuaçu in Alagoas Basin - onshore.
- Discoveries in exploratory blocks incorporated to already existing production fields – Fazenda São Rafael and Tabuiaiá in Espírito Santo E&P Business Unit (UN-ES).
- Discoveries of new hydrocarbon accumulations in existing production fields – Marlim Sul in Rio de Janeiro E&P Business Unit (UN-RIO); Baleia Azul, Baleia Franca, Cachalote, Golfinho and Jubarte Espírito Santo E&P Business Unit (UN-ES); Canto do Amaro, Guamaré and Macau in Rio Grande do Norte & Ceará E&P Business Unit (UN-RNCE).
- Revisions in existing fields in 2007 – mainly in Roncador and Albacora Leste in Rio de Janeiro E&P Business Unit (UN-RIO); Carapeba, Marlim and Congro in Campos Basin E&P Business Unit (UN-BC); Mexilhão in Santos Basin E&P Business Unit (UN-BS) and Manati in Bahia E&P Business Unit (UN-BA).

According to the SEC Criteria, Brazil's Proved Reserves at December 31 2007, were of 10.818 billion boe, representing an increase of 2.3% (10.573 billion boe) in relation to 2006.

According to SEC criteria, 953 million boe were incorporated into Proved Reserves during 2007, compared with production of 708 million boe, resulting in a Reserve Reposition Index – RRI of 134.6% . In other words, for each 1 barrel of oil equivalent produced, 1.346 barrel was incorporated into Proved Reserves. Under the same criteria, the country's Reserve/Production (R/P) ratio was 15.3 years.

www.petrobras.com.br/ri/english
Contacts: PETRÓLEO BRASILEIRO S. A. – PETROBRAS
Investor Relations Department I E-mail: petroinvest@petrobras.com.br / acionistas@petrobras.com.br
Av. República do Chile, 65 – 22^nd floor - 20031-912 - Rio de Janeiro, RJ I Tel.: 55 (21) 3224-1510 / 9947

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.

The main discrepancies between the SEC and the ANP/SPE, are due to the differences between criteria employed (concession term and gas reserves with contracts not declared) and the non-booking to company accounts of projects in the initial stages of production development.

Petrobras' Proved Reserves in Brazil:

On December 31st, 2006 the Proved Reserves of oil, condensate and natural gas in the fields under concession to Petrobras in Brazil amounted to 13.753 billion barrels of oil equivalent (boe) according to ANP/SPE Criteria, representing an increase of 39.9% .

During 2006, 1.226 billion boe were incorporated into Proved Reserves, with production over the same period amounting to 705 million boe, as shown in the following table:

For each barrel of oil equivalent extracted in 2006, 1.739 boe were incorporated into Proved Reserves, resulting in a Reserve Reposition Index (RRI) of 173.9% . According to SPE criteria, Petrobras' Reserve/Production (R/P) ratio in Brazil was 19.5 years.

The highlights, in terms of Proved Reserve incorporation were:

• Discoveries in Exploratory Blocks – Maromba, in the Campos Basin; Camarupim, Catuá, in the Espírito Santos Basin - Offshore; Araracanga in the Solimões Basin; Jaçanã and Pintassilgo in the Rio Grande do Norte Basin; Tangará in the Recôncavo Basin; and Saíra, Seriema and Tabuiaiá , in the Espírito Santos Basin – Onshore.
• Discoveries in exploratory blocks incorporated to already existing production fields – Mexilhão, in the Rio de Janeiro Exploration and Production Business Unit - UN-RIO; and Baleia Azul and Golfinho in the Espírito Santo Exploration and Production Business Unit - UN-ES .
• Revisions in existing fields in 2006 – mainly in Marlim and Albacora, in the Campos Basin Exploration and Production Business Unit - UN-BC.
• Roncador and Marlim Sul, in the Rio de Janeiro Exploration and Production Business Unit - UN-RIO.

According to the SEC Criteria, Brazil's Proved Reserves at December 31 2006, amounted to 10.573 billion boe, representing practically the maintenance of the estimates for the previous year (10.578 billion boe).

According to these criteria, 700 million boe were incorporated into Proved Reserves during 2006, compared with production of 705 million boe, resulting in a Reserve Reposition Index – RRI of 101.3% . In other words, for each 1 barrel of oil equivalent produced, 0.99 barrel was incorporated into Proved Reserves. Under the same criteria, the country's Reserve/Production (R/P) ratio was 14.9 years.

The main discrepancies between the SEC and the ANP/SPE, are due to the differences between criteria employed (concession term and gas reserves with contracts not declared) and the non-booking to company accounts of projects in the initial stages of production development.

Petrobras' Proved Reserves in Brazil:

On December 31st, 2006 the Proved Reserves of oil, condensate and natural gas in the fields under concession to Petrobras in Brazil amounted to 13.753 billion barrels of oil equivalent (boe) according to ANP/SPE Criteria, representing an increase of 3.9% .

During 2006, 1.226 billion boe were incorporated into Proved Reserves, with production over the same period amounting to 705 million boe, as shown in the following table:

For each barrel of oil equivalent extracted in 2006, 1.739 boe were incorporated into Proved Reserves, resulting in a Reserve Reposition Index (RRI) of 173.9% . According to SPE criteria, Petrobras' Reserve/Production (R/P) ratio in Brazil was 19.5 years.

The highlights, in terms of Proved Reserve incorporation were:

• Discoveries in Exploratory Blocks – Maromba, in the Campos Basin; Camarupim, Catuá, in the Espírito Santos Basin - Offshore; Araracanga in the Solimões Basin; Jaçanã and Pintassilgo in the Rio Grande do Norte Basin; Tangará in the Recôncavo Basin; and Saíra, Seriema and Tabuiaiá , in the Espírito Santos Basin – Onshore.
• Discoveries in exploratory blocks incorporated to already existing production fields – Mexilhão, in the Rio de Janeiro Exploration and Production Business Unit - UN-RIO; and Baleia Azul and Golfinho in the Espírito Santo Exploration and Production Business Unit - UN-ES .
• Revisions in existing fields in 2006 – mainly in Marlim and Albacora, in the Campos Basin Exploration and Production Business Unit - UN-BC.
• Roncador and Marlim Sul, in the Rio de Janeiro Exploration and Production Business Unit - UN-RIO.

According to the SEC Criteria, Brazil's Proved Reserves at December 31 2006, amounted to 10.573 billion boe, representing practically the maintenance of the estimates for the previous year (10.578 billion boe).

According to these criteria, 700 million boe were incorporated into Proved Reserves during 2006, compared with production of 705 million boe, resulting in a Reserve Reposition Index – RRI of 101.3% . In other words, for each 1 barrel of oil equivalent produced, 0.99 barrel was incorporated into Proved Reserves. Under the same criteria, the country's Reserve/Production (R/P) ratio was 14.9 years.

The main discrepancies between the SEC and the ANP/SPE, are due to the differences between criteria employed (concession term and gas reserves with contracts not declared) and the non-booking to company accounts of projects in the initial stages of production development.

Petrobras' Proved Reserves in Brazil:

On December 31^st, 2005 the Proved Reserves of oil, condensate and natural gas in the fields under concession to Petrobras in Brazil amounted to 13.232 billion barrels of oil equivalent (boe) according to ANP/SPE Criteria.

During 2005, 0.882 billion boe were incorporated into Proved Reserves, with production over the same period amounting to 0.673 billion boe, as shown in the following table:

For each barrel of oil equivalent extracted in 2005, 1.311 boe were incorporated into Proved Reserves, resulting in a Reserve Reposition Index (RRI) of 131.1% . According to SPE criteria, Petrobras' Reserve/Production (R/P) ratio in Brazil was 19.7 years.

The highlights, in terms of Proved Reserve incorporation were:

According to these criteria, 0.682 billion boe were incorporated into Proved Reserves during 2005, compared with production of 0.673 billion boe, resulting in a Reserve Reposition Index – RRI of 101.3% . In other words, for each 1 barrel of oil equivalent produced, 1.013 barrels were incorporated into Proved Reserves. Under the same criteria, the country's Reserve/Production (R/P) ratio was 15.7 years.

The main discrepancies between the SEC and the ANP/SPE, are due to the differences between criteria employed (concession term and gas reserves with contracts not declared) and the non-booking to company accounts of projects in the initial stages of production development.