Petrobras (PBR)

7 Petroleum and alcohol account - STN

In order to conclude the settlement of accounts with the Federal Government, pursuant to Provisional Measure nº 2.181, of August 24, 2001, and after providing all the information required by the National Treasury Office - STN, Petrobras is seeking to settle all the remaining outstanding differences between the parties.

As at June 30, 2008, the balance of the account of R$ 801.042 thousand (R$ 799.362 thousand as at March 31, 2008) could be settled by the Federal Government by issuing National Treasury notes, equal in value to the final balance of the settlement of accounts or by offsetting against other amounts that Petrobras may owe the Federal Government at the time, including tax-related amounts or a combination of foregoing operations.

8 Petroleum and alcohol account - STN

In order to conclude the settlement of accounts with the Federal Goverment, pursuant to Provisional Measure nº 2.181, of August 24, 2001, and after providing all the information required by the National Treasury Office - STN, Petrobras is seeking to settle all the remaining disputes between the parties, which currently refer to alleged debts resulting from credit operations involving the terminated company Interbras.

In November 2007, in a continuation of the negotiations with the STN, Petrobras, once again formalized its understanding that the alleged debts had never been owed by Interbras and requested that securities be isued to settle the balance of the Petroleum and Alcohol Accounts, and possible use of the securities to pay Petrobras' actuarial debts to Petros. Petrobras also reiterated its agreement with the establishing of an informal workgroup [GT?] involving Petrobras and STN to analyze the operations that gave rise to Interbras' alleged debt to the Federal Government.

As at December 31, 2007, the balance of the account of R$ 798 million (R$ 786 million in 2006) could be settled by the Federal Government by issuing National Treasury notes, equal in value to the final balance of the settlement of accounts or by offsetting against other amounts that may owe the Federal Governent at the time, including tax-related amounts or a combination of the two.