Petrobras (PBR)

Refining

Our refinery output in Brazil in the first half of 2009 decreased 2.0% compared to the first half of 2008 due to higher scheduled stoppages in distillation plants.

Our international refinery output increased due to the inclusion of the Nansei Sekiyu Kabushiki Kaisha (NSS) Refinery in Okinawa, Japan acquired in April 2008, in addition to improved operational performance at the Pasadena Refinery in the United States.

Refining

Our refinery output in Brazil in the first quarter of 2009 remained relatively constant compared to the first quarter of 2008.

Our international refinery output increased due to the inclusion of the Nansei Sekiyu Kabushiki Kaisha (NSS) Refinery in Okinawa, Japan acquired in April 2008, and to the resumption of normal operations at the Pasadena Refinery in the United States after scheduled stoppages in 2008.

Refining

Our refinery output in Brazil increased due to a reduction in scheduled stoppages and increased reliability.

Our international refinery output decreased due to the sale of our Bolivian refineries in June 2007, scheduled stoppages in Argentina and U.S. refineries and the effects of Hurricane Ike in September, 2008. These declines were partially offset by production from the Okinawa Refinery in Japan.

Refining Costs

Excluding the impact of the appreciation of the Real, our year-on-year refining costs in Brazil increased 18.0% due to higher personnel expenses, increased electricity costs, repair, construction and maintenance costs, and scheduled stoppages.

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International refining costs moved up due to higher costs in the Pasadena refinery in the United States and reduced volumes of processed crude in 2008.

Refining

Our refinery output in Brazil increased 1.2% to 1,811 Mbpd in the first half of 2008 from 1,789 Mbpd in the first half of 2007, due to the decrease of scheduled maintenance stoppages in the destilation units and their increased reliability.

Our international refinery output decreased 39.4% to 163 Mbpd in the first half of 2008 as compared to 269 Mbpd in the first half of 2007, due to the sale of our Bolivian refineries in June, 2007 and due to the scheduled stoppages in Argentina and USA refineries that occurred in the first half of 2008, partially offset by the production of the Japanese refinery acquired in April, 2008.

Refining

Our refinery output in Brazil decreased 0.3% to 1,776 Mbpd for the first quarter of 2008 from 1,781 Mbpd for the first quarter of 2007, due to scheduled maintenance stoppage of Replan’s U-200A, one of Petrobras’ biggest atmospheric distillation units, in March 2008. The last scheduled maintenance shut-down for this unit was in 2003.

Our international refinery output decreased 55.4% to 116 Mbpd for the first quarter of 2008 as compared to 260 Mbpd for the first quarter of 2007, due to the sale of our Bolivian refineries in June of 2007 and due to the scheduled stoppages in Argentina and USA refineries that occurred in the first quarter of 2008.

Refining

Our refinery output in Brazil increased 1.8% from 1,764 Mbpd for 2006 to 1,795 Mbpd for 2007, due to a full year’s operation of the new conversion units at REFAP and higher refinery utilization rates.

Our international refinery output for 2007 increased 96.1% to 251 Mbpd as compared to 128 Mbpd for 2006, due to the inclusion of the Pasadena refinery (USA) as of October 2006 as well as an increase in Argentine refining capacity, offset by the sale of our Bolivian refineries in June 2007.

Refining

The feedstock (output of oil products) processed by our refineries in Brazil increased 0.4% from 1,786 Mbpd for the nine-month period ended September 30, 2006 to 1,794 Mbpd for the nine-month period ended September 30, 2007, due to scheduled maintenance stoppages.

Feedstock processed by our international refineries for the nine-month period ended September 30, 2007 increased to 252 Mbpd as compared to 102 Mbpd for the nine-month period ended September 30, 2006, due to the inclusion of the Pasadena refinery (USA) as of October 2006 and the increase in Argentinean refining capacity, offset by the sale of our Bolivian refineries in the nine-month period of 2007.

Refining

The feedstock (output of oil products) processed by our refineries in Brazil decreased 0.8% from 1,803 Mbpd for the first half of 2006 to 1,789 Mbpd for the first half of 2007, due to scheduled maintenance stoppages in the RPBC, Reduc, Repar and Refap refineries during the first quarter of 2007. During the second quarter of 2007, processed volumes fully recovered from the prior decline.

Feedstock processed by our international refineries for the first half of 2007 increased 143.8% to 256 Mbpd as compared to 105 Mbpd for the first half of 2006, due to the inclusion of the Pasadena refinery (USA) as of October 2006 and the increase in Argentinean refining capacity, offset by the sale of our Bolivian refineries in the second quarter of 2007.

Refining

The feedstock (output of oil products) processed by refineries in Brazil decreased 1.7% from 1,812 Mbpd for the first quarter of 2006 to 1,781 Mbpd for the first quarter of 2007, due to scheduled maintenance stoppages in the Replan and Reman refineries and the cleaning of furnaces.

Feedstock processed by international refineries for the first quarter of 2007 increased 150.0% to 260 Mbpd as compared to 104 Mbpd for the first quarter of 2006, due to the inclusion of the Pasadena Refinery (USA) as of October of 2006 and the increase in Argentine refining capacity.

Refining

The feedstock (output of oil products) processed by refineries in Brazil increased 0.6% from 1,735 Mbpd for 2005 to 1,746 Mbpd for 2006, due to the improvements in operational reliability and the lower number of scheduled maintenance stoppages in 2006.

Feedstock processed by international refineries in 2006 increased 23.1% to 128 Mbpd as compared to 104 Mbpd for 2005, due to the inclusion of the Pasadena refinery’s operations in Texas, as well as the production increase in the San Lorenzo refinery in Argentina, after the programmed maintenance stoppage in September 2006, scheduled in order to implement improvements that increased installed capacity for primary processing in that refinery.

Refining

The feedstock (output of oil products) processed by refineries in Brazil increased 3.4% from 1,727 Mbpd for the nine-month period ended September 30, 2005 to 1,786 Mbpd for the nine-month period ended September 30, 2006, due to the improvements in operational reliability and the lower number of scheduled maintenance stoppages in 2006.

Feedstock processed by international refineries in the nine-month period ended September 30, 2006, decreased by 1.0% to 102 Mbpd as compared to 103 Mbpd for the same period of the prior year, due to the programmed maintenance stoppage in September 2006 in the San Lorenzo refinery in Argentina, in order to implement improvements to increase installed capacity.

Refining

The feedstock (output of oil products) processed by refineries in Brazil increased 6.8% from 1,688 Mbpd for the first half of 2005 to 1,803 Mbpd for the first half of 2006, due to the improvements in operational reliability and the reduced number of scheduled maintenance stoppages in 2006.

Feedstock processed by international refineries in the first half of 2006, increased by 1.9% to 105 Mbpd as compared to 103 Mbpd for the same period of the prior year, due to a lower number of scheduled maintenance stoppages in the refineries in the Argentine and Bolivian units in 2006.

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Refining

The feedstock (output of oil products) processed by refineries in Brazil increased 6.1% from 1,708 Mbpd for the first quarter of 2005 to 1,812 Mbpd for the first quarter of 2006, due to improved reliability at the RLAM and RECAP refineries following maintenance work, and lower throughput of oil at the REDUC refinery in the first quarter of 2005.

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Refining

The feedstock processed (output of oil products) by refineries in Brazil increased 2.5% to 1,727 Mbpd during the nine-month period ended September 30, 2005, from 1,685 Mbpd during the nine-month period ended September 30, 2004, due to the improvement in the refinery production profile.

Refining

The feedstock processed (output of oil products) by refineries in Brazil decreased 0.6% to 1,688 Mbpd during the first half of 2005, from 1,698 Mbpd during the first half of 2004, as a result of a planned stoppage of the distillation, cracking and propane units of the Capuava refinery (RECAP).

Refining

The use of substantially all available refining capacity in 2004 resulted in a year of record profit margins for the refining industry.

We expect that several of the structural factors contributing to growth in demand in 2004 will continue to influence the market. As a result, we believe that the trends described above will continue in the next few years.

For a description of other trends that might affect our financial condition and results of operation, see Item 4. “Information on the Company—Competition.”

Refining

The feedstock processed (output of oil products) by refineries in Brazil decreased 1.0% to 1,708 Mbpd during the first quarter of 2005, from 1,726 Mbpd during the first quarter of 2004, as a result of a planned

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stoppage of the distillation, cracking and propane units of the Capuava refinery (RECAP).

Refining

The feedstock (output of oil products) processed by refineries in Brazil increased 3.5% from 1,639 Mbpd during 2003 to 1,696 Mbpd during 2004, due to the modernization and expansion of the refining facilities at RLAM, REVAP, REGAP and REPLAN during 2003 and the 5.2% increase in internal consumption of oil products in Brazil.