Petrobras (PBR)

25.3. Sale of Interest in an Energy Transmission Company in Argentina

On July 19, 2007, the Board of Directors of Petrobras Energia S.A. - PESA approved the sale of its interest (50%) in Compañia Inversora em Transmisión Eléctrica S.A. - Citelec to Energia Argentina S.A. – ENARSA and Electroingeniería S.A., in equal parts, and also its 22,22% interest in Yacylec S.A. to Electroingenieria S.A.

Citelec has interest of 52,67% in Compañia de Transporte en Energia Eléctrica en Alta Tensión -Transener S.A.

The sale will be realized at a fixed price of US$ 54 million (equivalent to R$ 104.015 thousand) plus an additional amount relating to the result from the integral tariff review determined for Transener and its subsidiary Empresa de Transporte de Energia Elétrica por Distribución Troncal de la Provincia de Buenos Aires S.A. (Transba), applicable until June 30, 2008. The expected price of the sale of the interest in Yacylec to Electroingenieria is US$ 6.000 thousand (R$ 11.557 thousand).

The transfers of the Citelec and Yacylec shares will be subject to the exercise of the rights conferred in the shareholder’s agreements of Citelec and Yacylec and should require approval by the regulatory organizations and the competent authorities.