Petrobras (PBR)

Strategic Plan 2020 and Business Plan 2008 - 2012

Rio de Janeiro, August 14 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 its Board of Directors approved the Strategic Plan 2020 and the Business Plan 2008-2012. The Business Plan maintains the Company’s aggressive growth targets and underscores the challenges to be met in the natural gas and biofuel markets.

The Strategic Plan 2020, which establishes the mission, vision, strategies and corporate objectives of the Company for the future, has expanded Petrobras’ vision as a leader in Latin America to being one of the largest integrated energy companies in the world. The Plan maintains the strategy of expanding operations in the oil, oil products, petrochemicals, gas energy, biofuels and distribution markets with profitability, social and environmental responsibility and integrated growth.

The Plan also highlights the Company’s operational excellence in management, human resources and technology in alignment with the following strategies:

• Exploration and Production: to grow production and oil and gas reserves sustainably, and to be recognized for excellence in E&P operations;
  
  
• Downstream and distribution: to expand integrated operations in refining, commercialization, logistics and distribution both in Brazil and abroad with a focus on the Atlantic Basin;
  
  
• Petrochemicals: to expand operations in petrochemicals in Brazil and South America on an integrated basis with the Petrobras Group’s other businesses;
  
  
• Gas and Energy: to develop and spearhead the Brazilian natural gas market and operate on an integrated basis in the gas and electric energy markets with a focus on South America;
  
  
• Biofuels: to operate on a global basis in biofuels’ commercialization and logistics, leading the domestic production of biodiesel and expanding participation in the ethanol business.

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 / 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 new Plan poses fresh management challenges, including:

• Capital Discipline: to endeavor to achieve greater efficiency in the implementation of projects (terms and costs); Management of Inventory; Reduction in Operating and Administrative Costs and Portfolio Management;
  
  
• Human Resources: to be an international benchmark in the energy segment, in personnel management, having its employees as its most valuable asset;
  
  
• Social Responsibility: to be an international benchmark in social responsibility in the management of the businesses, contributing to sustainable development;
  
  
• Climatic Change: to reach levels of excellence in the energy industry with respect to greenhouse gas reductions in processes and products, contributing to the sustainability of the business and the mitigation of global climate change;
  
  
• Technology: to be a global benchmark in technologies which contribute to the Company’s sustainable growth in the oil, natural gas, petrochemicals and biofuels industries.

The Business Plan 2008-2012 establishes production targets for oil and natural gas in Brazil: these will be 3,058,000 barrels of oil equivalent per day (boed) in 2012 and 3,455,000 boed in 2015. Petrobras aims to maintain a balance between growth in production and Brazilian refinery capacity, the target for domestic processed crude throughput in 2012 being 2,061,000 barrels per day (bpd), with a 90% participation of domestic crude.

The international targets also reflect the Company’s integrated growth with production estimates of 436,000 boed of oil and gas in 2012 and processed crude throughput in Petrobras’ refineries in other countries amounting to 348,000 bpd.

Petrobras’ total estimated output (Brazil and overseas) by 2012 has been revised to 3,494,000 barrels daily and the target for 2015 set at 4,153,000 boed.

The integration process has also been extended to petrochemicals where the Company is estimating expansion in operations in Brazil and Latin America, in so doing, capturing synergies with the other businesses of the Petrobras Group.

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 / 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.