"8º Foro Latibex - Petrobras Overview – Petroleum, Gas and Petrochemical”

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PETROBRAS

PETROBRAS OVERVIEW

November 15, 2006

Petroleum, Gas and Petrochemical

Latibex

Almir BarbassaCFO and Investor Relations Officer

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PETROBRAS

The presentation may contain forecasts about future events. Such forecasts 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 Company is not obliged to update the presentation/such forecasts in light of new information or future developments.

Cautionary Statement for US investors

The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation, such as oil and gas resources, that the SEC’s guidelines strictly prohibit us from including in filings with the SEC.

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PETROBRAS

Energy

Industry

Imported OilProducts

ImportedOil

Imported Gas

International OilProduction

LNG

H - Bio

DomesticNatural GasProduction

Biodiesel Oil Productssold in Brazil

InternationalSales

OtherRenewables

Infrastructure

Petrochemical Plants

Brazilian OilProduction

Throughputin Brazil

InternationalRefining

Integration of the Company's Activities

Ethanol

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PETROBRAS

Vertical Integration ComparisonMajors Average *

2,735

3,176

4,793

4,329

1,630

1,579

National Oil Companies Average **

Petrobras2,296

2,114

Product Sales (thous. bpd)

Refining (thous. bpd)Production (thous. boed)

* Majors: BP, Exxon, Total, Royal Dutch Shell, Chevron, Conoco and Repsol-YPF ** NOC: PEMEX, PDVSA, Saudi Amraco, KPC, Pertamina and Sonatrach

*** 2004 figures, except for Petrobras (2005)Source: PIW Intelligence and Petrobras

2,217

3,400Year 2011

2011: New Refinery will add 200

thous. bpd capacity2010:

Pasadena Refinery revamp concluded – processing 70

thous. bpd of heavy oil

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PETROBRAS

Investment Plan

Note: Includes International

31.0

12.41.0

1.0

49.3

23.07.5

3.32.31.8

E&P Downstream G&EPetrochemical Distribution Corporate

9%4%

3% 26%

56%

3%

Business Plan 2007-2011US$ 87.1 billion

86%

14%

Brazil International

US$ 12.1 bi

US$ 75.0 bi

49.3

23.0

7.53.32.21.8

PETROBRAS

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• P-50 is currently producing 164,000 bpd and should reach its production peak by the end of the year.• FPSO Capixaba is producing 35,000 bpd and should reach its full capacity in 2007.• P-34 is being tested on the ocean and its start-up is scheduled to November.• The start-up of FPSO Rio de Janeiro was anticipated form 2007 to December 2006.

In 2006, two platforms, P-50 and FPSO Capixaba, have started operating. Until the end of the year, other two platforms will start-up operation, adding a production

capacity of 440 thousand bpd to the country.

Albacora LesteCapacity 180,000 bpd

April 2006

P-50

Golfinho Mod. 1Capacity 100,000 bpd

May 2006

FPSO Capixaba

Jubarte Phase 1 Capacity 60,000 bpd

November 2006

P-34

Espadarte Mod. IICap.: 100,000 bpd

December 2006

FPSO Cidade do Rio de Janeiro

Main Projects contributing to the production growth in 2006

PETROBRAS

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1.9792.061

2.195

2.368

2.374

1.400

1.600

1.800

2.000

2.200

2.400

2.600

2007 2008 2009 2010 2011

Parque das Conchas100,000 bpd

2011

Parque das Conchas100,000 bpd

2011

Marlim LesteP-53

180,000 bpd2009

Marlim LesteP-53

180,000 bpd2009

Frade100,000 bpd

2009

Frade100,000 bpd

2009

RoncadorP-52

180,000 bpdDec/2007

RoncadorP-52

180,000 bpdDec/2007

RoncadorP-54

180,000 bpdOct/2007

RoncadorP-54

180,000 bpdOct/2007

Marlim SulModule 2

P-51180,000 bpd

2008

Marlim SulModule 2

P-51180,000 bpd

2008

Piranema20,000 bpdApr/2007

Piranema20,000 bpdApr/2007

JubartePhase 2

P-57180,000 bpd

2010

JubartePhase 2

P-57180,000 bpd

2010

ESS-130Golfinho Mód. 3

(FPSO)100,000 bpd

2008

ESS-130Golfinho Mód. 3

(FPSO)100,000 bpd

2008

Cidade de VitóriaGolfinho Mod. 2

100,000 bpdMay/2007

Cidade de VitóriaGolfinho Mod. 2

100,000 bpdMay/2007

RoncadorP-55

180,000 bpd2011

RoncadorP-55

180,000 bpd2011Th

ousa

ndbp

d

Main Oil and NGL E&P Projects in Brazil – 2007-2011Additional Capacity

(bpd) 280,000180,000280,000280,000480,00020112010200920082007

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PETROBRAS

Natural gas domestic supply

7070.6

65.2

49.4

34.1

27.5

0

10

20

30

40

50

60

70

80

2006 2007 2008 2009 2010 2011

AlbacoraLeste(P-50)2006 Golfinho Mod 1

2006

Jubarte(P-34)2006

Manati2006

Piranema2006

UrucuNatural gas

sales2007

GolfinhoMod 22007

Roncador(P-54)2007

Peroá-CangoaPhase 2

2007Roncador

(P-52)2007

CavaloMarinho

2010

Marlim Leste(P-53)2009

Mexilhão2009

Marlim SulMod 2(P-51)2008

Frade2009

Roncador(P-55)2011

Jubarte Fase 2(P-57)2010

SPS252009

AlbacoraComplemental

2007

NG

associated

NG

non associated

Peroá-CangoaPhase 1

2006

EspadarteMod. 22007

ESS1642008

Canapu2008

ESS1302008

Tambaú/Uruguá2010

RJS6332010

Parque das Conchas

2011

Million m3/day

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PETROBRAS

• Production will raise from the current 15.8 million to 40 million m3 per day in 2008 in the Southeast.

• Development of two new oil and gas fields in Espírito Santo;

• Increase of natural gas supply from the Marlim field (Campos Basin);

• Expansion of gas production in the Merluza field (Santos Basin).

• Demand Flexibilization

• Refineries, Distributors and flex-fuel thermoelectric plants ( LNG, diesel and alcohol)

New investments will reduce the country’s dependence on imported gas.

Natural Gas supply extension in Southeast 2006 - 2008

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PETROBRAS

PLANGÁS – Dec. 2008

ESSESS--164164

ESSESS--130130

MexilhãoMexilhão UruguáUruguá

TambaúTambaú

Golfinho + Golfinho + CanapuCanapu

PeroáPeroá (10 MM m3/d)(10 MM m3/d)

MerluzaMerluza

PqPq. . BaleiasBaleias + + BC10BC10

Vitória

NamoradoNamorado

PlataformasPlataformas dadaUNUN--BC e UNBC e UN--RIORIO

REDUCREDUC

CabiúnasCabiúnasCampinasCampinas

RPBC

GaroupaGaroupa

EnchovaEnchovaPampoPampo

Ubu

MerluzaMerluza -- IIII(BM(BM--SS--3/ BM3/ BM--SS--7, 7,

SPSSPS--25)25)LagostaLagosta

Belo HorizonteBelo Horizonte

CaraguatatubaCaraguatatubaRio de JaneiroRio de Janeiro

Total Southeast:40 MM m3/d(+ 24,2 MM m3/d)

(*) Schedules under evaluation

CacimbasCacimbas (20 MM m3/d)(20 MM m3/d)

Lagoa parda

+6,4 MM m3/d (*)+6,4 MM m3/d (*)

(*) Additional to the current supply

PóloPólo Golfinho Golfinho +16,3 MM m3/d (*)+16,3 MM m3/d (*)

+1,5 MM m3/d (*)+1,5 MM m3/d (*)

•Development of new fields in Espírito Santos field (1-ESS-164 and 1-ESS-130)

• Increase in Marlim supply (Campos Basin)• Merluza production expansion (Santos Basin)

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PETROBRAS

26%31%

19% 24%

Refining

Pipelines & Terminals Transport

Ship Transport

Petrochemical

13%

12%

14%

61%

US$ 23.1 billion in the downstream segment…

US$ 14.2

US$ 3.2

US$ 3.0

US$ 2.8

...of which US$ 14.2 billion in refining

Investment Plan – Downstream

US$ 2.7

US$ 4.4 US$ 3.7

Expansion

Product Quality

Conversion

HSE, Maintenance and Other

US$ 3.4

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PETROBRAS

New Refinery in Pernambuco• Investment: US$ 2.5 billion;

• Throughput capacity: 200 thousand heavy oil barrels (50% Petrobras oil / 50% PDVSA oil);

• Focusing diesel and LPG production maximization, the new refinery will aim the growth of oil products demand in the Northeast.

•The Northeast Region, which responds for 19% of oil products demand and holds only one refinery in Bahia, will no longer be a fuel importer (either from refineries in Brazil or abroad);

• Costs reduction: oil products transportation are more expensive than for crude oil.

Additional refining capacity

New Refinery in the USA• Petrobras has acquired 50% of the Passadena Refinery System Inc. (PRSI), located in Texas, USA;

•Total Investment: US$ 370 million;

•The refinery, which already has a capacity of 100,000 bbl/day, will be upgraded to handle 70,000 bbl/day of heavy oil and feedstock (including Marlim field’s production);

• The upgraded refinery will be ready in four years. After the revamp project all products will match USA highest standards.

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PETROBRAS

Nitrogenated Fertilizers Unit III

PTA Pernambuco

Fafen BA

Acrylic Complex /SAP

Rio de Janeiro Petrochemical Complex

Main Projects Basic Petrochemical Unit:- 150,000 bbl/d of Marlim Oil;- Products: Diesel, LPG, Ethylene, Propylene, PX, Benzene and Coke.

Petrochemical Integrated Complex:- Polypropylene;- Polyethylene; - PTA; - Ethylene glycol; - PET; - Styrene;- Phenol.

Downstream Investments - Petrochemical investments

• Investments of US$ 3.3 billion in Petrochemicals;

• Reducing the Brazilian deficit and adding value to Downstream production.