1

CEO Energy/Power Conference Lehman Brothers

Almir Guilherme BarbassaCFO and Investor Relations OfficerSeptember, 2008

2

Disclaimer

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.

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.

CAUTIONARY STATEMENT FOR US INVESTORS

3

For Year Ended 2005 2006 2007 Net Revenues 56.3 72.3 87.7 EBITDA 17.6 22.9 25.3 Capex 10.4 14.9 21.0 Total Debt(1) 21.2 21.3 21.9 Cash & Cash Equivalents 9.9 12.7 7.0 Net Debt 11.3 8.7 14.9 Total Equity 32.9 44.3 65.2 Total Assets 78.6 98.7 129.7

NOTES:

Exploration & Production

Downstream(Supply)

Gas & Energy

Biofuels

Distribution

Petrochemicals

Downstream

16%

Domestic E&P

81%

Distribution

3%

International

CORPORATE ORGANIZATION AND KEY OPERATING RESULTS

Summary Financials (US$ billion)

Income from Operations(2)

1 Includes capital leases2 For tthe year ended December 31, 2006. Excludes losses in gas and energy, corporate results and eliminations

4

NATIONAL PRODUCTION OF OIL, NGL & NATURAL GAS – 2Q08 VS 1Q08

1.789 1.816 1.854

269 304 321

2Q07 1Q08 2Q08Oil and NGL Natural Gas

Thou

s. b

pd

2,120 2,1753%2,058

• 2% increase in oil production for the quarter due to the increase in the production of P-52 and P-54 platforms (Roncador field);

• 6% increase in the natural gas production. Increase in the production of non-associated natural gas in the Manati field and in the EspíritoSanto Basin, and increase in the production of associated natural gas in the new production units in the Campos Basin;

• June, monthly production record: 1,867 th. bpd .

62.161.059.2FPSO Rio de Janeiro

31.726.927.9FPSO Vitória

62.2

107.9

Production2nd Q/08

P-54

P-52

Unit

96.542.7

154.852.7

Current Production (August, 5)

Production1st Q/08

Thou

sand

bpd

6%

Oil and Natural Gas Production in Brazil

5

2.421

1.792

1.950*2.191

2.2962.374

1.600

1.800

2.000

2.200

2.400

2.600

2007 2008 2009 2010 2011 2012

Obs.: This curve does not include Tupi’s Pilot System Production

MAIN PROJECTS IN BRAZIL – 2007-2012

Rio de JaneiroEspadarte Mód II100.000 bpd6/jan/07

RoncadorP-52180.000 bpdNovember 2007

RoncadorP-54180.000 bpdNovember 2007

Piranema30.000 bpd10/oct/07

Cidade de VitóriaGolfinho Mód. 2100.000 bpdNovember 2007

Marlim LesteP-53180.000 bpd2008

Marlim Sul Módulo 2P-51180.000 bpd2008

Cidade NiteróiJabuti (FPSO)100.000 bpd2008

Parque das Conchas100.000 bpd2009

Frade100.000 bpd2009

Cachalote & BaleiaFranca FPSO Capixaba100,000 bpd2010

Marlim SulMódulo 3 –P-56

100.000 bpd2011

EspadarteMódulo 3100.000 bpd2012

JubarteP-57180.000 bpd2012

TupiEWTUp to 30.000 bpd2009

TupiPilot SystemUp to 100.000 bpd2010

RoncadorModule 4 P-62100.000 bpd2012

* Target may vary +/- 2.5%

6

2812179628Total per year

63352322156Cumulative

+ 28 new units to be leased

• Delba V• Delba VI• Scorpion• Delba VII• Delba VIII• Norbe IX• Schahin 1• Schahin 2• Norbe VIII• Petroserv• Etesco 8• Sevan Brasil

•Delba IV

• Gold Star• Schahin I• Norbe VI• Delba III• SSV Victoria• West Orion

• Lone Star• Schahin III• Petrorig II• Sevan Driller• West Taurus• West Eminence• Dave Beard

5≥ 2000m

From 2013 to 2017

1000-1999m

0-999m

Water Depth

18

5

Operating 2007

• Pride South Atlantic

• O. Yorktown• Pride Mexico • Borgny Dolphin• Ocean Concord• Falcon-100

Start Up 2008

Olinda StarOcean Worker

Start Up 2009

Start Up 2011

• Petrobras XIV

Start Up 2010

Start Up 2012

NEW DRILLING RIGS

Stena Drillmax e Deep Water Millennium are not being considered since they are being negotiated in the Spot Market

7

COMPETITIVE NATIONAL SUPPLY OF GOODS AND SERVICES

imports

imports

Current Demand Future Demand

1. Increase productive capacity of sectors already highly competitive

2. Develop competition among sectors with limited competition

3. Incentives for new national entrants

4. Incentives for joint ventures between national and international companies

5. Incentives for international companies to invest in Brazil

National Industry

PATH

Increase in National Supply

Capacity of G&S

Adequacy of The National Supply Industrial Complex

GOOD AND SERVICES SUPPLY

8

PETROBRAS EMPLOYEES

Number of employees

HUMAN RESOURCES

46.723 48.798 52.037 53.90462.266

68.931

80.931

2002 2003 2004 2005 2006 2007 2012

Participants in the Training Programs

2002 2003 2004 2005 2006 2007

774989 1.043

1.213

2.468

2.101

22,000 new employees since 2002 and 12,000 more up to 2012 The superior level professionals, who were recently admitted, without the required previous experience, spend up to a year in classrooms before starting to effectively work at the company

Forecasted demand for workers at Petrobras supply chain in Brazil

The Brazilian Government, with Petrobras support has a specific training program to meet this demand

ENGENEERING CONSTRUCTION &PROCUREMENT

CIVILCONSTRUCTION MAINTENANCE

112.625 workers

5.967 84.57615.020 7.062

9

Sergipe-AlagoasLight Oil

Espirito SantoLight Oil & Natural Gas

CamposProducible Heavy Oil & Light Oil

SantosLight Oil & Natural Gas

Proven Reserves: 3,80 B boeProb.&Poss. Res: 4,50 B boeUnder Evaluation (2007) : 4,70 B boe

~ 13.0 billion boer(2002-2007)

MAIN DISCOVERIES - 2002/2007

10

164 Million years ago152 Million years ago130 Million years ago122 Million years ago108 Million years agoEarth Planet as today

FORMATION OF THE PRE-SALT

0 4960 Miles

SINBPA/Petrobras - Scotese

11

PRE SALT PROVINCE

Total area of the Province: 112,000 km2Area under concession: 41,000 km2 (38%)Area not under concession: 71,000 km2 (62%)Area with Petrobras interest: 35,000 km2 (31%)

Well Tested HC CampusExploratory blocks Pre-salt Reservoirs

hinge line

12

RECENT OIL/GAS DISCOVERIES 2006-2007 - CLUSTER BLOCKS

Discovered fields before 1984Discovered fields between 1985/2001Discovered fields between 2002/2007Cluster Blocks

Production to date: 7 bi boeActual Production: 1.6 MMboepdProducing Wells: 542 Area: 7,000 km2

Pre-salt Cluster15,000 km2Tupi: 5 a 8 bi boe

13

PRE SALT – SANTOS BASIN

BM-S-17

BM-S-50

BM-S-52(Corcovado)

BM-S-42

Wells Being Drilled

Wells Drilled

BM-S-21 (Caramba)

BM-S-8 (Bem-te-Vi)

BM-S-10 (Parati)

BM-S-11(Tupi)

(Guará)

BM-S-24(Jupiter)

(Yara)

BM-S-22

BM-S-9 (Carioca)

14

* Leased from BW Offshore

EXTENDED WELL TEST -TUPI

1st Oil: March/2009

1 Oil Production

Capacity

1Riser to Export Gas1000 thous. m3Flare Capacity

Wells

2.170 mWater Depth

28 – 42 º API30,000 bpd

Oil RangeCapacity to Process Oil

FPSO – Leased*

15

Capacity

5 oil production (+4 extra)2 water injection (+3 extra)

1 gas injection (+1 extra)Wells

20 – 30 º APIOil degree

100 mil bpd60 mil bpd

Water InjectionWater Production

2.145 mWater Depth

4 million m3 /d

100,000. bpd

Capacity of Gas Compression

Capacity to Process Oil

1st Oil: Dec./2010

TUPI PILOT SYSTEM - PRODUCTION UNIT

16

Gasene

77 km

Azul

Catuá

Jubarte

Cachalote

Ostra

Abalone

Argonauta

NáutilusFranca

Anã

Pirambú

CaxaréuMangangá

20 km

4-ESS-1491-ESS-122

1-ESS-1163-ESS-110HPA

BAZ

CTU

1-ESS-125

3-ESS-175

4-ESS-172

4-ESS-172-ES

4-ESS-175-ES

1-ESS-103A-ESJUB

BFR

MGG

NAU

PRB

CXR

BLACHT

1-ESS-119

4-ESS-135

1-ESS-103

6-CHT-4

PRE-SALT DISCOVERIES IN ESPÍRITO SANTO STATE (CAMPOS BASIN)

Well tests showed high productivities in the pre-salt reservoirs.

17

Participation of the natural gas in the Brazilian energy matrix

Sour

ce: M

ME, B

EN 2

006

In 16 years, natural gas participation in the energy matrix increased 370%, boosted by the ramp up of Campos Basin production and Gasbol pipeline

Campos Basin

Gasbol

INCREASING DEMAND FOR NATURAL GAS

1970 1980 1989 1990 1998 1999 2000 2002 2004 2006

4.7%

9.4%

2.0%

2007 2012*

10%13,4%

*Forecast

18

GAS & POWER OPERATIONAL PERFORMANCE

Energy sold in the last auctions

Increase gas supply from E&P

New gas pipelines in operation

New regulatory framework in the electric sector

Next Steps…Completed ActionsMore gas available to be sold or to be used in

thermo generation

Better prices and margins

Higher dispatch in the thermo power plants to guarantee the security of the electric system

Recovery of fixed costs

Reduction in contractual penalties

HydroNuclearWindCoalThird-parties Thermo generation (oil + gas)Petrobras Thermo generation (oil + gas)

New contracts with the distribution companies

40.000

42.000

44.000

46.000

48.000

50.000

52.000

jan/07 jun/07 jan/08 jun/08

MW av

erga

e

Gas-fired thermo generation growing importance in Brazil

Creating flexibility in the portfolioIncrease LNG regasification capacity

Completing gas infra-structure

Increasing domestic production

More contracts sold in energy auctions

Source: ONS (Brazilian Energy System)

19

DOMESTIC NATURAL GAS SUPPLY CURVE

28,0

45,7

64,171,1 71,3 70,8

0

10

20

30

40

50

60

70

80

2007 2008 2009 2010 2011 2012

Parque das Conchas

Marlim LesteP-53

Frade

RoncadorP-52

RoncadorP-54

Marlim SulMódulo 2

P-51

Rio de JaneiroEspadarte Mód II

Cidade NiteróiJabuti(FPSO)

Cidade de VitóriaGolfinho Mód. 2

Marlim SulMódulo 3 - P-56Albacora

(water injection)

Barracuda(infill drilling)

EspadarteMódulo 3

JubarteP-57

Peroá-Cangoá

Urucu

Canapu

Mexilhão

Uruguá -Tambaú

Non-associeted natural gas

Associated natural gas

Camarupim

Lagosta

Million m3d

Bacia Campos

Manati

Pirapitanga

20

DOWNSTREAM BUSINESS STRATEGY - Northeast Region

NEW REFINERY IN PERNAMBUCO

PREMIUM REFINERY IN CEARÁ

Petrobras will study, together with Ceará State, the possibility of installing a Premium refinery;

Capacity: 300,000 bpd;

The refinery’s first operation phase is scheduled to start in 2014.

PREMIUM REFINERY IN MARANHÃO

Petrobras will study, together with Maranhão State, the possibility of installing a Premium refinery;

Capacity: 600,000 bpd;

The refinery’s first operation phase is scheduled to start in 2013.

Total Investment: US$ 4.1 billion (Petrobras share US$2.4 billion);Throughput capacity: 200 thousand heavy oil barrels (60% Petrobras oil / 40% PDVSA oil);Focusing diesel and LPG production maximizationStart Up: 2011

21

13%

87%

Brasil Internacional6%4%

1%

2% 26%

58%

2%

65.1

29.6

6.74.3

2.62.6

E&P RTC G&EPetrochemical Distribution Corporate Biofuel

1.5 97.4

15.0

Note: Includes International

US$ 65.1 billion directed to E&PExploration: US$ 13.8 billionProduction: US$ 51.3 billion

INVESTMENT PLAN BY BUSINESS SEGMENT

2008-12 PeriodUS$ 112.4 billion

22

INVESTMENTS – SEGMENTS BREAKDOWN

1.4581.670327Distribution

6.3146.5742.864International

45.285875

4.817

10.536

20.813

2007 (BR GAAP)

Total InvestmentsCorporate

Gas & EnergySupplyExploration & Production

1.382628

60.80620.978

9.1463.223

14.5054.488

28.0019.448

BUDGET 2008* 2007 (US GAAP)

*R$/US$ = 1,7713 (date12/31/2007)*Forecast R$/US$ = 1,80 (average)

23

STRONG RETURNS HAVE ENABLE COMPANY TO GROW WITHOUT INCREASING DEBT

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

2003 2004 2005 2006 2007

Sources Uses

CFFO(including W.C.)

Capex

Dividends

Consolidated Cash Flows74.3 BN 2003-2007

Inc. Debt

7,5961,83810,61514,48048,529PP&E (inc. Dep.)

291

446

Distri-bution

Int’lGas & Energy

Downstream (Brazil)

E&P(Brazil)

1,1446,0239,37113,558O/w Construction in Progress

(815)(834)2,78514,072Net Op. Inc.

Historical ROCEU.S. GAAP

Operating Income and Assets by Segment - 2007(US GAAP – US$ Millions)

Source: Petrobras and Bloomberg

24

QUESTION AND ANSWER SESSIONVisit our website: www.petrobras.com.br/ri

For more information contact:Petróleo Brasileiro S.A – PETROBRAS

Investor Relations DepartmentTheodore Helms – Executive Manager

E-mail: petroinvest@petrobras.com.brAv. República do Chile, 65 – 22o floor

20031-912 – Rio de Janeiro, RJ(55-21) 3224-1510 / 3224-9947