Petrobras Sees Increase in Oil Production in June

Oil production averaged 1,827,392 barrels per day (bpd), 8.6% over a year ago, i.e., a 145,000 bpd rise. Compared to May 2007, the increase was 66,000 bpd. The following factors played an important role in June's production surge:

a) The compression system on platform P-34, in the Jubarte field, in the Campos Basin, went online;

b) Production was kicked-off at the following fields:

--On May 28, well GLF-10, interconnected to FPSO-Capixaba, located in the Golfinho field, in the Espírito Santo Basin; --On June 20, well ESP-36, interconnected to FPSO-Cidade do Rio de Janeiro, in the Espardate field, in the Campos Basin; --On June 27, well MLS-79, interconnected to platform P-37, in the Marlim field, in the Campos Basin;

c) Increased operating efficiency at all Petrobras Exploration & Production area Business Units.

Oil and natural gas production in Brazil, meanwhile, averaged 2,970,872 barrels of oil equivalent per day (boe/day), 6.9% over a year ago and 3.6% more than the previous month.

Added to the production of the fields located abroad, the company's total production volume averaged 2,342,928 barrels of oil equivalent/day, a 6.3% increase over a year ago.

The Brazilian natural gas production topped-out at 43,003,000 cubic meters per day, 2.9% more than last May, when the average was 41,800,000 cubic meters per day.

Total production (oil & gas) in the eight countries where Petrobras has assets in operation was 245,056 barrels, nearly the same as the previous month's mark (245,176 barrels).