Petrobras Forecasts R$55 Billion in Total Investments for 2008

Petrobras’ forecasts total investments of approximately R$55 billion in the first year of its five-year Business Plan for 2008–2012, of which 87.6% are to be allocated to operations in Brazil and 12.4% to overseas investments.

With the unveiling of operations at five more platforms in 2007, Petrobras has underscored its goal of maintaining growth in production at sustainable levels, all the platforms helping to boost production and expected to reach maximum capacity by the end of 2008. The five are FPSO Cidade do Rio de Janeiro in the Espadarte field, FPSO Piranema in the Piranema field, FPSO Cidade de Vitória in the Golfinho field and P-52 in the Roncador field as well as P-54, also in the Roncador field.

The following platforms are scheduled to go into production next year in the Campos Basin: platforms P-51, with a capacity of 180 thousand barrels of oil and 6 million m³ of gas/day in the Marlim Sul field; P-53 with a capacity of 180 thousand barrels of oil and 6 Mmscf/d in the Marlim Leste field; FPSO Cidade de Niterói, 100 thousand barrels of oil and 3.5 Mmscf/d, also in the Marlim Leste field; and FPSO Cidade de Rio das Ostras, a test production platform with a capacity of 15 thousand barrels daily of heavy oil (14 API) in the Badejo field. In the Espírito Santo Basin, the FPSO Cidade de São Mateus is scheduled to come on stream with a capacity of 25 thousand barrels of oil and 10 million m³ of gas/day in the Camarupim field.

Next year, the Petrobras Group’s Business Plan envisages daily output from domestic fields of 2.36 million barrels of oil equivalent (boe) of oil and natural gas. Out of a total investment of R$ 25.9 billion in the E&P area in Brazil, R$ 2.2 billion will be allocated to the construction of platforms. Among these, of significant importance in the Campos Basin are P-51 (Marlim Sul), P-53 (Marlim Leste), FPSO Frade (Frade field), FPSO Conchas (Ostra, Argonauta and Abalone fields), P-56 (Marlim Sul) and P-57 (Jubarte). The latter two are at the tender bid stage. The fixed PMXL-1 platform will be built for operations in the Mexilhão field – Santos Basin.

As a result of the Company's intense exploratory work and the evaluation of more recent finds, domestic proved reserves, which totaled 13 billion 753 million barrels in 2006 (SPE criterion), should continue to record increasing growth - now to be supplemented by the recent discoveries in the Tupi area of the Santos Basin. In the various sedimentary basins in Brazil, in 2008 Petrobras will have a portfolio of 343 exploratory Blocks incorporated in 151 contracts awarded by the ANP (National Petroleum, Natural Gas and Biofuel Agency) for carrying out studies and oil and natural gas prospecting activities. This excludes 27 blocks auctioned off in the 9th bidding round held in November 2007 and others which will certainly be acquired in the auction scheduled for the first half of 2008 (BID 8).