Oil Production Up by 7% for Petrobras

Petrobras' average oil and natural gas production in Brazil topped-out at 2,165,430 barrels of oil equivalent per day (boe) in May, 7% more than a year ago and 0.4% above April 2008.

Only taking oil production in domestic fields into account, the rise was 5.2% over May 2007 and 0.7% compared to the previous month. This 12,000 bpd difference was the outcome of new wells going online in the Campos Basin, at platforms P-52 e P-54, both in the Roncador field.

With four more platforms kicking-off their operations in 2008, three of which in the Campos Basin and one in Espirito Santo, 500,000 barrels will be added to the Company's production capacity per day. Furthermore, the five platforms that went online in 2007 are expected to reach their top capacity during this year.

Natural gas production in domestic fields reached 49.554 million cubic meters per day, 18.6% more than the 41.797 million cubic meters produced in May 2007.

Considering both the fields in Brazil and abroad, the Company's total oil and natural gas production averaged 2,367,192 barrels of oil equivalent per day in May, i.e., 4.3% more than the total registered a year ago and at the same level as Petrobras' total production in April 2008.

The volume of oil and natural gas lifted in the eight countries where Petrobras has production assets, in barrels of oil equivalent, was 201,762 barrels per day in May, 9.9% less than the previous month's mark.