Petrobras Clarifies Business Plan, Contracting of Drilling Rigs

Petrobras has clarified some news published yesterday regarding the revision of its Business Plan and the postponement of the contracting of drilling rigs.

As informed in the Press Release issued on October 17, 2008, Petrobras postponed the announcement of the Business Plan to the end of the year due to the need to complete project analysis on account of the new conjuncture conditions. The current targets and investment plans of the Company are established in the Business Plan announced in August 2007, which covers the period from 2008 through 2012.

The Business Plan is still under revision, therefore the Company does not have enough inputs to inform about anticipations and delays of its projects, as well as about the potential impacts on the estimated production curve of the next years.

Since 2003, after various discoveries of light oil and natural gas outside Campos Basin, broadly announced, Petrobras strategy is focused on anticipating the production of light oil and natural gas. This strategy aims to maximize the return of the portfolio of projects due to the higher quality and price of light oil as well as the increase of the supply of natural gas to comply with the PLANGAS (Natural Gas Production Anticipation Plan).

Regarding the drilling rigs, in May 2008, Petrobras announced its intent to hire 40 drilling ships and semi-submersible drilling platforms to operate in deep and ultra-deepwaters. The first 12 units contracted will be delivered for operation by 2012. The bidding of the remaining 28 units, expected to be built in Brazil, is not scheduled yet. However, this will not cause any delay to the start up of these units which is scheduled to occur only between 2013 and 2017.