Petrobras Increases Production by 7%

Petrobras reached a daily production average of 2,015.591 boe in May 2003. This exceeds April's production by approximately 7%. This production increase is largely due to the incorporation of the volume produced by Petrobras Energia S.A.- PESA (new corporate name for Pecom Energia S.A).

With the inclusion of 165,131 barrels/day extracted by PESA, the calculation of the average production of Petrobras abroad went from 70,182 barrels, in April, to 244,710 barrels of oil and gas equivalent (BOE) in May, with an expansion of 250%. Although the acquisition of shareholder control of Pecom occurred in October 2002, the incorporation of the production occurred after the approval of the transaction by the regulatory agency of the Argentine government (CNDC), last month. PESA production originates in Argentina, Bolivia, Ecuador, Peru and Venezuela.

Considering only the domestic fields, the volume of oil and gas equivalent extracted in May 2003 was 1,770,881 barrels/day (BOE), 2.5% less than production for April, due to a stoppage for maintenance of platform P-35, at the Marlim field, in the Campos Basin, on the coast of the State of Rio de Janeiro.