Petrobras Takes Hold of Cascade Field

Petrobras confirmed yesterday that it has exercised its preference right for acquisition of 50% of Devon Energy's participation interest in the Cascade field, located in the Gulf of Mexico. The preference right is foreseen in the JOA (Joint Operation Agreement) executed by the parties to explore the field together. The settlement of the acquisition is expected to occur within 60 days and, as a result, Petrobras will hold 100% participation in the Cascade field.

The Cascade field is being developed in conjunction with the Chinook field in the Greater Chinook Area, with both fields operated by Petrobras. In the Chinook field, the Company has a participation of 66.7% and works in partnership with Total SA, which holds 33.3% stake.

For the joint development of the Cascade and Chinook fields, Petrobras obtained the first license ever granted for the use of a Floating, Production, Storage and Offloading (FPSO) platform to operate in the Gulf of Mexico. The FPSO BW Pioneer is expected to come into
operation in mid-2010.