Tupi North-East Well Passes Test

Petrobras, along with its partners, has reported that the formation tests of well 3-RJS-662A (3-BRSA-755A-RJS), located in the Tupi Assessment Area, within the ultra-deep waters of the Santos Basin, have been completed and confirmed an extremely high level of productivity from the carbonate reservoirs of the pre-salt layer in this area.

The formation tests that were performed measured a flow rate of around 5,000 barrels per day of light oil (about 28o API), limited by the capacity of the testing equipment. The production potential of this well was estimated at around 30,000 barrels of oil per day, thus providing further evidence of the Tupi area's high capacity for the production of light oil, which had already been noted from the testing of other wells in the area.

The Tupi North-East appraisal well has confirmed the widespread presence of an excellent quality, light oil bearing reservoir with high production capacity across the Tupi field. These appraisal results are in line with the previous excellent well test productivity recorded in the Tupi Sul well confirmed by a subsequent extended well test during the last 12 months.

The Tupi North-East DST result builds upon the confirmation of record productivity from DSTs on the Iracema well in the same concession area 30 kilometers northwest of the Tupi North-East well, and previously announced in November 2009.

Drilling on Tupi North-East, in the BM-S-11 appraisal area, was completed in November 2009. The well is situated 18 kilometers northeast of the original Tupi discovery well (1-RJS-628A or 1-BRSA-369A) in 2,115 meters of water, approximately 265 kilometers from the Rio de Janeiro coastline.

The Consortium, comprising Petrobras (65% - Operator), BG Group (25%) and Galp (10%), will proceed with the activities and investment needed to make a full assessment of the Tupi reservoirs, with the drilling of new wells until the Declaration of Commercial Viability, expected for December 2010.