1. INDUSTRIAL BIO FUEL TECHNOLOGY AND COOPERATION WITH KOREA INVEST IN BRAZIL

2. AGENDA > BIO FUELS IN BRAZIL > INVESTMENT OF PETROBRAS > BIO FUELS IN PETROBRAS > NEW TECHNOLOGIES IN BIO FUELS > COOPERATION WITH KOREA > FINAL COMMENTS INVEST IN BRAZIL

3. BIO FUELS IN BRAZIL INVEST IN BRAZIL

4. Ethanol Program - 30 years producing and using - 373 Ethanol Plantgy Biodiesel Program - 2% from 2008 and 5% from 2013, mandatory - 50 biodiesel plants Biodiesel Production 2007 1,0 billion liters 2010 3.0 billion liters Ethanol Production 2008 22,0 billion liters 2013 40,0 billion liters Total area of plantations: 7.00 million hectares AVAIABLE LAND FOR FOOD AND FUEL 90 million hectares Bio fuel overview in Brazil

5. Forecast of ethanol in Brazil Year

6. Brazilian Exportation of Ethanol

7. INTRODUCTION INVESTMENT OF PETROBRAS INVEST IN BRAZIL

8. (*) US$ 17 billion allocated to Exploration 59% 25% 7% 3% 2% PETROBRAS BUSINESS PLAN 2009-2013 US$ 174.4 billion Petrobras Investments

9. Natural Gas Pipelines Power Plants Solar, wind and biomass Exploration and Production Pre-salt Roncador,Jubarte Marlin,Espadarte Biofuel New Pipelines Marine transport Distribution Refining, Transportation and Trading Refining, Transportation and Trading Petrochemical Comperj complex. Suape Complex Second generation petrochnemical unit US$ 174.4 billion Main Projects of Petrobras Investment New Refineries Conversion Units/Qualities Marine Trasport Ethanol Production Biodisel Production Logistics

10. BIO FUELS IN PETROBRAS INVEST IN BRAZIL

11. In the middle of 2008 PETROBRAS BIOFUELS, a subsidiary of PETROBRAS was created with the purpose of producing biofuels; - PETROBRAS BIOFUELS has three biodiesel plants located in Northeast region and Brazilian semiarid area, with total capacity of 171,000 m 3 /yr R&D on biofuels is developed by PETROBRAS R&D Center, located in Rio de Janeiro - 2009-2013 budget: US$ 530 Million Petrobras Biocombustível S.A. (PBIO) New Subsidiary for Biofuel Production

12. Investments in Brazil for 2009-2013: US$ 2,212 MM (91% of total) Investments between 2009-2013 Petrobras Biocombustivel(PBIO) Total Investment in PBIO 2009-2013 US$ 2,4 billion

13. 3 Projects Implemented Capacity: 171 millions m3/year Inputs Raw Material: Soy, castor, sunflower, palm, cotton, animal fats and residual oil. Jobs Generation: Construction: 1,200 directly and 400 indirectly Operation: 80 Investment: R$ 295 millions BA MG CE Montes Claros Quixadá Semi-árido Candeias Biodiesel Plants

14. Petrobras Biocombustível S.A. (PBIO)

15. Own Production: Guarantee of supply to develop new markets Sugar cane Producers Target Markets Potential Market Investors New ethanol production to meet the increase of international demand in a long term basis, with sustainability and no impact on food production. Petrobras Biocombustível Petrobras Biocombustível S.A. (PBIO) New Subsidiary for Production

16. New Biofuel Production Projects Reliable Supply Environment Friendly Bio-Electricity Bio-Ethanol Carbon Credit Brazilian Electricity Market Long Term Contract Carbon Credit Certificate New Production to Export Ethanol – PBIO Project

17. Meta: 4,23 MM m3/ano em 2013 (é isto mesmo?) Buriti Alegre REPLAN Ilha D’Água REDUC São Sebastião REVAP Ribeirão Preto Uberaba Existing Pipeline Under Construction Storage tank PARANA AC AM RO MT RR PA AP MA PIPI CE TO GO MS SP RS SC PR RJ MG ES BA RN PB PE AL SE Source:Petrobras SAO PAULO GOIAS MINAS GERAIS RIO DE JANEIRO Export Capacity From 2013  9.0 million kl Santos Port Petrobras´s new logistics to export ethanol

18. NEW TECHNOLOGIES IN BIO FUELS INVEST IN BRAZIL

19. Synthetic Fuels Biofuels 1. Generation 2. Generation Feedstocks Natural Gas Coaloils / fatsSugar PlantsBiomass Vegetable oils, animal fats Sugarcane, beat, corn Energy plants, biowaste, bagasse, straw, wood Process Trans- esterification Fermentation Enzymatic Hydrolysis, Fermentation Gasification, FT-Synthesis, Product upgrading Product Biodiesel FAME Ethanol Cellulosic ethanol BTLGTL CTL Biofuels Process

20. Productivity in agricultural and industry

21.  2012 – 2015 Demonstration plant of 2nd generation technologies (BTL and Bio-oil) Deployment of Biorefinery concept  2006 – 2011 Deployment of 1st generation technologies (HBIO and Biodiesel) Demonstration plant of Cellulosic Ethanol R&D 2nd generation technologies (BTL and Bio-oil) Technological strategy

22. Complementary and not competitive processes HBIO and Biodiesel Processes

23. Current status:  Industrial tests carried out in refineries  Patent applications filed  Investments in 5 refineries HBIO Process

24. PETROBRAS technology raw materials soybean + castor oil successful lab experiments (2004) successful pilot-plant tests (2004-2008) demonstration batch plant on stream since 1st Q 2005 capacity: 200 t/yr upgrade to continuous process 6,000 t/yr (on start up) 1st high capacity design concluded 4th Q 2008 Petrobras´s Biodiesel Process

25. pilot plant on stream since the 1st Q 2008; demonstration plant’s basic design under development: distillation acid pre-treatment solid rich in cellulose solution rich in sugars (pentose) fermentation saccharification (glucose) and fermentation enzymes production ethanol and byproducts Cellulosic ethanol

26. Raw material: sugar cane bagasse Proprietary process Successful ongoing bench-scale experiments  Two patents filed Pilot plant start-up: 2008 Demonstration plant start-up: 2011 Cellulosic ethanol Pilot Plant

27. BTG pilot plant start up is scheduled to 2011; Fischer Tropsch GTL pilot plant start up is scheduled to 2011; syngas to ethanol  under study biomass gasification gas treatment biomass syngas H 2 + CO Fischer Tropsch synthesis product upgrade unit alcohol synthesis product upgrade unit diesel naphta LPG ethanol methanol propanol butanol Biomass to liquid

28. Improve crops productivity and adapt production system for small farmers Diversify feedstock for biodiesel production - Research network for: Sunflower Castor Bean Jatropha Palm Macauba Microalgae research Pilot test in RN (2010) Biofuels´s Feedstock

29. COOPERATION WITH KOREA INVEST IN BRAZIL

30. Joint ventures for exploratory phase in E&P in Brazil and internationally; Participation in new refineries in Brazil; Acquisition and upgrading refineries for processing Brazilian crude in USA, Europe and Asia; Participation in new petrochemical projects in Brazil; Joint venture for oil rigs construction; Ethanol and biodiesel production in Brazil; Development of second generation of biofuel technologies :: Joint development of commercial solutions for a reliable and long term supply of ethanol to Korean and other Asian markets; :: Opportunity for joint launch of ethanol blend in Korean market and joint distribution with technical support of Petrobras (more than 30 years expertise). Opportunities for Cooperation

31. Joint venture for construction of ethanol pipeline ; Ethanol and biodiesel production in Brazil; Development of second generation of biofuel technologies Development of commercial solutions for a reliable and supply of ethanol to Korean market; Launch of ethanol blend in Korean market and joint distribution with technical support of Petrobras. Opportunities for Cooperation

32. FINAL COMMENTS Kuniyuki Terabe Petrobras General Managerterabe@petrobras.com.br terabe@bje.jp Kuniyuki Terabe Petrobras General Managerterabe@petrobras.com.br terabe@bje.jp www.petrobras.com.br INVEST IN BRAZIL