1. Oil and Gas Industry Oil and Gas Industry in Brazil - Business Opportunities - Oil and Gas Industry Oil and Gas Industry in Brazil - Business Opportunities - Copenhagen, June 20 th, 2003 Alberto Machado Neto

2. BRAZILBRAZIL IDIOM: PORTUGUESE IDIOM: PORTUGUESE AREA: 8.514.000 KM2 AREA: 8.514.000 KM2 INHABITANTS: 170 MILLION INHABITANTS: 170 MILLION GROSS DOMESTIC GROSS DOMESTIC PRODUCT: US$ 500 BILLION PRODUCT: US$ 500 BILLION IDIOM: PORTUGUESE IDIOM: PORTUGUESE AREA: 8.514.000 KM2 AREA: 8.514.000 KM2 INHABITANTS: 170 MILLION INHABITANTS: 170 MILLION GROSS DOMESTIC GROSS DOMESTIC PRODUCT: US$ 500 BILLION PRODUCT: US$ 500 BILLION

3. BRAZILIAN ECONOMIC SCENARIO International Economic Integration International Economic Integration Economic Stabilization Economic Stabilization State Modernization & Deregulation State Modernization & Deregulation President Lula President Lula BUSINESSES OPPORTUNITIES International Economic Integration International Economic Integration Economic Stabilization Economic Stabilization State Modernization & Deregulation State Modernization & Deregulation President Lula President Lula BUSINESSES OPPORTUNITIES

4. Consumption 1.7 million bpd 1.6 million bpd THE BRAZILIAN OIL & GAS MARKET DomesticProduction Domestic Processing 1.9 million bpd PRESENT SCENARIO

5. THE BRAZILIAN OIL & GAS PRODUCTION EXPANSION: (NEXT 5 YEARS) OIL: FROM 1.6 to 2.2 MM b/d OIL: FROM 1.6 to 2.2 MM b/d GAS: FROM 38 to 80 MM m 3 /d GAS: FROM 38 to 80 MM m 3 /d PROCESSING: FROM 1.7 TO 1.9 MM b/d PROCESSING: FROM 1.7 TO 1.9 MM b/d THE BRAZILIAN OIL & GAS PRODUCTION EXPANSION: (NEXT 5 YEARS) OIL: FROM 1.6 to 2.2 MM b/d OIL: FROM 1.6 to 2.2 MM b/d GAS: FROM 38 to 80 MM m 3 /d GAS: FROM 38 to 80 MM m 3 /d PROCESSING: FROM 1.7 TO 1.9 MM b/d PROCESSING: FROM 1.7 TO 1.9 MM b/d

6. BUSINESS OPPORTUNITIES INVESTMENTS: (2001 - 2010)  OIL: US$ 85 BILLION  GAS: US$ 15 BILLION  ENVIRONMENTAL: US$ 5 BILLION INVESTMENTS: (2001 - 2010)  OIL: US$ 85 BILLION  GAS: US$ 15 BILLION  ENVIRONMENTAL: US$ 5 BILLION

7. BUSINESS OPPORTUNITIES IN THE OIL & GAS FORTHCOMING PROJECTS: EXPLORATION & PRODUCTION PETROBRAS : 27 (E) / 15 (P) ANP ROUND 1: 12 BLOCKS (E&P) ANP ROUND 2: 21 BLOCKS (E&P) ANP ROUND 3: 34 BLOCKS (E&P) ANP ROUND 4: 21 BLOCKS (E&P) ANP ROUND 5: Next August (E&P)  UNTIL 2005 PETROBRAS WILL INVEST US$ 18 BILLION IN E & P PROJECTS US$ 18 BILLION IN E & P PROJECTS.

10. FORTHCOMING PROJECTS: THERMO ELECTRIC GENERATION 50 NEW GAS-FIRED PLANTS GAS-CHEMICAL (US$ 1 billion in 3 years) PROCESSING & REFINING 6 REFINERY REVAMPS (US$ 4.7 billion in 4 years) 1 NEW REFINERY (may be 2 or 3) (US$ 2 billion in 4 - 5 years) BUSINESS OPPORTUNITIES IN THE OIL & GAS

11. FORTHCOMING PROJECTS: TRANSPORTATION & SUPPLYING & DISTRIBUTION OIL TANKERS ( > 20 in 5 years) PSVs ( > 80 - 100 in 10 years) PIPELINES ( US$ 1 - 2 billion in 5 years) TERMINALS LOGISTIC BASES BUSINESS OPPORTUNITIES IN THE OIL & GAS

12. REGIONAL OPPORTUNITIES FOR THE SUPPLY INDUSTRY INVESTMENTS IN OIL & GAS (2001 - 2010) LATIN AMERICA: 300 US$ BILLION – BRAZIL: US$100 BI WEST AFRICA: 200 US$ BILLION TOTAL: 500 US$ BILLION POTENTIAL MARKET

13. MAIN LINKS For more information about Brazilian Oil Industry : WWW.ANP.GOV.BR WWW.ONIP.ORG.BR WWW.IBP.ORG.BR WWW.PETROBRAS.COM.BR

14. Anticipating solutions

15. BRASIL SUPPLY Brasil Supply S.A. logistics services including full support to onshore and offshore operations; environmental services; oil, water and gas treatment drilling fluids technical services. Its differential is to offer integrated solutions.

16. BRASIL SUPPLY Shareholders: – Petrobras Distribuidora S.A. – Cotia Trading S.A. – Cepemar S.A. – Promoc Ltda.

17. BRASIL SUPPLY SERVICES PORTFOLIO Technical services of formulation and application of drilling and completion fluids: Fluid plant operation Supply of specialized technical support

18. BRASIL SUPPLY SERVICES PORTFOLIO Supply chain management Port operations Cargo storage and movement Supply house operations Supply of chemical products Bulk liquid and solid handling Container fleet management Supply of drilling fluids Logistics support for exploration and production activities:

19. Espírito Santo

21. Rio de Janeiro

22. BRASIL SUPPLY SERVICES PORTFOLIO Supply chain management Port operations Cargo storage and movement Supply house operations Supply of chemical products Bulk liquid and solid handling Container fleet management Supply of drilling fluids Logistics support for exploration and production activities:

23. BRASIL SUPPLY SERVICES PORTFOLIO Structured financial and operations Tax planning and efficiency Contracting freight and insurance Customs clearance General and customs warehouses Separation of goods for different destination and modal changes Foreign trade operations:

24. BRASIL SUPPLY SERVICES PORTFOLIO Treatment of effluents; (including for re-use in industrial processes) Equipment rental; Supply of specialized technical support. Services associated with treatment of oil, water and gas:

25. BRASIL SUPPLY SERVICES PORTFOLIO Environmental licensing processes Evaluation of environmental impact Environmental diagnosis Risk analysis / contingency plans Environmental monitoring Appraisal and remediation of environmental liability Oceanographic studies Monitoring of liquid effluents Classification and collection of residues Recovery and treatment of oil in residues Thermo-destruction and final destination of solid residues Environmental services:

26. BRASIL SUPPLY PARTNERSHIP: We are open to analyze partnership possibilities with Danish companies working in related areas.

27. THANK YOU amachado@brasilsupply.com.br