Royalties

Legislation Law 9478/97 (Article 45), Decree Law 2705/98 Concept Payment due from concessionaires for the exploration and production of oil and natural gas. Calculus Basis Production volume x reference price (to be published by the regulator, the National Petroleum Agency - ANP), in relation to each field. Percentage Rate Variable according to area from 5% to 10% (per producing field), and established in each concession contract. Form / Term and Periodicity of Payment Periodicity: MONTHLY Revenues must be paid to the Secretariat of the National Treasury (STN), payment to be made by the last business day of the month subsequent to the month during which production activities began. Distribution Form / Beneficiaries Distributed to the beneficiaries by the STN, based on values due to each one, details of which are provided by the ANP. Installment up to 5% On Share Off Share Producing State 70.0% 30.0% Producing Municipality 20.0% 30.0% Municipality with facilities 10.0% 10.0% Navy - 20.0% Special Funds - 10.0% TOTAL 100.0% 100.0% Installment from 5% to 10% On Share Off Share Producing State 52.5% 22.5% Producing Municipality 15.0% 22.5% Municipality in which oil-related facilities are located 7.5% 7.5% Ministry of Science and Technology 25.0% 25.0% Navy Ministry - 15.0% Special Funds - 7.5% TOTAL 100.0% 100.0%

Legislation Law 9478/97 (Article 45), Decree2705/98, ANP Administrative Rules 10 and 102/99.36 and 58/01 Concept Extraordinary financial payment due on oil and natural gas exploration and production in the case of high volume or high profit margin fields. Basis for Calculation Net revenue from quarterly production from each field after the legally permitted deductions. Percentage Rates Progressive scale of rates from 10% to 40%. Form / Term and Periodicity of Payment Periodicity: Quarterly Payable as from the quarter during which respective production begins. Revenues must be paid to the Secretariat of the National Treasury (STN) by the last working day of the month immediately subsequent to the end of the preceding civil quarter Distribution Form / Beneficiaries Distributed by the STN, based on values due to each beneficiary, details of which are provided by the regulator, the National Petroleum Agency (ANP). 40% - Mines and Energy Ministry, for financing geological and geophysical studies and services for oil and natural gas prospecting according to the requirements of the ANP; 10% - Ministry for the Environment, Water Resources and the Legal Amazon Area, for the development of studies and projects related to the preservation of the environment and the recovery of damage to the environment caused by the activities of the oil and gas industry; 40% - The state where onshore production takes place or the state adjacent to the continental platform where offshore production activities are carried on; 10% - The municipality where onshore production takes place or the municipality adjacent to the continental platform where offshore production activities are carried on. Observation The calculation of the special participation of each field will be based on the number of years of production as from the production's start up.

Legislation Law 9478/97 (Article 45), Decree 2705/98 Concept The auction notice and concession contract provide for the payment value for the occupation or retention of the area of the block as from the date of the signature of the concession contract. The unitary values, in Reais (R$), per km² or fraction of the concession area, are fixed in the auction notice and the concession contract, being applicable successively to the exploration and production phases and the respective development. The payment values are registered monthly for each concession contract on an accrual basis. The tables (R$/km²) are updated annually, according to the IGP-DI (FGV) index. Basis for Calculation Unitary values, in Reais per km² or fraction of the concession area, taking into consideration the number of days the contract has been in force. Form / Term and Periodicity of Payment Periodicity: Annual It is paid directly to the ANP, on January 15 of the upcoming year. Distribution Form / Beneficiary Revenues raised from fee income are allocated to the ANP for funding its statutory functions.

Legislation Law 9478/97 (Article 45) Decree 2705/98 Concept Corresponds to the amount of the winning bid for a given oil and natural gas concession and may not be less than the minimum price stipulated in the auction notice. Basis for Calculation The amount of the winning bid for a given oil and natural gas concession. Form / Term and Periodicity of Payment Paid in full directly to the ANP simultaneously with the signature of the concession contract. Funds raised from this source are to cover the ANP's operating requirements as established in its expenditure budget. Observation 1 In August 1998, Petrobras made no bonus payment on the concession contracts it signed, the reason being that there was no bidding process for the relative fields, which were already either in the phase of exploration or production. In September 1999, Petrobras made a payment of R$ 15,046,488.95 relating to the auction of blocks in June 1999, as follows: Blocks In R$ BM-S-3 4,541,341.25 BM-C-3 2,448,449.20 BM-C-6 5,032,437.00 BM-CAL-1 412,163.50 BM-FZA-1 2,612,098.95 TOTAL 15,046,488.95 In June 2000, Petrobras made a further payment of R$ 165.086.202,60, relating to the auction of blocks in June 2000, as follows: Blocks In R$ BM-S-7 23,672,261.20 BM-S-8 25,725,027.00 BM-S-9 52,325.114,40 BM-S-10 50,990,516.00 BM-S-11 9,856,750.80 BT-POT-4 658,789.00 BT-SEAL-2 432,325.00 BM-SEAL-4 1,418,419.20 TOTAL 165,086,202.60 In August 2001, Petrobras made a further payment of R$ 82.209.433,70, relating to the auction of blocks in June 2001, as follows: Blocks In R$ BM-S-17 10,350,953.00 BM-CAL-5 2,812,513.95 BM-CE-1 301,234.00 BM-ES-9 3,256,839.60 BM-J-1 842,345.00 BM-BAR-1 48,341,234.00 BM-S-21 1,026,963.20 BM-ES-5 8,288,302.10 BM-C-14 1,437,588.75 BM-S-12 3,724,863.8 BM-CE-2 345,678.00 BM-S-24 324,354.00 BT-ES-12 624,156.00 BM-C-16 428,353.00 BM-CAL-6 104,055.30 TOTAL 82,209,433.70 In August 2002, Petrobras made a further payment of R$ 21.534.392,85, relating to the auction of blocks in June 2002, as follows: Blocks In R$ BT-SOL-1 323,456.00 BT-POT-8 2,853,274.00 BM-POT-11 190,157.40 BM-POT-13 403,716.80 BM-SEAL-9 5,366,917.85 BM-J-3 7,921,066.20 BT-ES-15 653,421.00 BM-C-25 3,822,383.60 TOTAL 21,534,392.85 Observation 2 Bônus de assinatura por bacia ROUND 5 08/03 BACIA Blocks Bônus R$ Barreirinhas 5 154,894.00 Campos 19 1,554,803.00 Espírito Santo 4 79,957.00 Foz do Amazonas 12 241,404.00 Jequitinhonha 5 14,471,561.00 Potiguar 5 1,838,269.00 Recôncavo 1 340,830.00 Santos 37 3,243,149.80   88 21,924,867.80 ROUND 6 08/04 BACIA Blocks Bônus R$ Barreirinhas 1 351,433.00 Camamu-Almada 9 19,187,276.20 Campos 2 31,927,806.00 Espírito Santo 26 171,433,282.90 Foz do Amazonas 9 270,027.00 Jequitinhonha 2 9,524,863.00 Pará - Maranhão 3 1,053,372.00 Pelotas 6 600,060.00 Potiguar 25 24,502,009.50 Recôncavo 5 5,932,476.80 Santos 11 103,831,808.50 Sergipe - Alagoas 8 68,730,246.40   107 437,344,661.30 ROUND 7 10/05 BACIA Blocks Bônus R$ Campos 5 150,400,000.00 Espírito Santo 16 71,508,150.00 Potiguar 35 23,565,200.00 Recôncavo 7 9,553,000.00 Santos 7 207,008,000.00 São Francisco 6 4,860,000.00 Sergipe - Alagoas 16 33,553,000.00 Solimões 4 3,080,000.00   96 503,527,350.00

Payable as from January 1 2002 - Law 10336 of December 19 2001, modified by Decree 4565 of January 01 2003: The CIDE tax is due from refineries, petrochemical cracking complexes, importers (either private individuals or corporate entities) and manufacturers of specific oil-based secondary products. CIDE payments on sales may be deducted from COFINS and PIS/PASEP charges, complying with the following maximum limits: Rates of January 01, 2003, including. Importation or Sale CIDE Rate Metric Unit Limit of Deduction of CIDE Against COFINS Limit of Deduction of CIDE Against PIS/PASEP Gasoline and derivatives (*) R$ 541.10 Per m³ R$ 214.60 R$ 46.50 Diesel and derivatives (*) R$ 218.00 Per m³ R$ 121.60 R$ 26.40 Aviation fuel R$ 65.30 Per m³ R$ 53.70 R$ 11.60 Other kerosene R$ 53.80 Per m³ R$ 37.50 R$ 16.30 Fuel Oil (High Sulphur) R$ 29.70 Per ton R$ 19.20 R$ 10.50 Fuel Oil (Low Sulphur) R$ 40.90 Per ton R$ 26.40 R$ 14.50 Liquefied Petroleum Gas. including natural gas and naphtha derivatives R$ 167.60 Per ton R$ 137.80 R$ 29.80 Ethyl Alcohol Fuel R$ 29.25 Per m³ R$ 24.00 R$ 5.25

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ICMS
CIDE

CIDE-Fuels – Contribution for Intervention on the Economic Domain

Owed by the oil refineries (producers)
Aliquots in effect as of 05.02.2008 (*)

Pis/Pasep & Cofins Contributions Owed by oil refineries * Owed by the distributors Aliquots in effect as of 05.01.2004 Sale PASEP COFINS Total Automotive gasoline and its currents (1) (*) R$ 46.58 per m³ R$ 215.02 per m³ R$ 261.60 per m³ Liquefied Petroleum Gas (LPG) R$ 29.85 per T R$ 137.85 per T R$ 167.70 per T Diesel fuel ant its currents (*) R$ 26.36 per m³ R$ 121.64 per m³ R$ 148.00 per m³ Aviation Fuel R$ 12.69 per m³ R$ 58.51 per m³ R$ 71.20 per m³ Biodiesel (2) R$ 38.89 per m³ R$ 179.07 per m³ R$ 217.96 per m³ Petrochemical Naphtha sold to petrochemical plants (3) 1% 4.60% 5.60% * Ethanol for Carburant purposes (4) 1.46% 6.74% 8.20% Other activities (5) (6) 1.65% 7.60% 9.25% (1) except for aviation gasoline (2) As of 06/07/2005 (Decree 5.457/2005) (3) As of 03/01/2006 (art. 56 to 59 of Law 11.196/2005) (4) Except when added to Gasoline. A Provisional Measure (# 413/2008) aimed at taxing ethanol is currently proceduring, rendering it monophase, at aliquots per measurement unit (m³) for imports and for sales to the producer. (5) Non-cumulative incurrence of PIS/PASEP as of 12.01.2002, and including (Law 10.637, dated 12/30/2002), and of COFINS as of 02.01.2004, and including (Law 10.833, dated 12/29/2003) (6) Sales operations with aliquots reduced to zero: As of 03.01.2002, Law 10.312/2001 – Piped Natural Gas, used to produce power by the plants that are part of the Priority Thermoelectricity Program (PTP) As of 07.23.2004, Law 10.925/2004 – Composites or fertilizers classified in Chapter 31 of the Tax on Industrialized Products (TIPI) and their raw materials (except for products for veterinary use), among others. (*) CURRENTS are liquid hydrocarbons derived from oil and liquid hydrocarbons derived from natural gas used in a mechanical mix to produce gasoline or diesel fuel, in compliance with the norms set forth by the NPA.

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