Material Fact - Petrobras’ Proven Reserves in 2004

01/14/2005

PETRÓLEO BRASILEIRO S.A. - PETROBRAS
Public Company

PRESS RELEASE

& Petrobras’ Proven Reserves in 2004

 


(Rio de Janeiro, January 14, 2005). – PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA], a Brazilian international energy company, announces its proven reserves of oil, condensate and natural gas in Brazil and abroad for 2004, according to the Society of Petroleum Engineers – SPE and Security and Exchange Commission – SEC criteria.

Petrobras’ Proven Reserves in 2004 (Brazil and International):

On December 31st, 2004 Petrobras' Proven Reserves of oil, condensate and natural gas
amounted to 14.89 billion barrels of oil equivalent (boe), as per the SPE criteria, distributed as shown in the table below:

 

 

Proven Reserves– SPE CriteriaVolume (billion boe)
Brazil13.02
International1.87
Total14.89

 

The volume of proven reserves in 2004 represents an increase of 2.7% over the previous year.

According to the SPE criteria, 1.09 billion boe were incorporated into Proven Reserves in 2004 and 0.70 billion boe were produced, resulting in a net 0.39 billion boe addition to year-end 2003 reserves (14.50 billion boe). Consequently, for each barrel of oil equivalent produced during 2004, 1.56 barrels were incorporated into Proven Reserves, resulting in a Reserve Replacement Index – RRI of 156%. The Reserves/Production ratio (R/P) was 21.3 years.

Proven reserves on December 31 2004 according to the SEC criteria amounted to 11.82 boe, distributed as follows:

 

Proven Reserves – SEC CriteriaVolume (billion boe)
Brazil10.57
International1.25
Total11.82

 

Proven Reserves increased by 1.8% in 2004 compared with the previous year. According to the SEC criteria, 0.92 billion boe were incorporated into Proven Reserves during 2004, compared with production of 0.70 billion boe, resulting in a net 0.22 billion addition to year-end 2003 proven reserves (11.60 billion boe). This corresponds to a Reserve Replacement Index – RRI of 131%, or, in other words, for each 1 barrel of oil equivalent produced during 2004, 1.31 barrels were incorporated into Proven Reserves. The Reserves/Production ratio (R/P) was 16.9 years.