Petrobras – Investor Relations

Petrobras

Investor Relations

Ethanol Pipeline Distribution System

Rio de Janeiro, July 7, 2010 – Petróleo Brasileiro S.A. – Petrobras announces that the Brazilian Institute of the Environment and Renewable Natural Resources – IBAMA issued the Preliminary License (PL) for the implantation of the Ethanol Pipeline Distribution System.

The project is being conducted by PMCC Projetos de Transporte de Álcool S.A, a partnership between Petrobras, Mitsui&Co.LTD and Camargo Corrêa S/A. The system is going to transport ethanol from the producing regions in the Mid-West, Minas Gerais and São Paulo to the large consuming centers of São Paulo and Rio de Janeiro. The estimated investment is US$ 1.1 billion.

The pipeline will have 542 km in length, with capacity to transport up to 12.9 million cubic meters of ethanol per year, and will be built using existing pipeline sections aiming to minimize the environmental impacts. It will connect Uberaba (Minas Gerais-MG) to Vale do Paraíba (São Paulo-SP), crossing through 33 cities, and then it will be connected to others already existing pipelines in the states of São Paulo and Rio de Janeiro.

Two Collection Centers will also be implemented, one in Uberaba – MG and another in Ribeirão Preto – SP, aimed at receiving the ethanol from the production plants, mainly through road transportation.

The Companies’ plans foresee the expansion of the network to the Senador Canedo Terminal (GO) and new pipelines connecting Paulínia to the Paraná-Tietê Waterway and to the São Sebastião maritime terminal.

The Companies are going to work to comply with the conditions of the Preliminary License to obtain the Installation License this year, which allows the beginning of the construction. The goal is to start up the operation of the pipeline in the second half of 2011.

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