Rio de Janeiro, February 4th, 2013 – Petróleo Brasileiro S.A.

- Petrobras, announces that Petrobras’ total oil and natural gas production in Brazil averaged 2,441 thousand barrels of oil equivalent per day (boed) in December 2012, indicating a 3.4% increase from November of the same year.

If overseas production is added, Petrobras’ production averaged 2,683 thousand boed, corresponding to a 4.2% rise from November.

Considering exclusive oil and NGL production in Brazil, Petrobras’ production amounted to 2,032 thousand barrels per day (bpd) in December, representing a 3.2% increase compared to November.

If the share operated for partners is added, this volume jumps to 2,056 thousand bpd.

This increase was primarily due to a production boost at FPSO Cidade de Anchieta, in Baleia Azul field, which produced 77.7 thousand bpd in December.

Another factor that contributed for the production increase was improved operational efficiency at Campos Basin, reflecting the positive effects of PROEF (Operational Efficiency Improvement Program).

Petrobras’ non-liquefied natural gas production in Brazil reached 64,959 thousand cubic meters per day, representing a 4.5% increase compared to November 2012.

If the share operated for partners is added, this volume jumps to 71,040 thousand cubic meters per day.

The boost in gas production reflects a production increase at Mexilhão, Lula and Tambaú fields and the start up of FPSO Cidade de Anchieta, in Baleia Azul field.

Total overseas production was 243 thousand boed, corresponding to a 12% hike from the previous month.

Of this total, 145 thousand barrels per day were of oil, which represents a 21.8% increase compared to the previous month and was spurred by the reopening of wells at Akpo field following the maintenance shutdown of the production platform in Nigeria.

International natural gas production amounted to 16,535 thousand cubic meters/day, up by 0.9% from November, due to better than expected results at Santa Cruz I Oeste and Neuquina fields, the end of a strike in Argentina and higher demand for Bolivian gas.

2012 Production

Petrobras’ oil production in Brazil in 2012 averaged 1,980 thousand bpd, reaching the target for the year specified in the 2012-2016 PNG (Business Plan), which was of 2,022 thousand bpd, plus or minus 2%.

This result was caused by the closing of Frade field, due to seepage, a higher than estimated number of scheduled shutdowns and operational problems leading to higher than expected interruptions.

If the share operated for partners is added, the volume produced was 1,995 thousand bpd.

Petrobras’ non-liquefied natural gas production in Brazil was 59,644 thousand cubic meters per day.

If the share operated for its partners is included, natural gas volume averaged 65,793 thousand cubic meters per day.

This production primarily reflects the production boost at Lula field, the interconnection of wells in Mexilhão (PMXL-1) and the start-up of Tambaú field (FPSO Cidade de Santos).

Petrobras’ total oil and natural gas production in Brazil in 2012 was 2,355 thousand boed, down 0.9% from the volume produced in 2011.

If the share of overseas production is added, Petrobras’ production averaged 2,598 thousand boed, indicating a 0.8% drop from 2011.

Total overseas production was 243 thousand bpd.

Of this total, 146 thousand bpd were of oil and 16,504 thousand cubic meters of natural gas.

For 2013, we highlight the start up of the following systems: FPSO Cidade de São Paulo, which initiated the Sapinhoá Pilot in January; FPSO Cidade de Itajaí (at Baúna-Piracaba fields); FPSO Cidade de Paraty (at Lula field); P-61 and P-63 (at Papa – Terra field) and P-55 (at Roncador).

These new systems will boost production especially in the second half of the year.