3rd Quarter 2012 (IFRS) Conference Call/Webcast October 29th, 2012

DISCLAIMER

FORWARD-LOOKING STATEMENTS:

DISCLAIMER

The presentation may contain forward-looking statements about future events within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are not based on historical facts and are not assurances of future results. Such forward-looking statements merely reflect the Company’s current views and estimates of future economic circumstances, industry conditions, company performance and financial results. Such terms as "anticipate", "believe", "expect", "forecast", "intend", "plan", "project", "seek", "should", along with similar or analogous expressions, are used to identify such forward-looking statements. Readers are cautioned that these statements are only projections and may differ materially from actual future results or events. Readers are referred to the documents filed by the Company with the SEC, specifically the Company’s most recent Annual Report on Form 20-F, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including, among other things, risks relating to general economic and business conditions, including crude oil and other commodity prices, refining margins and prevailing exchange rates, uncertainties inherent in making estimates of our oil and gas reserves including recently discovered oil and gas reserves, international and Brazilian political, economic and social developments, receipt of governmental approvals and licenses and our ability to obtain financing.

We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events or for any other reason. Figures for 2012 on are estimates or targets.

All forward-looking statements are expressly qualified in their entirety by this cautionary statement, and you should not place reliance on any forward-looking statement contained in this presentation.

NON-SEC COMPLIANT OIL AND GAS RESERVES:

CAUTIONARY STATEMENT FOR US INVESTORS

We present certain data in this presentation, such as oil and gas resources, that we are not permitted to present in documents filed with the United States Securities and Exchange Commission (SEC) under new Subpart 1200 to Regulation S-K because such terms do not qualify as proved, probable or possible reserves under Rule 4-10(a) of Regulation S-X.

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QUARTER HIGHLIGHTS

FPSO Cidade Anchieta

3

» Net Income of R$5,567 million and EBITDA of R$14,375 million

» Oil production in Brazil of 1,904 kboed (-3% vs. 2Q12) and natural gas of 377 kboed (+4% vs. 2Q12)

» Start up of FPSO Cidade de Anchieta in September 10th

» Current production: 42 kbpd with 3 wells

» Production peak (100 kbpd): March/2013

» Discoveries: Grana Padano (Espirito Santo), Pecém (Ceará), Barra and Moita Bonita (Sergipe Alagoas)

» Record refinery output (2,026 kbpd in 3Q12 vs. 1,886 kbpd in 3Q11)

» Start up of REPAR’s Coking unit

» 7th consecutive year in the Dow Jones Sustainability Index

4

Kbpd

Aug-12

2,200

2,150

2,100

2,050

2,000

1,950

1,900

1,850

50

Oct-12 Sep-12 May-12 Apr-12 Mar-12 Feb-12 Jan-12 Dec-11 Nov-11 Oct-11 Sep-11 Aug-11 Jul-11 Jun-11 May-11 Apr-11 Mar-11 Feb-11 Jan-11 Jul-12 Jun-12

Operational

Forecast

*

• Scheduled maintenance: 77 kbpd in 3Q12 vs. 52 kbpd in 2Q12

• Natural decline in 3Q12: 57 kbpd

• 2012 oil production target maintained

1,843

2011

2,110

3Q12

Avarege 1,904

3Q11

Average 1,978

2012

2Q12

Average 1,970

OIL AND NGL PRODUCTION (BRAZIL)

1,993

2,098 2,084

2,001

1,928

1,941

1,940

2,002

1,963 1,968

1,989

1,961 1,960

2,040 2,047

2,003 2,020

2,003

2,069 2,061

DOMESTIC AND INTERNATIONAL PRICES

Diesel Imports Gasoline Imports ARP Brazil ARP USGC

kbpd R$/

bbl

5 Note: (1) Weighted Average Realization Price of Diesel, Gasoline, Naphtha, LPG, Jet Fuel and Fuel Oil

(2) Average Realization Price in United States Gulf Coast, considering the same volumes and products sold in Brazil

• Increasing price differential in 3Q12

• Growing imports

Sep-12 Aug-12 Jul-12 Jun-12 May-12 Apr-12 Mar-12 Feb-12 Jan-12

(1) (2)

LIFTING COST

6 6

22.31 22.47 22.70 26.63 31.15

31.80 37.57 39.03

38.48 38.68

3Q11 4Q11 1Q12 2Q12 3Q12

Lifting Cost Govt Take

• Higher personnel costs

• Increase in workovers

• Lower production

R$/

Bar

rel

69.83

60.04

65.11

54.11

61.73

Confidencial

DOMESTIC OUTPUT OF OIL PRODUCTS

Diesel + Jet Fuel Gasoline LPG Others

3Q12 2Q12 3Q11

Domestic Oil Imported Oil Utilization(%)

Throughput kbpd

Oil products output * kbpd

Refining Cost R$/bbl

* Includes E&P’s LPG production

316 341 385

93% 96% 98%

0

10

20

30

40

50

60

70

80

90

100

0

500

1.000

1.500

2.000

2.500

1,974

1,529

1,927

1,586

1,866

1,550

406 441 439

133147 144

511541 549

2,026 2,008

878 894

1,886

836

3Q12 2Q12 3Q11

8.567.68

9.31

3Q11 2Q12 3Q12

7

• Record operating performance

• Refining Cost: higher personnel costs and scheduled turnarounds

Confidencial

OIL PRODUCTS SALES IN BRAZIL

Diesel + Jet Fuel Gasoline LPG Others

kbpd

+5%

+6.4%

1,050 1,021 1,090

488 557569

235 228232

435 431459

3Q11 2Q12 3Q12

2,208 2,350 2,237

8

• Increase in sales volumes due to economic growth and seasonality

TRADE BALANCE

9

Exports Imports Balance

-315 -180

-10 10

-261

219 144 163

51 44 84

228

195 190

50 31 28 134 172 148

+60%

+14%

-1%

3Q12

-271

2Q12

-170

3Q11

-173

142

3Q12

822

385

2Q12

551

375

2Q12

554

724

3Q11

642

458

341

3Q11

815

316

3Q12

351

Oil Products Gasoline Diesel Others Fuel Oil Oil

-14%

+1%

+57%

kbpd

• Higher sales volumes met with imports

3Q12 vs 2Q12 OPERATING INCOME

2Q12

Operating Income

Sales Revenue COGS SG&A 3Q12

Operating Income

Other Expenses

R$

mill

ion 5,282

5,746

(3,675)(228)

1,475 8,600

10

• Increase in realization prices and lower dry hole expense led to higher operating income

3Q12 vs 2Q12 NET INCOME

R$

mill

ion

(1,346)

3,318

5,838618

(2,268) (593)

5,567

2Q12

Net Income

Operating

Income

Financial

Results

Equity Income Taxes Minority

Interest

3Q12

Net Income

11

• Higher operating income and financial results

3Q12 vs 2Q12 E&P

R$

mill

ion

16,172 312

(937)(1,226)

4131,646 16,380

2Q12Operational

Results

Price Effecton Revenue

Volume effecton Revenue

Average Costeffect in COGS

Volume Effecton COGS

OperationalExpenses

3Q12Operational

Results

12

• Lower production and higher costs were offset by lower dry hole expense

3Q12 vs 2Q12 DOWNSTREAM

R$

mill

ion

(9,968)

3,102

1,402

(891)

(1,899)(397) (8,651)

2Q12Operational

Results

Price Effecton Revenue

Volume Effecton Revenue

Average CostEffect in COGS

Volume Effecton COGS

OperationalExpenses

3Q12Operational

Results

13

• Reduced loss due to product price increases

CAPITAL STRUCTURE

1) Net Debt / (EBITDA 9M12 / 9 X 12)

2) Net Debt / (Net Debt + shareholder’s equity)

3) Includes tradable securities (maturing in more than 90 days) 14

• Increase in cash equivalents due to exchange of guarantees with PETROS

• Funding of € 2 Bi and £ 450 MM in the European market (closed on Oct, 1st)

22% 24% 24% 28% 28%

1.41 1.66 1.61

2.46 2.42

-1,5

-0,5

0,5

1,5

2,5

3,5

4,5

5,5

-20%

-10%

0%

10%

20%

30%

40%

50%

3T11 4T11 1T12 2T12 3T12

Endiv.Líq./Cap. Líquida Div. Líq./EBITDANet Debt/EBITDA1 Net Debt/Net Capitalization2

3Q11 4Q11 1Q12 2Q12 3Q12

R$ Billion 09/30/12 06/30/12

Short-term Debt 15.3 17.6

Long-term Debt 171.2 161.6

Total Debt 186.6 179.2

(-) Cash and cash equivalents 3 52.6 45.9

= Net Debt 133.9 133.2

US$ Billion 09/30/12 06/30/12

Net Debt 66.0 65.9

INVESTMENTS

9M2011 9M2012

R$ 50.8 billion

(US$ 31.1 billion)

R$ 59.8 billion

(US$ 31.1 billion)

E&P Downstream G&E International Distribution Biofuel Corporate

52%

34%

5%

6%

1% 2%

48%

37%

6%

6%

1% 2%

15

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Information:

Investor Relations

+55 21 3224-1510

petroinvest@petrobras.com.br