Miguel BibbóPresident

Petrobras Energía Venezuela

Washington, July 17, 2003

PETROBRAS ENERGÍA VENEZUELA

OWNERSHIP STRUCTURE

Floating

58.62% 41.38%

Perez CompancNew Corporate Name (*)

Petrobras Energía Participaciones

Petrobras

98.21%Floating

Pecom Energía New Corporate Name

(*)Petrobras Energía

1.79%

(*) Pending Registration with the Relevant Argentine Authorities

Profitability

Consolidate competitive advantages in the domestic

marketExpand international operations

Social Responsibility

Create markets for natural gas

Strategic PositioningLeadership in the Brazilian oil and petroleum products

market and selective expansion of international operations

SUSTAINING COMPETITIVENESS

From Monopoly to Sustaining CompetitivenessFrom Monopoly to Sustaining Competitiveness

PETROBRAS

Concentrate E&P in Latin America, Gulf of Mexico/Caribe and West Africa

Integrated downstream operation in Southern Cone

Strengthen gas business in Southern Cone

Access refining capacity abroad to add value to Petrobras crude

INTERNATIONAL PRESENCE WITH REGIONAL FOCUSINTEGRATION IN LATIN AMERICA

PETROBRAS

International diversification leveraged by domestic expertise

Gulf of Mexicoand Caribe

USATrinidad andTobago

Colombia

Bolivia

Rio de Janeiro

Argentina

Nigeria

Equatorial Guinea

Angola

South America

West Africa

HQ

REFINING

E & P

DISTRIBUTION

Natural Gas

Oil + LNG

2535 53 74

230

300

1995 2000 2005

Doubling production between 1995 and 2000Increasing output more than four times by 2005

Thou

sand

boe

/day

PETROBRAS

SUSTAINING COMPETITIVENESS INTERNATIONAL

BOLIVIA• E&P• RefiningTotal Sales: $ 27 (2%)

ECUADOR• E&P• Oil TransportationTotal Sales: $ 24 (2%)

PERU• E&PTotal Sales: $ 110 (9%)

ARGENTINA• E&P• Oil Transportation• Gas Transportation• Oil & Gas Marketing• Refining• Petrochemical• Electricity Generation• Electricity Transmission• Electricity Distribution (*Total Sales: $ 765 (64%)

BRAZIL• Petrochemicals

Total Sales: $ 137 (11%)

VENEZUELA• E&PTotal Sales: $ 140 (12%)

PETROBRAS ENERGÍA GEOGRAPHICAL LOCATIONS - Revenues

IQ 2003 Sales: $ MM 1,203IQ 2003 Sales: $ MM 1,203

(*) Argentina Sales includes 110 MM $ from Affiliates under Joint Control.

PETROBRAS ENERGÍAEXPLORATION & PRODUCTION

!! VENEZUELAVENEZUELA49,700 49,700 boeboe/d/d29% over Total29% over Total

!! ECUADORECUADOR600 boe/d600 boe/d1% over Total1% over Total

!! PERUPERU12,300 boe/d12,300 boe/d7% over Total7% over Total

!! BOLIVIABOLIVIA7,300 boe/d7,300 boe/d4% over Total4% over Total

!! ARGENTINAARGENTINA102,500 102,500 boeboe/d/d59% over Total59% over Total

Production 2002 : 172,400 boe/dProduction 2002 : 172,400 Production 2002 : 172,400 boeboe/d/d

TOTAL FIELDSProduction: 19Exploration: 12

TOTAL FIELDSTOTAL FIELDSProduction: 19Production: 19Exploration: 12Exploration: 12

PETROBRAS ENERGÍA + PETROBRASEXPLORATION & PRODUCTION

VENEZUELA49,700 BOE/d49,700 BOE/d

ECUADOR600 600 BOEBOE/d/d

PERÚ12,300 12,300 BOEBOE /d/d

BOLIVIA7,300 7,300 BOEBOE /d/d

ARGENTINA102,500 BOE /d102,500 BOE /d

PETROBRAS ENERGÍAPETROBRAS ENERGÍAPETROBRAS ENERGÍA PETROBRASPETROBRASPETROBRAS

COLOMBIA16,600 BOE/d

BOLIVIA10,500 BOE/d

ARGENTINA20,000 BOE/d

BRASIL1,740,000 BOE/d

10,500 10,500 BOEBOE/d/d

ARGENTINA20,000 20,000 BOEBOE/d

COLOMBIA16,600 BOE/d16,600 BOE/d

BOLIVIA

/d

BRASIL1,740,000 BOE/d1,740,000 BOE/d

TOTAL: 1,959500 BOE/dTOTAL: 1,959500 TOTAL: 1,959500 BOEBOE/d/d

CONTRACTS - PARTNERS

CARACAS

II Round1993PEV + Anadarko47000 b/d

ORITUPANO LEONA

LA CONCEPCION

Total Production: 67100 b/d

Profit SharingAgreement1996

SAN CARLOSGas License2002PEV + Teikoku

SAN CARLOS

Gas License 2001PEV + Teikoku

TINACO

III Round1997PEV + Jantesa6000 b/d

MATA

III Round1997PEV + Corepli3100 b/d

ACEMAIII Round1997PEV + Williams11000 b/d26 MCFD

LA CONCEPCION

PRODUCTION HISTORY

OIL 100%X 8

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

90.000

ene-94 ene-95 ene-96 ene-97 ene-98 ene-99 ene-00 ene-01 ene-02

Bbl

s/d

Oritupano Leona La Concepción Mata Acema

ACE 12/97CON 12/97

OLE 3/94

MAT 02/98

Investment: $ 1.700.000Investment: $ 1.700.000

GEOLOGICAL AREASAN CARLOS / TINACO GAS PROJECT ORIENTED TO THE LOCAL MARKET

OrinocoHeavy Oil Belt

CARIBBEAN SEA

GAS FIELD

OIL FIELD

0 40

Km.

TINACOTINACO

BACKGROUND

SAN CARLOS / TINACO

- San Carlos area under Profit Sharing Contract(CVP) 1996- Work performed:

- 1369 km 2D Seismic - Two exploratory wells:

La Doncella 1X: 11225´Los Guayabitos 1X: 10114´

- Non-associated gas discovery - Total investment: US $ 32 Million

BACKGROUND

Year 2000

- The Gaseous Hydrocarbon Law is enacted.

Year 2001- Venezuelan Non-Associated Gas Bidding Round. (LG2000)

- Petrobras Energía Venezuela is awarded with a License in the area of Tinaco.

- Petrobras Energía Venezuela introduces a request before the Ministery Energy and Mines to convert the San Carlos´ profit sharing contract into a license for the E&P of Non-Associated Gas.

Year 2002- The Ministery of Energy and Mines grants a license for the E&P of Non-

Associated Gas in San Carlos Area.

ENERGY INTEGRATED PROJECT

AmuayParaguana

Scenario - P10:" Local and regional gas markets" Supply to the Paraguana Refining

Center " Connection with the east and west

gas systems." Electric Generation" Plateau: 530 MPCD " 3.6 TCF in 20 yearsCC

Barquisimeto

Pto. Ordaz

GuicoMorichal

CaracasMorón

Altagracia

Pto. La Cruz

Jose Cumaná

ANACO

Ule

Acarigua

SC-TIN

Scenario - P90:" Local Market" Industrial Customers" Plateau: 40 MCFD " 0.3 TCF in 20 years

AA

BBScenario - P50:" Local industrial market" Regional industrial market " Connection with the east gas system" Plateau: 190 MCFD " 1.5 TCF in 20 years

VENEZUELA BUSINESS ENVIROMENT

Geological RiskHigh reserves of oil & gas.

Legal Framework and Competitive fiscal termsStable rules.Competitive tax structure.Flexible risk-reward system.

CompetitivinessLabor matters.Products and Services.National suppliers. Infrastructure.Bureaucracy.