OREANDA-NEWS. Petrebras announces the volume of our proved oil (oil and condensate) and natural gas reserves, assessed at the end of 2013 according to ANP/SPE (National Petroleum, Natural Gas and Biofuels Agency/Society of Petroleum Engineers) and SEC (Securities and Exchange Commission) criteria.

According to the ANP/SPE criteria for reserve classification and addition, on December 31, 2013, our proved oil, condensate and natural gas reserves reached 16.565 billion barrels of oil equivalent (boe), a 0.8% increase compared with 2012 (as shown in Table 1 or our Investor Relations website).

During 2013, 1.141 billion boe were added to the proved reserves. That year, we sold stakes in fields with proved reserves amounting to 0.156 billion boe. The balance between appropriations and sales resulted in an increase of 0.985 billion boe in the proved reserves, against a production of 0.861 billion boe. These volumes do not take into account the production of Extended Well Tests (EWTs) in exploratory blocks in Brazil, or production in Bolivia, since the Bolivian Constitution prohibits the disclosure and registration of its reserves. The evolution of the proved reserves, according to ANP/SPE criteria, is shown in Table 2 on the Investor Relations website.

The 2013 highlights, in terms of proved reserves in Brazil, were:

Declaration of commerciality at two Transfer of Rights areas of the Santos Basin pre-salt - Buzios field (Franco) and Sul de Lula field (Sul de Tupi):

A volume of 0.720 billion boe was appropriated to the proved reserves from these fields in 2013, 23% of the volume contracted for these areas;

We are entitled to extract up to 5 billion boe of oil from certain pre-salt areas acquired in 2010 through the Transfer of Rights Agreement. The new fields include the right to extract 3.186 billion boe, of which 3.058 billion boe from Buzios and 0.128 billion boe from Sul de Lula;

The remaining contracted volume for these two fields will be appropriated to the proved reserves as projects are deployed.

Declaration of commerciality of Lapa field (Carioca), in the Santos Basin pre-salt, under the concession regime;

Declaration of Commerciality of Bauna Sul field, in Santos Basin, and Paturi and Macarico fields, in the Potiguar Basin;

Incorporation of volumes related to the discovery of new accumulations near existing infrastructure, as a result of the on-going success of exploratory activities in different Brazilian basins:

For the pre-salt, in the Albacora, Caratinga and Marlim Leste fields, in Campos Basin;

For the post-salt, in the Piracaba field, in Santos Basin, in the Taquipe and Aracas fields, in the Reconcavo Basin, and in the Rio Urucu field, in the Solimoes Basin.

Growth of proved reserves in the pre-salt due to increased well drilling and positive responses of production systems in operation, both at the Santos and the Campos Basins. Of this addition of reserves, 65% came from the Lula, Lula/Iracema Area and Sapinhoa concessions, in the Santos Basin, and 35% from the Parque das Baleias and Marlim Leste concessions, in the Campos Basin;

Improved recovery factor in the Marlim Sul, Tartaruga Verde and Tartaruga Mestica fields, in the Campos Basin, and the Leste de Urucu field, in the Solimoes Basin;

These appropriations offset the sale of our interests in the Atlanta and Oliva concessions, in the Santos Basin, as well as in Parque das Conchas (Argonauta, Abalone, Nautilus, and Ostra Concessions), in the Campos Basin.

The 2013 highlights, in terms of Petrobras' proved reserves abroad, were:

Sale of 50% of the assets in Africa, by creating a joint venture for oil, condensate and natural gas exploration and production, and of interests in fields in the US Gulf of Mexico, amounting to 0.111 billion boe;

Appropriations due to the extension of concessions in Argentina and of the implementation of the well campaign planned for onshore fields in Argentina and offshore fields in the US Gulf of Mexico.

Note: The proved reserves (0.166 billion boe) of the assets sold in 2013 in Peru and Colombia remain recorded as such until the transactions are approved by the competent agencies.

For each barrel of oil equivalent extracted in 2013, 1.14 barrel was added, resulting in a Reserve Replacement Index (RRI) of 114%. In 2013, the Reserve/Production (R/P) ratio was 19.2 years, according to Table 3 on the investor Relations website.

SEC CRITERION:

According to this reserve classification and appropriation criterion, on December 31, 2013, the proved oil, condensate and natural gas reserves reached 13.123 billion barrels of oil equivalent (boe), a 1.9% increase compared with 2012, as shown in Table 4 on the Investor Relations website.

During 2013, 1.218 billion boe were added to the proved reserves. That year, we sold stakes in fields with proved reserves amounting to 0.118 billion boe. The balance between appropriations and sales resulted in an increase of 1.100 billion boe in the proved reserves, against a production of 0.861 billion boe. These volumes do not take into account the production of Extended Well Tests (EWTs) in exploratory blocks in Brazil, or production in Bolivia, since the Bolivian Constitution prohibits the disclosure and registration of its reserves. The evolution of the proved reserves, according to the SEC criterion, is shown in Table 5 on the Investor Relations website.