Petrobras

SOCIAL AND ENVIRONMENTAL REPORT 2007
SELO
PR-EQIDADE
DE GNERO 2007
SOCIAL AND
ENVIRONMENTAL REPORT
SOCIAL AND ENVIRONMENTAL REPORT 2007 // WWW.PETROBRAS.COM
PROFILE
Petrobras is a publicly listed company that operates on
an integrated basis in the following segments of the oil,
gas and power sector: exploration and production,
rening, commercialization, transportation,
petrochemicals, distribution of oil products, natural gas,
biofuels and electricity. Founded in 1953, Petrobras is now
the worlds sixth largest oil company, by market value,
according to the consulting rm PFC Energy. Leader in
the Brazilian oil sector, Petrobras has been expanding its
operations, in order to become one of the worlds top ve
integrated energy companies by 2020.
MISSION
VISION FOR 2020
To operate in a safe and profitable

manner in the energy sector in
Brazil and abroad, showing social
and environmental responsibility
and providing products and services
that meet clients needs and that
contribute to the development of
Brazil and the other countries in
which the company operates.
Petrobras will be one of

the five largest integrated
energy companies in
the world and the brand
of choice among our
stakeholders.
VISION ATTRIBUTES
Our activities will be notable for:
> A strong international presence
> Setting a worldwide
benchmark in biofuels
> Excellence in our operations,
management, human
resources and technology
> Profitability
> Setting a benchmark in
social and environmental
responsibility
> Commitment to sustainable
development
MILLENNIUM DEVELOPMENT GOALS

There are eight United Nations Millennium Development Goals
(MDG) presented in the Millennium Declaration to prioritize the
resolution of key challenges for development. The countries
should achieve the goals by 2015. Petrobras supports the MDG
and encourages other companies and institutions to put them
in practice. In 2007, the Company sponsored the MDG Brazil
Prize created by Brazilian government to encourage, valorize
and give further visibility to good practices that contribute to
achieving the goals.
MILLENNIUM GOALS
Goal 1
Goal 5
Eradicate extreme
poverty and hunger
Improve maternal health
Goal 2
Goal 6
Achieve universal
primary education
Combat HIV/AIDS, malaria

and other diseases
Goal 3
Goal 7
Promote gender equality

and empower women
Ensure environmental
sustainability
Goal 4
Goal 8
Reduce child mortality
Establish a global partnership

for development
Contents
Message from the CEO
02
Petrobras
05
06
10
Integrate role at home and abroad

Rise in production, revenue and shares
Social and Environmental

Responsibility
Management challenges in Social Responsibility
Report as a management tool
Human Rights
Principle 1 Businesses should support and
respect the protection of internationally
proclaimed human rights
Impact on communities
Cultural, social and sports investments
14
16
20
23
Relationship with suppliers

Human Rights Case
Labor
Workforce
Health, Safety and Quality of Life
Remuneration and benets
37
37
40
43
44
46
50
freedom of association and the eective

recognition of the right to collective bargaining
Freedom of association
54
54
Principle 4 Businesses should uphold the
elimination of all forms of forced and

compulsory labor
Rejection of forced labor
Guarantee of the rights of the child and adolescent
Against prejudice and discrimination

Labor Case
Mapping, monitoring and reducing impacts

initiatives to promote greater
environmental responsibility
Consumption of energy, material
and natural resources
75
Products, compliance and transportation
75
78
81
85
Energy conservation and

conscious consumption
87
Emissions, euents and waste

Ecosystems and biodiversity
Principle 9 Businesses should encourage
the development and diusion of

environmentally friendly technologies
Renewable energies
Transparency
Relationship with stakeholders
88
88
90
93
94
98
Principle 10 Businesses should work
against corruption in all its forms

Transparency Case
Appendices
60
60
64
68
68
71
73
Principle 8 Businesses should undertake
Anti-corruption and anti-bribery policies
58
58
elimination of discrimination in respect of

employment and occupation
Role in Health, Safety and Environment
Products and Services
56
56
eective abolition of child labor
a precautionary approach to
environmental challenges
Environment Case
67
Principle 7 Businesses should support
Climate change
24
24
28
Principle 2 Businesses should make sure
that they are not complicit in human

rights abuses
Environment
Prizes
Materiality
Indicator Matrix
10
100
100
10
103
10
10
104
108
10
109
10
110
11
That same year when the Companys

social responsibility policy was established,
the topic was added to the corporate
functions in the revision of the 2020
Strategic Plan. The Petrobras challenge is
now to become an international
benchmark in social responsibility for
business management, contributing to
sustainable development.
JOS SERGIO GABRIELLI DE AZEVEDO, Petrobras CEO
Message
from the CEO
MESSAGE FROM THE CEO
The year 2007 was a landmark for Petrobras. It was

considered to be the worlds sixth largest oil major and
consi
a highlight
high
of its operations was the major petroleum
disco
discoveries in Brazil. The Tupi agglomeration alone
has a potential to signicantly increase the levels of
current Brazilian reserves.
Petrobras acknowledges and assumes its prime
responsibility for the environment. For this reason
it invested two billion reais in the environmental
aspects of its operations and external sponsorship
projects. The Company strives for eco-eciency and
is constantly developing groundbreaking solutions to
minimize the waste of resources and impacts of its
operations. Another highlight is the increasing biofuel
investments. Petrobras is in the international forefront of companies with potential to operate in this
segment and to contribute to mitigating the eects
of global warming.
Preserving the Amazon rainforest is a strategic
priority for the Company. The Petrobras Center of
Environmental Excellence in the Amazon, launched
in 2007, combines technology and scientic knowhow for the regions sustainable development and
to prevent and reduce risks caused by the industrys
intervention.
That same year when the Companys social
responsibility policy was established, the topic was
added to the corporate functions in the revision of
the 2020 Strategic Plan. The Petrobras challenge is
now to become an international benchmark in social
responsibility for business management, contributing
actions of the Petrobras Citizen and Development
to sustainable development. Another 2007 highlight
program and evaluate its results. Annual public selec-
was the renewal of the Companys participation in the
tion processes also seek to assure transparency of new
Dow Jones Sustainability Index and So Paulo Stock
incoming supported projects and make access to the
Exchange (Bovespa) Business Responsibility Index,
Company investments more democratic.
both benchmarks for investors looking for socially

responsible businesses.
Petrobras agrees to align its management with

the ten principles of the UN Global Compact, to
In 2007, Petrobras invested R$ 585.8 million
which it is a signatory since 2003. This report also
in cultural, environmental, social and sports projects. The aim of the new Petrobras Citizenship and
informs about the Companys progress in fullling

these objectives.
Development social program that started in 2007
We hope that this Social and Environmental
is to invest R$ 1.3 billion by 2012 in projects that
Report achieves its objective: to inform Petrobras
contribute to reducing poverty and social inequal-
stakeholders about our main actions, impacts, risks
ity in Brazil.
and opportunities in the economic, environmental
The programs lines of action are to generate

income and job opportunities, professional training
and social areas.

Good reading!
education and guaranteeing the rights of the child

and adolescent. A set of performance targets and
Jos Sergio Gabrielli de Azevedo
indicators make it possible to monitor the strategic
Petrobras CEO
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PETROBRAS
Petrobras
The market value of Petrobras, which operates in 27 countries, was
R$ 429.9 billion in 2007, 86.6% up from the previous year. Growth in
dollars was 125.2%, equal to US$ 242.7 billion. Company investments
were R$ 45.3 billion, the highest annual figure ever for the Company.
Some of the years highlights are the discovery of a recoverable
volume of five to eight billion barrels of light oil and natural gas in
the Tupi area in Santos Basin; announcement of the Petrobras 2020
Strategic Plan and 2008-2012 Business Plan; purchase of Suzano
Petroqumica and takeover of the Ipiranga Group business in
association with Braskem and the Ultra Group.
WWW.PETROBRAS.COM
PROFILE
Integrate role at
home and abroad
ACTIVITIES AND MARKETS
Petrobra operates on an integrated basis at home
Petrobras
abroad, with business strategies focusing on
and abro
exploration and production (E&P); downstream
explorat
((refining, transportation and trade); petrochemiccals; distribution; gas & power; and biofuels. It is
a Brazilian public listed company incorporated as
a joint stock business corporation linked to the
Brazilian governments Ministry of Mines and Energy.
The Companys economic activities are freely competitive with other companies depending on market
conditions. Petrobras is regulated by the Corporation
Act (Law no. 6404 dated December 15, 1976) and the
Company bylaws.
The Petrobras System consists of Petrleo
Brasileiro S.A. (Petrobras holding) and its subsidiaries, aliates, joint aliates and specic purpose companies. Its subsidiaries include Petrobras Qumica
S.A. (Petroquisa), Petrobras Distribuidora S.A.
(Petrobras Distribuidora) and Petrobras Transporte
S.A. (Transpetro).
The trade of its products include on the Brazilian

market the sale of byproducts in diesel, gasoline, fuel
oil, naphtha, LPG (liqueed petroleum gas), jet fuel
(aviation kerosene) and others. Various markets worldwide are supplied by the Company. Product purchase
and sale operations outside Brazil are up 49% against
2006, reaching 559,000 barrels per day (bpd). Some
highlights are the increase in gasoline sales in the USA
and petroleum in Colombia, plus the start of bunker
sales with low sulfur content in Europe.
The subsidiary Petrobras Distribuidora operates throughout Brazil, with around 6,000 service
stations and 740 BR Mania convenience stores.
This network includes the resale of fuels and other
products, such as lubes, in addition to services. The
Company also sells considerably larger volumes of
fuels, lubes, special products, asphalt, emulsions
and energy to major consumers, such as industrial
plants, governments, haulage companies and thermoelectricity plants.
PETROBRAS
CORPORATE GOVERNANCE
The corporate governance structure is based on the
national and international markets and strategies. In
Board of Directors, Fiscal Committee, Executive
order to assure that conicts of interest are prevented,
Board, Administration Advisory Committees, Business
the Good Practices Code addresses Petrobras in-com-
Committees and Management Committees. The board
pany policies, such as the information dissemination
of directors consists of nine members elected by the
policy on a relevant act or fact, and the securities nego-
General Shareholders Meeting, responsible for guidance and senior management of the Company. The
tiation policy, for example. These policies address

issues relating to the use of privileged information
board of directors sets the general business direction of
and conduct of the administrators and senior manage-
the Company, dening mission, strategic objectives and
ment in Petrobras.
guidelines, in addition to approving the Strategic Plan.
The Fiscal Committee of a permanent nature
The executive board consists of the CEO and six direc-
consists of ve members, also elected by the General
tors elected by the board of directors and is responsible
Shareholders Meeting and is responsible for supervis-
for the Companys business management.
ing the administrators acts and examining nancial
Since 1999, the chair of the board of directors is
statements, for example.
occupied by a member with no executive duties or
The purpose of the board of director committees,
any other ties to Petrobras. Only one member of the
consisting of three members from the Board, is to help
board has executive powers the CEO of Petrobras.
the Committee by analyzing and recommending spe-
Of the nine directors he is the only one that does not
cic matters. The Business Committee, consisting of
conform to independence requirements. The direc-
members of the Executive Board and other Company
tors are elected by the General Shareholders Meeting
executives, examines and issues an opinion on relevant
without inuence of the Executive Board. The corpo-
corporate topics, and which involve more than one
rate governance guidelines provide that the board of
business area. The Management committees consist of
directors each year assess its performance and the
the Companys executive managers and act as discus-
role of the CEO and Petrobras executive directors.
sion forums on specic topics, whose results are later
These assessment mechanisms are in the process of

being implemented.
taken to the Business Committee. Today Petrobras

has 12 management committees: Supply; Exploration
The corporate governance guidelines also include
& Production; Gas & Power; Organization Analysis
the skills and experience expected of the directors,
and Management; Internal Controls; Marketing and
that must meet the requirements of personal integrity,
Brands; Human Resources; Social Responsibility;
no conicts of interest, time availability, motivation,
Risks; Health, Safety and Environment; Information
affinity with Company values, and familiarity with
Technology; and Petrobras Technology.
the best corporate governance practices. Moreover,
Under its corporate bylaws, Petrobras activi-
experience as a top executive is valorized, in addition
ties obey the Basic Organization Plan, approved by
to knowledge of finance, accounting, energy sector,
the board of directors, which contains the general
At the end
of 2007, the
Companys
market value
was
429.9
billion
reais, or 86.6%
more than in
2006
Petrobras 2020 Strategic Plan

The Petrobras 2020 Strategic Plan and 2008-2012 Business Plan were announced in August. The Strategic Plan
has two structural changes. The first is the division by business segment, and no longer by business area. Petrobras now focuses its attention on six business segments: Exploration & Production (E&P), Downstream (Refining,
Transportation and Trade), Petrochemicals, Distribution, Gas & Power and Biofuels. The second refers to new
management challenges, with focus on capital discipline, human resources, social responsibility, climate change
and technology.
The Business Plan foresees for 2012 an oil and natural gas production of 3,494,000 barrels of oil equivalent per
day (boed), of which 3,058,000 boed will be produced in Brazil. Investments are also expected of US$ 112.4 billion
in the 2008-2012 period with 87% in Brazil and 13% elsewhere.
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PROFILE
structure and denes the nature and attributes of
and by four Business Areas (Supply, Exploration &
each body and subordination, coordination and
Production, Gas & Power and Worldwide). Each
control relations for it to operate.
of them is accountable to its contact director, in
The current organizational model of Petrobras

consists of the Corporate, Finance & Service areas
addition to the Corporate area that is accountable

to the CEO.
P-50 platform in
Albacora Leste,
Campos Basin
PETROBRAS TRADEMARK
Petrobras System brand management, directly linked
and Evolua polish wax. Some of the main ser-
to business development and protection and in line
vices provided are convenience stores (BR Mania
with the Companys worldwide expansion, admin-
and Spacio 1); car wash system in service stations
istrated in 2007 a total of 4,367 registrations of this

intangible asset, with investments in sponsorships,
(Lavamania and Acuocenter); quality programs (De
advertising, international communication, strategy,
Olho no Combustvel keeping an eye on the fuel - and

Calidad Controlada Petrobras); lubrication center in
development and protection of the corporate image
service stations (Lubrax Center); fuel credit card
and brands. According to the ranking published in
(Petrobras Card); eet automation system (Petrobras
2006 by the consulting rm Brand Analytics, based on
Flota); loyalty (Petrobras Premmia) and relation-
public data, the institutional trademark was worth US$
ship programs; and cultivating commercial clients
1.012 billion, a 37% increase over the previous year.

Some of the key Company products are: Podium
gasoline, Podium diesel, Verana diesel, Biodiesel, BR
and partners (360 Petrobras, On the Right Road,

Truck Driver (Siga Bem Caminhoneiro) and Friendly
Mechanic (Amigo Mecnico).
Aviation, Lubrax lubes and waxes, Lubrax Aviation
PETROBRAS
Petrobras Organizational Structure

The Petrobras organization model, approved by the Board of Directors in October 2000, is constantly being refined. Changes in the
Companys organizational structure in 2007 led to the adoption of a new organizational and administrative model in certain units. Examples
of this are the broadened scope of operations in the Exploration & Production business unit in the Solimes Basin, the creation of temporary
organizational structures for the implementation of large-scale undertakings, and the transferring of telecommunications activities to the
Services area. Approval was granted for the structural reorganization of business units abroad, linked to the International business area.
FISCAL
COUNCIL
BOARD OF
DIRECTORS
Ombudsman
Internal Auditing
CEO
EXECUTIVE
BOARD
Management
Systems
Development
Business Strategy &

Performance
New
Business
Legal Area
Human
Resources
CEOs
Office
Institutional
Communication
General
Secretary
Financial Area
Gas & Power
Exploration
& Production
(Upstream)
Downstream
International
Area
Services
Corporate Finance
Corporate Section
Corporate Section
Corporate Section
Corporate Area
Health, Safety &

the Environment
Financial
Planning & Risk
Management
Natural Gas
Logistics &
Equity Stakes
Production
Engineering
Logistics
Business Technical
Support
Materials
Finance
Energy Operations
& Equity Stakes
Services
Refining
Business
Development
Research &
Development
(Cenpes)
Accounting
Energy
Development
Exploration
Petrochemicals &
Fertilizers
Southern Cone
Region
Engineering
Taxation
Marketing & Sales
NorthNortheast
Marketing & Sales
Americas, Africa
& Eurasia
Information
Technology & Telecommunications
Investor Relations
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SouthSoutheast
Shared
Services
PERFORMANCE IN 2007
Rise in
production,
revenue
and shares
OPERATIONS HIGHLIGHTS
Petrobras operates in 27 countries: Angola, Argentina,
Petrobra
sales performance on the home and foreign markets.
Bolivia, Brazil,
B
Chile, China, Colombia, Ecuador,
Net income was R$ 21.5 billion, 17% lower than in
England IIndia, Iran, Japan, Libya, Mexico, Mozambique,
2006 because of factors such as the valorization of the
N
Nigeria, Pakistan, Paraguay, Peru, Portugal, Senegal,
real, import costs for petroleum and byproducts, and
SSingapore, Tanzania, Turkey, Uruguay, USA and
extraordinary expenses with personnel with regard to
Venezuela. Exploration and production are carried
the new pension plan agreement. The operating cash
out in 20 countries.
generating capacity (EBITDA) continued stable in

relation to the year before.
At the end of 2007, the Companys market value

was R$ 429.9 billion, 86.6% more than in 2006. In
Consolidated investments rose 34% compared
dollars, its market value reached the US$ 242.7 bil-
to those in 2006, and reached the record figure of
lion mark, which is a growth of 125.2% compared to
R$ 45.3 billion. The exploration and production
the previous year. According to consulting rm PFC
segment received 47% - the largest share of direct
Energy, it ranks as the sixth largest oil major in the
investments.
of a major oil-bearing area in Brazil, stretching from
of a barrel of petroleum and the major oil discover-
the Espirito Santo, Campos to Santos basins. The
ies were decisive factors in the performance of the
discovered volume in the Tupi accumulation alone,
Company shares in 2007.
part of this new frontier, has potential to increase the
The net operating income was R$ 170.6 billion,

8% more than in 2006, the result of the improved
10
In November, Petrobras announced the discovery
world based on market value. The Petrobras nancial

and operational results, the rise in international prices
countrys current reserves by 50%.

Another milestone was the start of deepwater
PETROBRAS
production in Northeast Brazil in the Piranema eld
Petrobras
service station in
Rio de Janeiro
o the coast of Sergipe. The processed oil is considered the lightest ever found in deepwater in Brazil and
essential for lube production.
In 2007 the total volume of 2.301 million boed of
oil and natural gas produced is almost the same level
as the previous year. In Brazil, 2.065 million boed was
produced and 236,000 boed outside Brazil, including
1.918 million barrels of oil, natural gas liquid (NGL)
and condensate and 383,000 boed of natural gas. On
December 31 the volume of the Petrobras proven
reserves of oil, condensate and natural gas was 15.01
Petrobras
invested
billion barrels of oil equivalent (boe), representing

0.1% less than the previous year.
The total byproduct production was 2.046 mil-
45.3
billlion
lion bpd, or 8% more than in 2006. Ninety percent of

installed capacity was used in Brazil and 85% in the
other countries.
reais in 2007
Petrobras, the Ultra Group and Braskem signed

an agreement to buy the Ipiranga Group shares for a
total sum of four billion dollars, of which Petrobras
disbursed US$ 1.3 billion. The Company now has
ADR. This alteration was intended to make it easier
the distribution network of the Ipiranga Group in
for the small investor to buy ADRs on the New York
North, Northeast and Midwest Brazil, plus 40% of
stock exchange.
the Groups activities in the petrochemicals sector.
Considering the implementation of major proj-
In 2007, it also bought out Suzano Petroqumica for
ects in the Company, two are worth mentioning: the
the total price of R$ 2.7 billion.
Rio de Janeiro Petrochemical Complex (Comperj),
Petrobras signed a lease agreement of R$ 45 mil-
which will process 150,000 bpd of oil to produce
lion with the company Emae for a 17-year rental of
petrochemical raw materials and byproducts from
the Piratininga thermoelectric power plant. The plant
2012 on; and the Northeast Renery (Abreu e Lima
in the city of So Paulo is now part of the Petrobras
Renery), under construction in Pernambuco, with
generation complex.
its start up expected for 2010 and production capac-
Although there has been no change in the
ity of 140,000 bpd of diesel. For 2014 the Premium
Petrobras capital stock structure in 2007, the ratio
Renery is to start operating, although without a xed
was altered between the shares and the American
site, which will process 500,000 bpd of heavy and sour
Depositary Receipts (ADRs) to two shares for each
oil from the Campos Basin.
Assets in Bolivia
In June 2007 all the shares in Petrobras Bolivia Refinacin S.A. (PBR) were transferred to the state-owned oil
Company Yacimientos Petrolferos Fiscales Bolivianos (YPFB) for US$ 112 million. In 2006, the Bolivian government decided to nationalize most of the shares of PBR, owner of Santa Cruz and Cochabamba refineries. Subsequent events were negotiation of advanced fair compensation with the Bolivian authorities; continuation
of Petrobras in the partnership, on the condition that it keeps its policies of health, safety and environment
and human resources in the refinery operations; and independent assessment of the share value, according
to criteria normally adopted for this type of transaction.
The sale of all shares to YPFB was the best solution in the interest of both companies. The role of Petrobras in Bolivia is currently focused on the exploration and production, and gas and energy segments.
WWW.PETROBRAS.COM
11
PERFORMANCE IN 2007
PETROBRAS FIGURES
SALES VOLUME
(000 BARRELS PER DAY)
Total
byproducts
were
2.046
million
barrels a day,
or 8% above
2006
2007
COMPARISON WITH 2006 (%)
Brazil
2,035
Byproducts
1,725
Diesel
705
Gasoline
300
-3
Fuel oil
106
Naphtha
166
Liquefied petroleum gas (LPG)
206
Jet fuel
Other
Alcohols, nitrogen compounds, biodiesel and other
Natural gas
Other countries
70
172
62
41
248
1,204
11
Exports
618
International sales
586
17
3,239
Total
COMPOSITION OF CAPITAL STOCK

SHAREHOLDERS
Federal government
SHARES
1,413,258,228
32.2
BNDESPar
334,269,831
7.6
ADR (common stock)
695,675,776
15.9
ADR (preferred capital stock)
675,831,674
15.4
FMP Petrobras employee severance indemnity fund
102,326,421
2.3
Aliens (CMN Resolution no. 2689)
341,974,795
7.8
Other individuals and companies
823,701,645
18.8
4,387,038,370
100.0
Total
NOMINAL VALORIZATION IN 2007(%)
PETROBRAS SYSTEM
Petrobras common stock
92.7
Employees
77.5
Shareholders
Petrobras preferred stock

ADR PBR (common)
123.8
Exploration
ADR PBR (preferred)
107.5
Producer wells
Ibovespa
43.7
Production platforms
Amex Oil
31.3
Refineries
Dow Jones
6.4
Pipelines
Nasdaq
9.8
Tanker fleet
Market value (R$ million)
429.9
Service stations
Fertilizers
Thermoelectricity plants
68,931
272,952
70 drilling rigs (43 oshore)
9,569 (828 oshore)
109 (77 fixed; 32 floating)
15
23,142 km
55 own
6,963
3 plants
15
In 2007 the total significant financial incentive

from the government was R$ 2,528.9 billion.
12
PETROBRAS
VALUE ADDED STATEMENT

YEARS ENDING DECEMBER 2007 AND 2006 (R$000)
(R$000)
2007
2006
220,153,532
206,298,241
Income
Sales of goods and services and non-operating results
Provision for settling doubtful debts constitution
(104,156)
(13,045)
220,049,376
206,285,196
Consumables
(26,304,617)
(24,409,419)
Cost of merchandise for resale
(36,803,166)
(31,470,438)
Inputs acquired from third parties
Energy, outsourcing and other operating expenses
Gross added value
Retentions (depreciation & amortization)

Net added value produced by company
(28,495,668)
(22,596,832)
(91,603,451)
(78,476,689)
128,445,925
127,808,507
(10,695,825)
(9,823,557)
117,750,100
117,984,950
(582,742)
(189,936)
2,506,543
2,388,152
Added value received in transfer

Income from holdings in relevant investments
Financial income includes monetary and exchange variations
Amortization of share premiums and discounts
Rent and royalties
(97,913)
(43,279)
562,307
554,750
2,388,195
2,709,687
120,138,295
120,694,637
Wages, benefits and charges
7,059,652
5,952,525
Employee and administrator profit sharing
1,011,914
1,196,918
Retirement and pension plan
2,872,894
1,384,879
Health care plan
1,867,607
1,860,478
12,812,067
10,394,800
54,374,015
53,963,591
477,234
766,329
Added value for distribution
Distribution of added value

Personnel & administrators
Taxation
Taxes, charges and contributions
Deferred income tax and social contribution
Government interest
15,753,525
17,311,004
70,604,774
72,040,924
6,438,549
3,720,347
Financial institutions & suppliers

Interest, exchange and monetary variations
Rental and charter expenses
7,028,290
7,026,343
13,466,839
10,746,690
Interest on own capital and dividends
6,580,557
7,896,669
Holdings of non-controlling shareholders
1,742,826
1,593,303
Shareholders
Withheld earnings
Distributed added value
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14,931,232
18,022,251
23,254,615
27,512,223
120,138,295
120,694,637
13
Social and
Environmental
Responsibility
In 2007 major advances were made in the field of the Companys

social responsibility, which were to reflect on management and its
stakeholder relations. In its continuous striving to align its operations
with the ten principles of the UN Global Compact, Petrobras
participated in and undertook projects that evidence its commitment
to reducing social inequalities and minimizing environmental
impacts of its activities. In recognition, its participation in Dow Jones
Sustainability Index (DJSI) and So Paulo Stock Exchange Business
Sustainability Index (ISE - Bovespa) was renewed.
COMMITMENT TO SUSTAINABLE DEVELOPMENT
Management
challenges in Social
Responsibility
16
The Man
Management Committee for Social Responsi-
Assessing Social Responsibility Reports, and the
bility is the main deliberative body on related issues
Diversity Committee.
in the
th Petrobras System. It is linked to the Business
In 2007, 23 areas of Petrobras Holding and three
Committee and its members are executive managCom
subsidiaries were represented on the Committee for
ers from
fr
13 areas in the Company, in addition to the
Drafting and Assessing Social Responsibility Reports.
subsidiaries Transpetro, Petrobras Distribuidora and
One of its responsibilities is to prepare content for the
Petroquisa.
Social and Environmental Report and collect informa-
Its main tasks are to create Social Responsibility
tion for questionnaires that resulted in the renewal of
(SR) corporate guidelines and strategies, including

aspects of stakeholder relations. It is also up to this
its participation in DJSI and ISEBovespa.

In order to increase the awareness of senior man-
Committee to monitor the Companys related activi-
agement with regard to SR matters, Petrobras contin-
ties and projects, and to assess the performance and
ued with the Management Capacity Building Project,
propose actions for alignment and integration.

Some of the matters discussed during 2007 are
which began in 2006. The project is a partnership with

Uniethos, an institution specializing in SR capacity
the preparation of the SR policy, inclusion of social
building and sustainable development for the business
responsibility as a corporate role in the 2020 Strategic
and academic sectors. The content presents the main
Plan, the Petrobras Citizen and Development pro-
SR principles and its impacts, risks and opportuni-
gram, Gender Equality action plan, and the SR
ties in the oil and gas sector. The Company organized
indicators and targets in the Company Balanced
training for the members of the Board of Directors,
Scorecard. Two committees are directly related to
Executive Board, SR Management Committee and
the Committee: the Committee for Drafting and
Institutional Communication managers.

SOCIAL AND ENVIRONMENTAL RESPONSIBILITY
Sustainability Guidelines
for the Amazon
The Company used the concept of sustainable development to create the Sustainability Guidelines for
Petrobras Exploration and Production in the Amazon.
The guidelines were prepared by specialists and agencies working in the Amazon region, and address topics
such as: protecting biodiversity; operating ecoeiciency;
contingency control; and cultural, economic and social
interfacing.
The concept of sustainability must be considered
at all stages in the life cycle of the projects and there
must be equal priority between the economic, environmental and social variables. The guidelines also seek to
minimize interference in the natural and ethnic-cultural
processes as well as promote social inclusion.
Petrobras started up the pilot SR capacity

building project for general and executive managers, based on the Globally Responsible Leadership
Initiative (GRLI). The GRLI consists of executives
from companies and business schools in ve continents and was created by the European Foundation
for Management Development (EFMD), with the
support of the UN Global Compact. The pilot project was tailor-made for Petrobras, in a partnership
between Petrobras University, EFMD and Dom
Cabral Foundation. The rst module began in 2007
and will continue during 2008.
SOCIAL RESPONSIBILITY IN
THE 2020 STRATEGIC PLAN
When reviewing the 2020 Strategic Plan, social
responsibility now plays a corporate role with a specic management challenge: to be an international
benchmark in social responsibility in business management, contributing to sustainable development.
The 2020 Vision attributes include commitment to
sustainable development and the Companys recognition as a benchmark in social and environmental
responsibility.
The Petrobras Social Responsibility Policy was
created with the same objective to centralize aspects
in the areas of integrated management, sustainable development, human rights, diversity, decent
work, sustainable social investment and workforce
commitment.
WWW.PETROBRAS.COM
Social Responsibility Policy

Petrobras considers social responsibility to be the
form of ethical and transparent integrated business
management with all stakeholders, promoting
human rights and citizenship, respecting cultural
and human diversity, against discrimination,
degrading work, child and slave labor, and
contributing to sustainable development and
reducing social inequality.
1 Corporate Performance To ensure that
corporate governance of the Petrobras System
is committed to ethics and transparency in
stakeholder relations. 2 Integrated management
To ensure integrated management with
social responsibility in the Petrobras System.
3 Sustainable Development To conduct
Petrobras System business and operations with
social responsibility, fullling its commitments in
accordance with UN Global Compact principles and
contributing to sustainable development.
4 Human Rights To respect and support human
rights recognized internationally, basing the actions
of the Petrobras System on the promotion of the
principles of decent work and non-discrimination.
5 Diversity To respect the cultural and human
diversity of its workforce and the countries where
it operates. 6 Labor Principles To support the
eradication of child, slave and degrading labor in
the production chain of the Petrobras System.
7 Sustainable Social Investment To seek
sustainability of its social investments to achieve
decent and productive social inclusion.
8 Workforce Commitment To assure the
commitment of its workforce to the social
responsibility policy of the Petrobras System.
17
Vegetable garden in
the Family Farming
along Pipelines
project, Rio de Janeiro
SUPPORT FOR PRINCIPLES

AND PROJECTS
drafting the ISO 26000, the future international stan-
Global Compact Petrobras has been signatory
dard on social responsibility to be launched in 2010.
to the UN Global Compact since 2003 and its CEO
This standard is being developed by the International
is a member of the International Board since 2006.
Organization for Standardization (ISO) the top
Petrobras is the only Latin American company to sit
world organization in developing technical regulations
on the Council. In 2007 the Company attended the
and standards in a multi-stakeholder process with
International Council meetings and was the mas-
participation of representatives from industry, work-
ter sponsor of the 2nd Global Leaders Meeting in
ers, government, non-governmental organizations,
Geneva, Switzerland. The Company was also repre-
consumers and academic institutions from more
sented at the World Network Meeting in Monterrey,
than 70 countries. Petrobras attended the two interna-
Mexico, where delegations from dierent countries

discussed their experiences and know-how. In Brazil
tional working group meetings in January in Sydney,

Australia, and in November in Vienna, Austria and
the Company is a member of the Brazilian Global
organized thematic workshops for the local Global
Compact Committee as corporate vice-president
Compact networks in Brazil and Mexico.
since 2006.
The Social and Environmental Report is sent every
18
ISO 26000 - Petrobras continues to participate in
To further discussion about the ISO 26000

in Brazil, Petrobras signed a partnership with the
year to UN Global Compact as its Communication
Brazilian Association for Technical Standards
on Progress (COP). The submission of COP is one
(ABNT). Thematic seminars were held in a number
of the conditions for organizations to stay active in
of Brazilian state capitals to spread knowledge about
the Compact.
the future standard.

COMMITMENT TO SUSTAINABLE DEVELOPMENT

It is one of the companies that contributed to the
representing the upstream and downstream sectors
ISO SR Trust Fund, which supports the participation
of the oil and gas industry, specically on social and
of developing countries with nance problems in the
environmental issues. The objective of Ipieca is to
international meetings.
create and promote solutions so that all practices
Global Reporting Initiative The Global
can be socially and economically feasible for the
Reporting Initiative (GRI) is an international institu-
oil and gas industry, oering a forum for discussion
tion that provides global guidelines for sustainability
and encouraging ongoing improvement of the indus-
reports through multi-stakeholder polls. The GRI
trys performance. The Company is a member of the
model is used by the major companies worldwide
Associations SR committee.
to facilitate comparison between the presented data
Its members agree to contribute to sustainable
and information. Since 2006, the Company has been
development, supply safety and renewable energies
an Organizational Stakeholder (OS) member of GRI.
with social and environmental responsibility; run its
In 2007 Petrobras was elected by the other OS to the
operations and activities with business ethics; develop
GRI International Stakeholders Council, becoming
and encourage practices and solutions with others in the
one of the representatives of the Latin American
industry; and engage its stakeholders, considering their
industry segment.
expectations, ideas and visions, working together with
World Business Council for Sustainable
governmental and non-governmental organizations.
Development (WBCSD) In 2007 the Company
Arpel The Company is one of the 29 members
finalized its process that began in 2006 to join the
of the Regional Association of Oil and Natural Gas
WBCSD and became the sixth Brazilian company to
Companies in Latin America and the Caribbean
sign an agreement with the institution. The WBCSD

brings together more than 200 companies worldwide,
(ARPEL). Its mission is to promote and facilitate
including major international corporations, to further
gas industry, reinforcing its reputation and interac-
sustainable development through business solutions.
tion with society.
In Brazil, Petrobras is member of the Brazilian
development and integration of the oil and natural
Petrobras is represented in eight committees and
Business Council for Sustainable Development, as
chairs the Corporate Social Responsibility Committee,
vice-president of the institutions Committee for
whose working focus 2007-2011 is to implement SR
Corporate Responsibility.
among Arpel members, promote community devel-
International Petroleum Industry Environ-
opment programs in the oil and gas industry, topics
mental Conservation Association (Ipieca)
relating to indigenous peoples and governance and
Petrobras is a member of Ipieca, a global association
energy integration.
In 2007 Petrobras became a member

of the World Business Council for
Sustainable Development and one
of the six Brazilian corporations to sign
an agreement with the institution
WWW.PETROBRAS.COM
19
THE SOCIAL AND ENVIRONMENTAL REPORT (SER)
Report as a
management tool
The Social
Socia and Environmental Report (SER) is a valutool for the Company. It is not only
able management
m
actions between January and December 2007 by the
a tool
too for transparency and means of disseminating
Petrobras Holding in Brazil and wherever it oper-
actions taken during the year before

the principal
p
ates, and the subsidiaries Petrobras Distribuidora,
its publication,
pu
but also plays the role of supporting
Transpetro and Petroquisa.
the assessment of the form of SR management in the

Petrobras System.
This year the Company decided to adopt only the

GRI indicators, internationally recognized by busi-
The Committee for Drafting and Assessing Reports
nesses and institutions that publish sustainability
on Social and Environmental Responsibility is respon-
reports. With this change, then, the number of indica-
sible for producing the report, which is coordinated by
tors presented dropped sharply compared to previous
the Institutional Communication Manager.
publications, which made it possible to go deeper into
Every year a critical analysis of the SER results in the
the topics to be addressed.
Vulnerabilities Chart, which evaluates any existing gaps
The information was collected by means of the
and nds opportunities to improve, and strategies for
Follow-up System of Social Responsibility Indicators,
SR action. This chart is examined by the Management
a database guided by the GRI indicator matrix. This
Commitee for Social Responsibility.
year, 398 professionals from 26 areas and subsidiaries
The Petrobras SER for 2006 was given major recognitions. For the second year running it was considered
collaborated to collect information. The entire content produced from this information was validated by
notable by the UN Global Compact and an example to
the Committee for Drafting and Assessing Reports on
be followed. It was also entitled the GRI A+ seal for top
Social and Environmental Responsibility.
level quality report assessed by the institution.
20
This Report contains information referring to
The publication is audited and revised externally

Young reporters of the Japim

community radio in the
Mocoronga Communication
Network, Par
by KPMG Independent Auditors. Petrobras also once
This year Petrobras also produces specic hardcopy
again is publishing the Ibase/Betinho Social Report
versions for the internal and general publics, as well
model, which is part of the set of accounting infor-
as online and CD versions.
mation sent to the Brazilian Exchange and Securities
The online version is permanently available in the

Companys website, on the Social and Environmental
Commission (CVM).
In response to a GRI recommendation, the
Company for the rst time performed the Materiality
Responsibility page, and is accessible to people with

visual disability.
Test, a poll for stakeholders. The Test was applied
The hardcopy version is distributed to the main
in the cities of So Paulo and Rio de Janeiro, with
stakeholders, such as internal public, press, govern-
participation of representatives of the main stake-
ment, regulatory agencies, HSE agencies, non-govern-
holders in relation to the Report: internal public, sup-
mental organizations and the academic community.
pliers, third sector, academic community, investors,
This year was the rst time when Petrobras produced
clients and the general public. They all assessed the
the Braille version of the hardcopy report, to make it
Petrobras 2006 SER based on specic criteria and
also accessible to the visually impaired.
could give their opinion and mention subjects to be
Examples can be requested through the e-mail
reported (further details and results in the appendi-
balancosocial@petrobras.com.br or directly from the
ces page 109).

After obtaining the results, the Company now had
SER Coordinator (address and phone available on the

sleeve of the third cover).
For the second

year running
UN Global
Compact
considered the
Petrobras SER
notable
and an
example
to be followed
a guide to the most important topics to be addressed,

the so-called material indicators, and obtained an
external assessment of the 2006 SER.
The Social and Environmental Report is published every year in Portuguese, English and Spanish.
WWW.PETROBRAS.COM
Compiling the data reported in the SER is requested from the responsible
areas and processed using their internal controls and operating systems.
This data is measured according to the instructions by GRI in the indicator
protocols.
21
Human Rights
Petrobras is committed to responsible growth and to help guarantee human
rights, both in communities where it operates and in supplier and internal
public relations. In 2007 it invested R$ 534 million in cultural, social and
sports projects. The Company gives priority to community participation,
respecting local cultures and identities and involving community leaders in
every region where it operates at home and abroad.
Principle 1 Businesses should support and

respect the protection of internationally
proclaimed human rights
Impacts on
communities
COMMUNITY DEVELOPMENT
Petrobras intends to reduce risks, prevent negative
Petrobra
ing communities with poor social inclusion. Its projects
and generate positive results through

social impacts
im
and operations are designed to minimize interference in
relations
relationship programs in communities where it oper-
the natural and ethno-cultural processes and promote
aates. It adopts ethical standards with its different
social inclusion.
sstakeholders by means of permanent communication
In 2007, there was no record of violation of indig-
and dialogue systems with local leaders, to identify
enous peoples rights. Before undertaking any activ-
and register the impacts of its activities. The Company

process of social inclusion and improve the quality of
ity Petrobras upholds official aspects and consults

licensing bodies and the Brazilian National Indigenous
Foundation (Funai). The Company supports a set of
community life.
projects in dierent regions to promote the rights of
increases its knowledge of local scenarios to assure the
24
The Company undertakes cultural, social and
the indigenous peoples. Some examples are the Project
sports projects, respecting the communities living

around its units. According to the Petrobras code of
to Implement Fish-farming in Indigenous Villages, in
ethics, it works with community leaders and in accor-
Food Security Project, in Rio de Janeiro, and the Kani
dance with local characteristics. The Company is com-
project, in Tangar da Serra, Mato Grosso.
Palmas and Laranjinha, Paran; the Bracui Indigenous
mitted to its relationship with the community based
In 2005, Petrobras encountered setbacks in its oper-
on respect for diversity, considering its demands and
ations in Ecuador from criticism by Ecuadorian social
expectations. Petrobras analyses the strong and weak
movements on the Companys plans to start activities
points of each place, helping to strengthen neighbor-
in block 31 in the Yasuni National Park, Ecuadorian

HUMAN RIGHTS
Amazon. The park occupies 70% of the most diverse
sis and health, safety and environment recommenda-
biomes on Earth and is the home of the Huaorani peo-
tions. The work in the operational units is done jointly
ple. Petrobras settled the issue by dialoguing with the
with non-governmental organizations and other gov-
stakeholders. The Company undertook community

projects, infrastructure works and actions to preserve
ernment agencies involved.

Petrobras identies the basic needs of the regions
the indigenous groups belonging to the cultural heri-
to improve the quality of life around its projects and
tage of humanity. All Petrobras activities in Ecuador
sets up projects in support of the communities. On
conform to its social responsibility policy.
the international scene, the Mexico Business unit has
Petrobras prepared a relationship plan with
contracts for public works with Pemex Exploration &
the communities in the vicinity of the future Rio de
Production a Mexican state-owned Company ,
Janeiro Petrochemical Complex (Comperj), planning
by allocating funds to the infrastructure works. In
actions for local sustainable development and through
Colombia, projects help to optimize and increase the
ongoing dialogue. Agenda 21 adopted in Comperj is
spread of public utilities, contributing to rural and
based on the Keeping an Eye on the Environment
urban development. Investments of US$ 252,097
program and is being built in conjunction with the
helped improve living conditions and quality of life
Rio de Janeiro state government, business sector and
in these communities, attending 1,670 beneficiary
civil society. The Exploration and Production (E&P)
households. Petrobras Energia Ecuador complies
are using a new licensing method for projects in the
with Ecuadorian environmental legislation in the
Campos Basin Unit. With the approval of the Brazilian
community relations plans and compensation agree-
Institute for the Environment and Renewable Natural
ments with the community in the areas of inuence.
Resources (Ibama), the Environmental Education
The Company has invested in electric power projects,
Program (PEA) collectively develops local Agendas
water wells, dispensaries, road improvement, sports
21 with priority actions and projects for affected
facilities and associations.
neighboring social groups, based on local problems,

disputes and potential environmental aspects.
Petrobras works to preserve and increase health

care in the neighboring communities with services to
In the Engineering area, responsible for the new
monitor and control endemic diseases in its projects.
Petrobras facilities and expansion, the environmental
It is also doing a preliminary study in gas pipeline areas
impacts of pipeline projects are assessed after diagno-
to control their branch lines and access.
Petrobras
activities
positively
impact the
economy of the
regions where
it operates,
beneting local
businesses
Keeping an Eye on the Environment

The Keeping an Eye on the Environment program has been run by Petrobras since 2005 and
is validated by the Brazilian Ministry for the Environment. The program ratifies the Companys
commitment to sustainable development of the communities within its area of influence. It helps
build Local Agendas 21 an action plan for sustainable development that analyses the status of
a state, county or region, with the participation of governments, companies, NGOs and society,
to form partnerships for short, mid and long term solutions and actions to improve the local
quality of life. Keeping an Eye on the Environment, by using the fully participative community
democracy, is a valuable tool for peoples mobilization and participation by implementing an
action plan for community development.
RESULTS OF KEEPING AN EYE ON THE ENVIRONMENT PROGRAM UNTIL 2007
269,195
Mapped households
100,220
Surveyed households
Accumulated social environmental information
7,215,840
Community Agendas 21 ready (not implemented)
238
Total possible community Agendas 21
338
WWW.PETROBRAS.COM
25
Artisan in the Carnaba Viva

project, which produces
straw mats as padding for
Petrobras pipelines
LOCAL PARTNERSHIPS
Stakeholder relations are ongoing and Petrobras
maintains a continuous reciprocal and honest dialogue with employees, shareholders, opinion setters,
NGOs, press, public authorities, clients, communities
and suppliers.
The Company forms local partnerships for
capacity building and subsequent recruitment, and
to undertake projects. During the year Brazilian suppliers were allocated 70% of the investments in goods
and service procurement. By giving priority to the
home market, Petrobras contracted US$ 5.24 billion
in goods and US$ 34.6 billion in services to a total of
US$ 39.84 billion.
Petrobras-supplier relations are based on values
established in the social responsibility policy and
code of ethics. The Company imposes regulations on
its suppliers and takes action to develop the market
26
HUMAN RIGHTS
PRINCIPLE 1
IMPACTS ON COMMUNITIES
70% of funds allocated to
Principle 1
procurement of goods during the

year went to Brazilian suppliers
in order to align the supply of procured goods and
state. In this way Petrobras seeks to encourage mar-
services with the corporate guidelines.
ket development for the oil and gas industry and to
Every contract for biodiesel production in the

Company plants gives priority to raw material procure-
include small businesses in the supply chain of this

industrial segment.
ment from rural family-based producers. Petrobras
The Company is aware of the economic impacts
hires local labor, providing technical assistance and
of its activities. When giving preference to local suppli-
capacity building to guarantee income and dead-
ers, it helps to maintain small and medium size service
lines compatible with the activity. The action plan for
providers and form partnerships with cooperatives.
Company-related biodiesel units advances rural familyPetrobras encourages setting up seed banks and build-
The main indirect economic impacts of Petrobras are

on paying royalties and special holdings, value added
tax collection on goods and services (ICMS) and other
ing the productive capacity of the communities, and
taxation. The Plan of Investments in Brazil, mentioned
prepares studies to benet farmers households.

In the Amazon, the Exploration and Production
in the 2008-2012 Business Plan, plans to create 917,000
based producers by procurement of the production.
jobs, with 338,000 indirect ones in income eect and
Sustainability Guidelines dene Company commit-
350,000 in the production chain. Added value in the
ment to prioritizing recruitment of local suppliers that
country, which measures the contribution of Petrobras
work with sustainability. In 2007 54% of the contracts
to the Gross Domestic Product (GDP), is an average of
signed by UN-AM were with companies in Amazonas
around 10% of the Brazilian GDP.
WWW.PETROBRAS.COM
27
Businesses should support and respect the protection

of internationally proclaimed human rights
Principle 1
Cultural, social
and sports
investments
PETROBRAS CITIZENSHIP
AND DEVELOPMENT
IIn the past Petrobras has been including sustain-
its decision-making process the interests of its various
aability-related aspects in both its business strategy
stakeholders.
aand management practices in order to run its busi-
In 2007, Petrobras allocated around R$ 534 mil-
n
ness according to an economically ecient, socially
lion to sponsorships and support for cultural, social
just
j
and environmentally responsible model. The
and sports projects. This sum includes R$ 26.1 mil-
Company therefore has achieved widespread recognition at home and abroad for its leading role and
capacity to overcome the compensation and mitiga-
lion for the Petrobras Young Apprentice Program
tion of social responsibility, successfully including in
adolescents rights.
and about R$ 43.2 million to the Fund for Childhood

and Adolescence (FIA), to guarantee childrens and
The Company is conscious of its role as development inducer and in 2007 launched the Petrobras
INVESTMENTS IN SOCIAL PROJECTS IN 2007

NO. OF PROJECTS
R$ 000
Development & Citizenship Program, continuing with
Income and Job Opportunity Generation
321
58,838
actions considered to be successful or promising in
Education for Professional Qualification
206
38,745
the Petrobras Zero Hunger Program, which directly
Guaranteeing Childrens and Adolescents Rights (1)
508
110,615
and indirectly attended over ten million people with
Other
143
14,275
1,178
222,473
LINE OF ACTION
Total
(1) Includes transfer to the Childhood and Adolescence Fund, totaling R$ 43.1 million allocated to 284 projects.
28
an investment of R$ 386 million.

The aim of the Petrobras Development &
Citizenship Program, prepared with the help of dif-
HUMAN RIGHTS
PRINCIPLE 1
Petrobras allocated 534 million

reais to cultural, social and sports projects
ferent areas of the Company and representatives from
ence public opinion, social organizations and the
civil society and the government, is to contribute to
government for discussion of issues relating to citi-
local, regional and national development. The objec-
zenship and human rights.
tive of the program is to oer decent and productive
The Petrobras Development & Citizenship
inclusion in society to the socially underprivileged.
Program is at a new phase, bringing a set of break-
By addressing cross-themes, such as gender, racial
throughs in the field of the Companys social man-
equality, people with disability, shermen and other
agement. First, funds for social projects are now con-
indigenous and traditional communities, the Petrobras
sidered investment, which means that their follow-up
Citizenship and Development seeks to directly and
reects on the methodology adopted by business proj-
indirectly attend 17.6 million people and reach 27.5
ects. So much so that social investment systematics
million people nationwide by dissemination actions.
are being prepared to base the entire Petrobras System
The program, with initial investment targets of
on standardizing procedures for analysis, selection,
R$ 1.3 billion in the period 2007-2012, supports proj-
approval, follow-up and assessment of social projects
ects that promote development with equal opportunities and valorization of local talents, contributing
backed by the Company, and establishing methodol-
to reducing poverty and inequalities. All sponsored
Moreover, the program proposes a set of perfor-
projects are based on respect for diversity and act in
mance targets for the social project portfolio, which
synergy with public policies. The actions are stra-
includes: priority for young people with 50% of the
tegic, systemic and multi-institutional, to achieve
public attended in the 15-29 age group; 20% partici-
sustainable results. The program encourages social
pants in professional training projects included in the
protagonism, co-responsibility, associativism, coop-
job market; improved school performance by 60% of
erativism and networking, as well as contributing
children and teenagers in the projects; completion
to local development in the areas affected by the
certicates recognized by the National Professional
Petrobras System.
Certication System awarded to at least 60% of the
The strategic actions of the Petrobras Development

& Citizenship Program are focused on:
ogy, criteria and indicators to be adopted.
professional training course; and business plans structured by at least 70% of the income earning projects.
Investments in social projects that foster social
The Company is also developing an information
transformation of the most fringe communities by
system to monitor and appraise those involved in
transferring resources on a planned and monitored
social projects to measure the results produced by
basis;
supported actions and follow up the scope of set tar-
Reinforcing social organizations and networks
gets and objectives. The Company project portfolio
by interacting between private, public and social

agents to form partnerships and alliances, exchanging experiences, learning, and formulation and dis-
will use this system to be periodically assessed by the

Management Committee for Social Responsibility.
cussion on public policies;
tematize and measure Petrobras contribution to
This new management model will help sys-
Diusion of information on citizenship involving
social change in the country. It will also share with
communication campaigns to mobilize and inu-
Brazilian social organizations its expertise in the
WWW.PETROBRAS.COM
29
CULTURAL, SOCIAL AND SPORTS INVESTMENTS

management field by spreading good practices,
taken for capacity building and technical skills in
networking synergy and fullling the potential of
production and marketing of the products. There is
the results. In this way, it can invest strategically,
also capacity building for environmental education
adding potential to the results.
with a view to reforesting the Atlantic rainforest;
Petrobras Development & Citizenship has formed
The Young who Samba, Work and are Happy:
partnerships with several governmental, non-govern-
teaches skills to young people in a social risk sit-
mental and community organizations all over Brazil
uation in poor communities in the city of Rio de
within three main lines of action:
Janeiro and taking socio-educational measures for

adolescents on probation. The project gives pro-
Generation of income and job opportunity: with
fessional training in ve activities of the so-called
emphasis on the short term, the actions contribute
Carnival Industry. The activities in a logical pro-
to productive inclusion of the Brazilian population,
duction cycle, such as modeling, dressmaking, wire
nding more immediate solutions to overcome the
working, accessories and headdresses, help gener-
poverty in the country. The projects have a strong
ate work and income for a segment of society that
emancipating and autonomy-furthering nature. It
has huge diculties to nd their rst job. The proj-
encourages the use of technology and oers suitable
ect workshops on citizenship and Brazilian culture
infrastructure for local production arrangements, to
further cultural, economic and social protagonism
increase their competitiveness with a view to nancial
among young people, and encourage them to stay
sustainability. Some examples are as follows:
on at or return to school. In 2007, partnership with
Flour Corridor Project: by means of management
Portela Samba School helped create jobs for the
technical assistance and ongoing capacity building
preparations of the 2008 samba school parade, on
to further the skills of productive units, the project
the theme of water, giving the young more knowl-
involves 120 farmers and six our mills of family pro-
edge about the environment.
ducers in six counties in Pernambuco. The actions

aim to revive the manioc production chain in the
Guarantee the rights of the child and adolescent:
region, reinforce and raise community conscious-
a long-term outlook, seeking to break the perpetuating
ness of their role in Brazilian society, attending the
cycles of poverty in Brazil, and the actions are in line
farmers to meet their expectations and needs;
with the paradigm of full protection. They address the
Ivaporunduva Kilombo Sustainable Development
child and adolescent as having rights and absolute pri-
Project: the project is designed to further social
ority, since they are at a special stage of development.
and economic development, generate income and

improve the quality of life for the 150 households. It
The following are some examples of projects:

Implementing the Millennium Goals for Children
creates an economic alternative to banana growing
in Semi-Arid Brazil UNICEF Seal of Approved
the major economic activity of the Ivaporunduva
Municipality: the idea of the project is to help
community, in So Paulo by organic handling
achieve the Millennium Goals for children and
and processing of the fruit. The capacity building
adolescents in 1,118 municipalities in 11 semi-
of the community for planning sustainable tourism
arid states of Brazil. Local players and talents with
and structuring a visitors center in the kilombo has
strong community participation and children and
helped to fulll its potential for tourism;
adolescents are mobilized and coordinated so that

mayors, governors and the federal government can
Learning professional skills: mid-term actions
work to achieve the goals and commitments within
give priority to training young people for the labor mar-
the sphere of the National Compact: A World for
ket through professional training and building a life
the Child and Adolescent in Semi-Arid Brazil;
project, considering their concerns, dreams, vocations
Educational Radio Soap Opera Broadcast to
and talents. This is the case in the following projects:
Protect the Rights of Children and Adolescents:
Human Capacity Building, Planting Forests and
the project is in Par, North Brazil, and trains social
Guaranteeing a Future: with organic production
agents in the subject of addressing violence against
and sale of farm produce, around 50 households
children and adolescents, providing content for

the educational radio soap operas. Through the
in Alagoas benet from the project through actions
30
HUMAN RIGHTS
PRINCIPLE 1
experience of training, production and multiplica-
The results of the 2007 public selection will be
tion of the social technology, 360 agents from the
announced in May 2008 and journalists have been
Guaranteed Rights System help in compliance with
invited to all stages of the selection process. During
the Statute of the Child and Adolescent.
the registration period, Petrobras organized Social
Every year Petrobras organizes a public selec-
Caravans classroom workshops to train organiza-
tion of social projects with increasing investments
tions and other stakeholders how to prepare projects.
to democratize the access to its resources and assure
The Caravans, with free admission and open nation-
transparency in the selection of the supported projects.
wide, had 2,800 participants and helped explain
Social organizations all over the country are invited by
doubts about rules and regulations or the selective
public invitation to enroll projects and become part-
process. Virtual caravans were also available in the
ners of the Company in ghting against poverty and
Internet, open to all stakeholders. This new item had
misery in the country. The proposals received are ana-
8,000 visitors.
lyzed by examiners in and outside the Company.

and Development involves all states in Brazil and in
2007 received 6,485 applications for sponsorship
by NGOs, governmental and community agencies,
GOALS OF PETROBRAS DEVELOPMENT & CITIZENSHIP 2007-2012

Total investments
R$ 1,293 billion
Total people attended direct and indirectly
17,631,804
Total people reached (promotion actions)
27,248,447
universities and institutions. This record number of
In a widely publicized and transparent process,
applications is 43.6% up from the 4,517 projects reg-
the projects considered undergo a series of admin-
istered in 2006 in the Petrobras Zero Hunger Program.
istrative and technical analyses, and are submitted
The maximum value of R$ 660,000 per year was allocated to the selected projects, with possible renewal
to a committee of Company workers and distin-
for another two years. The registered projects pri-
and academic world. Projects in the public selec-
oritize actions to include the young and beneciary
tion that were highly rated but could not be spon-
people and families to be included in the Bolsa Famlia
sored because of limited resources are included in
Program. Projects involving the Social Technology
the Petrobras Project Portfolio. To encourage social
Network are given priority, right from the selection
responsibility actions with partner companies, cli-
process to the assessment of results in the public
ents and suppliers in the Petrobras business chain,
selection. They oer methodologies that can be re-
the portfolio helps mobilize new players in the busi-
applied, developed with community interaction and
ness sector to develop partnerships, nominating and
represent eective solutions for social transformation
recommending projects designed to transform the
so that they can be adopted as public policies.
Brazilian social reality.
guished professionals from the third sector, press
Principle 1
The selective process for Petrobras Citizenship
Income earning and job opportunity projects

designed to structure a business plan and increase
income by at least
60%
WWW.PETROBRAS.COM
31
Petrobras sponsored a total of

in 2007
1,178 social projects

PETROBRAS CULTURAL PROGRAM
The Petrobras Cultural Program (PPC) is the larg-
Preservation and Memory: projects to protect
est and most important cultural incentive action ever
the memory of arts in Brazil, immaterial heritage and
developed by the Company. Every year it sponsors
the work of museums, archives and libraries. Some
projects from a wide variety of cultural segments to

guarantee democratic access to incentive funds con-
examples are:
Restoration of the works of Nelson Pereira dos
sidering cinema, music, literature, historic monu-
Santos: lms directed by Nelson Pereira dos Santos,
ments, immaterial heritage, and scenic and visual arts.
whose work representing Brazilian cinema and cul-
The PPC record budget of R$ 80 million in 2006/2007
ture includes some of his most sought after movies
allocated R$ 60 million to projects that had been
by cinema schools, television channels, festivals
approved in the public selection and guest projects
and other national and international festivals;
of the Petrobras Cultural Council. Some projects in the
Museum of the Inconfidencia, Minas Gerais:
public selection areas had a higher number of projects
refurbishing and modernizing the museum with
and increased budget, for example, short lms.
new paintwork, roof repairs, building furniture
PPC was launched in 2003 jointly sponsored by
and showcases for exhibitions, ber optic lighting
Petrobras Distribuidora and Holding, to combine
project to enhance the works and restoration of
the four existing programs: Petrobras Visual Arts
the three buildings;
Program, Scenic Arts Program, Cinema Program
Kuikuro Rituals of the Upper Xingu Traditions
and Music Program. During these four years, PPC
and New Memory Technologies in Mato Grosso:
sponsored 889 projects from the public selection
a project to preserve the immaterial heritage of the
with an investment of R$ 201.8 million. PPC added
Karib-speaking Kuikuro indigenous people inhabit-
the new line Formation to the two already exist-
ing the upper reaches of the Xingu River, and who
ing lines of action - Preservation and Memory, and
aggregate the three main linguistic chains in South
Production and Diusion. Formation, which includes
America: Tupi, Karib and Arawak.
art and culture in education, intends to increase the
32
possibilities of critical reception of the arts and other
Production and Diusion: projects that produce
cultural expressions. The cultural support guidelines,

in line with the sectors public policies, help valorize
movies, music, scenic arts and literature, in addition to

diusion and democratization of access to culture.
Brazilian culture and oer more opportunities for cre-
Pixinguinha Project: is organized by the Brazilian
ation and circulation, enjoying the oer of its benets
Arts Foundation (Ministry of Culture - MinC) and
and revenue, as well as the ongoing construction of
consists of caravans of musicians, producers and a
the Brazilian cultural memory. The programs lines of
technical team traveling around Brazil to meet per-
action include:
formers with dierent musical proles representing

HUMAN RIGHTS
PRINCIPLE 1
the rich diversity of Brazilian music. Public admis-
The 5-Vision Project, in Rio de Janeiro: its idea is
sion to these music shows is free or with a small
to oer audiovisual technical formation (camera-
entrance fee. The project provides free workshops
mans assistant/electrician, video camera operator,
to the communities visited, with classes given by
direct sound operation and art directors assistant).
the traveling musicians;
It holds courses approved by the Brazilian Ministry
Giramundo Puppet Project: Petrobras has been
of Education and that are part of the federal gov-
sponsoring the Mini Ecological Theater project
ernments Factory School. The project works with
for four years. The theater is run by Giramundo in
students in the 16-24 age group with per capita
Minas Gerais, one of the most traditional puppet
income of a 1.5 minimum wage, who are enrolled
groups in Brazil. Its work helps children and young
in a regular basic education course (primary or sec-
people to learn more about environment using the
ondary education) or in the young people and adult
puppet theater language;
education program (EJA).
Principle 1
The CD with northeastern

folk music of ciranda, cocos,
maracatus and afoxs by Lia
de Itamarac - nominated
Unesco Living Heritage was awarded the Petrobras
Special Cultural Prize
Feature lm The Year My Parents Went on Vacation:

award-winning lm chosen to represent Brazil as
The Company encourages the registration
one of the movies nominated for the 2008 Oscar
of projects all over Brazil through the Petrobras
in the best foreign movie category.
Cultural Caravan, which gives talks in various towns

in the country.
Formation: projects that include art and culture in

education, furthering possibilities for a more critical
In addition to PPC, other sponsorships concentrate on the image return of the Petrobras logo, to com-
view of the arts and other cultural expressions:
plement actions taken by PPC and attend Petrobras
Edisca Dance School in Cear: designed to foster
business requirements. Some examples here are spon-
the development of 400 children and adolescents
sorship to the Petrobras Symphonic Orchestra, Corpo
to consolidate education through art, learning and
and Galpo groups and the music, movie and scenic
social projects;
arts festivals.
WWW.PETROBRAS.COM
Petrobras
Cultural
Program
had record
funds of
80 million
reais in
20062007
33
Brazils national
male handball
team sponsored by
Petrobras
In 2007, the Company also played a leading
34
SPORTS SPONSORSHIP
role in supporting the public policy on culture. With
The Company is a major Brazilian sports sponsor and
the Petrobras/Brazilian Ministry of Culture (MinC)
invests in Petrobras Motor Sports program, involv-
Extraordinary Action, the Company formed a partner-
ing dierent car racing categories directly related to
ship for projects all over Brazil, and invested R$ 90 mil-
its business, and Petrobras Performance Sports,
lion in the creation of a public selection invitation in
involving soccer, handball, tennis and surng.
several fields, namely: popular and classical music,
In 2007 the Company invested around R$ 80
television, cinema, theatre, dancing, circus, plastic arts
million in sports sponsor programs, supporting the
and indigenous culture, focus on the elderly, culture
Brazilian Olympic Committee through the XV Pan-
and thinking, and restoring historic monuments. It
American Games Rio 2007. It was also a forerunner
also invested in formation and education projects for
in using the Sports Incentive Act, allocating more
arts, namely the National Circus School and Living
than R$ 23 million in preparing the Brazilian delega-
Culture Award, for example.
tion for the 2008 Beijing Olympic Games.
The sponsor has 100% tax benet from supported

projects, as in the case of short lm production, and
XV Pan-American Games Rio 2007
30% to the sponsor with limited tax benet with popular
The sponsorship of the XV Pan-American Games
music projects, for example. In addition to the approval
Rio 2007 was the main sports investment made by
of the Rouanet Act federal law 8,313, which allows
Petrobras in 2007. The competition is a continental
sponsors to deduct 4% from income tax -, the projects
version of the Olympic Games, including sports
are submitted to the Institutional Communication
from the Olympic Program and other non-Olym-
Sub-secretariat Sponsorship Committee of the General
pic sports. About 5,500 athletes from 42 countries
Secretariat of the Presidency of the Republic (Secom),
competed in the Pan-American Games, promoting
where they are approved before contracting.
technical exchange and discovering new talents

HUMAN RIGHTS
PRINCIPLE 1
R$ 000
NO. OF PROJECTS
Music
53,913
247
Cinema
42,855
249
Scenic arts
35,959
131
Culture and society
19,095
49
Historic monuments
17,781
68
Visual arts
12,351
10
Museum support (collection)
8,788
26
Immaterial heritage
6,941
41
Cultural spaces
3,498
47
Literary events
3,340
122
Architecture and urbanism
873
28
Archeology
124
205,518
1,020
Total
and record breakers. Its support of the Games reaf-
nationalization process of Petrobras in strategic
rms Petrobras commitment to developing national
South American markets. The championship is
sport and encouraging the practice of sports as an
considered the top professional circuit in Latin
essential element in peoples formation. To sponsor
America of the Challenger Series of the Professional
this event, the Company looked at decisive factors,
Tennis Players Association (ATP) and was disputed
such as the strong social impact of the games, the
in countries where the Company operates.
jobs created during the infrastructure construction
Petrobras also invests in Brazilian surng through
stage and involvement of various sectors in selling
its Surfing Festival, Womens Surfing Circuit,
products and services during and after the Games.
Longboard Classic and Mens Surng Selective.
Petrobras Performance Sports
Petrobras Motor Sport
The partnership between Petrobras and the Brazilian
The car racing and motorbike categories are a test
Handball Confederation is to develop and consolidate Brazilian handball through its ongoing support to the Olympic Mens and Womens Olympic
laboratory for Petrobras. Motor sports sponsorship, from Kart to Formula 1, is used to develop new
products, namely fuels and lubes, to give better per-
teams. The sponsorship is associated with social
formance and mitigate environmental impact. The
responsibility in its support of the Mini-Hand proj-
vehicles test the products in more demanding con-
ect providing sports training to kids in low-income
ditions, for example, at speeds over 300 km/h and in
communities.
the heat of African deserts.
In 2007, the fourth year of the Petrobras Tennis
Since 1998, the Company has had a technical part-
Cup was played in Brazil, Argentina, Colombia,
nership with the Williams Formula 1 squad. Petrobras
Paraguay and Uruguay, a major event for the inter-
develops and supplies it with special fuel, high tech-
WWW.PETROBRAS.COM
Principle 1
CULTURAL PROJECT INVESTMENTS IN 2007

ACTION LINE
35
Its sponsorship of motor sports has

helped Petrobras test and develop top
performing fuels and lubes with
low environmental impact
SPORT PROJECTS INVESTMENTS IN 2007
36
ACTION LINE
R$ 000
Performance sports
29,655
Motor sports
26,948
Incentive sport
23,386
Total
79,989
nology for better engine performance in trials and
and the Petrobras Kart Selective.
races. The high octane Podium Gasoline is the result

of research done during Formula 1 races.
In 2007 the Company became ocial fuel provider to Stock Car, the main Brazilian car racing cate-
Petrobras sponsors the Petrobras Lubrax team
gory. Petrobras uses the V8 and Light vehicle catego-
at the worlds main rallies the Dakar Rally and
ries as a laboratory to upgrade its new fuel. Cleaner,
International Sertes Rally. The Company also spon-
safer and with performance required by Stock Car
sors the Superbike 100cc category through its own
vehicles, the fuel with low sulfur and no lead content,
Team Scud in the Brazilian Racing Bike Championship
substituted aviation gasoline that contained health
and is exclusive fuel and lube supplier for the Brazilian
hazard tetraethyl. Besides contributing to the well-
Formula Truck Championship. It is also sponsor to
being of the team members, the Company rearms
prototype competitions Formula SAE and Baja SAE
its commitment to the environment.

HUMAN RIGHTS
PRINCIPLE 1
Principle 2 Businesses should make sure they

are not complicit in human rights abuses
Supplier
relations
GOOD PRACTICES
ASSURED IN CONTRACTS
IIn conformity to its social responsibility policy,
supplies. Should such practices be discovered, the
Petrobras
bases its actions, as stated in the Human
P
contracts are cancelled and the companies may be
R
Rights
principle, on furthering the principles of
penalized.
decent
d
work and non-discrimination. Petrobras stip-
Petrobras has dened some procedures for quali-
u
ulates
that goods suppliers should provide objective
fying suppliers to improve management of the goods
evidence to assure and demonstrate their commit-
and service procurement process. A central model of
ment to adopting the premises stated in the social
the Petrobras Goods and Service Suppliers Register
responsibility management process.
has been implemented to help integrate the activities
Petrobras supply regulations are quite transpar-
for assessing the Companys suppliers and supplies.
ent for businesses to provide the high level required

in the oil industry. The Company includes clauses
on human rights, social responsibility and health,
The register includes requirements for safety, occu-
safety and environment in all supplier agreements.
technical requirements.
pational health, environment and social responsibility, and enhances assessment of economic, legal and
Every supplier is previously assessed for compli-
Through the supplier register, Petrobras encour-
ance with labor, social security and tax laws, and is
ages companies to complete the questions in Ethos
only contracted when its conformity is conrmed.
indicators for social responsibility referring to human
All goods and service procurement agreements pro-
rights. Suppliers who answer the questionnaire
vide clauses against child, forced or degrading labor,
receive reports with comparative analyses of results
in order to guarantee quality in goods and service
per business segment, for better planning to upgrade
WWW.PETROBRAS.COM
37
SUPPLIER RELATIONS
Compliance with
labor, social security
and tax laws is a
requirement to be a Petrobras
goods and service supplier
their actions. By the end of 2007, 665 companies had

completed the Ethos questionnaire and their ratings
were calculated. From January 2008 completion of
the questionnaire will be mandatory in application
and renewal requests for registration.
TRAINING IN HUMAN RIGHTS

AND SOCIAL RESPONSIBILITY
Petrobras holds training courses for and disseminates ethics and social responsibility, including
content on human rights relating to its employees.
The work in capacity building includes training seminars and capacity building of multipliers of the code
of ethics, including a round table on bullying and
diversity. In 2007, 53,543 hours of capacity building in social and environmental responsibility were
counted, with classes attended by 2,956 employees
and 220 outsourcees. Through its specialization in
social responsibility and development management,
38
HUMAN RIGHTS
PRINCIPLE 2
Petrobras University offers courses on principles
the premises. In order for contractors to realize the
and concepts, certifications and tools AA1000,
importance of HSE guidelines, they are provided
Social Auditing, Social Balance Scorecard, GRI, Ethos
with Petrobras standards with risk matrix, as well
Indicators and Tools, NBR 1601 , community rela-
as the requirements for hiring service providers,
tions, as well as seminars, conferences and special
strictly in compliance with the selection criteria
projects, sustainable human development, volun-
and a periodical assessment.
Principle 2
Petrobras encourages
procurement of social
promotional items
from sponsored
projects, such as, for
example, Kaingang
handicra in Paran
teers and ethics.

The Company gives talks to inform about and
explain the code of ethics to managers, supervisors,
coordinators, contract inspectors and adapting new
employees. During the year, the entire workforce was
trained in the code of ethics, emphasizing aspects
relating to human rights and relations with employees,
clients, suppliers, service providers and society.
Every year the Company trains all members
of the property security sta, in accordance with
corporate regulations and standards. Recruited
employees do a recycling course every two years
on notions of criminal law and physical security of
WWW.PETROBRAS.COM
39
CASE STUDY HUMAN RIGHTS
Loom Program
(Tear) weaving
sustainable nets
40
HUMAN RIGHTS
Petrobras works on the basis of ethical, transparent

Petrobra
meetings of the working groups and regional semi-
managem
management with respect for the different stake-
nars. Each event involved presentation of effective
holders with
w which it relates. In order to dissemi-
practices, preparation and validation of action plans of
n
nate values and practices of social responsibility, the
the agship companies in disseminating social respon-
C
Company interacts with its production chain seeking
sibility in their value chain. Petrobras uses the program
to form other relations with small and medium-sized
to provide further information about the concept of
enterprises (SMES) and offers the use of tools for
social responsibility and increase market opportuni-
sustainable business.
ties for SMEs working in its value chain. The Company
Accordingly, in 2005 the Company joined the
seeks to involve partners that can multiply the experi-
Loom Program (Tear) Weaving Sustainable Nets,
ence to other sectors and induce more companies to
headed by the Ethos Institute and organized by the
adopt the methodology.
Multilateral Investment Fund of the Inter-American

Development Bank (IDB).
Through its unit in Maca (Rio de Janeiro state),

Petrobras has selected 20 small and medium size busi-
The program involves flagship companies in the
nesses operating in its production chain and under-
seven strategic economic sectors: sugar and alcohol,
took a training program to upgrade the management
civil construction, electricity, mining, oil and gas, steel
models in social responsibility. The positive result was
and retail. These companies are top ranking in their sec-
assessed at the 2nd Seminar of the Loom Program in
tors because of their size and share in the national GDP
Rio de Janeiro in November 2007 sponsored by the
and have a strong influence on their value chains. In
Company. The event was attended by approximately
order to implement the network, each Company chose
200 delegates.
15 to 20 SMEs from their suppliers and clients to incorporate and extend socially responsible management.
In addition to the flagship companies, the pro-
SMEs that began in the production chain
16
gram has partners that contribute to disseminating the
Application of Ethos indicators
12
methodology to other companies and value chains in
SMEs that enhanced sustainable management (Mission, Vision and Values)
12
the same sector or region. This creates an integration
Actions prepared by SMEs
44
network with a proven multiplying eect. Using this
Actions taken
12
formula, inducement agents have emerged and convey
Actions taken and MDG-related
know-how to all stakeholders. These inducements are
Mobilized employees
invaluable, since they are based on the large produc-
Clients involved
PETROBRAS PRODUCTION CHAIN RESULTS IN 2007
9
258
7
tion centers and have nationwide coverage reaching

out to the SMEs in the Brazilian countryside. A sustainable economy with corporate satisfaction and service to neighboring communities, whatever their size,
means general satisfaction and, most of all, regional
and national progress.
The Loom Program has helped create 139 working
groups over a total of 3,257 hours of consulting services
to the SMEs. As a result of the program, publication of
valuable tools were launched, such as: Business Social
Responsibility (BSR) in Management Processes and
Value Chains; Essential Criteria for Business Social
Responsibility and their Inducement Mechanisms in
Brazil; Loom (Tear) Methodology of Working in a Value
Chain and National Research on BSR practices.
The sharing of experiences with other flagship
companies in the Loom Program occurred at the
WWW.PETROBRAS.COM
41
Labor
Petrobras conducts its operations with respect for its workforce and strives
to achieve everyones satisfaction and commitment in terms of its values
and behaviors. The number of employees in the Petrobras System was
68,931 in 2007, 10.7% more than in 2006. The Company has grown both
in number of employees and in facilities and operations and continues to
reach levels of excellence in health and safety.
For the very first time, the Level of Commitment to Social Responsibility
(LCRS) was measured by the Organizational Ambience Research. The LCRS
was 81%, which means a high rate of employees committed to the issue.
Workforce
NUMBER OF EMPLOYEES IN
THE PETROBRAS SYSTEM
Of the 68,
68,931 employees, 6,783 work in interna-
a total 211,566 employees from service providers.
tional units and

a the other 62,148 in Brazil, allocated
Considering the large number of companies in the
to the Petro
Petrobras Holding and following subsidiar-
Petrobras System, only the direct subsidiaries will be
ies: Petrobr
Petrobras Distribuidora, Transpetro, Liquigs,
reported in this Social and Environmental Report.
Petroquis
Petroquisa and Refap. The Petrobras System also has
TOTAL EMPLOYEES IN THE PETROBRAS SYSTEM

COMPANY
CONTRACT FOR
DETERMINATE TIME
Petrobras Holding
50,190
International area
6,646
137
Transpetro
3,802
316
Petrobras Distribuidora
3,598
Liquigs
3,298
Refap
788
Petroquisa
102
Total Petrobras System
44
CONTRACT FOR
INDETERMINATE TIME
68,424
SPECIAL CONTRACT
17
TOTAL
50,207
6,783
26
10
4,144
3,608
3,298
788
453
103
54
68,931
LABOR
Petrobras had 68,931

employees by the
end of 2007
PERSONNEL PER REGION IN BRAZIL

COMPANY
SOUTHEAST
SOUTH
NORTH
MIDWEST
NORTHEAST
TOTAL
34,910
1,758
1,187
109
12,243
50,207
Transpetro
2,958
201
602
55
328
4,144
2,340
283
181
245
559
3,608
Liquigs
1,839
785
96
154
424
3298
Petrobras Holding
Refap
788
Petroquisa
788
96
Total Brazil
42,143
3,815
2,066
TOTAL EMPLOYEES (BY JOB TYPE)*
103
565
13,559
62,148
INTERNATIONAL PERSONNEL BY COUNTRY
Shift
12,491
COUNTRIES
Administrative
36,274
Argentina
TOTAL PERSONNEL
4,996
On call
5,981
Bolivia
491
Oshore
2,855
Colombia
373
Uruguay
283
USA
218
Paraguay
206
Venezuela
102
Field special
483
Air support
37
Operational
3,986
Technical
41
Total
62,148
*Not including personnel of units outside Brazil
Angola
28
Nigeria
28
Mexico
25
Libya
19
Turkey
10
Chile
Total International Area
WWW.PETROBRAS.COM
4
6,783
45
Safety, health and

quality of life
SAFETY REGULATIONS
The Company
Com
is very concerned with its workforce,
protect the human being and environment by identi-
which it considers to be one of its most valuable assets.
fying, controlling and monitoring risks, adapting the
Care with the workers health is at the same level of
safety of processes to the best international practices
quali
quality required in the entire production process. In
and always ready in emergencies.
2007, R$ 2.57 billion was invested in occupational

2007
health and safety in the Petrobras Holding.
A number of programs were developed to improve
46
The Occupational Health Regulations and

Procedures cover the following topics: occupational
the quality of the workers life. By adopting the concept
medical tests, noise exposure, working conditions on

oshore platforms, occupational dental examinations,
of complete health, these programs involve physical,
health certicates and sick leave. The Company also
emotional and social aspects, in addition to assessing
has the Occupational Health Medical Control Program
and preventing impacts from occupational and envi-
in which the workforce is monitored and instructed on
ronmental hazards on the health of the workforce and
such aspects. All workers have an Occupational Health
neighboring communities.
Certicate and the facilities have operational proce-
The projects relating to employees health and

safety comply with the corporate HSE guidelines and
dures with instructions to minimize risk exposure.
policy, and with the 2007 Collective Labor Agreement
care, detailing such topics: periodical medical exami-
ACT 2007 has a chapter devoted solely to health
(ACT 2007) in Brazil. Petrobras is also guided by the
nation, HSE committees for workers, House Accident
Health, Safety and Environment Committee linked to
Prevention Committee (Cipa), programs on nutrition
the Business Committee. In one of the HSE guidelines,
and periodical nutritional assessment, occupational
the Company agrees to act to promote health, and to
preventive health care, contingency program, occupaLABOR
Laboratory worker in the

Leopoldo A. Miguez de Mello
Research & Development Center
(Cenpes) in Rio de Janeiro
tional safety prevention, reghting, biological environ-
Health Care (AMS). For example, nine campaigns on
mental monitoring and health policy, for example.
consciousness in HSE were run in the engineering
There are also specic clauses on participation of
projects to improve the HSE performance in specic
employee representatives in investigating serious and
areas. Two of the topics discussed were hand accident
fatal accidents, and the guarantee to the right to refuse
prevention and sexually transmissible diseases.
work in conditions of serious imminent risk.
The Company offers its employees the benefit

of psychotherapy to facilitate the treatment of psy-
HEALTH MANAGEMENT
AND QUALITY OF LIFE
problems. The employees participation in this kind of
The workforce participates in HSE-related discus-
expenditure is 50% until the third year of treatment
sions through formal committees, such as Cipa, for

example, where all employees and outsourcees are
and then after the fourth year it is xed at 100%.

On its projects in North Brazil, Petrobras uses
represented.
the Endemic and Vector Control Monitoring Service
chosomatic disorders, psychological or stress-related
Every year, various events and campaigns are
along the Urucu-Coari-Manaus gas pipeline. Petrobras
organized to invest in accident and disease preven-
does a preliminary study and assesses the possible
tion and to improve the health of the workforce, such
consequences of parasite reproduction in the com-
as the Health Promotion Workshop and Health Week.
munities in the areas of the gas pipeline construction.
On the occasion of the u vaccination campaign, the
Based on this study, the local health departments are
vaccine is free to employees and outsourcees, as
then involved in prevention and control actions, plus
well as to other beneciaries of the Multidisciplinary
diagnosis and treatment of cases of malaria in neigh-
WWW.PETROBRAS.COM
47
SAFETY, HEALTH AND QUALITY OF LIFE
FREQUENCY RATE OF CASUALTIES

WITH LEAVE (TFCA)*
FATALITIES
Employees
2007
15
15
16
0.76
2006
2003
2004
2005
14
* TFCA: Number of casualties per one million

men-hours with exposure to risk
2005
15
2004
15
2003
16
0.77
0.97
1.04
19
1.23
Outsourcees
2006
2007
boring communities. The health of the workers and
Ergonomic Risk Management The Ergo-
the communities close to the works is also monitored,
nomic Risk Management Project was set up to solve
as well as accidents caused by poisonous animals and
and prevent problems caused by incorrect posture or
water-transmissible diseases.
an inadequate workplace.
HIV/AIDS policy The Company seeks to
Some units have now developed ergonomic
cooperate armatively in developing public policies
programs with positive results. However, it is neces-
on AIDS information and prevention. This is why it is
sary to establish corporate guidelines to standardize
in constant contact with national and international
the actions in order to encourage healthier habits
organizations responsible for surveillance, assistance
and comply with the safety and health regulations.
and research about the disease.
Employees who request this service are given specic
The Petrobras HIV/AIDS policy guarantees non-
instructions about their posture and workplace.
discrimination in the workplace, condentiality if the

dition and advisory and health care services. It oers
SAFETY AND HEALTH

INDICATORS
medication, including for the dependents of the virus
Petrobras intends to achieve safety standards that place
carrier, and trains the Companys health professionals
it at the same level as the worlds best oil and gas majors.
to attend the HIV-positive worker. Petrobras provides
This is why its Strategic Plan set the target of 0.5 for the
all its employees with free diagnosis tests, at their own

request. As preventive measures, the Company runs
Frequency Rate of Casualties with Leave (TFCA) for
informative campaigns among the workforce. In this
representing a level of international excellence.
virus carrier informs the Company about his/her con-
way everyone can learn about transmission, adopt safe

behavior and understand the individual risk.
48
2010, including its own employees and contractors,

To meet this target, the Company has adopted
safety standards beyond the requirements of Brazilian
LABOR
PERCENTAGE OF TIME LOST (PTP)
2.19
1.61
2.28
2.81
2.06
2.48
3.30
2.57
4.57
2.88
FATAL ACCIDENTS RATE (FAR)*
2003
2004
2005
2006
2007
* TAF: Number of fatalities per 100 million men-hours with exposure to risk
legislation, as commended by the Corporate HSE

Guidelines and Policy.
Another action to monitor operations is the
Corporate Accident Registration System (Sisin),
which includes all information on safety. It obtains
the indicators for accidents with injury to employees
and outsourcees and reports are issued to follow up
and control accidents, abnormal occurrences and
2003
2004
2005
2006
2007
The Corporate Accident

Registration System includes
all data of the safety area
and provides indicators
for follow-up and control
the costs involved.

In 2007 Petrobras recorded a drop in the TFCA
from 0.77 to 0.76, continuing the downward trend
of previous years. This reduction occurred in the
scenario of an increase in the number of employees
and outsourcees and, consequently, operations. The
Fatal Accident Rate (TAF) rose from 1.61 in 2006
to 2.28 in 2007 and the number of fatal casualties
in the workforce increased from nine to 15 cases.
Of this total, nine were involved in road accidents,
motivating special attention to safety in that area.
The increase in this indicator was inuenced by the
inclusion this year of occurrences registered in the
transportation area for distribution.
WWW.PETROBRAS.COM
49
Pay and
benets
CONTRACTING, JOBS,
PERFORMANCE AND WAGES
Employees are recruited in Brazil by means of a public
Employ
cluded between Petrobras, the Petrol Workers Union
selection
process. In other countries the recruitment is
s
Federation (FUP) and trade unions, culminating in the
done by analyzing resumes and interviews. Due to the
agreement for implementing the new Job Assessment
Companys
Compan strong growth the Business Plan expects
and Rating Plan (PCAC 2007), in which the new job
admissio of 14,000 professionals by 2012 to occupy

admissions
and wage tables were dened. Pay is dened accord-
positions in various areas.
ing to wage levels and they, in turn, are within specic

ranges for each job.
The Companys payroll is consistent with the

professional work performed jointly with the respon-
In accordance with house policies, there is no
sibilities involved. In 2007, negotiations were con-
relation between remuneration and individual performance. All employees receive their annual Share
PROPORTION OF LOWEST WAGE COMPARED TO BRAZILIAN MINIMUM WAGE
in Prots and Results (PLR) based on the Companys
COMPANY
economic performance.
LOWEST WAGE
PROPORTION
Petrobras Holding
R$ 1,400.88
3.69
Concerning outsourced labor, Petrobras agreed to
R$ 1,030.35
2.71
upgrade the hiring process of service providers, with
Liquigs
R$ 577.60
1.52
emphasis on guaranteeing the collection of labor obli-
Transpetro
R$ 622.23
1.64
gations during the term of the service contract, with
Petroquisa
R$ 1,265.06
3.33
a view to the labor, social, economic-financial and
* Minimum wage in Brazil in 2007: R$ 380.00
50
health, safety and environment aspects.
LABOR
Dental treatment in the

Torre Almirante building
(Edita) in Rio de Janeiro
ment allowance; death allowance and annual bonus
TURNOVER RATE PETROBRAS SYSTEM

Men
3.50%
Women
0.81%
Excludes the international area
(13th wage).
Another employee benet is the complement of
the Disability Compensation, assuring the employee
who is o work because of an occupational accident
full pay for the rst four years, or because of an occu-
SOCIAL SECURITY
AND OTHER BENEFITS
Employees who are members of the Petros or Petros
In Brazil Petrobras offers complementary pension
2 plans have this complement guaranteed after these
schemes to provide security and quality of life to all
terms and for an indeterminate period.
its employees and their next of kin during their working years and on retirement.
pational disease for the rst three years of absence.
Petrobras offers Day Care Allowance or

Companion-Allowance to parents with children 36
The Petrobras System Petros Plan has been
months old or under. The School Allowance also
closed to new participants since August 2002. For
exists for the same purpose. It includes the Pre-
employees recruited since that date and for those who

were not yet participants the Petros Plan 2 was oered
School Assistance Program that reimburses 90% of the
in July 2007 and over 92% are now members.
75% and Secondary School Allowance that reimburses
expenses, Primary School Allowance that reimburses
The Petrobras System Petros Plan supplements
70% of the expenses, all restricted to regional ceil-
social security benefits: retirements, death benefit,
ings. If the pupil is registered in a public school, the
social security and accident allowance and conne-
Company reimburses the expenses for school material
WWW.PETROBRAS.COM
51
PAY AND BENEFITS
AVERAGE HOURS OF TRAINING IN 2007

COMPANY
TOTAL PERSONNEL
HHT
AVERAGE HHT
50,207
5,004,968
99,69
Petrobras Holding
3,608
43,394
12,03
Liquigs
3,298
78,886
23,92
Transpetro
4,144
319,088
77,00
Petroquisa
103
175,72
1,71
61,360
5,446,512
88,76
Total System
AVERAGE HOURS OF TRAINING IN 2007 EMPLOYEE WITH NO-BONUS OCCUPATION

COMPANY
Petrobras
University
awarded the
Corporate
University
Best in
Class 2007
prize
NO. EMPLOYEES
HHT
AVERAGE HHT
43,755
4,598,645
105,10
3,145
33,023
10,50
Petrobras Holding
Liquigs
Total System
3,049
72,990
23,94
49,949
4,704,658
94,19
AVERAGE HOURS OF TRAINING IN 2007 EMPLOYEE WITH BONUS OCCUPATION

COMPANY
NO. EMPLOYEES
HHT
AVERAGE HHT
6452
406,323
62,98
463
10,371
22,40
Liquigs
249
5,896
23,68
7,164
422,590
58,99
Petrobras Holding
Total System
and uniform every six months.

Employees can also use the Educational
Each year employees are appraised in terms of
Complementation Program, which offers oppor-
their work development through the Performance
tunities for career growth to middle-level profes-
Management (PM). This is when the manager and
sionals. Petrobras uses this program to pay for 90%
employee can reect on the work done and results
of the basic education and 80% for complementary
achieved, and set targets based on individual and
technical courses.
collective skills. Through the results, the possibil-
All employees are entitled to the AMS health
ity of an advance in level or promotion is assessed,
plan, dental plan, meal or restaurant tickets and travel
essential for growth within the Company. PM also
vouchers. The Company also requests contractors to
analyzes the need for capacity building, a necessary
oer the same class of benets to their workers.
premise for the employee to be able to acquire and
In Brazil, the benefits are not reduced accord-
practice new knowledge.
ing to the working hours. The only variable benet
Right from the start of the Company quality edu-
is the travel voucher: in the administrative system

it is given according to the number of working days
in the month; and in a rota system, according to the
cation has been one of its mainstays. Today Petrobras

University is the synthesis of the Companys past com-
days actually worked.
52
PEOPLE DEVELOPMENT
mitment to its professional personnel development.

Petrobras University consists of four schools of
Some benefits in the international units in
sciences and technologies (Exploration & Production;
Argentina, Colombia, Mexico, Paraguay, USA and
Supply; Engineering; Gas & Power), a business and
Venezuela such as medical and dental care, life
management school and a technical college. It devel-
insurance, medication, luncheon vouchers and reim-
ops educational solutions for training and ongoing
bursement of educational expenses are oered only
education courses, providing the know-how required
to full-time employees.
throughout the Petrobras System.

LABOR
Every Petrobras employee has an HR Develop-
Three indicators for the Petrobras Strategic Map
ment Plan, which enables them to participate in
were the outcome of the Ambience Study: the Employee
events at home and abroad according to their profes-
Satisfaction Index (ESI), Level of Commitment to the
sional needs and strategic objective of the Company.
Company (LCC) and Level of Commitment to Social
The ongoing education process includes provid-
Responsibility (LCSR), which measures how employ-
ing lato sensu post-graduation, Masters and PhD
ees assess and participate in the Companys socially
courses in various elds of knowledge. The Petrobras
responsible actions.
Formation Program for new employees was win-
In the 2007 survey of the Petrobras Holding, the ESI
ner of Educare National Prize for Excellence in
rose to 69 points from 68 in 2006. LCC dropped from
Education in 2007 and twice nalist of the Petroleum

Economist Awards in the category Best Youth
78 to 77 points. Included for the rst time in the survey,

the Level of Commitment to Social Responsibility was
Educational Program in the Energy Industry.
81%, which is a high level of employees engaged in the
In 2007, Petrobras University was nominated
topic and that approve the role of Petrobras.
the worlds top corporate university when it won the

Corporate University Best in Class 2007 Cubic
Awards, the annual prize awarded by the International
AMBIENCE STUDY PERFORMANCE
Quality & Productivity Center (IQPC). Between 2005

and 2007 the Company earned maximum ratings
ESI
(100 points) successively in the item Human Capital
LCC
Development in the Dow Jones Sustainability Index,
LCSR*
81%
77%
69%
78%
68%
77%
66%
Retirement Preparation Program (PPA) to help the
68%
In Brazil, Petrobras and its subsidiaries adopt the
78%
in recognition as an international benchmark.
employee make a free and conscious decision to retire.

The program encourages reection about the dierent psychosocial, pension, legal and nancial aspects
involving retirement. The PPA has a basic structure, but
some Units have adapted it to specic local aspects,
introducing a before and after-retirement follow-up
or by encouraging entrepreneurialism.
2004
2005
2006
2007
* Now measured for the first time in 2007.
ORGANIZATIONAL AMBIENCE
The Organizational Ambience Research is done every
year to know the employees opinion about dierent
aspects. Through it, employees can express their opinions and expectations about the Company, collaborating to improve working conditions and Companyemployee relations.
WWW.PETROBRAS.COM
53
Principle 3 Businesses should uphold

the freedom of association and
the eective recognition of the
right to collective bargaining
Freedom of
association
DIALOGUE WITH TRADE
UNION REPRESENTATIVES
IIn 2007 there were no cases of violation of freedom
the stakeholders, maintaining an ongoing bargaining
of association and collective bargaining practice. In

o
process for building solutions with the employees
aaccordance with Petrobras System code of ethics, the
union representatives
Company agrees to recognize the right of free assoC
In Argentina, 40% of employees are protected by
cciation of its employees, respect and valorize their
collective bargaining agreements. In Paraguay this
participation in trade unions and not to practice any
proportion is 31%. By the laws in Colombia, Libya,
kind of negative discrimination in relation to its union
Mexico, Nigeria, Peru, Turkey, USA and Venezuela
member employees. It also agrees to seek ongoing
employees cannot be union members.
reconciliation of interests and practice rights through
In Brazil, after various stages of bargaining,
institutional negotiation channels in its relationship
the 2007 Labor Collective Agreement was signed
with the unions that represent the employees.
between Petrobras, FUP and nine trade unions. With
Accordingly, in the relationship with its stake-
a two-year term for social and one year for economic
holders, Petrobras considers the unions to be priority.

Through them the employees claims are examined
clauses, the new ACT has 132 clauses and involves
and accepted, when approved.
PLR, risk, vacations, overtime, disability compen-
The collective labor agreement covers 100%
sation, adapted employee allowance, AMS, occu-
of Company employees and is signed between the
pational accident, cost of medication and benets
Petrobras Holding, its subsidiaries, FUP and the unions
such as daycare/companion allowance and school

allowance (preschool, primary and secondary).
for each category. There is constant dialogue between
54
such aspects as working conditions, wages, bonuses,
LABOR
Company recognition of
its employees right to
freedom of association
In event of major operating changes that might

affect the employees work, Petrobras provides
formal advance notice using the available in-Company communication media. In event of operation
downtime the notice is given 72 hours in advance.
However, changes are previously informed and
negotiated with the employees. The most signicant
changes and with major impact are informed after
a management process with gradual implementation of change, seeking to sensitize and prepare the
employees for the new reality.
ACT 2007 also provides that, in event of surplus
personnel as a result of restructuring or downsizing,
the Company assures relocation of employees to
other Units and, if necessary, oer further training.
In May, during negotiations of the Job Assessment
and Rating Plan (PCAC), workers were mobilized to meet
their claims. There was no downtime in production and
mobilization consisted basically of a shift delay.
WWW.PETROBRAS.COM
The Collective Labor

Agreement involves
all Company employees
in Brazil
55
Princpio 4 Businesses should uphold

the elimination of all forms of forced
or compulsory labor
Rejection of
forced labor
COMBAT AGAINST SLAVE
OR DEGRADING LABOR
Petrobras formally rejects slave or degrading labor.
Petrobra
This is why
wh it signed the National Pact for Eradication
of Slave Labor since its start in 2005. The initiative
was organized by Ethos Institute, Reporter Brasil and
w
tthe International Labor Organization. The Company
acts jointly with other institutions and companies to
combat this kind of practice.
The Petrobras policy of social responsibility
approved in 2007 makes specic reference to the topic:
Labor Principles: to uphold the eradication of child,
slave and degrading labor in the Petrobras System production chain. The concept of social responsibility
associated with this policy also does not permit degrading, child or slave labor.
In accordance with its code of ethics, the Company
agrees to select and contract suppliers and service providers on the basis of strictly legal and technical criteria
of quality, cost and punctuality, and requires an ethical
prole in its management and social and environmen-
56
LABOR
tal responsibility practices, refusing practices of unfair

competition, child labor, a compulsory workforce and
other practices contrary to the principles of this code,
including in the production chain of such suppliers.
There is no case of forced or slave-like labor in the
operating or administrative activities of the Petrobras
System. However, to prevent such practices in its supplier chain, the Company adopts ethical, legal and
human rights criteria when selecting and contracting
suppliers. All contracts for procurement of goods or
services have clauses banning child, forced or degrading
labor. Should such practices be discovered the contract
is cancelled immediately.
In recent years, due to the growing demand of
national and international markets, there has been a
sharp rise in the number of ethanol suppliers. As a result,
Petrobras Distribuidora has intensied its assessment of
ethanol procurement contracts to prevent any possibility of a degrading labor situation in sugarcane plantations. Petrobras Distribuidora regularly performs surveys with the register of employers and people charged
for slave labor exploration, also called a black list
There is no case
of forced or slave-like
labor in Petrobras
System administration
or operations
of the Ministry of Labor and Employment (MTE), to

appraise suppliers in terms of labor relations.
In July 2007, Petrobras Distribuidora found out that
the company Pagrisa based in Par State was caught
red-handed by the Mobile Anti-Slave Labor Group of the
land reform movement of MTE, which is why any spot
procurement was immediately suspended.
In December, the company Agropecuria e
Industrial Serra Grande (Agroserra), another supplier of
Petrobras Distribuidora, was also black-listed. However,
the Brazilian judiciary granted an injunction that forced
MTE to remove it from the black list. Petrobras is following the case at the Ministry of Labor and Employment
and awaiting the nal decision.
WWW.PETROBRAS.COM
57
Principle 5 Businesses should uphold

the eective abolition of child labor
Guaranteeing the
rights of the child
and adolescent
STEPS TAKEN AGAINST
CHILD EXPLOITATION
The Company
Com
rejects the use of child labor in its
In September 2007 the Company also created the
facilities and supplier chain. In 2007, no operations

facili
FIA Committee, a jurisdiction that analyzes proposals
were found with a signicant risk of child labor in the
and decides on the allocation of 50% of the funds. The
Petrobras System.
Petro
remaining 50% is given to Conanda, and 25% of this
E
Each year the Company transfers funds in sup-
amount goes to councils in Petrobras regions of inu-
port of the Childhood and Adolescence Fund (FIA),
ence. This committee consists of two Petrobras rep-
which was created to raise funds for adopting policies,
resentatives and six representatives from public and
actions and programs to protect children and adoles-
civil society institutions: UNICEF; Conanda; Abrinq
cents. The resources are preferably invested in projects
Foundation; Center of References, Studies and Actions
that protect the rights of children and adolescents in a
for Children and Adolescents (Cecria); Andi and the
situation of social or personal risk, that combat child
World Childhood Foundation (WCF).
labor, provide youth professional training support and
In the scope of its social investments, priority is
give guidance and social-family support.

In 2007, Petrobras transferred R$ 43.2 million to
given to the protection of children and adolescents.

Such actions include renewing the partnership with
the National Council of the Rights of the Child and
the United Nations Childrens Fund (UNICEF) and
Adolescent (Conanda) and to FIA in 19 states and
support to the national pact for A Better World for
176 counties in Brazil. The transferred resources are
the Child and Adolescent in Semi-Arid Brazil, signed
deducted from income tax and the value is restricted
in April 2005 by the federal government, the states in

the semi-arid region, Petrobras and non-governmental
to 1% of the tax due that year.
58
LABOR
organizations. The pact is the result of a UNICEF proj-
zines, portals, radio and TV broadcasting stations,
ect to collaborate to reduce poverty and inequalities
and in NGOs and other organizations of the third
in Brazil and achieve the Millennium Development
sector, whose work is based on commitment to the
Goals (MDGs). The semi-arid region in Brazil is one
social agenda and the rights of the child and adoles-
of the most populated and dry regions in the world,
cent. Petrobras is one of the sponsors of the Childs
covering most of the states in Northeast Brazil. More
Friendly Journalist project, which each year awards
than 27 million people live there, of which around 13
journalists who were most outstanding on this topic.
million are children and adolescents between 0 and

17 years old, 75% of which are poor.
The A Better World for the Child and Adolescent
in Semi-Arid Brazil pact includes UN-dened targets
TRANSFERS TO FIA (R$ MILLION)

YEAR
2005
2006
2007
Transfer
40.8
48.6
43.2
based on the Millennium Development Goals (MDGs),

by 2015. Special mention is given to eradicating the
YOUTH AND ADOLESCENT

CAPACITY BUILDING
abject poverty and hunger, drop in infant mortality and
In 2007, Petrobras invested around R$ 26 million in
access to basic and primary education. The strategies
professional training of 2,447 young people between
required to achieve the targets of the pact are adopted
15 and 17 years old through the Petrobras Young
which Brazilian local governments should achieve
through a national committee of UNICEF, Petrobras,
Apprentice Program. The program evidences the con-
federal and state government representatives and
cern of the Petrobras System to meet all the require-
other partners in civil society.
ments provided by Law 10,097 dated September 19,
Since 2003 the Company has been sponsoring

the On the Right Road (Siga Bem Criana) included
2000, regulated by Decree 5,598 dated December 1,
in the On the Right Road, Truck Driver (Siga Bem
Program is the professional development and social
Caminhoneiro) project and Dial 100 of the federal
inclusion of young people who are in a vulnerable
governments Special Human Rights Secretariat to
socio-economic situation. The programs strategies
mobilize society against the most perverse form
are personal and professional qualication for inclu-
of child labor: sexual exploitation of children and
sion in the labor market by developing communica-
adolescents.
tion and written skills, for example.
2005. The purpose of the Petrobras Young Apprentice
The On the Right Road project promotes the
The work projects undertaken are: qualifying the
Statutes of the Child and Adolescent by disseminat-
young for the working world; teaching the young to
ing Dial 100, a direct dialing toll-free service for accu-
face the market knowing their labor and social rights;
sations of violence against children and adolescents.
health and safety; access to education, citizenship
The service also accepts accusations giving informa-
and full practice of rights, with information on qual-
tion about the whereabouts of missing children and
ity of life, environment, gender and ethnic issues and
adolescents and instructs the users on how to proceed
human rights.
in cases of disappearance.
The program accompanies the output of the
As an extension, Petrobras runs campaigns in the
young people in basic education, by integrating them
service station chain and radio and television pro-
in the local education system and furthers educational
grams to encourage truck drivers and drivers in gen-
actions to collaborate with the culture of social respon-
eral to denounce cases of sexual abuse and violence
sibility, entrepreneurial capacity, critical, investigative
against children and adolescents on Brazilian roads
thinking, and a conscience of solidarity.
and highways. According to the report by the Special
One of the selection criteria is to seek a balance
Human Rights Secretariat, the average number of

accusations has been on the rise every year. In 2007,
between gender, race, ethnic groups, young people

with disabilities, others who live in vulnerable social
67 accusations were registered each day.
places, and prioritizing the young who fulfill socio-
The Company is also one of the partners in the
The Company
invested
26
million
reais in
professional
training of 255
young people
in the 15-17 age
group through
the Petrobras
Young
Apprentice
Program
educational measures that do not restrict freedom.
News Agency for Childrens Rights (Andi). The Andi

network recognizes communication professionals
who work in the news desks of newspapers, magaWWW.PETROBRAS.COM
59
Princpio 6 Businesses should uphold

the elimination of discrimination in
respect of employment and occupation
Combat against
prejudice and
discrimination
ACTIONS FOCUSING
ON DIFFERENT GROUPS
Petrobras promotes in its workforce a culture of
Petrobra
in 2006, and it proposes to discuss and prepare

related issues. The committee is coordinated by
for values, ethnic groups and creeds of indirespect fo
the Ombudsmans office and includes representa-
viduals, encouraging personal and professional
tives from 13 areas in the Company, as well as from
d
development.
Petrobras Distribuidora, Transpetro and Petros.
It agrees, in its code of ethics, to respect and pro-
One of the committees major achievements was
mote diversity and combat all forms of discrimina-
the recognition of the union of couples of the same
tion by means of the transparent policy of recruitment,
gender. Since 2007, they all are entitled to include
training, career promotion, moving up the ladder and
their partners as dependents in the Multidisciplinary
dismissal. No employee or potential employee will be
Health Care (further information in page 65).
treated with discrimination because of race, skin color,
To comply with the code of ethics, which forbids
ethnic origin, nationality, sexual position, personal
any practice of discrimination, Petrobras maintains
appearance, physical, mental or psychic condition,
the Ombudsmans office as a special channel to
marital status, opinion, political conviction or any
receive denouncements. As a channel for any kind
other factor of individual dierentiation.
of complaint, the Ombudsmans office can receive
Moreover, the Diversity topic is stressed in the
accusations of discrimination, forwarding them to
social responsibility policy, in which the Company
be addressed by the relevant areas. From 2008 on, the
agrees to respect human and cultural diversity of its
computerized system for dealing with complaints will
workforce and of the countries where it operates.
consider the Discrimination category, divided in the
The Diversity Committee was created by the
60
Management Committee for Social Responsibility
following issues: race; religion; gender; customs; sexLABOR
The Petrobras code

of ethics condemns
discrimination
ual orientation; union membership; freedom of asso-
PROPORTION OF BASIC WAGE BETWEEN MEN AND WOMEN
ciation; ethnic origin; skin color; nationality; social
TYPE OF EMPLOYEE
position; personal appearance; physical, mental or
MIDDLE LEVEL PROPORTION

FEMALE
MALE
51%
49%
psychic condition; marital status; opinion; political
Employee with no-bonus occupation
conviction; and occupation of jobs and duties.
Employee with bonus occupation
50%
50%
Total
50%
50%
In 2007, the Company received an accusation of

sexual harassment on platform P-33 in the Campos
TYPE OF EMPLOYEE
Basin Business Unit (UN-BC). An administrative
TOP LEVEL PROPORTION

FEMALE
MALE
assistant, contracted by a service provider, informed
Employee with no-bonus occupation
46%
54%
that she had been harassed by her boss, also recruited
Employee with bonus occupation
48%
52%
by the same company. Petrobras set up a disciplin-
Total
47%
53%
ary committee to investigate the accusation which

resulted in a request to the outsourcee company
* The above table gives the distribution of the basic wage (fixed value and minimum paid to the employee for performing his or her tasks, not including any extra pay) between men and women in the Petrobras System, detailed by employees with and without bonus occupation, separated by the educational level of their occupations.
to remove the professional involved in the UN-BC

operations and the return of the assistant to the outsourcee personnel.
In-company registrations were also made of
another 26 accusations in Exploration & Production
Business Units. The claims were examined and solutions sent to the managers in charge, resulting in reconciliation between the parties and, in some cases, a
WWW.PETROBRAS.COM
61
COMBAT AGAINST PREJUDICE AND DISCRIMINATION
The proportion of women in the

workforce increased from 12% in 2003 to
15.5% in 2007
warning and suspension for the perpetrator. Petrobras
by a woman, minister Dilma Roussef. In 2007, for the
not only has the Ombudsmans oce for communi-
very rst time in Petrobras, a woman was appointed to
cating such facts but also a channel for an outsourcee
a seat on the executive board.
ombudsman in UN-BA.
The Company implemented for the second year

the For Gender Equality Program, run by the fed-
EQUALITY IN CORPORATE
MANAGEMENT
Policies. The purpose is to further equal opportunities
The number of women among the total 68,931
between men and women in companies and institu-
employees in the Petrobras System is 10,722, or
tions, including when occupying higher positions in
15.5%. There has been an increasing number of
the hierarchy and developing new concepts in people
female employees since 2003. That year, the Petrobras

Holding had 4,406 female employees, correspond-
management and organizational culture.

From the successful actions, Petrobras was again
ing to 12% of the entire personnel. The proportion of
awarded the For Gender Equality Seal 2007. One of
women today who occupy senior positions in Brazil
the projects worth mentioning is Women on the Right
is 13.5%.
Road, which seeks to raise the question of violence
The number of female employees outside Brazil is
against women among truck driver groups and inform
even more signicant. In 2007, there were 1,837 or
them about the current Brazilian laws against domes-
27.08% - female employees of the total 6,783 business
tic and family violence.
unit employees abroad.

The chair of the board of directors is occupied
62
eral governments Secretariat for Womens Special
Two other successful actions were the publication

of the book As Mulheres e a Petrobras, [Women and
LABOR
PRINCIPLE 6
NUMBER OF EMPLOYEES BY GENDER*
PETROBRAS SYSTEM
TURNOVER RATE BY AGE GROUP

AGE
58,209
Men
10,722
Women
MALE
FEMALE
TOTAL
Under 30
1.94%
0.54%
2.48%
30 -45
1.07%
0.20%
1.27%
45 -60
0.46%
0.07%
0.53%
Over 60
0.03%
0.00%
0.03%
Total
3.50%
0.81%
4.31%
The turnover rates per region were not consolidated.
* Includes the international area
NUMBER OF EMPLOYEES - BY AGE GROUP*
8,242
26 - 30
6,446
31 - 35
5,826
36 - 40
11,570
41 - 45
13,477
46 - 50
9,404
51 - 55
2,496
56 - 60
696
61 and over
Principle 6
3,991
Up to 25
* Only in Brazil
Petrobras], a series of photographs of the female work-
developed since 2007. Data collection and analysis of
force, portraying around 150 women; and the support
the results will be provided in 2008.
for the campaign of the Sixteen Days of Activism for
In addition to the work to encourage diversity
the End of Violence against Women. The show Por
focusing on the internal public, the Company supports
uma vida sem violncia [For a life without violence] was
and sponsors external projects in partnership with
held in Rio de Janeiro, with the voluntary participation
companies, public institutions or non-governmental
of over 40 artistes musicians, actors, writers and
organizations, focusing on specic publics, such as
a public of around 1,500 people.

Law 10,098 of 2000 and Decree 3,298 of 1999
African descendents, women, indigenous populations,

and people with disability.
provide that every Company with over a hundred

employees is obliged to allocate 5% of its vacancies
to people with disability. The total 68,931 employees
in the Petrobras System include 6,783 employees outside Brazil not subject to Brazilian laws. The remaining 15,767 occupy positions in which the vacancies
are reserved and 1,026 of these employees are people
with disability, corresponding to 6.5% of personnel in
that condition.
The next programmed actions include the House
Census, which has been planned and its methodology
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63
CASE STUDY LABOR
Stable same-sex union
64
LABOR
From July
Ju 2007, the Petrobras Multidisciplinary
Although the 1988 Federal Constitution does
Health Care Program (AMS) covers employees who

H
not consider recognition of these partnerships, sev-
have a stable union with partners of the same sex. In
eral courts of justice are coming to an understand-
ccompliance with the same criteria adopted for heteros

sexual
couples, the inclusion is pursuant to the Human
ing and making major advances to acknowledge

such unions.
Resources Corporate Policy and committed to respect
Greater acceptance by the organized civil soci-
the diversity assumed in the code of ethics.
ety of same-sex unions leads the courts of justice to
Comunidade
visitada was taken by
The initiative
pelos pesquisadores
do Projeto PIATAM,
Resources
area innapartnership with
Amaznia
the Human
understand that they have moved from just social
Institutional
discussion to the territory of private relationships.
Communication and the Ombudsmans office,
With its recognition, the Company is in line
through the Diversity committee. In line with the
with state and local governments, and public and
constitutional principles of equality, dignity and
private organizations at home and abroad that adopt
non-discrimination, the stable same-sex union
similar models to guarantee equal rights to same-
is included in the Companys strategy of social
sex partners. In this way, Petrobras widens its hori-
responsibility. The immediate outcome was the
zons and adapts to the principles of equality and
request by 46 employees to register their partners.
non-discrimination of the Universal Declaration of
In September that same year, Petros Plan, the
Human Rights and the UN Global Compact.
pension fund for Petrobras employees, accepted

same-sex partners for granting social security benets. When INSS, which has been acknowledging
such unions, grants the pension on the partners
death, Petros the second largest supplementary
pension plan in Brazil pays the supplement benet corresponding to the registered partners.
This practice reects a new trend by the ocial
social security body, which has standardized health
plan benefits to the public servant, and extended
acceptance to same-sex partners. Moreover, the
Judiciary tends increasingly to recognize evidence that
there is a family nature or stable union in this type of
relationship, and some Brazilian states and counties
now have specic regulations on this matter.
WWW.PETROBRAS.COM
Recognition
mirrors the
commitment to
diversity in the
code of ethics
65
66
ENVIRONMENT
WWW.PETROBRAS.COM.BR
Environment
Petrobras environmental actions have received R$ 1.976 billion in
investment in 2007. Some of the highlights are monitoring ecosystems,
rehabilitating impacted areas and the management of natural resources, air
emissions, effluents, waste and emergency preparedness. The Company
target, in line with the challenge to contribute to mitigating global climate
change, is to prevent emission of 21.3 million tons of CO2 equivalent
between 2007 and 2012. Its share in the biofuel segment will increase in
accordance with its 2020 Strategic Plan.
WWW.PETROBRAS.COM
67
Principle 7 Businesses should

support a precautionary approach
to environmental challenges
Performance on
Health, Safety and
Environment
INVESTMENTS IN ENVIRONMENT
during the year in sponsorships for environmental
IIn 2007, Petrobras invested R$ 1.976 billion in
programs and projects.
environmental
e
aspects of its operating processes,
energy
e
consumption management, for example.
ENVIRONMENTAL
AND TECHNOLOGICAL
DEVELOPMENT
Other highlights included improving quality and
In 2007 Petrobras became a member of the World
development of new products, such as biofuels and
Business Council for Sustainable Development
alternative energy sources, in addition to invest-
(WBCSD), an international business initiative focusing
including
i
upgrading air emission management,
r
reducing
contaminants in euents, and water and
ments in research and technology to enhance envi-
on sustainable development. This is in line with its striv-
ronmental performance of processes and products.
ing for excellence in Health, Safety and Environment
An investment of R$ 51.7 million was also made
(HSE) in its operations and areas of inuence.
TOTAL EXPENDITURE AND INVESTMENTS IN ENVIRONMENT

DESCRIPTION
Environmental expenses relating to Company production/operation

Expenses with rehabilitation projects of degraded areas, reforestation, etc.
Expenses with pollution control equipment and systems
Sponsorships
Total
68
R$ 000
1,632,576
233,103
59,019
51,728
1,976,426
ENVIRONMENT
HSE Guidelines 1 Leadership and Responsibility 2 Legal Conformity

3 Risk Assessment and Management 4 New Projects
5 Operation and Maintenance 6 Change Management 7 Procurement
of Goods and Services 8 Capacity Building, Education and
Consciousness 9 Information Management 10 Communication
11 Contingency 12 Community Relations 13 Accident and Incident
Analysis 14 Product Management 15 Ongoing Improvement Process
The HSE Management Committee was created
ment of environmental impacts and hazards, dam-
in 2002 consisting of nine executive managers from
ages and risk assessment, covering impacts on health,
dierent areas in the holding Company, one director
property and the environment.
from Petrobras Distribuidora and an executive man-
The ten Environmental Protection Centers
ager from Transpetro. Some of its tasks are to advise
(CDAs) complement the local contingency plans
the senior administration when dening and updating
in operational units. For fast action in emergencies,
the HSE policy in line with strategies; to critically ana-
13 advanced CDA bases and three vessels are dedi-
lyze HSE performance; to dene instructions for con-
cated to combating emergencies in Rio de Janeiro
ducting operations; establish and continue updating
(Guanabara Bay), So Paulo and off the coast of
HSE management-related strategies; to promote use
Sergipe and Alagoas.
of HSE indicators and follow up their results in con-
When addressing management challenges, the
junction with the units. The committee also proposes
2020 Strategic Plan includes technology as one of
upgrade actions in the area, submitted to the Business
the key points of new strategic projects. In this way it
Committee and later to the Executive Board.
strives to be a global benchmark in technologies that
In many cases, Petrobras actions exceed legal prevention measures. The concepts of the Principle of
contribute to the sustainable growth of Petrobras in oil,

natural gas, petrochemical and biofuel industries.
Precaution are adopted in environmental impact and
Leopoldo Americo Miguez de Mello Research
risk assessments for new projects or when making

changes to existing facilities.
and Development Center (Cenpes) is adding a further

190,000 square meters to its area. The work is expected
Company projects in their concept stage include
to be completed by early 2010. Cenpes will include 227
risk analysis. In the undertakings Environmental
research laboratories, 90 more than the current facili-
Impact Assessments and Reports on Environmental
ties, with emphasis on biotechnology, environment
Impacts (EIA/Rima) are made. Construction and
and natural gas, and renewable energies.
assembly stages include surveys of aspects and assessWWW.PETROBRAS.COM
Research and development (R&D) investments
69
ACTION IN HEALTH, SAFETY AND ENVIRONMENT
HSE team in training

using new oil contention
and collection equipment
in Campos Basin
R&D
investments of
were R$ 1.71 billion, 8% up from the R$1.58 billion
The 2007 Inventor Prize was awarded to 190
invested in 2006. Highpoints are also partnerships
researchers for 77 new patents in recognition of
with universities and Brazilian research institutes
the creativity and innovative capacity of Petrobras
to undertake R&D work. By 2008, 45 cooperation
employees and in conformity to the laws regulating
agreements in Brazil will be signed to implement 38
industrial property in Brazil. Since its creation in 2001,
thematic networks and seven regional centers.
460 patents have been awarded for privilege petitions
Petrobras will invest R$ 793.5 million to imple-
deposited since 1998. The Petrobras Technology
ment this new partnership system in 71 institutions
Prize, also, encourages talent-spotting and ground-
in 19 Brazilian states between 2006 and 2008. In 2007

it invested R$ 203.6 million. As provided in the regu-
breaking work of interest to the oil, gas and energy

segment. In its third year 25 works from 16 institu-
lations of the Brazilian Oil, Natural Gas and Biofuel
tions were awarded prizes. Overall, 421 works have
Agency (ANP), a clause in the concession contracts
been registered from 90 learning and research insti-
for oil and gas production states that 0.5% of the
tutions. The most recurring topics are environmental
Companys gross revenue is to be invested in R&D
preservation and energy.
work with Brazilian universities and research centers.
1.71
billion
reais, 8% more
Brazilian Institute of Industrial Property (Inpi) for
than in 2006
from vegetable waste. Petrobras deposits an average
In August the Company was awarded by the

the thousandth request deposited for a patent a
manufacturing breakthrough in processing ethanol
of 80 patent requests a year.
70
ENVIRONMENT
PRINCIPLE 7
Businesses should support a precautionary

approach to environmental challenges
STRATEGIC MANAGEMENT
CHALLENGE
former US vice-president Al Gore. The prize is in rec-
The 2020 Strategic Plan, considering the 2020 busi-
ognition of the importance of disclosing information
ness outlook, emphasizes climate change and envi-
about climate change and the measures to be taken for
ronm
ronmental pressures. One of the dened management
its mitigation. The IPCC membership includes around
challenges
chall
is to achieve excellence in the energy sector
2,500 scientists worldwide who discuss, compile and
with fewer greenhouse gas emissions in the processes
disseminate studies on the topic.
and products, contributing to sustainability of business and mitigating global climate change.
the agency that shared the 2007 Nobel Peace Prize with
Petrobras employees were commended for their

participation in the special report CO2 Capture, Storage
The Technology Program for Mitigating Climate
and Sequestration. This report addresses the green-
Change (Proclima) was created to provide techno-
house effect and includes information about carbon
logical solutions to reduce the effect of Company
dioxide, for example: survey on emissions; specic cap-
operations and products on global climate change.
ture techniques; transportation and storage in ocean
The program focuses on assessing environmental per-
geological formations, mineralization or in industrial
formance in the life cycle of fossil and renewable fuels,

energy eciency, carbon sequestration and impact
processes. Carbon sequestration is also analyzed in economic and legal terms.
assessment, vulnerability and adaptation of Petrobras
In August a series of studies began in partner-
activities to climate change.
ship with the Foundation for Coordination of Projects,
The Company specialists are members of the
Research and Technological Studies (Coppetec) linked
research team that prepared the report for the
to the Federal University of Rio de Janeiro on threats and
Intergovernmental Panel on Climate Change (IPCC),
opportunities in the oil and gas sector relating to global
WWW.PETROBRAS.COM
Principle 7
Climate
change
71
CLIMATE CHANGE
climate change. The Company should take the pro-
The Company sponsored the 1st Brazilian
posed actions against carbon risk. The 28-month project
Symposium on Global Environmental Change on March
assesses various policies that are in progress in the world,
11 and 12 in Rio de Janeiro, with 22 talks on four topics:
or may possibly be adopted by a number of countries in
Climate change and variations and its impacts on Brazil;
short and mid terms, in addition to analyzing its possible
Climate change and biodiversity; Global bio-geochemi-
impacts on petroleum and byproduct prices.
cal cycles and climate; and Human dimensions of global
In December the 13th Conference of the Parties

(COP-130 on the Framework Convention on Climate
change in environment. Petrobras also supported the 1st

Brazilian Seminar on Carbon Sequestration and Climate
Change and the 3rd Meeting of the Parties of the
Change, in April in Rio Grande do Norte.
Kyoto Protocol (CMP-3) were held in Bali, Indonesia.
As part of the activities of International
On this occasion, negotiations were established for
Environment Day, the Company held a discussion on
the future of the Kyoto Protocol after 2012. Petrobras
the topic Energy and global warming challenges in
accompanied the negotiations and parallel events.
search of sustainability in its headquarters.
Investments in developing carbon capture

technologies and in mitigating climate change will be
reais between 2006 and 2008
14 million
REDUCING INTENSITY OF
EMISSIONS AND CARBON
SEQUESTRATION
In its Business Plan Petrobras denes its targets for
Carbon sequestration may occur directly with a
total prevented emissions of greenhouse gases. By 2012
process involving separation of the CO2 from exhaust
the total forecast is 21.3 million tons of CO2 equivalent
gases, capture, transportation and storage in under-
of prevented emissions.
The Company intends to invest around R$ 14 million between 2006 and 2008 in the Thematic Climate
Change Network to develop carbon sequestration
ground geological reservoirs, or indirectly using carbon xed in biomass using reforestation and planting
vegetation.
In May Petrobras attended the Carbon Seques-
technologies and attenuate climate change by iden-
tration Leadership Forum in Pittsburgh organized
tifying possible environmental impacts for Petrobras

in Brazil. The investment in 2007 was R$ 6.3 million.
by the US Energy Department. The purpose of the
The Network, including prominent research insti-
ment carbon capture and storage technologies, and to
forum was to encourage emerging countries to imple-
tutes and universities, undertakes projects divided
exchange learning and good practices. Representatives
into 11 topics, including economic assessment of
from Brazil, China, Colombia, India, Mexico and South
carbon sequestration processes and socioeconomic
Africa participated.
and environmental impacts.
72
ENVIRONMENT
PRINCIPLE 7
Principle 7
Businesses should support a precautionary

approach to environmental challenges
Mapping,
monitoring
and reducing
impacts
CERTIFICATIONS AND
OPERATING LICENSES
At the eend of the year, 183 of the 227 certiable units
in Brazil (88% of the total) and 20 in other coun(100 altogether) were certified by Brazilian
tries (100%
and international
interna
organizations in accordance with
ards IISO 14001 (Environment) and BS 8800
standards
or OHSAS 18001 (Safety and Health). Moreover, the
Management Assessment Program, responsible for
measuring Petrobras HSE practices, was active in 40
operating units in Argentina, Brazil, Ecuador, Peru and
the USA during 2007.
All units operated under license from the environmental agencies or under specic agreements
Conduct Adjustment Agreements (TAC). In these
cases, the Company guarantees full compliance with
the obligations provided.
In order to achieve excellence in the licensing
process, Petrobras continued to implement the
Environmental Licensing Management Standard
and Quality Guarantee Standard of Environmental
WWW.PETROBRAS.COM
All units operate under license

from environmental agencies
or specic agreements, such
as the Conduct Adjustment
Agreement (TAC)
73
MAPPING, MONITORING AND REDUCING IMPACTS
Studies. The former provides uniform management

practices throughout the Company, assuring greater
control of its processes, considering accumulated
experience in its various licensed projects. The latter
Piatam project researcher,
Amazonas, coordinated
by Cenpes in partnership
with various research
institutions: UFAM, INPA,
COPPE and FUCAPI
seeks to enhance procedures for contracting studies

and ongoing supervision of the work done, based on
model-processes for Petrobras and environmental
agencies.
In 2007 the Company began reformulating two
information systems to provide critical analysis of
all environmental licensing processes by monitoring
recorded information, helping to control and fulll all
environmental licensing stages.
In relation to environmental compensation
under Law 9985/2000, which instated the Brazilian
Conservation Unit System, Petrobras signed various agreements to structure conservation units in
Brazil as a result of federal and state environmental
licensing. The action entails investments of around
R$ 203 million.
In October the Company was granted an environmental license from the Ecuador government to operate in block 31, which has a large part of its territory in
the Yasuni National Park (PNY). The park contains a
wide range of biodiversity and indigenous settlements
of the Huaorani tribe
Petrobras presented the Ecuadorian Ministries of
Environment and Mines with a project to develop the
Apaika Nenke eld, in accordance with the principles
of ecoeciency, and to minimize waste of resources,
energy demand and environmental impact. The project is based on modern exploration and production
techniques, and care to preserve nature and the social
aspects, as well as strictly comply with the Ecuadorian
regulations. The Environmental Impact Assessment
had already been approved by both ministries in
December 2006.
In 2007 the Company did not receive one major

fine, that is, one million reais or over, for failure to
comply with environmental laws and regulations.
The holdings accumulated penalties for the year
are R$ 388,704.40.
74
ENVIRONMENT
PRINCIPLE 7

undertake initiatives to promote greater
environmental responsibility
Consumption of
energy, materials
and natural
resources
REDUCTION IN ENERGY
CONSUMPTION
Petrobras used 554,421 terajoules (TJ) of direct energy
technical specifications for design, construction and
in 2007. But
B the results for the year by adopting the
procurement of goods and services involving energy
House E
Energy Conservation Program contributed
consumption. The Petrobras Guide to Opportunities
to
t a drop in the Companys energy consumption of
in Energy Efficiency instructs Company administra-
3
399,602
gigajoules (GJ). Added to the other energy
tors how to select designs for better energy use when
conservation and eciency projects, the result was
addressing practices that result in economic, energy and
399,626 GJ.
environmental benets.
The use of thermo-solar energy in the Company

is to conserve energy by implementing water heating
systems in restaurants and washrooms in dierent
operating and administrative units. The installed
capacity of collector plates for water heating gives a
current saving of 1.2 GWh. A saving of 2.8 GWh has
been accumulated since 2003 by installing 2,177
square meters of solar collectors.
Some of the tasks of the Companys 32 House
Energy Conservation Committees (Cices) are to calculate the potential cutting energy costs, take actions for
employee consciousness and participate in preparing
WWW.PETROBRAS.COM
A saving of 2.8 GWh since 2003

was made by installing 2,177 square meters
of solar collectors
75
CONSUMPTION OF ENERGY, MATERIALS AND NATURAL RESOURCES
CONSUMPTION OF DIRECT ENERGY BY SOURCE

(TERAJOULES TJ)
Diesel fuel
7,842
Fuel oil
80,155
Natural gas
322,291
Refinery gas
79,662
LPG
1,311
FCC coke (1)
63,116
Gasoline
32
Jet fuel
12
Renewable sources (carburant hydrous ethyl alcohol)
0.2
Total
554,421.2
1) FCC (Fluid Catalytic Cracking)
INDIRECT ENERGY CONSUMPTION BY SOURCE

(TERAJOULES TJ)
Bought steam (1)
4,579
Bought electricity
15,145
Total (2)
19,724
1) Contains only fuel consumption in Brazil.

2) In Brazil, the estimate is the consumption of 77,351 TJ by the energy suppliers in the
following sources:natural gas (50,288 TJ), diesel fuel (16,904 TJ) and fuel oil (10,159 TJ).
SAVED ENERGY
(GIGAJOULES GJ)
TYPE
2004
2005
2006
2007
Wind
16.1
19.8
17.4
19.3
Solar
1.2
1.4
2.4
4.3
Geothermal
ND
ND
ND
ND
Wave/tide
ND
ND
ND
ND
Biomass
ND
ND
ND
ND
Other (1)
0.32
0.39
0.46
399,602.46
Total (2)
17.62
21.59
20.26
399,626.06
1) Since 2007, now includes savings resulting from the House Energy Conservation Program.
2) One gigajoule is equal to 0.001 terajoule.
WATER
The Company collected 216.49 million cubic meters
biodiversity) or quantitatively by direct collection or
(m3)
euent discharge.
of freshwater (73% from surface sources, 23%
from underground springs and 4% from supply con-
The aim of the Annual Water Resources and
cessionaires and third parties) for use in its operations.

It also reused around 6.98 million m3 of water in its
processes and operations for Supply unit projects.
Effluents Report provided by the Standard of

Environmental Management of Water Resources and
Euents is to subsidize water management and be the
This volume corresponds to 5% of the total collected
ocial communication vehicle between the dierent
by the area for the period. The volumes of conden-
areas and companies in the Petrobras System, and
sate recovered in thermal cycles, re-circulated cooling
provide information on the topic to be accompanied
water and reinjected for secondary and tertiary oil
in a systematized, reliable and traceable manner. The
production purposes are not counted as reuse since
report was standardized and approved in 2007 and
they are considered normal practice.
will help build the Companys rst Inventory of Water
In 2007 Petrobras had no signicant records of

water sources being aected qualitatively (including
76
Resources and Euents already in early 2008.

Data Hidro, which is a computer corporate system
ENVIRONMENT
PRINCIPLE 8
Planting in the Piava

project, Itaja Basin,
Santa Catarina
data system on water resources and euents being

installed in the Company will permit registration and
consulting of quantitative and qualitative data of the
main water currents in the operating units, in addition to consolidating indicators and costs referring to
the use of water resources. This will facilitate checking compliance with quality standards for use of such
resources and euent discharge in the environment.
Corporate indicators of water resources and euents
will be adopted in January 2008.
The results of a study for building scenarios on
water availability inform the degree of urgency with
which the operating units must plan actions to anticipate possible shortage and identify potential alternative sources of supply. The study was concluded in
Principle 8
2006 and included 14 units operating in drainage

basins where the social availability of water tends to
diminish. It gathered information about the quality
of water bodies used as supply and the supportive
capacity of water bodies that receive euents from
these units.
When undertaking projects relating to the rational use of water in their facilities, emphasis is given
to water reused in oil production process, effluent purication for reuse and optimizing seawater
Materials and natural resources
desalinization systems on oshore platforms. One

purpose of the water reuse projects in progress is
for Capuava Renery (Recap) in So Paulo in early
2008 to become the rst in the Country with zero
disposal of euents.
The ecoeciency project of the Cenpes extension
aims to implement an euent reuse and treatment
plant to receive all oil spills, sewage and continuous purging from cooling towers, with a total ow of
72m3/h, and to generate 67m3/h industrial standard
reuse water. The project, with expected start-up for
Petrobras has not yet consolidated the total volume of materials used in
its processes, or percentage of these materials from recycling. However,
emphasis in its operations is on the tire-shale co-processing. The process
was developed in the Shale Industrialization Business Unit (SIX) and
consists of recycling useless tires with shale extracted from mining for oil
and other byproducts.
The process obtains gases, fuel oil and sulfur for use in agriculture
and pharmaceutical and vulcanization industries. The waste, mixed with
the processed shale, is used as feedstock for thermoelectricity plants
or returns to the soil without harming the environment. SIX receives the
useless tires from manufacturers and importers in five Brazilian states.
More than nine million tires have been processed since 2001, when the
technology was first adopted, to 2007.
2009, will also permit the collection of 80,000m3/year

of storm water.
WWW.PETROBRAS.COM
77
Businesses should undertake initiatives to

promote greater environmental responsibility
Principle 8
CARE WITH EMISSION CONTROL
tions, including sewage from its administration units.
The Air E
Emission Management System (Sigea) cat-
The volume also includes water disposal produced in
alogues and details the Companys air emissions,

alogu
the petroleum extraction process. The legal and house
involving greenhouse gases and regulated pollutants.

invol
criteria restricted the oil and grease load launched
The system
s
includes Petrobras operations and pro-
by effluents from all Petrobras facilities in 2007 to
vides data on more than 20,000 emission sources.
1,099.38 tons/year, 1% less than the load disposal in
Direct greenhouse gas emissions totaled

49.63 million tons of CO2 equivalent in 2007. This
All operating units have euent treatment plants,
total includes air emissions from the units at home
periodically upgraded as new water and euent man-
and abroad and from ships in its own and chartered
agement practices are developed and when new legal
fleets on international voyages. Indirect emissions,
restraints arise. Since 2008, qualitative and quantita-
associated with the procurement of electricity and
tive information on euent disposal in Petrobras is
steam in Brazil totaled 0.36 million tons.
now accompanied and consolidated in the Company
The emission of substances that destroy the
78
2006.
on a systematized and traceable basis.
ozone layer from Company processes and operations is negligible. Brazilian laws forbid government-
Of the total 296,000 tons of hazardous solid waste

from processes in 2007, 292,000 tons were reduced,
related companies direct, autarchic and other
in other words, treated in an environment-friendly
from procuring products or plant that contain or
manner, and the remainder is to be treated in 2008.
utilize such substances.
For waste treatment, mention should be given to the
During the year Petrobras disposed of 172.8 mil-
incentive for reuse alternatives 41% of waste was
lion cubic meters of water effluents from its opera-
allocated to reuse as alternative fuel in furnaces and

ENVIRONMENT
PRINCIPLE 8
4% recycled. And also to recycling lube oil and packaging in the distribution area.
Considering oil and byproduct spills, the
TOTAL DIRECT AND INDIRECT

GREENHOUSE GAS EMISSIONS
(MILLION TONS OF CO2 EQUIVALENT)
Company maintained its level of excellence in rela-
2006 is due mainly to the inclusion of the spill volume
0.36
(739m3) set for the year. The increase in relation to
0.57
51.56
386m3, 47.7% less than the admissible maximum limit
49.99
Indirect emissions (1)
50.43
86 occurrences were registered, totaling a volume of
Direct emissions
0.31
tion to the global oil and gas industry. During the year,
in distribution operations.
No waste considered hazardous under the
Basel Convention on the Control of Transboundary
Movements of Hazardous Wastes and their Disposal
49.86
51.25
did it transport any international waste.

2005
49.63
was transported, imported, exported or treated; nor

2006
2007
OPERATING HIGHLIGHTS
Prevented greenhouse gas emissions (PGHGE)
are one of the Petrobras strategic indicators, and one
1) Other indirect greenhouse gas emissions, as stated in scope 3 of the

GHG Protocol Initiative, are not part of the inventory scope and therefore
are not included.
of its corporate targets is the commitment to prevent

emission of 21.30 million tons of CO2 equivalent in the
period 2007-2012. Prevented emissions in 2007 were
2.53 million tons of CO2 equivalent, 24.6% higher in
AIR EMISSIONS
(000 TONS)
than the total for 2006, which was 2.03 million tons. The
PGHGE indicator refers to the performance of projects
NOx
included in the scopes of energy eciency, operating
SOx
improvements and optimizing flare burning and fuel
Other significant air emissions (particulate)
substitution/ alternative sources.
151.65
equivalent a day. Another action contributing to the
222.80
151.96
eciency and economizes around 2,800 barrels of oil
150.90
dinates and implements activities relating to energy
223.12
House Energy Conservation Program, which coor-
233.54
Since 1974 the Company has been adopting the
prevention of greenhouse gas emissions is the Campos

Basin Gas Use and Optimization Program, a volunteer
by installing and upgrading compressors, installing gas

pipelines and optimizing processing plants. In 2007,
2005
15.22
further use of associated gas produced in 24 platforms
17.11
17.24
project to reduce gas are burning. The program seeks
2006
2007
93 actions were completed resulting in a potential gain

in gas use of 4.2 million m3 a day.
One of the projects in 2007 to minimize environmental impacts is the hydrotreatment diesel plant
in Capuava Renery (Recap) which has a processing
capacity of 4,000m3 a day and includes a sour gas treatment section. The project allows simultaneous production of treated diesel and turpentine, eliminating
the production of wild naphtha, an euent harmful
to the environment.
WWW.PETROBRAS.COM
79
EMISSES, EFLUENTES E RESDUOS
Since 1974 the Company has been running the

House Energy Conservation Program which
coordinates and implements activities relating to
energy eciency and saves around 2,800 barrels
of oil equivalent a day.
TOTAL HAZARDOUS SOLID WASTE PER DISPOSAL METHOD

(TONS)
Storage on site (disposal in mines SIX Process)
21,662.3
Disposal in landfill
24,957
Incineration
16,417
Incineration (reuse as alternative fuel)
120,207
Recuperation
10,862
Reuse
148
Biological treatments
25,005
Underground injection
Other(1)
72,321
1) Waste treatment using more than one technology, employing, for example, thermal plasma, by heat desorption with direct or indirect flame.
PAST SERIES OF SPILLS (1)

(M3)
2003
2004
276
530
1) Counting oil and byproduct spills of more than one barrel (0.159
m 3)
2006
2007
269
293
386
aecting the environment.
In 2007, the semi-industrial plan began operating
through irregular pipes with closed bends and widely
using plus multiphase waste thermal treatment tech-
varying diameters to detect and quantify internal pipe-
nology, which allows reuse of up to 99% of the waste
line corrosion. The equipment called pig palito or
volume. When the waste is exposed to high tempera-
pipeline inspection gauge (pig) makes operations safer
tures the sediments, water and oil are separated. The
and permits corrective interventions before failure or
technology not only greatly reduces waste volume
spills occur, preventing environmental damage. The
and increases productivity but also strives for ecoef-
pig is a common device in the oil and gas industry, trav-
ciency, since it is a closed cycle without incineration
eling inside the pipeline and can have various func-
and emission of pollutant gases.
tions, for example, inspection, cleaning or physical
A totally flexible tool was designed to travel
80
2005
separation of transported uids.
ENVIRONMENT
PRINCIPLE 8
PRESERVATION AND RECOVERY

OF ECOSYSTEMS
tected areas within and outside its units in Brazil, in
Petrobras agrees in its code of ethics to contribute to

Petrobra
order to restore these ecosystems. Part of Presidente
preserving
preservin and recovering biodiversity through man-
Bernardes Renery (RPBC) is in a conservation unit
agement of potential impacts caused by its operations
the Serra do Mar State Park. This area occupies
aand by running projects to protect endangered areas
292.9 hectares, 42.7% of the refinerys total area.
aand species.
Some Supply units have specially protected areas in
In 2007 a working group was set up to be concluded at the end of 2008 to standardize concepts

actions to identify fragments of vegetation and pro-
their vicinity but there is not necessarily any impact

in such places.
and methodologies for the mapping process of the
The main objective of the Piatam Program
protected, sensitive and vulnerable areas in the zones
Potential Impacts and Environmental Risks of the Oil
aected by Company projects. The work intends to
and Gas Industry in the Amazon coordinated by
complement the information available to date and
the Federal University of Amazonas and Petrobras
produce an integrated and georeferenced database.
since 2001 is to collect data, information and samples
The action will also provide mapping of zones with a

high rate of biodiversity outside protected areas.
on ecosystems and human populations. It not only

furthers knowledge about the regions under study but
The areas aected by the operations are also being
also helps monitor and assess oil exploration impacts
demarcated and areas of total protection, sustainable
on the Amazon, prepare HSE management procedures
use and high biodiversity value in them will be sur-
which includes managing potential impacts on bio-
veyed. The data should be available by 2010.
diversity and helps dene various environmental
The Supply area is systematically taking specic

WWW.PETROBRAS.COM
Principle 8
Ecosystems and
biodiversity
and support projects for social development.
81
ECOSYSTEMS AND BIODIVERSITY
LAND USE IN LEGALLY CONSTITUTED PERMANENT PRESERVATION AREAS (APP)

SUPPLY AREA UNITS
BUSINESS UNIT (1)
TOTAL AREA
(HA)
Fafen-BA (Camaari, Bahia)
OCCUPIED
AREA (HA)
TOTAL APP
(HA)
% APP
42.34
41.95
72.4
27.9
8.34
11.52
Lubnor (Fortaleza, Cear)
Recap (Mau, So Paulo)
178.62
73.006
22.199
12.43
Reduc (Duque de Caxias,

Rio de Janeiro)
990.55
500.37
433.12
43.73
Regap (Betim, Minas Gerais)
873.77
203.17
167.04
19.12
Reman (Manaus, Amazonas)
990.4
406.6
47.1
4.76
923.81
456.468
38.03
4.12
4.3
Fafen-SE (Laranjeiras, Sergipe)
Repar (Araucria, Paran)

Replan (Paulnia, So Paulo)
Revap (So Jos dos
Campos, So Paulo)
981.2
576.5
42.2
Rlam (So Francisco de Conde, Bahia)
671.1
325.71
174.49
26
RPBC (Cubato, So Paulo)
682.9
263.3
97.3
14.25
414
105.5
15.6
3.77
SIX (So Mateus do Sul, Paran)

1) Data collection on Reman and Lubnor Units is in progress.
Some of the studies underway are focused on top-
preserved, to be later reintroduced to the reforested
ics such as limnology (freshwater and its organisms),
areas. The Exploration and Production Business unit
modeling (displacement of oil spills in aquatic envi-
in Rio Grande do Norte and Cear (UN-RNCE) signed
ronments), ora, tropical diseases, socio-economics,

aquatic macrophytes (aquatic plants), entomology
an agreement with the Cear State Environment

Supervision body to set up the Carnaubas Park
(insects), ichthyofauna (sh) and reforestation.
Conservation unit for Full Protection, and for eco-
A tool was designed and applied to assess the critical aspects in relation to biodiversity and it oers an
savanna biome and mountain rainforests of Cear.
overview of the various Supply units, based on socio-
Studies are undertaken to diagnose the marine
environmental aspects, impacts, business, legal and
environment, socio-environmental actions are taken
image requirements and relations. The results show
with neighboring communities, and farming-forest
which are the most critical units (this does not mean
systems, mangrove recovery projects and ecosystem
that they are causing major impacts). The units give
restoration are implemented. A legal requirement for
priority to the activities involving implementation of
the units is also to support maintenance projects or
the biodiversity management system.
create protected areas to compensate for new facilities
New projects in one of these units must prefer-
82
nomic ecological zoning of the caatinga or scrub
or upgrade of their projects.
ably avoid protected habitats and seek to protect areas
The survey is still incomplete regarding the num-
of permanent protection and preserve the fragments
ber of species on the IUCN Red List (International
of native vegetation. Some units adopt master plans
Union for the Conservation of Nature and Natural
that dene land use and occupation regulations, and
Resources) and on national lists of endangered species
consider the creation of Legal Reserve areas. One of
inhabiting areas inuenced by Petrobras operations.
the projects to recover degraded areas in 2007 was the
By using the maps of environments sensitive to oil
Mined Area Recovery Program (SIX), which during the
spills created by Cenpes, animal species were identi-
years restored 166 hectares by planting 186,000 seed-
ed whose habitats are in areas susceptible to dam-
lings. This program has been operating for 30 years
age in the event of oil spills from Transpetro opera-
and has reforested 550 hectares of a total 714 hectares
tions and the Sergipe and Alagoas Exploration and
of mined area.
Production Business Unit (UN-SEAL). Fifty-seven
In the Exploration and Production area, the
threatened species were included in the IUCN Red
Amazon Business unit (UN-AM) created a nursery
List and the list of endangered species of the Brazilian
for seedlings of native rainforest species used to
Ministry of the Environment (MMA), including
restore forest clearings, and provides an orchidarium

where orchid and bromeliad species are studied and
amphibians, reptiles, birds and mammals. The list

covers the coast of ten Brazilian states.
ENVIRONMENT
PRINCIPLE 8
Supply units have identified 41 animal species

and one plant on the IUCN Red List. Only one mammal is on the MMA list. In the UN-RNCE, seven species
of aquatic invertebrates and one sh species appear
on the MMA list.
Although it is not yet possible to list all endangered species found around Company facilities, eorts
are made to increase scientic learning in Brazil and
to conserve endangered and other species and ecosystems. Examples of these identied species are the
Parana pine (Araucaria angustifolia), and pied tamarin
(Saguinus bicolor) found only in the Manaus region in
the Amazon, inhabiting a remnant of vegetation inside
Isaac Sabb Renery (Reman). The migratory routes
of mammals and marine chelonians are also studied,
contributing to increasing learning about the movements and health of the populations of these animals
o the Brazilian coast.
Petrobras completed the first stage of the project of characterizing deepwater coral in the Campos
Basin, the largest oil-bearing province in Brazil. New
species, genera and families of marine invertebrates
were discovered, some never recorded before on the
Petrobras sponsors
projects that protect
endangered species, such
as the humpback whale
Brazilian coast. The study not only furthers scientic

knowledge but also contributes to keeping operating
licenses of projects, obtaining a license to install subInternational Cooperation to nance the oil pipeline
British Petroleum (BP) was held to exchange experi-
that will carry the production from Marlim Leste.
ences and increase understanding of the topic.
The Company signed an agreement with MMA
The corporate standard of Management of
and executive bodies of sponsored projects to con-
Potential Impacts on Biodiversity was approved in
serve marine biodiversity to develop joint lines of work
2006 and identication, analysis and forwarding the
to prevent extinction of threatened species and ele-
biodiversity requirements to be considered when
ments of Brazilian marine biodiversity, to reduce the
assessing new Petrobras projects are planned for 2008,
degree of threat in endangered species. The Integrated
plus completion of a corporate guide to biodiversity
Strategic Planning was designed for a ten-year period
management in the Company for a better understand-
(2007-2016) and includes the following projects:
ing. Other planned actions are to draft a biodiversity
Atlantic Right Whale, Humpback Whale, Spinner
policy, prepare a proposal on corporate indicators
Dolphin, Manatee and Tamar. These projects also
for biodiversity management, guidelines to include
take specic actions depending on the characteristics

of each species and region.
socio-environmental aspects in biodiversity action

plans (provided in the corporate model) and to iden-
Petrobras is a member of the International
tify requirements relating to biodiversity protection
Petroleum Industry Environmental Conservation
Principle 8
sea structures and a guarantee from the Japan Bank for
throughout the life cycle of biofuels.
Association (IPIECA), and participates in various

versity theme. In 2007 the WG meeting was held in
ENVIRONMENTAL
SPONSORSHIPS
Rio de Janeiro to discuss strategies and challenges in
In addition to the actions relating to environmental
biodiversity management, and a seminar for the inter-
management processes, Petrobras promotes the pro-
nal public attended by representatives from Shell and
tection and restoration of the main habitats found in
working groups, one of them focusing on the biodi-
WWW.PETROBRAS.COM
83
ECOSYSTEMS AND BIODIVERSITY

the area of inuence of its plants, by encouraging pub-
monitoring of its breeding grounds, environmental
lic initiatives by sponsoring environmental projects.
management, education and communication.
In Brazil, the Petrobras Environmental Program
The Keeping an Eye on the Water project in
includes projects with common objectives for the
Northeast Brazil aims to improve the quality of
promotion and consciousness of communities in the
water systems in the Icapui coastal plan in Cear.
rational use of water resources and to maintain and
Its work includes environmental diagnosis of the
restore landscapes for the water cycle to function, as
coastal region and marine ecosystems, and uses
well as promote management and conservation of the
techniques of rational use of water resources. One
species and threatened oshore environments. The
of the expected results is groundwater depollution,
theme of the program, created in 2003, is Water: fresh
recovering mangroves and protecting the habitat of
and salt water bodies including their biodiversity
the manatee and migratory birds.
and invested R$ 38.9 million in 2007.

Every two years public selection processes for
The Caring for the Water project encourages

preservation and recovery of the Atlantic rainforest
new projects are held in order to increase societys
in Conservation Units in Rio de Janeiro, and helps
access to the sponsorships. The dierent stages are
restore the quality of the water. The project takes
conducted by Petrobras, MMA, civil society repre-
actions on environmental education, capacity build-
sentatives and academics. The projects in the first
ing, gallery forest rehabilitation and reforestation of
selection were more than 250 counties, with 900,000
small rural areas.

In the Business unit in Colombia, support for the
hectares of direct influence. The 36 projects in the

second public selection are in progress.
project Proteccin Tortugas Marinas helps protect
The aim of one of these projects Goliath
the sea turtles that cross the Colombian Caribbean,
Groupers Strategies for Conservation of
where they nd food and is a migratory corridor for
Brazilian Coastal and Marine Environments is to
dierent species to lay their eggs on the beaches of
protect the goliath grouper, a marine sh extremely
Tayrona Park. The sponsorship also involves man-
threatened in nature. Actions involve research and
agement and maintenance of nests and building
conservation, with the participation of shermen to
more suitable facilities.
collect data and exchange information, surveys and
INVESTMENT IN ENVIRONMENTAL PROJECTS IN 2007

LINE OF ACTION
R$ 000
Restoration and conservation of environments relating to water bodies
12,182
Promotion and practices of rational use of water resources
9,635
Implementing integrated management of water resources
7,890
Marine biodiversity
6,859
Other (events, publications and other projects)
15,162
Total (*)
51,728
(*) Of this total, R$ 38.9 million was invested through the Petrobras Environmental Program
84
ENVIRONMENT
PRINCIPLE 8
ENVIRONMENT STANDARDS
INCLUDED IN CODE OF ETHICS
physical and chemical properties, environmental and
Petrobras agrees in its code of ethics to uphold stanPetrobra
in case of accident. The labels of the product packag-
dards of excellence in environment to guarantee
ing, principally lube oils, also contain information

health hazards, handling precautions and procedures
products
product and services that meet its client expecta-
about handling and use precautions, and disposal
ttions and environmental legislation in Brazil and the
of packaging.
ccountries where it operates. It also agrees to provide
Since 1994, the On the Right Road project has
its consumers, clients, community and society with
been operating as a systemic assistance network for
information about any environmental damages result-
truck drivers in Petrobras service stations strategically
ing from improper use and the nal destination of its
located along the main Brazilian highways. Services
products.
are provided, such as assessing the vehicle conditions
The production processes are managed based
and regulating the engine. The Keeping an Eye on
on safety procedures and control of environmental
Fuel confirms the quality of the Petrobras fuel and
impacts. Standard ISO 14001 stipulates that risks
looks to sensitizing resellers and end consumers when
associated with the products must be monitored and
explaining the problem of adulteration and its dam-
proper procedures adopted to minimize these risks.
ages. Another prime action is recycling used lubes and
The chemical safety information cards (FISPQ) in
their packaging.
Portuguese, English and Spanish are designed and
Petrobras Distribuidora developed a life cycle
updated for all Company products. The card contains information about composition of the product,
study that compares environmental performance

of the conventional and ecological asphalt (which
WWW.PETROBRAS.COM
Principle 8
Products,
conformity and
transportation
85
PRODUTOS, CONFORMIDADE E TRANSPORTE

uses recycled tire rubber). The HSE Handbook for
Production Management by Clients and Partners
general guidelines for both goods and passenger trans-
is being standardized and is the first handbook on
portation at the service of Petrobras, as safe as possible.
fuel oil. It is a pilot project for a computer system
Increased transportation safety reduces the rate of spills
on product management to follow up and improve
and impacts on the environment. This regulation also
waste management from marketed products. The
provides for exercising or demanding control of pol-
operation of the service station network substituted
luting emissions of vehicles at the Companys service,
the old for new jacketed and two-compartment
under prevailing environmental laws.
tanks (in 2007, 827 new tanks were installed), and

819 preventive watertight tests were run.
Petrobras
Road
Transport
Safety
standard seeks
maximum
safety for
people and
merchandise
The Road Transportation Safety regulation provides
The Responsible Transportation Program of

Petrobras Distribuidora aims to improve the qual-
The subsidiary also takes actions to collect, recy-
ity of the subsidiarys transportation, which includes
cle and reuse waste from some of the products that it

sells, such as lube oil, for example. In compliance with
as one of its projects meetings with carriers, and the

Cool Driver campaign that assesses the drivers state
Brazilian law, the collection of used oil was more than
of health. Liquigs is gradually substituting its fleet
30% of new oil sales, with waste going to re-rening
dedicated to exclusive use for transporting products,
throughout Brazil. Also by prevailing laws, more than
with new vehicles that have a lower degree of air pol-
20% was collected of used lube oil packaging in Rio de
lution emission. For safe people transportation strict
Janeiro and Rio Grande do Sul. The percentage of what
criteria are dened in relation to specifying vehicles
was actually recovered, recycled or reused asphalt is
and driver conduct requirements.
more than 80%.
In 2007, Verana diesel was put on the market as
Liquigs sells its LPG in returnable bottles. All bot-
a specic fuel for the leisure sailing market. It has a
tles undergo a treatment process before being lled with
98% reduction in sulfur content (maximum 200 ppm),
LPG, and all are reused - around 21 million bottles. In
compared to the conventional marine diesel (10,000
2007, Liquigs rehabilitated around 7.8 million bottles.
ppm), and also oers a better performance and dura-
ANP states that the Company must rehabilitate around
bility of the engines and reduces the smoke by up to
100,000 bottles a month. Rehabilitation is the total
83% in relation to marine diesel fuel.
recovery process of the cylinder so that it can be used

in complete safety for more than ten years.
Sulfur in diesel
During the year, some segments of Brazilian society, for example government sectors and NGOs, demanded
Petrobras to give a position on the diesel sulfur level of the product sold in Brazil. Another question was why
a product with less sulfur was not available on the market earlier.
In November the Company informed that from 2009 on it will supply fuel with 50 ppm of sulfur for heavy
diesel vehicles. Nine billion reais will be invested by 2012 in diesel hydrotreatment plants in nine refineries to
achieve these targets. Other adaptations are expected to effectively reduce emissions, such as using a new
technology in vehicles, according to the requirements of phase P-6 of the Automobile Air Pollution Control
Program (Proconve), instituted by the Brazilian Environmental Council (Conama).
Petrobras has been a member of Proconve and since it began in 1986 it fulfills all quality targets provided,
with investments to reduce the sulfur content of diesel. Today the Company is a member of a working group
formed by the Brazilian Ministry of Mines and Energy, to study the actual impacts of using diesel with 50 ppm
sulfur in the current fleet.
86
ENVIRONMENT
PRINCIPLE 8
Principle 8

Energy
conservation
and conscious
consumption
INCENTIVE TO CONSCIOUS
CONSUMPTION
Petrobras oers administrative, nancial and technical
Petrobra
eciency. The use of more ecient equipment saves
resources to the National Program for Streamlining
energy and benets the environment when emitting
P
Use of Petroleum
and Natural Gas Byproducts
less greenhouse gases.
(Conpet),
(
which takes actions to diminish energy
On the same occasion, the National Prize for
c
consumption
in Brazil. One such action is the
Conservation and Rational Use of Energy was awarded
Transporting project, to save on diesel and reduce
to projects that increase the energy eciency in pro-
emissions by controlling the emission of black smoke
duction processes and disseminating the culture of
from transporter vehicles and petroleum byproduct
responsible energy consumption. There are six prize-
distributors that fuel up in reneries. In 2007, around
winning categories: Press; Industry; Public administra-
18 million liters of diesel was saved and another 25,000
tion agencies and companies; Very small, small and
tons or so of prevented CO2 emissions into the air. The
midsize businesses; Companies in the energy sector;
Economize project works with freight and passenger
and Buildings. The prize was created in 1993 by the
vehicles also in controlling black smoke and saved
Brazilian Ministry of Mines and Energy, coordinated
around 270 million liters of diesel, in addition to pre-
and performed by Petrobras through Conpet, and by
venting the emission into the air of around 390,000
Eletrobrs, through the Brazilian Energy Conservation
tons of CO2.
Program (Procel).
In December, the Company delivered the Conpet

Seal for Energy Eciency to manufacturers of stoves,
ovens and gas water heaters with higher rates of energy
WWW.PETROBRAS.COM
87

encourage the development and
diusion of environmentally
friendly technologies
Renewable
energies
GLOBAL BIOFUEL BENCHMARK
I 2007 Petrobras invested R$ 51.67 million in
In
rrenewable sources (biofuels, solar, wind and small
The H-BIO technology produces diesel fuel by

blending vegetable oils with mineral diesel through
hydroelectricity plants) and the forecast for 2008 is

h
hydro-conversion under high temperature and hydro-
R
R$ 644.85 million. According to the 2020 Petrobras
gen pressure. The end product has lower sulfur con-
SStrategic Plan, the Company intends to act globally
tent and density. The technology has been adopted
in biofuel trading and logistics, leading the national
in the Gabriel Passos (Regap), Alberto Pasqualini
biodiesel production and increasing its share in the
(Refap), Presidente Getulio Vargas (Repar) and
ethanol business. The biofuel business segment will
Paulinia (Replan) refineries. The processing of 256
receive investments of US$ 1.5 billion between 2008
million liters of soybean oil in these units will provide
and 2012. It also foresees the creation in 2008 of a
a 10% decrease in external diesel procurement.
subsidiary to run the activities of this segment.
Dierent raw materials are tested for the biodiesel
The rst bio-ethanol pilot plant in Brazil to use
production process, including soybean, suet, palm,
enzymatic technology has begun operating and pro-
cotton and castor oils. Today two technological routes
duces biofuel from agroindustrial waste, which does
are available: oil (vegetable oils or animal fats) and
not compete with food farming production. Petrobras
seeds (oilseeds).
is forerunner in second biofuel generation and its participation in the segment permits energy production
from raw material today considered as waste, namely
sugarcane bagasse, and ethanol production without
increasing the cropping area.
88
ENVIRONMENT
Women working in the

sunower elds, used in
the production of biodiesel
in Passagem Communitiy,
Pedra de Maria da Cruz
OTHER RENEWABLE SOURCES

In addition to being used in the biofuel segment, different actions focus on environment-friendly renewable energy sources. The Company invests in wind
and biomass energy, and considers opportunities in
small hydroelectricity plants (SHEP) and solar energy,
for example.
New technologies underway will enable biofuel

production in the Companys refining processes
using biomass and bio-oil (oil produced from sugarcane straw).
With investments of R$ 1.2 billion, the construction of 13 SHEPs in Brazil will generate 5,000 direct
In March, Petrobras received registration of its
and 15,000 indirect jobs. The total energy gener-
first design for a Clean Development Mechanism
ated of 300 MW is enough to supply a population
(CDM) dened in the Kyoto Protocol. Two electric
of 3.5 million. SHEPs are considered plants with a
generators and one oil mechanical pump both
capacity between 1 MW and 30 MW, and area with
diesel run were substituted in the wind plant in
restricted reservoir.
Rio Grande do Norte for three electric wind powered
Solar energy is used in various forms through pho-
generators that total a capacity of 1.8 MW. The plant
tovoltaic panels for powering monitoring and meter-
is responsible for 1,300 tons of prevented CO2 equiv-
ing equipment in distant places as a diesel substitute.
alent a year due to the renewable power generation.
Petrobras is the largest hydrogen producer in
Its registration occurred after complying with a

long list of requirements, consisting of various certi-
Brazil. More than 500 tons a day are manufactured

using its technology. A number of studies are focus-
cation and approval stages. Today the project is at a
ing on hydrogen fuel as a feasible energy source,
stage of monitoring prevented emissions. After audit-
used in a bus prototype and the Cenpes data pro-
ing the process, Petrobras may earn carbon credits.
cessing center.
WWW.PETROBRAS.COM
Construction
of 13 small
hydroelectricity
plants will
receive
investments of
1.2
billion
reais and create
5,000
direct jobs
89
CASE STUDY ENVIRONMENT
Ceap Center of
Environmental
Excellence of
Petrobras in the
Amazon
90
ENVIRONMENT
Petrobras is aware of the huge responsibility of the

Petrobra
The Water Collective Help Project: Conservation
organizations toward the planets future, and takes

organizat
and Sustainable Use of Water Resources using
numerous
numerou actions to preserve the environment. One
Shared Management, developed in partnership with
ssuch action is the Centre of Environmental Excellence
the National Rubber Tappers Council, works on the
of Petrobras in the Amazon (Ceap). The project was

o
sustainability of the area of influence of the Urucu-
launched in 2007 to combine frontline technology
Manaus gas pipeline, with actions for extractivist river-
and scientific knowledge with the commitment to
bank communities, encouraging shared management
social and environmental responsibility, necessary for
of water resources and the understanding of the risks
the Companys sustainable operations in the Amazon
or potential impacts of starting up the gas pipeline.
Rainforest. Ceap is the management tool that facilitates

the Companys strategic partnerships with universities,
To add economic value for the family agroextractivism in the region Petrobras offers the
research institutions, governmental agencies, non-
Social-Participative Certication of Agro-extractivist
governmental organizations and economic agents, to
Products, a partnership between the Amazon Working
a total of 34 already, seeking integration and coopera-
Group and Social Technology Network. The project
tion for enhancing the regional socio-environmental
works with families in communities, helping build
actions already taken. With positive reections also
citizenship and preserve the natural environments by
for other networks, the Center operates in reducing
adopting a process that prioritizes upgrade of the tra-
risks associated with interventions of the oil industry
ditional techniques of handling natural resources.
through 30 projects in progress, which will concentrate investments of over R$ 500 million by 2012.
The Piatam Project, for example, is one of the
projects covered by Ceap to monitor oil and natural gas
production and transportation from Urucu, the largest
Brazilian onshore oil and gas province in the Amazon
rainforest. Four times a year over 200 researchers set
out on excursions during the dierent hydrological
seasons of the Solimes River (ood, drought, low and
ood water). The researchers cover 400 kilometers
to study nine riverbank communities. The data and
samples are collected and put into an information system to create environmental sensitivity maps that can
help the oil industry in event of accidents. It is a single
management in the Amazon of calculating environmental risk. The project will be made easier using the
Hybrid Environmental Robot, designed by the robotics
group of the Cognitus Project, undergoing eld tests
for implementation in the Amazon region.
WWW.PETROBRAS.COM
91
Transparency
Petrobras considers transparency to be not only a public
commitment but also active management practice. One of the key
values consolidated in its stakeholder relations, improving corporate
governance practices and increasing social and environmental
responsibility actions. Company principles are in line with its
Strategic Plan and are disseminated through its code of ethics.
The Ombudsmans Office is also an important channel of dialogue
between Petrobras and its relation publics. The purpose of rendering
accounts to society is to provide more transparency about the
Companys activities and results.
Stakeholder
relations
COMMUNICATION CHANNELS
The increase
incr
in operating and financial results of
94
other actions of stakeholder relations.
Petrobras is accompanied by improvement in practices

Petro
The Petrobras Integrated Communication plan
of corporate
co
governance, transparency and increase in
(PIC) helps dene the groups in which engagement is
actio
actions of social and environmental responsibility.
strategic in order to identify and select its stakehold-
The Company
C
seeks to enhance its administration
ers. The process consists of checking and acquiring
through dierent communication channels that bring
scientically based knowledge about demands, expec-
it closer to its stakeholders, with ethics and transpar-
tations and opinions of each group, and the degree of
ency, to promote ongoing dialogue with clients, local
dependence, participation and inuence. Petrobras
and neighboring communities, the scientic and aca-
holds meetings, public hearings, scheduled visits in
demic community, suppliers, press, investors, part-
the communities and provides printed matter when
ners, public authorities, in-company public, resellers
rst implementing its projects. To attract analysts and
and civil society organizations. The concern regarding the engagement of its stakeholders pervades the
investors, the Company holds conference calls, road-
Strategic Plan and is identified in the 2020 Mission
oped by Investor Relations (IR) (www.petrobras.com.
and Vision, Strategic Objectives and Performance
br/ri) provides information to shareholders, investors
Indicators of the Balanced Scorecard (BSC), corporate
and analysts. Contact can also be made by mail, fax,
policies, values and behaviors. To maintain an ongoing
e-mail and phone.
shows, chats and internet service. The website devel-
relationship with the key groups, Petrobras analyzes
In 2007, 700 meetings, 11 international con-
research results that provide detailed knowledge and
ferences and events were held to introduce the
help chart opportunities for dialogue to potentialize
Company and explain events to the public.

TRANSPARENCY
Petrobras has a client satisfaction poll procedure
In 2007 the civil society the demanded further
a quantitative survey, with structured questionnaire
explanations about the compliance with the quota
by phone or personal interview , a requirement of
of people with disability and existence of a policy or
the standard ISO 9000. The poll assesses topics on
census to identify the number of Afro-descendant
value perception, such as: negotiation, delivery, collec-
employees in the Company. Those items are dis-
tion, credit, issue of documentation, relations, product,
cussed in the theme Petrobras in this report.
post-sale service, commercial conditions, general satis-
Regarding environmental issues, the main ques-
faction, price and competition. Corrective and preven-
tions of society were the operations in Ecuador
tive actions are taken after the results. Petrobras selects
addressed Human Rights , sulfur content in
members of the Brazilian Association of Research
diesel addressed at the Environment Chapter
Companies (Abep) and European Society of Opinion
and compensation to shermen in Guanabara Bay,
Marketing Research (Esomar) to undertake the market
Rio de Janeiro, for the spill of 1.3 million liters of oil
and opinion polls. They are organizations that establish
on January 18, 2000.
and demand compliance with the essential poll criteria

and certify the good quality of the work done.
In the lawsuit in progress against the Company,

Petrobras is not disputing the need to compensate
The Petrobras corporate communication poli-
the shermen but rather the term by which the com-
cies include principles of transparency with fast
pensation must be paid and total number of sh-
ongoing communication about activities, prod-
ermen who are beneciaries, since environmental
ucts and services, emphasizing its corporate social
agencies claim that there were only 3,339 registered
responsibility.
shermen in activity at the time of the accident. The
Petrobras offers the Consumer Call Service
appeals are awaiting the Rio de Janeiro state law
(SAC), focusing on consumers, shareholders and

employees. SAC is the main channel to obtain information, make comments, praise, criticism or suggestions. In addition, the Petrobras Client Channel is an
courts for admission and then will be sent for the
ated working groups that include press profession-
electronic commerce platform of the oil industry and
als to consider solutions and action plans to settle
vehicle through which clients can trade and follow
the matters under discussion. Through the Crisis
up business with the Company. It is a secure, fast,
Communication System, Petrobras has put into
ecient and economic environment for commercial
systematized practice its valuable experience accu-
relations 24 hours a day.
mulated in crisis communication management. The
nal decision in the federal capital.

To settle these concerns, the Company cre-
Petrobras performs an organizational environ-
system denes roles and responsibilities at the vari-
ment survey to monitor its employees perception of
ous hierarchical levels of Petrobras, forms a group of
the working atmosphere, commitment to the Company
impacted segments, either of members of the board
and social responsibility. The survey provides mecha-
of directors, employers, communities, public author-
nisms to guarantee condentiality of the information,

and the answers measure employee satisfaction with
the Company.
Relations with inspection agencies and governments are intended to comply with the legislations
in countries where Petrobras operates. Sponsorship
programs permit exchange of knowledge between the
Company and civil society. The press also has access to
information through press releases, scheduled visits,
collective interview and through the website www.
noticiaspetrobras.com.br.
Petrobras evaluates and seeks the best solution for
topics and concerns raised by stakeholders. It explains
questions and possible crises, oering fast complete
information.
For an ongoing relationship with key

groups, Petrobras analyzes research
results for detailed knowledge and to chart
opportunities for dialogue to potentialize
the development of other actions for
stakeholder relations
95
ities, shareholders, clients, consumers, suppliers,
CLAIM STATUS
resellers or other corporate relation segments.

Petrobras is committed to keeping the public
informed about any occurrence that is a community
safety and health hazard, or that may cause damage
to the environment; to provide clear and accurate
information to the segments aected by the crisis,
and continue providing fast, objective and transparent information to meet information demands of
22.970
Concluded
692
Pending
stakeholders.
In this way the Company fullls its public responsibility, preserves its corporate image and protects
CONTACT MEDIA
E-mail
22,803
Letter
410
Personal service
310
Telephone
122
the interests of its shareholders and employees.
OMBUDSMAN
Fax
17
The Ombudsman has the task of receiving opinions,
Total
23,662
suggestions, criticism, complaints and accusations

from Petrobras stakeholders. The Ombudsmans
office is much more than a channel of dialogue
23,662
CLAIM EVOLUTION PERFORMANCE
between the citizens, workforce and top management

of the Company; it is also an instrument to encourage
transparency, valorize human rights and principles of
the Global Compact, reecting the Companys concern about such key issues. The Ombudsman acts
dialogue and transparency in working relations and
15,652
14,111
with isonomy, and reinforces the principles of ethics,

with all stakeholders. Complaints are screened and
forwarded to the relevant areas to address the problems. Actions are based on guaranteed condentiality and anonymity of the claimants. Accusations with
accounting, nancial or audit content are reported
to the Companys Board of Directors through the
Audit Committee.
The Internal Audit and Corporate Security Areas
2005
2006
2007
specializing in investigation undertake audits and

investigations from denouncements sent to the
Ombudsman. The result of this work is forwarded
to those responsible for the units, which stipulate
sanctions and specic measures, depending on the
gravity of the outcome. The Ombudsmans oce,
which is an ocial channel for denouncements in
the Company, requests and receives the results to
nalize the procedure, which is audited annually in
compliance with the requirements of the SarbanesOxley Act. The Ombudsmans oce was featured
in the Global Accountability Report 2007 report by
the One World Trust NGO, as good practice of social
responsibility.
96
TRANSPARENCY
STAKEHOLDER RELATIONS
The Company
assesses the
stakeholders
perception to
monitor its image
MONITORING THE
CORPORATE IMAGE
For checking and periodical follow-up of its image,
of origin. In the 2007 study Global RepTrak Pulse
Petrobras decided to develop the Corporate Image
, the Company achieved the position of eighth best
Monitoring System (Sismico), which integrates and
reputation worldwide, and best reputation in Brazil, in
consolidates information about the opinions of vari-
recognition of its socially responsible actions.
ous publics and public opinion about the Company.

Sismico provides structured knowledge of how
Petrobras is considered by each group with reference
Public Opinion
Shareholders
to topics such as management, competitiveness, ethics, social and environmental responsibility, worldwide operations and future vision. The system gives
details of interference of social and environmental
Public Authorities
Customers
responsibility indicators in the composition of the

corporate image for each segment in question.
A study called the Corporate Social Responsibility
Social NGOs
Monitor by the consulting firm Marketing Analysis

assesses the degree of recognition of a companys role
in corporate social responsibility. In 2007, the Company
ranked rst with 10.8% of all spontaneous mentions
Environmental
NGOs
Sismico
Employees
Local Communities
in the survey. Petrobras also has a reputation indicator

obtained by using the RepTrak methodology, a system
developed by Reputation Institute, which compares the
The Media
Suppliers
reputation quotient of companies in their countries

97
Products
and services
MINIMUM RISKS
98
Petrobras is constantly assessing the life cycle of

Petrobra
disposal of liquid waste raw sewage failing
its produ
products and services, creating procedures to
to comply with legal requirements, against the
minimize impacts on health and safety, and strives

minimiz
prevailing environmental law. The petition was
tto improve its operations. Petrobras Distribuidora
granted and Petrobras Distribuidora was sentenced
prepares chemical safety information cards containp
to pay a fine of ten thousand reais. The Company
ing data on receipt, storage, loading, distribution/
complied with the regulations and is awaiting deci-
transportation and trading of its products, as well as
sion of the appeal.
analysis of aspects that could be an environmental or
Petrobras has no record of any lawsuit against
health hazard. The Company adopts the procedures
copyright of an advertising piece or cases of non-
required by the regulatory Brazilian Oil, Natural Gas
conformity with marketing messages, including
and Biofuel Agency (ANP) to include on the labels of
publicity, sponsorship and promotion. There was
all its products and services information about origin,
no case of complaint of violating privacy. The
field of application, purpose, benefits, warning and
Petrobras System had to disburse R$ 448.4 million
precautions. It also acts according to the regulations

and did not have one case of non-conformity in 2007
for contractual and regulatory fines.
with voluntary codes relating to information and label-
for divergence in percentages when importing pro-
ing of products and services.
pane and commercial butane. The Company paid a
Petrobras paid an ocial ne of R$ 1,570,076.31
In relation to health and safety impacts caused
ne of R$ 36,342,081.73 for interstate sales operations
by products and services, the Bayeux School-
by Petrobras Distribuidora to Companhia Vale do
Service Station in Paraba State was charged for
Rio Doce for the periods November 2004-December

TRANSPARENCY
Petrobras assures
resources to protect
employees and
community in event
of accidents
Petrobras products are

labeled with information
on origin, application, purpose,
benets, warnings and precautions
2005 and January-May 206. Petrobras paid a ne of
R$ 1,396,944.29 for imputing the ICMS (VAT) tax
collection on a diesel import operation when it had
been collected as petroleum.
No lawsuits were detected for unfair competition,
trust or monopoly practice in the Company.
99
Principle 10 Businesses should work against

corruption in all its forms
Anti-corruption
and anti-bribery
policies
CODE OF ETHICS
The Petrobras
Petro
Code of Ethics is a valuable tool for
for example, codes of competitive conduct and
adopting the principles that guide the Companys

adop
good practices, and adopts the code of conduct of
actions and conduct commitments. The code explains

actio
the top federal administration, whose application is
the moral
m
sense of the Mission, Vision and Strategic
supervised by the Public Ethics Commission of the
Plan of
o Petrobras and consists of a public commitment
Presidency of the Republic. The Company does not
to adopt these principles in everyday concrete prac-
contribute to political parties or politician election
tices. In August 2005, the Company began the code
campaigns and rejects any practice of corruption and
review process, in order to update the instrument and
bribery. Petrobras conducts its business with transpar-
adapt it to the requirements in the Sarbanes-Oxley Act,
ency when taking action and stances especially with
which provides the approach of specic items to the

codes of ethics of companies with shares in the New
York Stock Exchange. The indicators of Corporate
Social Responsibility formulated by Ethos Institute
regard to public information.
were used as factors to structure the themes in the new
Petrobras does not undertake risk assessment
code of ethics. In its revision, seminars were held to
relating to corruption but does investigate denounce-
create the new code in various units and subsidiaries,
ments forwarded by the Ombudsmans oce, external
involving clients, suppliers, executive directors, board
control bodies Federal Audit Court and Federal
of directors, and the entire workforce in a transparent
Investigations Bureau and public prosecution ser-
and participative process.
vice. The Company holds scheduled audits to check

situations that require special attention. The Corporate
Petrobras uses standardizing management tools,
100
TRANSPARENCY AND
CORPORATE INTEGRITY
TRANSPARENCY
Protection management participates in investigation
striving to improve bills of law for the oil industry and
committees that can discover any involvement of
amendments that protect Brazilian interests.
employees in devious conduct that, in some cases,

may be considered acts of corruption.
House campaigns are held to train employees
in anti-corruption policies and procedures and new
Public selections provide sponsorship to

other cultural, environmental and social projects.
Petrobras strives for transparency through the
nationwide democratic process.
employees are encouraged to assimilate the anti-
The Company runs special caravans as capacity
corruption topics in the Petrobras System code of
building workshops and provides tools for institutions
ethics. The code also includes moral principles such
to learn how to prepare social and environmental proj-
as not agreeing to favoritism and nepotism and refus-
ects. As a result, Petrobras assures equal conditions
ing to receive undue benets.
of participation in order to achieve and give access to
The Company has strong views regarding par-
many more projects.
ticipation in preparing public policies and lobbies.

Petrobras agrees in the code of ethics, under prin-
ANTI-CORRUPTION MEASURES
ciple 8.5, to contribute with public authorities to
Petrobras was involved in an intense informative pub-
prepare and adopt general public policies and spe-
lic campaign for the investigation of the Federal Police
cic programs and projects relating to sustainable
and Public Prosecution oce on frauds in some bids
development. Moreover, it appreciates employee
involving its employees. In early 2007, the joint ven-
involvement and commitment in discussions and bid
ture between Petrobras, Braskem and Ultra bought
preparations, bearing in mind the compatibility and
the Ipiranga group for R$ 8.2 billion and increased its
reinforcement of social projects, in actions with pub-
leadership from 30% to 37% in the market. There was
lic and private, governmental and non-government
suspected irregularity and the Brazilian Securities and
organizations. The National Congress, through its
Exchange Commission (CVM) opened an inquiry on
representatives, has become an excellent channel to

explain and protect the national interests of the oil
and gas sector. Public meetings guarantee that matters of interest to Petrobras are addressed under the
normal democratic process, with full right of defense
and disclosure of facts and actions. Participation
of Company executives in the hearings evidence
Petrobras eorts to reassert its strategic importance
Employees are trained in

anti-corruption procedures,
as provided in the Petrobras
System code of ethics
in the countrys development and to adopt the

structuring public policies, especially in the Growth
Acceleration Plan (PAC) designed to raise Brazil to
a new level of development. The Company directors
participated in three hearings, presenting the PAC
works schedule for the energy sector. Petrobras is
101
ANTI-CORRUPTION AND ANTI-BRIBERY POLICIES

fraud after detecting an atypical increase in business of
was proven that the Company was not negligent in
the Company shares and involvement of people linked
the case of leak of information of the state-owned
to the Company. Petrobras set up a house committee
Companys takeover operation. The suspect inves-
to investigate the facts disclosed by CVM relating to
tors illegally used the information in their possession
the presumed occurrence of trading with evidence of
without the knowledge of Petrobras.
privileged information by an employee at management
Infringements of the code of ethics are liable for
level before the publication of the announcement of
penalties provided in the disciplinary system regula-
the Ipiranga takeover. The Commission discovered
tions, with a written warning, suspension and can-
the facts and concluded that there was no information
cellation of the employment contract. When there
leak, since there was no conclusive evidence or proof
is evidence of disciplinary or legal infringements or
of share buying and selling operations to benet one
damages, the Company defines the measures to be
of the Companys employees. But the employee was
taken for compensation, application of disciplinary
negligent in the fact that he failed to inform his supe-
sanctions and adoption of other applicable adminis-
riors of his trading with Ipiranga shares days before the
trative, civil or criminal measures.
deal was consolidated, which characterizes failure to
Despite the total strictness of internal and exter-
comply with the code of ethics. On March 23, 2007,
nal controls, Petrobras investigates and tries to nd an
this employee left his position as executive manager
ecient solution for all devious behavior, penalizing
in Petrobras Distribuidora, returned as a Petrobras
those involved according to the law. The Company is
employee and then asked for early retirement, leaving
signatory to Partnering against Corruption Initiative
the Company.
(Paci) to harmonize the treatment of corruption-
In August 2007, Petrobras signed an agreement

to acquire all capital stock of Suzano Petroqumica
related issues. Petrobras agrees to adopt a policy of
S.A. for a total price of R$ 2.7 billion. However, Rio
implement an active comprehensive anti-corrup-
de Janeiro Judiciary suspended the trading on the So
tion program as a guide to employee behavior. The
Paulo Stock Exchange (Bovespa), after suspecting
Company is also committed to the Extractive Industries
leak of privileged information. Around R$ 1.5 million
Transparency Initiative (Eiti), a voluntary initiative to
in prot obtained by two investors was suspended
support better governance efforts of countries rich
at the request of the CVM and Public Prosecutors
in natural resources by fully publishing and checking
Oce. In a public hearing of the Mines and Energy
corporate payments and government revenue from
Committee of the House of Representatives, it
the oil, gas and mining sectors.
zero tolerance against bribery and to develop and
The Company is signatory of the

Partnering Against Corruption
Initiative (Paci) and Extractive
Industries Transparency
Initiative (Eiti)
102
TRANSPARENCY
PRINCIPLE 10
CASE STUDY TRANSPARENCY
Anti-Corruption
IIn July 2007, major Brazilian newspapers headlined
Initiative (Paci), a joint anti-corruption project to
a joint operation called Deepwater, run by the Public
which the case study was sent. The document is avail-
Prosecution Service and Federal Police, which were

P
able on the Petrobras website.
investigating
i
frauds in some Petrobras bids.
In accordance with its code of ethics, the Company
In January 2006, shortly after the start of the
works against any bribery and corruption practices,
operation, the Company collaborated with the inves-
maintaining formal procedures of control and con-
tigation of the facts, holding special internal audits
sequences on possible transgressions. Moreover, in
and giving information to the official investigation
its with supplier, service provider and intern relations,
agencies.
the Petrobras System agrees to request corporate ser-
Besides this unrestricted and close collaboration
vice providers to ensure that their employees respect
with the Public Prosecutors Office, confidentiality
the ethical principles and commitments to conduct
was required during the investigations. For this reason
dened in the code of ethics, while under contract to
measures to correct deviations in the Company found
the companies in the System.
during investigations were only adopted after July 10,
The Company control procedures are closely
2007, when the operation was announced as a result
supervised by internal and external audits, the press,
of police action.
the Federal Audit Court (TCU), Federal Investigations
Petrobras now took various actions based on this

fact to correct deviations. An investigation committee
Bureau (CGU), Brazilian Securities and Exchange

Commission (CVM) and U.S. Securities and Exchange
was set up to check functional responses. Employees
Commission (SEC).
in managerial positions were dismissed. Three

employees involved in the fraudulent processes were
dismissed for just cause. The service contracts arising
from the bidding processes in which the faults were
found during investigation were cancelled.
Petrobras, as signatory to the UN Global Compact,
is duty bound to work against corruption in all its
forms, including bribery and extortion. The Company
also participates in the Partnering against Corruption
103
Appendices
104
APPENDICES
Performance Table
INDICATOR
2007
2006
2005
FINANCIAL
Market value (R$ million)
429,923
230,372
173,584
Net operating revenue (R$ million)
170,578
158,239
136,605
Net income (R$ million)
21,512
25,919
23,725
Income before interest, tax, depreciation

and amortization EBITDA (R$ million)
50,275
50,864
47,808
120,138
120,695
108,241
45,285
33,686
25,710
4,90
5,91
5,41
2,301
2,298
2,217
15
15
14.9
Reserve replacement index
98.4%
113.9%
102.3%
Byproduct production (000 bpd)
2,046
1,892
1,839
Byproduct sale (000 bpd)
3,239
3,052
2,808
386
293
269
Distributed total added value (R$ million)

Total investments (R$ million)
Earnings per share (R$)
OPERATIONAL
Oil and gas production (000 boed)
Proven oil and gas reserves (billion boe)
ENVIRONMENT
Oil and byproduct spills (m3)
Energy consumption (terajoule TJ)
574,145
576,762
521,613
Greenhouse gas emissions (million tons CO2 equivalent)
49.99
50.43
51.57
Carbon dioxide emissions CO2 (million tons)
45.37
46.13
46.59
Methane emissions CH4 (000 tons)
206.02
189.82
222.97
Nitrous oxide emissions N2O (tons)
919.5
997.23
981
Air emissions NOx (000 tons)
222.8
233.54
223.12
Air emissions SOx (000 tons)
150.9
151.96
151.65
Air emissions particulate material (000 tons)

Freshwater removal (million m)
Water eluent disposal (million m)
15.22
17.11
17.24
216.49
178.8
158.5
172.8
164.3
159
0.76
0.77
0.97
OCCUPATIONAL HEALTH AND SAFETY

Lost Time Injury Frequency Rate LTIFR
(includes employees and outsourcees)
Fatalities (includes employees and outsourcees)
15
15
Fatal accident rate (fatalities per 100 million men-hours of risk

exposure includes employees and outsourcees)
2.28
1.61
2.81
Percentage of Lost Time (includes only employees)
2.19
2.06
2.48
68,931
62,266
53,933
211,566
176,810
155,267
Investments in social projects (R$ million)
248.6
199.6
183.3
Investments in cultural projects (R$ million)
205.5
288.6
264.6
51.7
44.6
44.2
80
58.2
25.8
EMPLOYEES
Number of employees
Number of outsourcees
CONTRIBUTIONS TO SOCIETY
Investments in environmental projects (R$ million)

Investments in sports projects (R$ million)
WWW.PETROBRAS.COM
105
Social Report 2007 Ibase Model

1 - CALCULATION BASE
2007 VALUE (R$000)
2006 VALUE (R$000)
170,577,725
158,238,819
35,977,804
40,672,492
7,919,274
6,615,683
Net earnings (NE)

Operating income (OI)
Gross payroll (GP)
2 - INTERNAL SOCIAL INDICATORS

Meals
Compulsory social charges
Private pension scheme
Health
VALUE
(000)
% ON GP
% ON NE
VALUE
(000)
% ON GP
% ON NE
547,790
6.92%
0.32%
443,854
6.71%
0.28%
3,355,374
42.37%
1.97%
3,121,887
47.19%
1.97%
554,845
7.01%
0.33%
590,354
8.92%
0.37%
2,138,366
27.00%
1.25%
2,030,426
30.69%
1.28%
Occupational Safety & Health
95,031
1.20%
0.06%
76,862
1.16%
0.05%
Education
95,284
1.20%
0.06%
87,189
1.32%
0.06%
Culture
22,794
0.29%
0.01%
30,844
0.47%
0.02%
Capacity building & professional development

Day nurseries or nursery benefit
Profit or income sharing
Other
Total - Internal social indicators
3 - EXTERNAL SOCIAL INDICATORS (I)
386,452
4.88%
0.23%
328,700
4.97%
0.21%
2,319
0.03%
0.00%
1,835
0.03%
0.00%
1,011,914
12.78%
0.59%
1,196,918
18.09%
0.76%
66,335
0.84%
0.04%
66,837
1.01%
0.04%
8,276,504
104.51%
4.85%
7,975,706
120.56%
5.04%
VALUE
(000)
% ON OI
% ON NE
VALUE
(000)
% ON OI
% ON NE
Income Generation and Job Opportunity
58,838
0.16%
0.03%
33,762
0.08%
0.02%
Education for Professional Qualification
64,878
0.18%
0.04%
81,895
0.20%
0.05%
Guaranteeing the Rights of the Child and Adolescent
110,615
0.31%
0.06%
73,549
0.18%
0.05%
Culture
205,518
0.57%
0.12%
288,569
0.71%
0.18%
Sports
79,989
0.22%
0.05%
58,197
0.14%
0.04%
Other
14,275
0.04%
0.01%
10,430
0.03%
0.01%
Total contributions to society
534,113
1.48%
0.31%
546,402
1.34%
0.35%
Taxation (excluding social charges)
70,127,540
194.92%
41.11%
71,274,595
175.24%
45.04%
Total - External social indicators
70,661,653
196.40%
41.42%
71,820,997
176.58%
45.39%
VALUE
(000)
% ON OI
% ON NE
VALUE
(000)
% ON OI
% ON NE
1,924,698
5.35%
1.13%
1,359,428
3.34%
0.86%
4 - ENVIRONMENTAL INDICATORS
Investments relating to the Companys production/operation
Investments in external programs and/or projects
Total investments in environment
51,728
0.14%
0.03%
44,641
0.11%
0.03%
1,976,426
5.49%
1.16%
1,404,069
3.45%
0.89%
With regard to setting annual targets to minimize waste, general ( ) has no targets
consumption in production/operation and to be more eective in ( ) achieves 0 50%
( ) achieves 51 75%
using natural resources, the Company (i)
( ) achieves 76 100%
5 - WORKFORCE INDICATORS
No. employees at end of period
No. of admissions during period (II) (i)
No. of outsourcees
(i)
No. of interns (II) (i)

No. of employees over 45 years
old (II)
No. of women working in the Company (III)
( )
( )
( )
()
has no targets
achieves 0 50%
achieves 51 75%
achieves 76 100%
2007
2006
68,931
62,266
4,263
7,720
211,566
176,810
1,213
686
26,073
20,007
10,722
6,664
% of senior positions occupied by women (II)
13.50%
12.40%
No. of Afro-descendents working in the Company (IV)
3,004
2,339
% of senior positions occupied by Afro-descendents (IV) (i)

No. of employees with disability or special
106
needs (V)
3.10%
1,026
3.10%
1,009
APPENDICES
6 - RELEVANT INFORMATION REGARDING

PRACTICE OF CORPORATE CITIZENSHIP
2007
TARGETS 2007
32.3
32.3
503
495
Ratio between highest and lowest remuneration in Company

Total number of occupational accidents (VI) (i)
The social & environmental projects undertaken by the Company ( ) directors
were defined by:
( ) directors & ( ) all

managers
employees
( ) directors

managers
employees
The safety and health standards in the working environment

were defined by:

managers
employees
( ) everyone +
Cipa
With regard to union freedom, the right of collective bargaining

and internal representation of the workers, the Company:
( ) does not
get involved
( ) adopts ILO
standards
( ) encourages ( ) will not get

& adopts ILO
involved
( ) will adopt
ILO standards
( ) will
encourage &
adopt ILO
The private pension scheme considers:
( ) directors
( ) directors &
managers
( ) all
employees
( ) directors
( ) directors &
managers
( ) all
employees
Profit or income sharing considers:
( ) directors
( ) directors &
managers
( ) all
employees
( ) directors
( ) directors &
managers
( ) all
employees
When selecting suppliers, the same ethical standards and of

( ) are not
social and environmental responsibility adopted by the Company: considered
( ) are
suggested
( ) are
demanded
( ) will not be
considered
( ) will be
suggested
( ) will be
demanded
Concerning employee participation in voluntary work, the

Company:
( ) does not
get involved
( ) gives
support
( ) organizes
& encourages
( ) will not get

involved
( ) will give
support
( ) will
organize &
encourage
Total number of complaints and criticism of consumers: (VII) (i)
in Company
11,328
in Procon
15
in court
23
in Company
2,700
in Procon
15
in court
23
% of complaints and criticism attended to or settled: (VII) (i)
in Company
97.41%
in Procon
53.33%
in court
34.78%
in Company
99.8%
in Procon
53.33%
in court
34.78%
Total added value of distribution (in R$ 000):
In 2007: 120.138.295
In 2006: 120.694.637
Added Value Distribution (AVD):
59% government
7% shareholders
12% withheld
60% government
8% shareholders
15% withheld
11% collaborators
11% third parties

managers
employees
( ) everyone +
Cipa
8% collaborators
9% third parties
7 - OTHER INFORMATION
1) CNPJ: 33000167/0001-01 - Economic sector: Industry / Oil, Gas & Energy - Brazilian State where company is registered: Rio de Janeiro
2) For further information on statement: Wilson Santarosa - Executive Manager for Institutional Communication - Phone (+55 21) 3224-1009 - E-mail comunicacao@petrobras.com.br
3) This Company does not use child or slave labor, not is involved with child or adolescent prostitution or sexual exploitation, and is not involved with corruption.
4) Our Company valorizes and respects diversity in and outside the company.
I.The Social Report 2007 now uses as external social indicators the working lines developed by the Company. The 2006 values were distributed according to a new model. Ibase permits items to be used
that only present focal investments regularly made by the Company.
Income generation and job opportunity includes investments in projects against hunger and for food security.
Education for Professional Qualification includes investments in the Petrobras Young Apprentice Program, totaling a little over R$ 26 million.
Guaranteeing the Rights of the Child and Adolescent includes the transfer to the Fund for Childhood and Adolescence (FIA).
Culture includes investments referring to cultural incentive laws in Brazil.
Sports includes investments referring to the Sports Incentive Act.
Other includes investments in health and sanitation projects.
II. Information from the Petrobras System in Brazil.
III. Information on 2006 refers to Petrobras Holding. Value for 2007 now includes the entire Petrobras System.
IV. The pilot-project for the Petrobras House Census began in December 2006, with planning, developing methodology and preparing the questionnaire in 2007. The data collection process and analysis of
results will be concluded in the first half of 2008, with the participation of an external research Company selected by public bidding. The reported data refer to the 2004 survey, estimated with basis on the
total number of employees in the Petrobras Holding at December 31, 2007.
V. Of the total 68,931 employees in the Petrobras System, 6,783 belong to the international area and not subject to Brazilian law. From the remaining, 15,767 occupy positions where vacancies are reserved
for people with disability. Among these employees, 1,026 are people with disability, corresponding to 6.5% of the workforce in this condition.
VI. Number of casualties with sick leave per million men-hours of risk exposure, including the Companys own employees and those from contractors. For 2008, the number of casualties statistically
expected is based on a forecast of 727 million men-hours of risk exposure and the admissible maximum limit foreseen for the Frequency Rate of Casualties with Sick Leave (TFCA).
VII. Information in the Company includes the quantitative of complaints and criticism received by the CAS of Petrobras Holding and Petrobras Distribuidora. The Companys 2008 target only contains the
estimate of the Petrobras Holding.
i. Unaudited
WWW.PETROBRAS.COM
107
Prizes
Environment Award American-Brazilian Chamber
of Commerce. Two award-winning projects in the
Water Management and Environmental Education
categories.
Carolita Kallaur Prize Awarded by the International
Regulators Forum (IRF) for best safety results,
extended to contractors.
Brazilian Conser vation & National Use of
Energy Awarded by the Ministry of Mines & Energy
in the industry category under alternative energy.
2007 Global Accountability Report One World
Trust Outstanding good social responsibility
practices
Gender Equality Seal Awarded by the Special Womens
Policy Secretariat of the Presidency of the Republic,
UN Development Fund for Women (Unifem) and
International Labor Organization (ILOT).
Corporate Citizen Certificate Awarded by the Regional
Accounting Council (CRCRJ) to encourage undertaking, publishing and valorizing the social reports
of Brazilian companies and organizations.
Excelencia Ciudadana Prize Awarded by the Latin
American Development Center (Celade) for operations in Uruguay.
Social Intelligence Prize In the Citizenship categories;
Education; Environment; Safety and Human Rights.
Transparency Trophy Awarded by the Brazilian
Association of Accounting, Administration and
Finance Executives (Anefac).
Marketing Best Social Responsibility The prize is
an initiative of the Editora Referncia and Madia
Marketing School. There were eleven award-winning
projects.
Top Social Organized by the Brazilian Association of
Sales & Marketing Directors (ADVB). Twelve awardwinning projects in Rio de Janeiro and five in So
Paulo.
Petroleum Economist Award In the Investor
Communications Team of Year 2006 category.
Global Pipeline Award 2007 Awarded by the American
Society of Mechanical Engineers (Asme).
The Best of Dinheiro In the category of Best Company
in Corporate Governance. Innova, a subsidiary of
Petrobras Energia, was first in the Chemical &
Petrochemical segment.
Tribute to the thousandth patent deposited by
Petrobras in Brazil Run by the federal trademark
and patent office (INPI).
Latin American Deal of the Year Awarded by Project
Finance International (PFI) for Financial Structuring
of the Upgrade Project of Henrique Lage Refinery
(Revap).
108
Aberje Award Espirito Santo and Rio de Janeiro

Region In the categories of Communication and
Supplier Relations; Communication & Relationship
with Government Organizations; Communication
& Press Relations; Marketing Communication
Campaign; Communication & Investor Relations;
Digital Media Management
Marketing Best Prize Awarded by Editora Referncia,
Getulio Vargas Foundation So Paulo Business
Administration School, and Madia Mundo Marketing.
Seven prize-winning projects.
Top of Marketing Awarded by the Brazilian Association
of Sales & Marketing Directors (ADVB). Seven prizewinning projects.
Outstanding Marketing Award Brazilian Marketing
& Business Association (ABMN) Eight projects awarded in the categories: Business Social
Responsibility; Products; Promotional Marketing; and
Incentive Marketing. Petrobras was also awarded
with the Grand Prix for having won the highest
number of prizes.
Empresa dos Sonhos dos Jovens Universitrios Chosen
in a research run by the consulting firms Cia de
Talentos and LabSSJ.
Corporate University Best in Class 2007 International
Quality & Productivity Center (IQPC) In the category Best Corporate University.
Educare National Prize for Excellence in
Education Awarded by Educartis in the Corporate
Education category.
Brazilian Quality Award (PNQ) In the Large
Corporations category.
Brazil Intangibles Prize (PIB) In the main category, Top
Intangible 2007. The awards are an initiative of the
Padro Group and DOM Strategy Partners.
Ibero-American Prize for Quality 2007 Awarded by the
Ibero-American Foundation for Quality Management
(Fundibeq) to Colombia business unit.
Nobel Peace Prize Petrobras employees Paulo Cunha,
Paulo Rocha and Jos Domingos Miguez are members of the Intergovernmental Panel on Climate
Change (IPCC).
CIO of the Year Award Info Corporate Magazine
Awarded to the executive manager of Information
Technology, Washington Salles.
Distinguished Achievement Award for Individuals
Offshore Technology Conference (OTC). Awarded
to Marcos Assayag, general manager of E&P Basic
Engineering of Cenpes.
A list with further details and other awards is available
on the Petrobras website.
APPENDICES
Materiality
To help define the topics addressed in the 2007 Social
and Environmental Report, Petrobras invited representatives of its stakeholders to participate in a survey called
Materiality Test. Here participants were given a questionnaire with sustainability-related topics, rated according to their relevance.
The list of priority subjects was suggested by
Petrobras in accordance with criteria, such as relevance to the sectors activities and their mention in
the Companys commitments (for example, Global
Compact), including other matters. However, the participants were free to suggest other topics not included
in the questionnaire.
Sixty people took part in the surveys carried out
in workshops in Rio de Janeiro and So Paulo and by
telephone interviews. These participants represent the
following segments: clients and resellers; academic and
scientific community; communities; consumers (end
consumers filling up at service stations); suppliers;
press; investors; partners (institutions and associations
in which the Company has a share); public authorities; internal public, and the third sector. The surveys
were conducted by BSD Consultoria, accompanied by
Petrobras representatives.
In addition to meetings with stakeholders, members
of the Committee for Drafting Social and Environmental
Responsibility Reports representing the areas in the
Petrobras System were also consulted in order to prioritize the topics according to company expectations.
Consolidation of priority matters according to these
two outlooks consulted company and stakeholders
made it possible to build the Materiality Matrix in which
the topics are organized in the squares according to
the degree of relevance obtained. Petrobras chose to
address all topics in squares II, III and IV and some in
square I in this report.
When doing the Materiality Test, the Company considers the expectations of a number of stakeholders
with respect to a more objective and suitable content
of the Report, contributing to a more participative drafting process.
MATERIALITY MATRIX
II
III
15
14
12
09
13
10 11
08
0607
02
Level of importance for stakeholders
The layout of the topics in the squares reflects the

degree of importance or materiality attributed
to them. The more important the topic for the stakeholders and the Company, the higher and more to the
right is its position in the matrix (square III).
This matrix considers only the title subjects. The
matrix with the 61 specific topics under consideration
is found on the Petrobras home page in the Social
Responsibility area.
03
IV
04
05
SUBJECTS
01 Competitors
02 Outsourcing
03 Human Resources
04 Economic impact
05 Public Regulation
06 Society
07 Sustainable Development
08 Community Relations
09 Customer Relations
10 Supplier Relations
11 Strategic Planning
12 Human Rights
13 Health & Safety
14 Corporate Governance
15 Environment
01
Level of importance for Company
WWW.PETROBRAS.COM
109
Indicator Matrix
The Indicator Matrix of the Petrobras Social and Environmental Report lists the contents
discussed and their location in the report. Its structure is defined by the third version
of the Global Reporting Initiative (GRI).
GRI APPLICATION LEVEL
C
Mandatory
Self-statement
Optional
Examined by third parties
C+
B+
A+
,
,
Petrobras states that it belongs in level A+ since it uses the GRI Sustainability Report
Guidelines when drafting its Social and Environmental Report, answering all the essential indicators and undertaking an external audit of the disclosed information. KPMG
Independent Auditors is the external auditing firm hired to audit and review the SER
Essential indicators
Additional indicators
with information for 2007. The firms opinion, disclosed on page 116, does not mention
any deviation in relation to the Petrobras classification at the level of application A+.
PROFILE
STRATEGY & ANALYSIS
INDICATOR
TOPIC
1.1
Statement by holder of highest decision making power in the organization (such as CEO, chairperson of board of directors
or equivalent position) on the relevance of sustainability for the organization and its strategy.
1.2
Description of the main impacts, risks and opportunities.
PAGE
AUDIT/ REVISION
17
ORGANIZATIONAL PROFILE
INDICATOR
TOPIC
2.1
Name of organization.
PAGE
AUDIT/ REVISION
2.2
Main brands, products and/or services.
6,8
2.3
The organizations operating structure, including main divisions, operating units, subsidiaries and joint ventures.
6,9
R, R
2.4
Address of organizations head oice.
117
2.5
Number of countries in which the organization operates and name of countries in which its main operations are located or
as specially relevant for questions of sustainability covered by the report.
10
2.6
Type and legal nature of the property.
2.7
Markets attended (including geographic description, sectors attended and types of client/beneficiary).
2.8
Size of the organization.
2.9
Main changes during the period covered by the report referring to size, structure or share holdings.
2.10
Awards received during the period covered by the report.
110
12,13
R, R
10, 11, 12
R, R, R
108
APPENDICES
REPORT PARAMETERS
INDICATOR
TOPIC
3.1
Period covered by the report (such as fiscal/calendar year) for the information provided.
PAGE
20
AUDIT/ REVISION
3.2
Date of latest previous report (if any).
20
3.3
Cycle of report issue (annual, biennial, etc.)
21
3.4
Data for contact in case of questions about the report or its content.
21
3.5
Process for definition of report content, including: determination of materiality; prioritization of topics in the report;
identification of which stakeholders the organization expects will use the report.
20, 21
R, R
3.6
Report boundary (such as countries, division, subsidiaries, leased facilities, joint ventures, suppliers). For other instructions,
consult the GRI Boundary Protocol.
20
3.7
Statement about any specific restraints regarding scope or boundary of report.
20
3.8
Basis for preparing the report which refers to joint ventures, subsidiaries, leased facilities, outsourced operations and other
organizations that can significantly aect the ability to compare periods and/or organizations.
20
3.9
Data measuring techniques and calculation bases, including hypotheses and techniques that sustain the estimates applied
to compiling the indicators and other information in the report.
20
3.10
Explanation of consequences of any reformulations of information provided in earlier reports and the reasons for such
reformulations (such as mergers or takeovers, change in period or base-year, nature of the business, measuring methods).
20
3.11
Major changes in comparison with earlier years with regard to scope, boundary or measuring methods adopted in the
report.
20
3.12
Table that identifies the location of information in the report.
110
3.13
Policy and current practice relating to finding external check for the report. If the check is not included in the sustainability
report, it is necessary to explain the scope and basis of any external check provided, as well as the relationship between the
reporting organization and auditor(s).
20, 21
GOVERNMENT, COMMITMENTS AND ENGAGEMENT

INDICATOR
TOPIC
4.1
Governance structure of the organization, including committees under the top governance body responsible for specific
tasks, such as establishing a strategy or supervising the organization.
PAGE
4.2
AUDIT/ REVISION
7, 9
R, R
Indication if the president of the highest governance body also be a CEO (and, if so, his/her functions within the
administration of the organization and reasons for such composition).
4.3
For organizations with a single administration structure, statement of the number of independent or non-executive
members of the highest governance body.
4.4
Mechanisms for shareholders and employees to make recommendations or provide instructions to the highest governance
body.
95
4.5
Relationship between remuneration for members of the highest governance body, executive board and other executives
(including rescission agreements) and the organizations performance (including social and environmental performance).
50
4.6
Processes in force in the highest governance body to assure prevention of disputes of interest.
4.7
Process to determine the qualifications and know-how of members of the highest governance body to define the
organizations strategy for questions relating to economic, environmental and social topics.
4.8
Statements of mission and values, codes of conduct and relevant in-company principles for the economic, social and
environmental performance, as well as the stage of its implementation.
back-cover,
7, 17
R, R, R
4.9
Procedures of the highest governance body to supervise identification and management by the organization of the
economic, environmental and social performance, including relevant risks and opportunities, as well as agreement with or
conformity to internationally agreed standards, codes of conduct and principles.
4.10
Processes for self-assessment of performance of the highest governance body, especially regarding the economic,
environmental and social performance.
4.11
Explanation of whether and how the organization adopts the principle of precaution.
69
4.12
Charters, principles or other projects developed externally of an economic, environmental and social nature that the
organization undersigns or endorses.
18
4.13
Participation in associations (such as industry federations) and/or national/international defense organizations in which the
organization: has a seat in groups responsible for corporate governance; integrates projects or committees; contributes with
major resources beyond the basic rate as a member organization; considers its role as member strategic.
18, 19
R, R
4.14
List of groups of stakeholders engaged by the organization.
94
4.15
Basis for identifying and selecting stakeholders with which it is engaged.
94
4.16
Approaches to engage stakeholders, including the frequency of the engagement by stakeholder type and groups.
94
4.17
Main topics and concerns that were raised through the engagement of stakeholders and what measures the organization
has adopted to address them.
94, 95
R, R
WWW.PETROBRAS.COM
111
ECONOMIC
INDICATOR
TOPIC
PAGE
Information about management method.
AUDIT/ REVISION
7,8
R, R
ECONOMIC PERFORMANCE INDICATORS

ECONOMIC PERFORMANCE
INDICATOR
TOPIC
EC1
Direct economic value earned and distributed, including revenue, operating costs, employee remuneration, donations and
other investments in the community, accumulated profits and payments for capital providers and governments.
PAGE
AUDIT/ REVISION
13
AR
EC2
Financial implications and other risks and opportunities for the activities of the organization due to climate change.
71
EC3
Coverage of obligations of defined benefit pension plan oered by the organization.
51
AR
EC4
Significant financial aid received from government.
12
AR
MARKET PRESENCE
INDICATOR
TOPIC
EC5
Variation in proportion of the lowest wage compared to the local minimum wage in important operating units.
PAGE
50
AUDIT/ REVISION
EC6
Policies, practices and proportion of expenses with local suppliers in important operating units.
27
EC7
Procedures for local hiring and proportion of senior management members recruited from the local community in
important operating units.
50
INDIRECT ECONOMIC IMPACTS

INDICATOR
TOPIC
EC8
Development and impact of investments in infrastructure and services provided, principally for public benefit, through
commercial engagement, in kind or pro bono activities.
PAGE
AUDIT/ REVISION
25
EC9
Identification and description of significant indirect economic impacts, including the extent of impacts.
27
AR
ENVIRONMENTAL
INDICATOR
TOPIC
PAGE
AUDIT/ REVISION
68, 69
R, R
INDICATORS OF ENVIRONMENTAL PERFORMANCE

MATERIALS
INDICATOR
TOPIC
PAGE
AUDIT/ REVISION
EN1
Materials used by weight or volume.
77
NA
EN2
Percentage of materials used from recycling.
77
NA
ENERGY
INDICATOR
TOPIC
EN3
Direct energy consumption described by primary energy source.
PAGE
AUDIT/ REVISION
EN4
Indirect energy consumption described by primary source.
76
EN5
Energy saving due to improvements in conservation and eiciency.
75
EN6
Projects to provide goods and services with low energy consumption, or that use energy generated by renewable resources,
and reduction in the need for energy as a result of such projects.
88, 89
R, R
EN7
Projects to reduce indirect energy consumption and reductions achieved.
75
75, 76
R, R
WATER
INDICATOR
TOPIC
EN8
Total water removal per source.
PAGE
76
AUDIT/ REVISION
EN9
Water sources significantly aected by water removal.
76
EN10
Percentage and total volume of water recycled and reused.
76
BIODIVERSITY
INDICATOR
TOPIC
EN11
Location and size of area owned, leased or administrated within or next to protected areas, and areas with a high rate of
biodiversity outside the protected areas.
82
EN12
Description of significant impacts in biodiversity of activities, goods and services in protected areas and in areas with a high
rate of biodiversity outside the protected areas.
81
EN13
Protected or restored habitats.
EN14
Strategies, measures in force and future plans for managing impacts on biodiversity.
EN15
Number of species on the IUCN Red List and in national conservation lists with habitats in areas aected by operations,
described by the level of endangerment.
112
PAGE
AUDIT/ REVISION
84
81, 82, 83
R, R, R
83
APPENDICES
EMISSIONS, EFFLUENTS AND WASTE

INDICATOR
TOPIC
PAGE
AUDIT/ REVISION
EN16
Total direct and indirect emissions of greenhouse gases, by weight.
78, 79
R, R
EN17
Other relevant indirect emissions of greenhouse gases, by weight.
79
NA
EN18
Projects to reduce greenhouse gas emissions and the reductions obtained.
79
EN19
Emissions of substances that destroy the ozone layer, by weight.
78
NA
EN20
NOx, SOx and other significant air emissions, by type and weight.
79
EN21
Total water disposal, by quality and destination.
78
EN22
Total weight of waste, by type and disposal method.
78, 79
R, R
EN23
Number and total volume of significant spills.
79, 80
R, R
EN24
Weight of transported, imported, exported or treated waste considered hazardous in terms of the Basel Convention Annexes I, II, III and VIII, and percentage of waste shipments transported internationally.
79
EN25
Identification, size, protection status and rate of biodiversity of water bodies and related habitats significantly aected by
water disposal and drainage undertaken by the reporting organization.
76, 77
R, R
PRODUCTS & SERVICES

INDICATOR
TOPIC
EN26
Projects to mitigate environmental impacts of goods and services and the extent of reducing these impacts.
PAGE
EN27
Percentage of recovered products and their packaging in relation to the total products sold, by product category.
AUDIT/ REVISION
85, 86, 87
R, R, R
86
CONFORMITY
INDICATOR
TOPIC
EN28
Monetary value of major fines and total number of non-monetary sanctions resulting from non-conformity to laws and
environmental regulations.
PAGE
AUDIT/ REVISION
74
TRANSPORTATION
INDICATOR
TOPIC
EN29
Major environmental impacts from transporting products and other goods and materials used in the organizations
operations, as well as transporting workers.
PAGE
AUDIT/ REVISION
86
GENERAL
INDICATOR
TOPIC
EN30
Total investments and expenses in environmental protection by type.
PAGE
AUDIT/ REVISION
68, 84
R, R
SOCIAL
INDICATOR
TOPIC
PAGE
AUDIT/ REVISION
16
PERFORMANCE INDICATORS REFERRING TO LABOR PRACTICES AND DECENT WORK

EMPLOYMENT
INDICATOR
TOPIC
LA1
Total workers, by type of job, labor contract and region.
PAGE
LA2
Total number and turnover of employees, by age group, gender and region.
LA3
Benefits oered to full-time employees that are not oered to temporary or part-time employees, listed by the principal
operations.
AUDIT/ REVISION
44, 45
R, R
45, 51, 63
R, R, R
52
GOVERNANCE-WORKER RELATIONS
INDICATOR
TOPIC
LA4
Percentage of employees covered by collective bargaining agreements.
PAGE
54
AUDIT/ REVISION
LA5
Minimum deadline for notifying in advance operating changes, including if this procedure is specified in collective
bargaining agreements.
55
OCCUPATIONAL HEALTH AND SAFETY

INDICATOR
TOPIC
LA6
Percentage of employees represented in formal safety and health committees, consisting of administrators and workers,
who help in monitoring and advising about occupational health and safety programs.
LA7
Rates of injury, occupational disorders, days lost, absenteeism and deaths relating to occupation, by region.
LA8
Programs of education, training, counseling, risk prevention and control in progress to help employees, their relatives or
members of the community in relation to serious diseases
LA9
Topics relating to safety and health covered by formal agreements with unions.
WWW.PETROBRAS.COM
PAGE
AUDIT/ REVISION
47
48, 49
R, R
26, 47, 48
R, R, R
46
113
TRAINING AND EDUCATION

INDICATOR
TOPIC
PAGE
AUDIT/ REVISION
LA10
Average hours of training a year, per employee, listed by job category.
52
LA11
Programs for skills management and ongoing learning that support the continuity of the employability of the employees
and to manage the end of career.
52
LA12
Percentage of employees who regularly receive appraisals of performance and career development.
52
DIVERSITY AND EQUAL OPPORTUNITIES

INDICATOR
TOPIC
PAGE
AUDIT/ REVISION
LA13
Composition of groups responsible for corporate governance and description of employees by category, in accordance with
gender, age group, minorities and other diversity indicators.
62
LA14
Proportion of basic wage between men and women, per job category.
61
SOCIAL PERFORMANCE INDICATORS FOR HUMAN RIGHTS

PRACTICES OF INVESTMENT AND PROCUREMENT PROCESSES
INDICATOR
TOPIC
HR1
Percentage and total number of significant investment contracts that include clauses referring to human rights or were
assessed with reference to human rights.
PAGE
AUDIT/ REVISION
37
HR2
Percentage of companies contracted and crucial suppliers that were assessed with reference to human rights and measures
taken.
37
HR3
Total hours of training for employees in policies and procedures relating to aspects of relevant human rights for operations,
including the percentage of employees who received training.
38
NON-DISCRIMINATION
INDICATOR
TOPIC
HR4
Total number of cases of discrimination and the measures adopted.
PAGE
AUDIT/ REVISION
61
FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING

INDICATOR
TOPIC
HR5
Operations identified in which the right to freedom of association and collective bargaining may be running considerable
risk and the measures taken to support this right.
PAGE
AUDIT/ REVISION
54
CHILD LABOR
INDICATOR
TOPIC
HR6
Operations identified as being of significant risk of child labor and the measures taken to contribute to abolishing child labor.
PAGE
AUDIT/ REVISION
58
FORCED OR SLAVE LABOR

INDICATOR
TOPIC
HR7
Operations identified as being of significant risk of forced or slave-like labor and the measures taken toward eradicating such
forced or slave labor.
PAGE
AUDIT/ REVISION
57
SAFETY PRACTICES
INDICATOR
TOPIC
HR8
Percentage of safety personnel trained in the organizations policies or procedures relating to aspects of human rights that
are relevant to the operations.
PAGE
AUDIT/ REVISION
39
INDIGENOUS RIGHTS
INDICATOR
TOPIC
HR9
Total number of cases of violating rights of the indigenous peoples and measures taken.
114
PAGE
AUDIT/ REVISION
24
APPENDICES
INDICATORS OF SOCIAL PERFORMANCE REFERRING TO SOCIETY

COMMUNITY
INDICATOR
TOPIC
SO1
Nature, scope and eectiveness of any program and practice to assess and manage the impacts of operations on the
communities, including admission, operation and departure.
PAGE
AUDIT/ REVISION
24, 25
R, R
CORRUPTION
INDICATOR
TOPIC
SO2
Percentage and total number of business units assessed for risks relating to corruption.
PAGE
100
AUDIT/ REVISION
SO3
Percentage of employees trained in the organizations anti-corruption policies and procedures.
101
SO4
Measures taken in response to cases of corruption.
102
PUBLIC POLICIES
INDICATOR
TOPIC
SO5
Positions toward public policies and participation in preparing public policies and lobbies.
PAGE
101
AUDIT/ REVISION
SO6
Total value of financial contributions and in kind to political parties, politicians or related institutions, listed by country.
100
UNFAIR COMPETITION
INDICATOR
TOPIC
SO7
Total number of lawsuits against unfair competition, trust and monopoly practices and their results.
PAGE
AUDIT/ REVISION
99
CONFORMITY
INDICATOR
TOPIC
SO8
Monetary value of significant fines and total number of non-monetary sanctions resulting from non-conformity to laws and
regulations.
PAGE
AUDIT/ REVISION
99
PERFORMANCE INDICATORS FOR PRODUCT LIABILITY

HEALTH AND SAFETY OF CLIENT
INDICATOR
TOPIC
PAGE
AUDIT/ REVISION
PR1
Stages in the life cycle of goods and services in which the impacts on health and safety are assessed with view to
improvement and the percentage of goods and services subject to such procedures.
98
PR2
Total number of cases of non-conformity to regulations and voluntary codes relating to impacts caused by goods and
services on health and safety during the life cycle, listed by type of result.
98
LABELING OF GOODS AND SERVICES

INDICATOR
TOPIC
PR3
Type of information about goods and services required by labeling procedures, and the percentage of goods and services
subject to such requirements.
PAGE
AUDIT/ REVISION
98
PR4
Total number of cases of non-conformity to regulations and voluntary codes relating to information and labeling of goods
and services, listed by type of result.
98
PR5
Practices relating to client satisfaction, including research results that measure this satisfaction.
94, 95
MARKETING COMMUNICATIONS
INDICATOR
TOPIC
PR6
Programs obeying the laws, regulations and voluntary codes related to marketing communications, including advertising,
promotion and sponsorship.
PAGE
AUDIT/ REVISION
95
PR7
Total number of cases of non-conformity to regulations and voluntary codes relating to marketing communications,
including advertising, promotion and sponsorship, listed by type of result .
98
CLIENT PRIVACY
INDICATOR
TOPIC
PR8
Total number of proven complaints relating to violation of privacy and loss of client data.
PAGE
AUDIT/ REVISION
98
CONFORMITY
INDICATOR
TOPIC
PR9
Monetary value of fines (significant) for non-conformity to laws and regulations relating to the supply and use of goods and
services.
WWW.PETROBRAS.COM
PAGE
AUDIT/ REVISION
98
115
LIMITED ASSURANCE REPORT BY INDEPENDENT AUDITORS

To
Board of Directors and Shareholders of
Petrleo Brasileiro S/A
Rio de Janeiro - RJ
Introduction
We have been hired to apply limited assurance pro-
the suitability of its related policies, practices and per-
cedures to the Social and Environmental Report
formance. The necessary procedures for limited assur-
of Petrleo Brasileiro S/A (Petrobras) for the year
ance were applied, which do not involve examination
ended December 31, 2007, prepared under the
in terms of audit standards of the nancial statements.
responsibility of Petrobras. Our responsibility is to
Moreover, our report does not provide limited assur-
issue a limited assurance report on this Social and
ance on the scope of future information (such as, for
Environmental Report.
example, targets, expectations and ambitions) and

descriptive information under subjective assess-
Limited assurance procedures
ment. Therefore, certain information contained in
Limited assurance procedures were adopted in accor-
the Social and Environmental Report was not audited
dance with Standard NPO1 issued by the Brazilian
or revised and is identied as unaudited/unrevised
Institute of Independent Auditors (IBRACON), and

ISAE 3000 (International Standard on Assurance
in the Indicator Matrix.
Engagements) issued by the International Auditing
Conclusion
and Assurance Standards Board, both for assurance
Based on our revision, we know of no fact that leads
work that is not an audit or review of past financial
us to believe that the information on form of manage-
information. The procedures consist of (a) planning
ment and performance indicators in the Petrobras
the work, considering relevance, coherence, volume
Social and Environmental Report for the year ended
of quantitative and qualitative information and oper-
December 31, 2007, is not prepared in accordance
ating and internal control systems that are the basis
with the aforementioned guidelines.
for drafting the Petrobras Social and Environmental

Report; (b) understanding the methodology for calcu-
May 20, 2008
lating and consolidating the indicators by interviewing

managers responsible for collecting information; (c)
comparison by samples of the quantitative and qualitative information with the indicators mentioned in
the Social and Environmental Report; and (d) comparison of the nancial indicators with the nancial
statements and/or accounting records.
Reporting criteria and restrictions
The information in the Petrobras Social and
Environmental Report was prepared using the Global
Reporting Initiative (GRI G3) guidelines for social and
KPMG Independent Auditors

CRC-SP-14.428/O-6-F-RJ
environmental reports.
The purpose of our work is limited assurance
of information about the form of management and
performance indicators of the Petrobras Social and
Environmental Report, not including assessment of
116
Manuel Fernandes Rodrigues de Sousa

Accountant CRC RJ - 052.428/O-2
Alexandre Heinermann
Accountant CRC 1SP228.175/O-0-S-RJ
APPENDICES
STAFF
HEAD OF INFORMATION
Wilson Santarosa
Executive Manager for Institutional Communication
Marcos Menezes Contador (CRC-RJ 35.286/0-1)
Executive Manager for Accounting
DRAFTING PETROBRAS CONTENT
Luis Fernando Nery

Social Responsibility Manager
Sue Wolter Vianna
Sector Manager for Guidelines and
Practices of Social Responsibility
Ana Paula Grether Carvalho
Petrobras Social and Environmental Report Coordinator
EDITING
Adriano Lima
TEXT
Bruno Moreira Cazonatti and Flvia Fuini Pessa

TEAM
Alyne de Castro Costa, Anamaria Miranda Rodrigues Ballard, Dorival

Correia Bruni, Flavia Rodrigues Cereijo, Ingrid Gomes Louro, Juliana
Moreira, Rebecca Jaccoud Ribeiro Amaro and Wilson Jacintho
Magalhes
COLLABORATORS
Ademilton Gomes da Silva, Adriana Ayer, Adriana Leonel Almeida,

Affonso Paulo Gilano de Mello, Alayde Nunes Americano, Alessandra
Maria Rodrigues Cordeiro, Alessandro Antunes Leandro, Alex
Guimares Loureno, Alexander Piaza Fialho, Alexandre Borges,
Alexandre dos Santos, Alexandre Guilherme Glitz, Alexandre Rocha
Cunha Campos, Alexandre Schmidt, Alice Ribeiro Vianna, Aline de
Carvalho Meira, Alvaro Evangelista Sales, Amal Mabruk Daredi, Ana
Amelia de Souza Acuy, Ana Cristina Felipe, Ana Cristina Fernandez
Botelho Martins, Ana Cristina Nogueira Duarte, Ana Lucia de Almeida
Hugo Braga, Ana Lucia Villas Boas, Ana Luiza Sabia de Freitas, Ana
Margarita Carrasquero, Ana Paula de Moura Albuquerque, Ana Paula
Fernandes Pinto, Ana Paula Gaspar Marques, Ana Paula Pires Costa,
Ana Paula Rocha Couto, Ana Paula Vieira Fernandes, Anderson
Pinheiro Correia, Andr de Paula Schubert, Andra de Campos
Cypriano Mocciaro, Angela Maria de Pdua, Angela Martins de Souza,
Anna Paula Gomes dos Santos, Antonio Biraci de Oliveira, Antonio
Carlos de Lemos Oliveira, Antonio Carlos Marques Pinheiro, Antonio
Carlos Pires Monteiro, Antonio Ezequiel Rodriguez, Antonio Gomes
Moura, Antonio Luiz Peres, Antonio Mauricio Carreira, Augusto Jos
Leite Mendes Riccio, Augusto Masini, Ayri de Medeiros Trancoso
Junior, Barbara Prates Carpeggiani, Blanche Campanate de Oliveira
Pombo da Paz, Bruno Carvalho Baruqui, Bruno Cesar Ladeira, Carina
Guadalupe Cavallo, Carla Viviane Pereira Fontes, Carlos Alberto de
Macena Ferreira, Carlos Alberto Gonalves Rosa, Carlos Castro Cabral
de Macedo, Carlos de Sousa Castro Gonzalez, Carlos Dorian da Silva
Moreira, Carlos Henrique Vieira Cndido da Silva, Carlos Leonam
Mendes dos Reis, Carlos Natividade Quinteiro, Carmen Lia Magalhes
Ramos, Cassia Maria Nocchi Vieira, Cssio Figueiredo Lopez, Celso
da Frota Braga, Celso Yoshihito Murakami, Christiane Pimentel Duar
Barbosa, Cntia Imbuzeiro Duarte Bodstein, Ciro Davi Galdino Ribeiro,
Clarissa Goulart de Bem, Clarisse Duarte de Meireles, Claudete
Roseno de Castro, Claudia Del Souza, Claudia Valria Rogerio Almeida,

Claudio Eduardo Nunes Peroba, Claudio Francisco Negro, Claudio
Henrique Dias Guimares, Cleanete Mendona Gomes Granado,
Cristiane Holanda Moraes, Cristiano Boaventura Duarte, Cristiano
Carvalho Alves, Cristina Guerreiro de Menezes, Danielly Leonardo
da Cunha Maciel, Danilo Souza Chaves, Delio Augusto Ibarra Ayala,
Denise Rosrio, Derclio Joo Machado da Fonseca, Deusdedith de
Souza Alves Filho, Diana Sam Oblitas, Donald Macedo da F, Douglas
Hamilton Santos Lobo, Edgar Strauss Junior, Edson Ricardo Soares
Pereira da Cunha, Eduardo Cesar Moreno, Eduardo Damazio da Silva
Rezende, Eduardo Macedo Barbosa, Eduardo Manoel Cavalcanti, Ek
Antonio Pereira de Freitas, Elaine Blanco Dias, Elena Martinis, Eliana
Rodrigues Arajo, Emre Ozmen, Enock Jabes do Nascimento Santos,
Ericka Liz Santos Lemos, Ernani Turazzi, Ernesto Mendes Ferreira,
Eros Braga de Albergaria, Evanya Maria Maciel, Everaldo Incio
Ferreira, Fabiana Abraho, Fabiane Madeira, Fabio Augusto Parreira
Reis, Fabricio Niqun Espejo, Fabrcio Teixeira Zorzanelli, Fernando
Albano Carrio, Fernando Jorge Mouro Maio, Fernando Jorge Santos
de Oliveira, Fernando Sergio Barros de Mello, Flavia do Nascimento
Reis dos Santos, Flavia Figueira Menezes, Flavia Nascimento de Melo,
Flavia Renata Souza Conrado Nobre, Flavia Vianna Fagundes, Flavio
Ferreira da Silva, Flvio Torres L. da Cruz, Flor Arlette Santamara
Marn, Franklin Teodoro Veja, Frederico Guilherme Bins, Gabriela
Xavier Maia, Gianfranco Ceccolini, Gilberto Alves, Gilmar de Souza
Aquino, Gisele Cristina de Oliveira Leite, Glucia Aparecida de Lima
e Silva, Glenda Rangel Rodrigues, Guido Eduardo Bassoli, Guilherme
Amorim Braga, Guilherme Luis Megassi Leoni, Guilherme Pinto
Nazar, Gustavo Andr Dunzer, Heitor Rezende de Carvalho, Helenice
Menegatti de Carvalho, Hlio de Castro Domingues Filho, Heloisa
Tolentino de Carvalho Brazo Gomes da Silva, Herlan Adaes Pereira,
Hermano Mesquita Mendes, Hernani Leonardo Mendes, Hernani
Macedo Fortuna, Hilka Flavia Saldanha Guida, Hudison de Assis
Martins Junior, Hugo Leunis Queiroz Alves, Hyandra Ribeiro, Iatiara
Conceio Ferreira da Silva, Igncio Aoki Junior, talo Reis da Silva,
Ivan Aximoff Filho, Ivonildo Siqueira Botelho, Jair Gomes Silva, Jairo
dos Santos Junior, Janana Marques Bezerra, Jane Maria do Rosrio
Gomes de Santana, Jayme de Seta Filho, Jenny Rocio Trujillo Gordillo,
Joo Luiz Suarez de Arajo, Joo Norberto Noschang Neto, Jonilson
Silveira, Jorge Antonio Tavares de Oliveira, Jorge Cabral de Oliveira,
Jorge Luiz Coutinho Bezerra, Jos Alberto Camarinha Loureiro, Jos
Arilson Pinheiro de Albuquerque, Jose Blanco Ferreiro, Jos Claudio
Gemaque da Silva, Jos de Medeiros Leite, Jose Flvio Eleuterio
Gomes, Jos Geraldo de Souza Carvalho, Jos Joaquin Guzman,
Jos Laurindo de Farias, Jos Luciano de Brito Seabra, Jos Luiz de
Oliveira Reis, Jos Luz de Almeida, Jos Pedro de Sousa, Joseana
Borguez Tonon, Juan Eduardo Borelli Thode, Juara de Oliveira
Ribeiro, Juliana da Costa Mattoni Rocha, Juliane Aguilar, Juliano
Vargas de Oliveira, Julio Cesar da Costa Cominges, Julio Cezar
Jeronimo dos Santos, Karina Cox Hollos, Kelly Cristina Pinto Silva, Las
de Farias Leal de Almeida, Larissa Yumi Campoi, Lauro Matos da
Cruz, Leandro Nildo Pfaffenzeller, Lenice Dantas de Arajo, Leonardo
Ottolini, Leonina Avelino Barrosa de Oliveira, Libertad Maria Gutierrez
Torres, Lincoln Antunes Weinhardt Dalcomuni Ferreira, Lindoneide
Lima Paredio, Liza Ramalho Albuquerque, Lorena Silvia Perez,
Luciana Moraes Carvalho, Luciana Renna Alves, Luciano Claudio
Lage Guimares Mendes, Lucila Ribeiro de Carvalho, Lucinia
Freitas dos Santos, Lucio Flavio Costa Melo, Lucola Gomes Ciolette,
Luis Cesar Stano, Luis Molle Junior, Luis Monte Jacintho, Luis Roberto
Dantas de Santana, Luiz Amaury Rediguieri, Luiz Arthur Silva de Faria,
Luiz Autran Pires Ribeiro, Luiz Carlos Freitas Arajo, Luiz Fernando
Toledo de Souza Leal, Luiz Gonzaga do Nascimento, Luiz Henrique
Nogueira, Luiz Jos Ribeiro Junior, Luiza Fernandes Bairral, Luzia Cruz
Pereira, Manoel Joo Castro de Miranda, Marcela Fernando Duarte
Lucas, Marcela Lino Rodrigues, Marcelle Karine de Oliveira, Marcello
Nunes Brando, Marcelo Abdo Fuad Curi, Marcelo Fontenelle Ribeiro,

Mrcia Amaral Estevo dos Santos, Mrcia Bartolini, Mrcia Moura
Vieira, Mrcio Jos de Macedo Dertoni, Marco Antonio B. da Silva,
Marco Aurlio da Rosa Ramos, Marco Aurlio Lemos Latg, Marco
Aurlio Nogueira de Souza, Marcos Andr Lessa, Marcos Rodrigues
Viana, Marcos Vinicius de Oliveira, Marcos Vinicius Marques da Silva,
Maria Clarisse Dias Furlani, Maria Cludia Guimares Grillo, Maria
de Lisieux Cardoso, Maria Dilcina Vasconcelos Avelino, Maria
Esther Fernandes Soares, Maria Filomena Andrino Anca, Maria Jlia
de Ftima Walter, Maria Lcia Assis, Maria Lucinda de Melo, Maria
Nustria de Albuquerque, Maria Regina Madeira da Costa, Maria
Rosane Tavares Lima, Maria Soledad Recalde Yepez, Mariano de
Oliveira Moreira, Marilene Corra, Marilza Teixeira de Oliveira, Marina
Nery da Mota, Marinez Donato Borgerth Teixeira, Marta Rotstein,
Maurcio Csar Barreto Viana, Maurcio Duppre de Abreu, Mauro
Jesus Oliveira, Mauro Martinez Mrquez, Mauro Medina da Silva, Max
Simon Gabbay, Michelle Ferreti, Miguel ngelo Estephanio, Milena
Rosa Lobato, Milton Carneiro Lacerda Filho, Mnica Cruz Vicencio,
Mnica Moreira Linhares, Mnica Rodrigues Monteiro, Monique
Fernandes Freire, Mylene Ferreira, Ndia Ferreira da Silva, Nagib
Albuquerque Said, Nancy Gomes do Santos, Natlia Maria Barbieri,
Nthali Soares Rodrigues Pereira, Nelma Xavier Gomes, Nelson
Mathias, Ocleia Gomes de Arajo, Osaretin Aina Salami, Patrcia Alves
de Carvalho, Patrcia de Macedo Anjos, Patrcia de Oliveira, Paulo
Csar Dias Par, Paulo Dagoberto Buys Gonalves, Paulo Jos Titara
Mendes, Paulo Leonardo Marinho Filho, Paulo Roberto Lopes Ferraz,
Pedro Frederico de Almeida Benac, Pedro Henrique Salgado Chrispim,
Pedro Pereira de Paula Neto, Plauto Porto Peixoto, Priscila de Souza
Costa Couto, Priscilla Dias Alves Rodrigues Diniz, Priscila Iglesias Rosa,
Rafael Andraschko, Rafael Henrique Barduni Costa, Ramon Sosa,
Raquel Borba Balceiro, Raquel Freitas Pessoa, Raul Martins Gomes
de Paiva, Regina Clia Bella, Regina Helena Howat Rodrigues, Regina
Junqueira Soares Brando, Reinaldo da Silva Duarte, Renata Fabiana
Barros dos Anjos Borre, Renata Gaspar Rodrigues Silva, Rita de Cssia
Mouzer Landa Noronha, Rita de Cssia Pereira Fagundes Netto, Rita
de Cssia Pires da Silva, Roberta de Paula Farias Costa, Roberto
Alfradique Vieira de Macedo, Roberto Csar Pugliesi Portella, Roberto
de Faria Vieira, Roberto Jorge Pinheiro Moreira, Roberto Vieira, Rocio
Del Pilar Galiano de Boccia, Rodrigo Peres Lobo, Rodrigo Tamarozi,
Rogrio Canto de Andrade Rosado, Ronaldo Dreyer Bressane,
Rosngela Moraes Cezar, Rosanges Martins da Costa, Rosidea
Viana da Silva, Rosilene Silva, Rozana Aparecida Caran, Rozngela
Pinto Rezende Sette, Rozanir Martinho Correa, Rubem Antnio de
Lima Costa, Ruth Martins de Castro, Sabrina Alonso de Souza Arbs,
Salvador Abuche Coyunji Junior, Sandra Assumpo Ramos, Sandra
de Jesus Oliveira Faria, Sergio Casaes Lamenha Lins, Sergio Luiz
da Silva Quinto, Srgio Pereira dos Santos, Sergio Rossato, Sheila
Rodrigues da Fonseca Lage, Shirley Flix Fernandes, Sidney Machado
Silva, Silvana de Souza Werneck, Silvio Luiz Cruz Martins, Sofia
Varejo Filgueiras, Solange de Arajo Silva, Solange Silva, Solimar
Batista de Melo, Snia Maria Nascimento de Santana, Sonia Martins
Brito, Sylvia Bello, Telma Oliveira do Prado, Telma Regina Simes
Castello Branco, Tercio Dal Col Sant Ana, Teresa Gonalo da Silva,
Teresa Rachel Simes Paz, Tereza Cristina Frana, Thea Maria Vieira,
Thiago de Melo Rezende, Tom Z Moreira Nobre, Ubiratan Jorge
Stavola de Menezes Pereira, Valria Aparecida Correia Roldo, Valria
de Paiva e Silva, Valeska da Rocha Caffarena, Valmir Gomes da Rocha,
Valmir Pires de Almeida, Vanderson Lopes Felix da Silveira, Vanessa
Burjack Maranho Gomes de S, Vnia Lima de Menezes, Vnia
Resende Carapi, Vera Green, Vilmar Augusto A. Miranda, Vincius
Bastiani, Vivaldo Taliule Junior, Viviane Vieira Fernandes, Wanderley
Antunes Bezerra, Willer Borges Lins Junior, William Jernimo de
Oliveira, Zuneide Alto.
PRODUCTION
Gilberto Puig
Relations Manager
Patrcia Fraga de Castro e Silva
Multimedia Sector Manager
Tereza Lobo, Joviano Rezende and Thais Ravicz
Team
Tabaruba Design
Design
Publicom Assessoria de Comunicao
Editorial Production
Elvyn Marshall
English translation and proofreading
Ipsis Grfica e Editora
Printing
PHOTOGRAPHS
Petrobras Image Base, Andr Valentim, Bruno Veiga,

Claudia Ferreira, Felipe Goifman, Fernando
Bergamaschi, Geraldo Falco, Jos Caldas, Juarez
Cavalcanti, Roberto Rosa, Rogrio Reis, Thelma Vidales
Cover: Leaf (Keystone/ Petrobras Image Base)
Contents: A Kaingang woman working with basketry
handicraft in Londrina, Paran (Felipe Goifman)
Pages 4 and 5: Area of environmental protection in Duque de
Caxias refinery Rio de Janeiro (Jos Caldas)
Pages 14 and 15: Fisherman in the Peispa project for improving
the quality of life of the artisan fishermen in Saquarema,
Rio de Janeiro State (Patricia Santos)
Pages 22 and 23: Working with young people from the Quixote
project in So Paulo (Quixote project release)
Pages 42 and 43: Chemical technique in laboratory in
Landulpho Alves refinery, Bahia (Claudia Ferreira)
Pages 66 and 67: Diver from the Tamar Project (Tamar project
release)
Pages 92 and 93: Local community watches the films
produced in the workshop of the Mocoronga Popular
Communication Network Project, Par (Bruno Veiga)
Coordination of the Petrobras Social

and Enviromental Report
Sector Management for Guidelines and
Practices in Social Responsibility
balancosocial@petrobras.com.br
Av. Repblica do Chile, 65 Sala 1202
Centro, Rio de Janeiro, RJ Brasil
20031-912
Report printed on Suzano Reciclato paper (100% recycled from scrap

paper, 35% aer and 65% before consumption), with ink made from
renewable oilseed-based raw materials with heavy metal-free pigments,
under the ISO 18000 standard.
SELO
PR-EQIDADE
DE GNERO 2007
SOCIAL AND
ENVIRONMENTAL REPORT
SOCIAL AND ENVIRONMENTAL REPORT 2007 // WWW.PETROBRAS.COM

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SOCIAL AND ENVIRONMENTAL REPORT 2007

SOCIAL AND ENVIRONMENTAL REPORT 2007 // WWW.PETROBRAS.COM

VISION FOR 2020

To operate in a safe and profitable

Petrobras will be one of

MILLENNIUM DEVELOPMENT GOALS

Improve maternal health

Combat HIV/AIDS, malaria

Promote gender equality

Reduce child mortality

Establish a global partnership

Integrate role at home and abroad

Social and Environmental

Relationship with suppliers

freedom of association and the eective

Principle 4 Businesses should uphold the

elimination of all forms of forced and

Guarantee of the rights of the child and adolescent

Against prejudice and discrimination

Mapping, monitoring and reducing impacts

Products, compliance and transportation

Energy conservation and

Emissions, euents and waste

Principle 9 Businesses should encourage

the development and diusion of

Principle 10 Businesses should work

against corruption in all its forms

Principle 8 Businesses should undertake

Anti-corruption and anti-bribery policies

Principle 6 Businesses should uphold the

elimination of discrimination in respect of

Role in Health, Safety and Environment

Products and Services

Principle 5 Businesses should uphold the

eective abolition of child labor

Principle 3 Businesses should uphold the

Principle 7 Businesses should support

Principle 2 Businesses should make sure

that they are not complicit in human

That same year when the Companys

MESSAGE FROM THE CEO

The year 2007 was a landmark for Petrobras. It was

actions of the Petrobras Citizen and Development

to sustainable development. Another 2007 highlight

program and evaluate its results. Annual public selec-

was the renewal of the Companys participation in the

tion processes also seek to assure transparency of new

Dow Jones Sustainability Index and So Paulo Stock

incoming supported projects and make access to the

Exchange (Bovespa) Business Responsibility Index,

Company investments more democratic.

both benchmarks for investors looking for socially

Petrobras agrees to align its management with

In 2007, Petrobras invested R$ 585.8 million

which it is a signatory since 2003. This report also

informs about the Companys progress in fullling

Development social program that started in 2007

We hope that this Social and Environmental

is to invest R$ 1.3 billion by 2012 in projects that

Report achieves its objective: to inform Petrobras

contribute to reducing poverty and social inequal-

stakeholders about our main actions, impacts, risks

and opportunities in the economic, environmental

The programs lines of action are to generate