Petrobras - 2009 Sustainability Report

• Presentation of the Financial Statements

• Consolidation Procedures

• Description of Significant Accounting Policies

• Cash and Cash Equivalents

• Trade Accounts Receivable, Net

• Related Party Transactions

• Inventories

• Petroleum and Alcohol
  Accounts - STN

• Marketable Securities

• Project Financing

• Deposits in Court

• Investments

• Property, Plant and Equipment

• Intangible Assets

• Financing

• Contractual Commitments

• Financial Income and Expenses

• Other Operating Expenses, Net

• Taxes, Contributions and Interests

• Employee Benefits

• Employee and Management Profit-Sharing

• Shareholders’ Equity

• Legal Proceedings and Contingencies

• Commitments Assumed by the Energy Segment

• Guarantees for Concession Agreements for Petroleum Exploration

• Segment Reporting

• Derivative Financial Instruments, HEDGE and Risk Management Activities

• Insurance

• Security, Environment and Health

• Pronouncements, Interpretations and Orientations That Will Come Into Force in 2010

• Subsequent Events

Insurance

For protection of its patrimony, Petrobras has the basic philosophy of transferring, through taking out insurance, the risks that, in the event of their occurrence, may cause losses that significantly impact the Company’s patrimony, as well as the risks subject to obligatory insurance, whether through legal or contractual provisions. The other risks are subject to self-insurance, with Petrobras intentionally assuming the full risk through absence of insurance. The Company assumes an expressive portion of its risk, contracting deductible amounts that may reach an amount equivalent to US$ 50 million.

The risk assumptions adopted are not part of the scope of an audit of financial statements. Accordingly, they were not examined by our independent auditors.

The main information concerning the insurance coverage in force as of December 31, 2009 may be presented as follows:

assets	Types of coverage	R$ - Insured amount
		consolidated	parent company
TOTAL		168,897,486	116,033,890
Facilities, equipment and products in stock	Fire and operating risk	124,488,532	99,853,676
Tankers and auxiliary vessels	Hulls	1,825,822
Fixed platforms, floating production systems and offshore drilling unity	Petroleum risks	40,583,132	16,180,214

Petrobras does not take out insurance for loss of earnings, control of wells and control of the pipeline network in Brazil. Considering its financial size and its commitments and investments in the areas of health, environment and security and quality, Petrobras, similarly to petroleum companies of a similar size, retains a significant portion of its risk, including through the increase in its deductible amounts, which may reach US$ 50 million.