Sumitomo Corporation (hereinafter referred to as "SC", Mr. Susumu Kato, President and CEO, head office in Tokyo, Japan) and Petroleo Brasileiro S.A. (hereinafter referred to as "PB", Mr. Jose Sergio Gabrielli de AzevedoAPresident and CEO, head office in Rio De Janeiro, Brazil) finally reached an agreement for the Strategic Joint Venture in refining and terminalling operations on Nansei Sekiyu K.K. (hereinafter referred to as "NSS", office in Okinawa, Japan).

NSS is currently operated as a refining operation company and logistic system under the joint venture of TonenGeneral Sekiyu K.K. (hereinafter referred to as "TG") with its 87.5% stakes and SC with its 12.5% stakes.

PB have been seeking for an opportunity to establish refining foothold in Asia to secure physical outlet for PB's crude oil aiming for marketing its petroleum product to Okinawa local market and other Asian countries where its demand has been surged these days. SC having introduced NSS to PB about two years ago, has been discussing this NSS participating opportunity with PB in order to maintain refining business and job security at Okinawa. This time, each interest among three parties have been met.

PB is to buy 87.5% shares from TG and enter into a new Joint Venture Agreement for this refining operation with SC and new NSS will be run under new shareholders, PB and SC.

PB and SC will soon start feasibility study for investments on refinery conversion to process heavy crude oil, over the next three years, as well as the terminalling capability to boost the marketing of bio-fuels in Japan and Asian countries. This may substantially enhance its refining economics thereafter.

Under new joint venture operation, SC shall provide its expertise and market access for securing regional crude procurement and marketing petroleum products in Asian region and local Okinawa market while PB shall provide not only its technical assistance for day to day refining operation and refinery upgrade project but also their own equity crude oil.

Overview of NSS;
1.	Name	:	Nansei Sekiyu Kabushiki Kaisha
2.	Address	:	858 Aza Konaha, Nishihara-cho, Nakagami-gun, Okinawa Japan
3.	Capital	:	JPN YEN 7,625 million (as of end of Year 2006)
4.	Shareholders	:	Petrobras S.A. 87.5% Sumitomo Corp. 12.5%
5.	Sales Amount	:	JPN YEN 154 Billion (Year 2006)
6.	Number of Employee	:	115 employees (as of end of Sep. 2007)
7.	Nameplate APS Capacity	:	100,000 Barrel-a-day