Petrobras Energia SA

Issuance of US$300 Million Notes

Petrobras Energia SA

                             PETROBRAS ENERGIA S.A.

Petrobras EnergĂ­a S.A. (Buenos Aires: PESA) (the 'Issuer') informs that, based
on the offerings received, it has determined on this date the terms and
conditions relating to the US$ 300 million Series 'S' Notes (the 'Notes') due
2017, with an interest coupon of 5.875% p.a., at a price of 99.617%, and with a
annual yield to investors of 5.926%. Interest will be payable semiannually and
principal will be repaid in a single installment at maturity. The Notes are
expected to be issued on May 7, 2007 and the proceeds of the offering may be
used for: working capital in Argentina and/or investments in tangible assets
located in Argentina and/or debt refinancing.

The Notes will be supported by a Standby Purchase Agreement provided by PESA's
ultimate controlling shareholder, Petroleo Brasileiro S.A. (PETROBRAS). Pursuant
to this Agreement, in the event the Issuer fails to make payment of principal,
interest or any other amount owed by the Issuer in connection with the Notes,
PETROBRAS is obligated to purchase the rights of noteholders to receive such
payments on the Notes.

The Notes were rated Baa2 and BBB- ('Investment Grade') by Moody's Investors
Service and Standard & Poor's Ratings Services, respectively.

The Notes were offered both in the domestic and international capital markets to
individual and institutional investors.

(54-11) 4344-6655