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CEO José Sergio Gabrielli de Azevedo - Presentation to the "Comitê de Cooperação Econômica Brasil-Japão


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  • 1. XIV Japan Brazil Joint Economic Committee  Meeting CEO José Sergio Gabrielli de Azevedo August 9th 2011 1
  • 2. DISCLAIMERFORWARD-LOOKING STATEMENTS:DISCLAIMERThe presentation may contain forward-looking statements about We undertake no obligation to publicly update or revise anyfuture events within the meaning of Section 27A of the Securities Act forward-looking statements, whether as a result of newof 1933, as amended, and Section 21E of the Securities Exchange information or future events or for any other reason. FiguresAct of 1934, as amended, that are not based on historical facts and for 2011 on are estimates or targets.are not assurances of future results. Such forward-lookingstatements merely reflect the Company’s current views andestimates of future economic circumstances, industry conditions, All forward-looking statements are expressly qualified in theircompany performance and financial results. Such terms as entirety by this cautionary statement, and you should not"anticipate", "believe", "expect", "forecast", "intend", "plan", "project", place reliance on any forward-looking statement contained in"seek", "should", along with similar or analogous expressions, are this presentation.used to identify such forward-looking statements. Readers arecautioned that these statements are only projections and may differmaterially from actual future results or events. Readers are referred NON-SEC COMPLIANT OIL AND GAS RESERVES:to the documents filed by the Company with the SEC, specifically the CAUTIONARY STATEMENT FOR US INVESTORSCompany’s most recent Annual Report on Form 20-F, which identifyimportant risk factors that could cause actual results to differ from We present certain data in this presentation, such as oil andthose contained in the forward-looking statements, including, among gas resources, that we are not permitted to present inother things, risks relating to general economic and business documents filed with the United States Securities andconditions, including crude oil and other commodity prices, refining Exchange Commission (SEC) under new Subpart 1200 tomargins and prevailing exchange rates, uncertainties inherent in Regulation S-K because such terms do not qualify as proved,making estimates of our oil and gas reserves including recently probable or possible reserves under Rule 4-10(a) ofdiscovered oil and gas reserves, international and Brazilian political, Regulation S-X.economic and social developments, receipt of governmentalapprovals and licenses and our ability to obtain financing. 2
  • 3. THE IMPORTANCE OF NATURAL RESOURCES TO JAPAN Japanese Imports ‐ Jan‐Jun 2011 11,0% 0,1% 8,1% 2,5% 20,1% 30,4% Japan imports almost 100% of its  natural resources demands, as it  9,5% 9,4% does not produce oil, LNG, coal and iron ore, for instance. Foodstuff Materials Fuels Chemical Products Manufactured goods Machines Transport Equipment Others Japan is relatively well positioned in the world’s natural  resources supply chain, through Japanese Fuel Imports ‐ Jan‐Jun 2011 joint ventures or development and production project finances 3,80% 1,20% 6,60% 15,70% 2,90% Petroleum Petroleum Products LNG LPG Coal 3
  • 4. BRAZIL ON THE LEADERSHIP OF RECENT DISCOVERIESDeep water discoveries in Brazil represent 1/3 of the world’s discoveries in the last 5 years New Discoveries 2005‐2010 (33.989 million bbl) Deep water discoveries Brazil 38% 49% 62% 51% Others Other Discoveries Deep Water • Over the last 5 years, more than 50% of the new discoveries (in the world) took place in deep waters • The development of these new reserves will demand additional capacity in the supply chain • The expansion of Brazil’s oil and gas supply chain is aligned to this perspective We expect to double our proven reserves until 2020, keeping finding costs at US$ 2/boeSource: PFC Energy 4
  • 5. LONG HISTORY OF TECHNOLOGICAL AND OPERATIONAL LEADERSHIP IN DEEP WATERS 1977 Enchova 410ft 1988 125m Marimbá 1,610ft 491m 1994 Marlim 3,370ft 1997 2009 1,027m Marlim Sul 2003 Lula 5,600ft Roncador 7,125ft 1,707m 6,180ft 2,172m 1,884m Deep water production Offshore production facilities Global operations in 2009¹ Petrobras 45 Shell 15 StatoilHydro 15 ExxonMobil 13 BP 12 Chevron 12 Anadarko 10 Total 9 CNOOC 8 ConocoPhillips 8 ENI/Agip 5 Others 100 0 20 40 60 80 100 FPSO Semi Spar TLP Other Petrobras operates 20% of deep waters global productionSource:  PFC Energy(1) These 15 operators represented 98% of global deep waters production in 2009. Water depth of 1000 feet 5
  • 6. LONG HISTORY OF BILATERAL RELATIONSHIPS 50/60 70/80 90 2000 Participation in the  Participation of JGC–Japan  Platforms lease sale back  Various project finances and  reconstruction efforts of the  Gasoline Corporation in the  Bolivia‐Brazil gas pipeline  loans Japanese naval industry in the  construction of refineries in  financing Samurai Bonds issuance Post‐war period, through  Brazil TQC programs in  Petrobras Japanese Office  ships procurement in  Three‐party model in the  partnership with JUSE begins operations Japanese shipyards Petrochemical Industry in  Toyo Engineering working  Technological cooperation  Construction of the drilling  Camaçari, with the  on RELAM’s modernization with Kobe Steel Engineering ship Petrobras II – NS‐01 participation of big Japanese  Participation of Japanese  Partnerships in international  companies companies in the Albacora projects Construction of 4  Leste and Frade projects LPG sales to Idemitsu Oil semisubmersible drilling  Urucu’s NGPU financing Mitsui becomes Petrobras’ platforms in Japan (Petrobras  Various project finances partner in gas distribution IX, X, XI, XII) Employees interchange  between Petrobras and Mitsui Toyo Engineering works on  engineering projects MOUs with Mitsui, Itochu  Corporation, JOGMEC Brazil Japan Ethanol Trading,  in partnership with Japan  Alcohol Trading  Partnership with Tokyo  University Partnership with Mitsui and   Transocean to build Petrobras  10.000 Drilling Ship 6
  • 7. LONG HISTORY OF BILATERAL RELATIONSHIPS 2008 2009 2010 2011 Okinawa Refinery  MOUs with Marubeni Co. and   LNG Master Agreement  Under negotiations with  acquisition (Nansei Sekiyu  Mitsui & Co. to Premium I and  with Japanese companies KEPCO/Kansai Electric Power  Co) Premium II’s studies Petrobras 10.000  Company a contract for oil  JOGMEC’s financing to  DBJ financing financing with JBIC supply in case of emergencies Nansei Partnership with Sapporo  Mitsui & Co. working to  Second phase of employees  Technological cooperation  Beer to produce hydrogen  build and operate  interchange between Mitsui &  with Tokyo’s University from sugar cane Comperj’s utilities in  Co. and Petrobras PROMINP’s presentation to  MOU with JOGMEC to study  partnership with Petrobras Specific Agreement with  the Japanese market methane hydrates, ERP, CO2  GTL compact on  JOGMEC to develop flexible  NT‐ Guanabara’s lease capture, flex pipes, new  negotiations with Sumitomo  lines MOUs with Sumitomo  tubings for the pre‐salt Precision Expansion of E3 sales in  Corporation and Mitusbishi  FPSOs contracts (MODEC)  Sales of E3 gasoline to the  Okinawa (4 gas stations today.  Corporation FEED of the FLNG with   Okinawa market Forecast of 20 by year end) Transpetro’s LNG operators  Saipem‐SBM‐Chiyoda and  NANSEI’s financing by DBJ  Examples of recent projects  are trained at Tokyo Gas’ Technip‐JGC‐MODEC and ODFC with the participation of  terminal LNG Master Agreement with  IHI’s cooperation to  Japanese companies: Japanese companies rebuild the facilities of the  ₋ FPSO Cidade de São Paulo  Partnership with Mitsubishi  Ishikawajima shipyard in  MV23 Co and Schain Cury to build  Brazil ₋ FPSO Cidade de Angra dos  the second deep water drilling  Participation of Japanese  Reis MV22 ship  companies in two  ₋ FPSO Cidade de Santos  Joint Venture with Mitsui &  consortiums to study the  MV20 Co to ethanol trading based in  Floating LNG project ₋ FPSO Cidade de Niterói  Singapore MV18 Partnership with Toyo  ₋ FSO Cidade de Macaé MV15 Engineering to micro GTL pilot  ₋ FPSO Cidade de Rio de  plant Janeiro ₋ FPSO Fluminense 7
  • 8. Perspectives of the  Brazilian Market 8
  • 9. GROWTH IN SALES VOLUMES Sales volumes (thousand boed)  6,6%  p.a. Ferti lizers 7.142 79 Electri c energy 141 5,6%  401 p.a. 906 Biofuels 4.957 480 38 106 Interna tiona l sa les 3.773 3.847 290 3.464 17 17 738 2.317 17 94 97 Na tura l ga s 94 136 147 436 125 593 634 542 312 320 997 Exports 231 699 586 706 1.739 1.453 Other di stributors 1.204 1 5 .31 1.097 899 1.078 Sa les to BR 652 718 731 2009 2010 2011 2015 2020 PN 2011‐15 ‐ Volume de Venda s Tota is  do Sis tema  Petrobras 9
  • 10. 2011‐2015 INVESTMENTS Total: International: US$ 224,7 billion US$ 11,2 billion 2%1%2% 1% 3% 2% 1% 6% 4,1 7% 3,8 2,4 13,2 3,1 31% 57% 70,6 127,5 (*) 87% E&P RTM G&E Petrochemicals Distribution Biofuels E&P RTM G&E Distribution Corporate Corporate (*) US$ 22,8 bi in exploration 10
  • 11. PRODUCTION With ample access to new reserves, Petrobras will more than double production  on the next decade 6.418 142 246 1.120 3.993 125 180 + 35 Systems 2.575 2.772 618 2.386 2.516 + 10 post‐sal projects 96 96 93 99 141 + 8 pre‐salt projects 132 144 435 4.910 111 317 334 321 + 1 Transfer of Rights project 845th boe/day 3.070 Transfer of Rights 1.971 2.004 2.100  Additional capacity 13 1.855 Oil: 2.300 th. bpd Pre-Salt 1.148 543 2008 2009 2010 2011 2015 2020 Oil Production ‐ Brazil Gas Production ‐ Brazil Oil Production ‐ Intl Gas Production ‐ Intl • Pre‐salt and Transfer of Rights will represent 69% of the additional production until 2020; • Pre‐salt’s share of Petrobras’ oil production in Brazil will grow from the current 2% in 2011 to 18% in 2015 and  40,5% in 2020.  11
  • 12. PRODUCTION, REFINING AND DEMAND IN BRAZIL PREMIUM I (second unit) 300 th bpd (2019) COMPERJ (second unit) 165 th bpd (2018) Th. bpd COMPERJ PREMIUM II 5.000 (First unit) 165 th bpd 300 th bpd (2013) (2017) Abreu e Lima  4.000 Refinery  PREMIUM I (first unit) (RNE) 300 th bpd 230 th bpd  (2016) 3.327 (2012) 3.095 3.000 2.643 4.910 2.536 2.000 3.217 3.070 2.147 2.100 2.208 2.205 1.971 1.792 1.933 2.004 1.811 1.000 1.798 0 2009  2010 2011 2015 2020 Oil and NGL Production ‐ Brazil Throughput ‐ Brazil Oil Fuels Market (2 scenarios) 12
  • 13. THANK YOU! 13 13