PETROBRAS AT A GLANCE



Theodore M. Helms
Executive Manager
Investor Relations
helms@petrobras.com.br

Marcos V. G. Silva...
Forward Looking Statements Disclaimer

 The presentation may contain forecasts about future events. Such forecasts merely
...
Petrobras Overview




                     3
Petrobras: An Investment Grade, Publicly Traded, Major International Oil Company

•   Incorporated in 1953 as government m...
Diversified Shareholder Base
• 60% of the economic v alue of Petrobras in private hands, but Government maintains control ...
Corporate Organization and Key Operating Results




       Exploration &                        Downstream               ...
World Class Integrated Public Energy Company

                      2007 Proven Reserves (SEC)                            ...
Balanced Vertical Integration
               Upstream Operations                        Downstream Operations




    - Pr...
Upstream Overview




                    9
Proven Reserves (SPE) evolution in Brazil




                                                                13,92



   ...
Oil Production Development and Targets

         3.000
                                                                   ...
Internal Reserves Replacement Ratio (SPE)

                     ....along with a organic reserves replacement
            ...
Long-Term Record of Increasing Reserves
                    Proven Reserves by Category                                   ...
E&P - rapidly growing production profile                                                                                  ...
Main Projects in Brazil – 2007-2012

                                                                                     ...
E&P: UPCOMING UNITS
        Units      Field              Capacity             Status             Start-up       Shipyard
...
Lifting Costs including Government Participation


     100.00                                                            ...
Lifting Cost in Brazil

                           US$/barrel                                                             ...
Distribution of the Realization Price of a Barrel of Domestically Produced Oil ($)

Regulatory framework lets government a...
Distribution of the Realization Price of a Barrel of Domestically Produced Oil (%)



                                100....
Royalties and Special Participation

  Royalties

  • Rates vary according to the area (from 5% to 10% per producing field...
Special Participation – Progressive Tax

                  Special Participation frame for deep water shelves:
           ...
Exploration Perspectives




                           23
Main Discoveries - 2002/2007

                                 ~ 13.0 billion boer (2002-2007)




                       ...
Oilfields discovered/defined in 2002-2007 in the Southeastern offshore basins




                                        ...
Earth development




           152 Million Years
                 ago




                               26
Earth development




    Earth Planet as today




                            27
Pre Salt Province




                    Tested Wells
                    HC Campu s
                    Explo rator y B ...
Recent Oil/Gas discoveries 2006-2007 - Cluster Blocks




                           Production to date:    7 bi boe
     ...
Santos Basin Pre-Salt Seismic Section




                                        30
Pre Salt – Santos Basin




                                                                          BM-S-4 2
           ...
Extended Well Test -Tupi


                               FPSO – Leased*

                                                ...
Tupi Pilot System– Production Unit



                                                         Capacity

                 ...
Gas Pipeline for Tupi’s Pilot System




                               UGN          UTGC
                                ...
Consortia for the Pre-salt blocks in Santos Basin

Block         Appraisal Plan           ANP Name        Consortium
BM-S-...
Pre-salt discoveries in Espírito Santo State (Campos Basin)


                                                            ...
New Rigs & Drilling Unit Contracting
                                                                                     ...
Exploration Activity (1998 - 2007) Wells & Seismic


  •   Espírito Santo    55 wells offshore
                           ...
Equatorial Margin
Exploratory Wells 2008-2012                  (12)

                                                     ...
E&P Concessions in Brazil

             Active
          concessions
             Jan/2007




                     Petrob...
Downstream Overview




                      41
Domestic Oil Products Market
     Thous. bpd
      3000                                            .
                     ...
Total Downstream Spending of $29.6 Billion

                                                      21%

                   ...
How Petrobras is dealing with these challenges?

             30
                                                  2.191  ...
Net Exports of Oil and Oil Products


       Exports (‘000s barrels/day)                   Imports (‘000s barrels/day)



...
Corporate Targets – Downstream



   3800                                                       90                        ...
Average Realization Price - ARP


                                                                       1Q07             ...
Downstream Business Strategy

Complexo Petroquímico do Rio de Janeiro - COMPERJ

              •Total Investment: US$ 8.4 ...
Downstream Business Strategy – Northeast Region

Refinery in Rio Grande do Norte
                    • Petrobras will depl...
Downstream Business Strategy
Refinery in the USA
                               • Petrobras has acquired 50% of the Pasade...
Petrochemical Overview




                         51
Petrochemical: capturing synergies

                                                               Other Partners


    Pr...
Current petrochemical structure in Brazil
                                                                Braskem
     SUZ...
Structure of petrochemical industry, upon final consolidation

  Sociedade Petroquímica                                   ...
International Overview




                         55
International - Overview




                                                               United Kingdom.


            ...
International – Investment Breakdown
                                   70%                     2008-12 Period            ...
Cascade-Chinook Development

- Petrobras America operated fields - Water Depth ~ 2,500 meters (8,200 feet)

- US regulator...
International – West Africa              Start up / Production Peak:
       Operator of new Block OPL         AGBAMI (PB 1...
Gas and Energy Overview




                          60
Increasing demand for Natural Gas

               Participation of the Natural Gas in the Brazilian Energy Matrix

       ...
Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães -  Petrobras at a glance- (disponível em inglês)
Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães -  Petrobras at a glance- (disponível em inglês)
Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães -  Petrobras at a glance- (disponível em inglês)
Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães -  Petrobras at a glance- (disponível em inglês)
Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães -  Petrobras at a glance- (disponível em inglês)
Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães -  Petrobras at a glance- (disponível em inglês)
Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães -  Petrobras at a glance- (disponível em inglês)
Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães -  Petrobras at a glance- (disponível em inglês)
Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães -  Petrobras at a glance- (disponível em inglês)
Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães -  Petrobras at a glance- (disponível em inglês)
Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães -  Petrobras at a glance- (disponível em inglês)
Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães -  Petrobras at a glance- (disponível em inglês)
Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães -  Petrobras at a glance- (disponível em inglês)
Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães -  Petrobras at a glance- (disponível em inglês)
Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães -  Petrobras at a glance- (disponível em inglês)
Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães -  Petrobras at a glance- (disponível em inglês)
Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães -  Petrobras at a glance- (disponível em inglês)
Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães -  Petrobras at a glance- (disponível em inglês)
Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães -  Petrobras at a glance- (disponível em inglês)
Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães -  Petrobras at a glance- (disponível em inglês)
Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães -  Petrobras at a glance- (disponível em inglês)
Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães -  Petrobras at a glance- (disponível em inglês)
Upcoming SlideShare
Loading in …5
×

Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães - Petrobras at a glance- (disponível em inglês)

2,548 views
2,458 views

Published on

Published in: Investor Relations
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
2,548
On SlideShare
0
From Embeds
0
Number of Embeds
5
Actions
Shares
0
Downloads
30
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães - Petrobras at a glance- (disponível em inglês)

  1. 1. PETROBRAS AT A GLANCE Theodore M. Helms Executive Manager Investor Relations helms@petrobras.com.br Marcos V. G. Silva Institutional Investors Coordinator Investor Relations marcosvin@petrobras.com.br June / July 2008 P-51 1
  2. 2. Forward Looking Statements Disclaimer The presentation may contain forecasts about future events. Such forecasts merely reflect the expectations of the Company's management. Such terms as "anticipate", "believe", "expect", "forecast", "intend", "plan", "project", "seek", "should", along with similar or analogous expressions, are used to identify such forecasts. These predictions evidently involve risks and uncertainties, whether foreseen or not by the Company. Therefore, the future results of operations may differ from current expectations, and readers must not base their expectations exclusively on the information presented herein. The Company is not obliged to update the presentation/such forecasts in light of new information or future developments. Cautionary Statement for US investors The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation, such as oil and gas resources, that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. 2
  3. 3. Petrobras Overview 3
  4. 4. Petrobras: An Investment Grade, Publicly Traded, Major International Oil Company • Incorporated in 1953 as government monopoly for all hydrocarbon activities in Brazil • Originally established as a refinery of imported crude oil • Became net exporter in 2006 • 60% of total equity capital (common and preferred) is now publicly traded • Government maintains controlling interest with 55% of voting shares • Market cap of approximately $260 billion, NYSE Listed, quarterly disclosure in US GAAP • Foreign currency ratings from Moody’s of Baa1, Standard & Poors (BBB), and Fitch (BBB) (3, 1, and 1 notch above sovereign, respectively) First Public Crossed the 2MM bpd, Brazilian Full Upgraded to Auction of Oil $100 billion Brazil Self- $200MM market Constitution Petrobras Investment Exploration dollar Market Sufficient in cap, Discovery Amended NYSE Listing Deregulation Grade Issuer Areas Cap mark Oil of new oil frontier Nov 1995 June 1999 August 2000 January 2002 October 2005 2006 April 2006 2007 4
  5. 5. Diversified Shareholder Base • 60% of the economic v alue of Petrobras in private hands, but Government maintains control w/55% of voting shares • More than 500,000 investors in Brazil and abroad • NYSE Listed, quarterly disclosure in US GAAP 9.5% 10.9% 20.3% 26.4% 31.2% 30.3% Foreign 46.4% 10.3% 38.2% 18.0% 9.9% 8.0% 7.9% 25.1% 23.1% 20.7% 21.9% Bovespa 29,8% 53.6% 61.6% 44.4% 40.6% 40.1% 39.9% Oct/1992 Jul/2000 Afte r Aug/00 After Jul/01 Dec/2003 May/08 offering offering Governm ent (1) (%) Bove spa Brazil Bovespa Fore ign ADRs Free 46.4 38.4 55.6 59.4 59.9 60.1 Float (1) Includes BNDES / BNDESPAR 5
  6. 6. Corporate Organization and Key Operating Results Exploration & Downstream Gas & Distribution International Production (Supply) Energy Petroche micals Biofuels Summary Financials (US$ billion) Income from Operations(2) For Year Ended 2005 2006 2007 Distribution 3% Net Revenues 56.3 72.3 87.7 Downstream EBITDA 17.6 22.9 25.3 16% Capex 10.4 14.9 21.0 (1) Total Debt 21.2 21.3 21.9 Cash & Cash Equivalents 9.9 12.7 7.0 Net Debt 11.3 8.7 14.9 Domesti c Total Equity 32.9 44.3 65.2 E&P Total Assets 78.6 98.7 129.7 81% Notes: 1 Includes capital leases 2 For tthe year ended December 31, 2006. Excludes losses in gas and energy, corporate results and eliminations 6
  7. 7. World Class Integrated Public Energy Company 2007 Proven Reserves (SEC) 2007 Oil & Gas Production (Bln boe) (‘000s bpepd) 25.0 22.5 4,180 4, 000 3,771 20.0 17.6 3,268 11.7 3, 000 2,593 15.0 11.7 11.2 10.8 2,324 2,316 2,301 10.1 2, 000 1,736 10.0 6.5 1,039 5.0 2.4 1, 000 0.0 0 Exxon BP Shell Petrobras Chevron Conoco Tot al Enl Repsol Exxon BP Shel l Chev ron Conoco Total Petr obr as Eni Repsol Mobil Mobi l Source: Company Filings, Company Website Source: Company Filings 2007 Refining Capacity Market Value as of June 06, 2008 (‘000s boepd) (US$Bln) 7,000 6,299 468 500 6,000 400 5,000 3,953 300 284 259 4,000 2,769 2,730 2,598 218 207 3,000 2,167 2,115 204 200 160 145 2,000 1,039 748 100 51 1,000 0 0 Exxo n She ll BP C o no co T o t al P e tr o br asC hev ro n R e pso l En i Exxon Pe trobr as Shel l BP Chevron Total Eni Conoco Repsol M o b il Mobil Source: Company Filings, Company Website Source: Company Filings, FactSet 7
  8. 8. Balanced Vertical Integration Upstream Operations Downstream Operations - Proved Domestic Reserves of 13,92 Billion BOE (SPE) - - Southeast Basins responsible for more than 80% of Brazil’s 11 refineries in Brazil oil production - 2007 dome stic throughput of 1,795 k bpd - - 2007 domestic oil average daily Production of 1,792 k bpd - 2007 oil products domestic consumption of 1,725 k bpd 8
  9. 9. Upstream Overview 9
  10. 10. Proven Reserves (SPE) evolution in Brazil 13,92 11,01 6,0 3.8 10
  11. 11. Oil Production Development and Targets 3.000 2812 2421 2.500 1950 2.000 1.500 1.000 3 d p b 0 1 Thousand bpd 500 0 Year ONSHORE OFFSHORE <= 300m OFFSHORE > 300m TARGET7 6 4 3 G 11
  12. 12. Internal Reserves Replacement Ratio (SPE) ....along with a organic reserves replacement 13.75 13.92 13.02 13.23 12.60 1.23 0.88 1.02 0.88 Production Production Production Production (0.60 billion boe) (0.67 billion boe) (0.70 billion boe) (0.70 billion boe) Reserves Reserves Reserves Reserves Replacement Replacement 12.35 Replacement 12.52 Replacement 13.04 12.00 Index Index Index Index (170%) (131%) (174%) (124%) 2003 2004 2005 2006 2007 The goal it to keep a minimum 100% Replacement Ratio 12
  13. 13. Long-Term Record of Increasing Reserves Proven Reserves by Category Worldwide Proved Reserves of Petrobras (Reviewed and Certified by DeGolyer and MacNaughton since 2001) Oil vs. Gas By Depth Assoc. Gas Non-Assoc. 6% 11% Gas 9% 14.9 14.9 15.0 15.0 10% 14.5 23% Oil and Condensate 85% 12.1 56% Onshore 10.7 10.4 Billion BBLS Offshore (0-300m) Offshore (300-1500m) Offshore (>1500m) 11.6 11.8 11.8 11.5 11.7 10.5 By Location By Gravity 9.8 9.3 8% 26% 74% 92% 2000 2001 2002 2003 2004 2005 2006 2007 > 31o API B ra zi l Light Inte rnat io nal < 31o API SEC SPE (inc. SEC) Heavy /Intermediate Note: Reflects both SEC and SPE (Society of Petroleum Engineers) method and includes both Brazilian and international reserves. 13
  14. 14. E&P - rapidly growing production profile 7.7% p.y. 4,153 18 3 8.7% p.y. 3,494 515 * 151 2 8 5* Thousand boed . 643 8 .3 % p.y 637 2,300 2,298 2,217 2,036 2,020 1,810 101 109 1,565 1,636 96 1,505 23 85 94 1 42 126 1,238 24 163 20 35 1 61 277 273 1,090 16 44 16 8 2 .8 12 53 274 885 1,008 2 52 2 50 26 5 10 60 11 2 32 10 9 45 2 21 2 .4 2 1 47 1 97 38 179 25 163 152 1, 7 7 8 1, 7 9 2 13 4 1 , 54 0 1 , 68 4 1 , 50 0 1,493 1 , 2 71 1 , 33 6 1 , 1 32 869 1 , 0 04 71 6 809 19 9 5 19 9 6 1997 1 9 98 1 9 99 2 0 00 2 0 01 2 00 2 2 00 3 2 00 4 20 0 5 20 0 6 20 0 7 2012 2015 O il a nd N GL - B ra zil N a t ural Ga s - B razil Target Forecast O il a nd N GL - Int e rnat io nal N a t ural Ga s - Int erna t io na l * Includes non consolidated production 14
  15. 15. Main Projects in Brazil – 2007-2012 Espadarte Espadarte Marlim Sul Marlim Sul Módulo 3 – Mód ulo 3 Mód ulo 3 Rio de Janeiro Rio de Janeiro Módulo 3 – 2,600 Espadarte Mód II Espadarte Mód II Tupi Tupi P-56 P-56 100.00 0 bpd 100.00 0 bpd 100.00 0 bpd 100.00 0 bpd Tupi Tupi 100.000 bpd 100.000 bpd 2012 EWT Pilot Sy stem 2012 6/jan/07 6/jan/07 EWT Pilot Sy stem 2011 Up to 2011 Cidade Niterói Up to Up to 100.000 bp d Cidade Niterói 30.000 b pd Up to 100.000 bp d Piranem a Piranem a 30.000 b pd Jabuti (FPSO) Jabuti (FPSO) 2009 2009 2010 2010 2,400 30.000 b pd 30.000 b pd 10/oct/07 100.00 0 bpd 100.00 0 bpd 10/oct/07 2008 2008 Frade 2,421 Frade Cidade de Vitó ria Cidade de Vitó ria 100.00 0 bpd 100.00 0 bpd 2,374 Roncador Roncador Golf inho Mó d. 2 Golf inho Mó d. 2 Marlim S ul Mó dulo 2 Marlim S ul Mó dulo 2 2009 2009 100.00 0 bpd 100.00 0 bpd P-51 P-51 2,296 Jubarte Jubarte Mod ule 4 Mod ule 4 2,200 Nov ember 2007 Nov ember 2007 180.00 0 bpd 180.00 0 bpd P-57 P-57 P-62 P-62 2008 2008 Cachalote & Cachalote & 180.00 0 bpd Roncador Roncador P-52 2,191 Baleia Franca Baleia Franca 180.00 0 bpd 100.00 0 bpd 100.00 0 bpd P-52 180.00 0 bpd 180.00 0 bpd 1.950* FPSO FPSO 2012 2012 2012 2012 Nov ember 2007 Capixaba 2,000 Nov ember 2007 Parqu e das Parqu e das Capixaba Conchas Conchas 100,000 bpd 100,000 bpd Marlim Leste Marlim Leste 100.00 0 bpd 100.00 0 bpd 2010 2010 P-53 1.792 P-53 180.00 0 bpd 180.00 0 bpd 2009 2009 1,800 Roncador Roncador P-54 2008 2008 P-54 180.00 0 bpd 180.00 0 bpd Nov ember 2007 Nov ember 2007 1,600 2007 2008 2009 2010 2011 2012 Obs.: This curve does not include Tupi’s Pilot System Production * Target may vary +/- 2.5% 15
  16. 16. E&P: UPCOMING UNITS Units Field Capacity Status Start-up Shipyard FPSO Cidade Oil: 100.000 bpd Modec Jabuti Under construction 2S08 de Niterói* Gas: 3,5 MM m3/dia Sipem - Dubai Oil: 180.000 bpd Nuclep/Brasfels P-51 Marlim Sul 3 Under construction 2S08 Gas: 6MM m /dia Angra/RJ Oil: 180.000 bpd Quip P-53 Marlim Leste Under construction 2S08 Gas: 6MM m3/dia Rio Grande/RS Cidade São Oil: 35.000 bpd Prosafe Camarupim 3 Under construction 2S08 Mateus* Gas: 10 MM m /dia Keppels - Cingapura Mauá-Jurong PMXL-1 Mexilhão Gas: 15MM m3/dia Under construction 2009 Niterói/RJ Brasfels -FSTP Oil:100.000 bpd Under construction P-56 Marlim Sul 3 2011 Keppel & Technip Gas: 6MM m /dia (P-51 Clone) Angra/RJ Oil: 180.000 bpd SBM P-57 Jubarte 3 Contracted 2011 Gas: 2MM m /dia Shipyard N/A Oil:100.000 bpd Mauá-Jurong P-62 Roncador 3 Contracted 2012 Gas: 6MM m /dia Niterói/RJ Atlântico Sul Oil: 180.000 bpd Hull contracted. Basic P-55 Roncador 3 2013 Suape/PE Gas: 6MM m /dia project under revision. Rio Grande/RS * Leased 16
  17. 17. Lifting Costs including Government Participation 100.00 96.9 80.00 72.5 65.1 54.4 US$/boe 60.00 38.2 40.00 24.4 24.8 28.8 24.9 19.4 20.00 17.7 14.7 16.2 10.7 11.1 11.7 7.0 8.5 9.0 5.1 6.4 3.3 4.0 5.7 6.6 7.7 8.7 3.3 3.0 3.4 4.3 0.00 2001 2002 2003 2004 2005 2006 2007 1Q08 Lifting Cost Gov. Take Brent 17
  18. 18. Lifting Cost in Brazil US$/barrel R$/barrel 50 43.20 40.98 40 37.92 40 120 35.03 34.12 96.9 88.7 100 30 28.04 30 25.76 74.9 24.82 23.26 68.8 80 18.92 20.58 57.8 23.16 20.13 20 20 17.95 60 16.24 14.56 16.16 12.48 40 9.04 10.62 10 10 15.20 14.45 14.66 15.22 15.16 20 7.20 7.33 7.65 8.60 8.66 0 0 0 1Q07 2Q07 3Q07 4Q07 1Q08 1Q07 2Q07 3Q07 4Q07 1Q08 Lifting Cost (US$) Gov.Part. (US$) Brent Lifting Cost (R$) Gov. Part.(R$) Lifting Cost relatively stable both in Dollar and Reais terms despite higher oil prices and continued ramp up of new production units. Government participation increased as a reflect of higher international crude oil prices. 18
  19. 19. Distribution of the Realization Price of a Barrel of Domestically Produced Oil ($) Regulatory framework lets government and companies profit from higher oil prices. $60.00 $50.00 $18.67 $ per Barrel Realization Price $40.00 $15.93 $13.25 $11.69 $30.00 $11.05 $9.29 $9.00 $20.00 $8.42 $9.74 $5.34 $6.44 $8.36 $4.26 $6.88 $3.42 $5.14 $3.29 $5.01 $10.00 $2.54 $4.42 $2.07 $3.84 $2.89 $2.20 $2.15 $1.46 $2.06 $2.15 $6.59 $7.70 $4.28 $5.73 $3.22 $3.04 $3.48 $- 2001 2002 2003 2004 2005 2006 2007 $(10.00) Lifting DD&A Exploratory costs SG&A R&D Other Other COGS Income Tax Government take Net Income 19
  20. 20. Distribution of the Realization Price of a Barrel of Domestically Produced Oil (%) 100.0% 24.1% 26.2% 35.1% 31.6% 32.9% 33.4% 33.5% % Share of Realization Price 80.0% 18.6% 16.8% 60.0% 21.9% 22.3% 21.0% 21.4% 23.2% 11.7% 12.4% 40.0% 17.0% 17.5% 16.0% 17.0% 17.5% 20.0% 18.2% 14.9% 14.5% 14.6% 14.2% 13.8% 13.8% 0.0% 2001 2002 2003 2004 2005 2006 2007 -20.0% Lif ting DD&A Exploratory costs SG&A R&D Other Other COGS Income Tax Government take Net Income 20
  21. 21. Royalties and Special Participation Royalties • Rates vary according to the area (from 5% to 10% per producing field) and are established in each concession contract. The reference price is published for each field, according to the characteristics of the oil / gas, by the Brazilian regulator – ANP. Special Participation • Progressive tax (from 10% to 40%) applied over the operating income from oil and gas production. Tax depends on the year of production, daily production and location (Land, Offshore Shallow Water or Offshore Deep Water). 7,356 7,619 8,000 7,000 5,562 US$ Million * 6,000 3,729 3,850 5,000 3,670 4,000 2,998 2,989 3,000 2,331 1,954 2,000 1,576 3,890 1,131 3,506 1,000 1,716 2,573 1,200 1,422 0 2002 2003 2004 2005 2006 2007 Royalties Special Participation * Values in BR GAAP converted to USD by historical forex rate 21
  22. 22. Special Participation – Progressive Tax Special Participation frame for deep water shelves: 40% 30% 35% 10% 20% Tax Rates Daily production (thousand m3/day) First Year of 15 20 25 30 35 Production 6.3 conversion Factor Second Year of 11.7 16.7 21.7 26.7 31.7 Production Third Year of 8.3 13.3 18.3 23.3 28.3 Production After the Third Year of 5 10 15 20 25 Production 22
  23. 23. Exploration Perspectives 23
  24. 24. Main Discoveries - 2002/2007 ~ 13.0 billion boer (2002-2007) Proven Reserves...............: 3,80 B boe Prob.&Poss. Res...............: 4,50 B boe Under Evaluation (2007).: 4,70 B boe Sergipe-Alagoas Light Oil Espirito Santo Light Oil & Natural Gas Campos Producible Heavy Oil & Light Oil Santos Light Oil & Natural Gas 24
  25. 25. Oilfields discovered/defined in 2002-2007 in the Southeastern offshore basins 25
  26. 26. Earth development 152 Million Years ago 26
  27. 27. Earth development Earth Planet as today 27
  28. 28. Pre Salt Province Tested Wells HC Campu s Explo rator y B lock’s Pre Salt R eservoir s 28
  29. 29. Recent Oil/Gas discoveries 2006-2007 - Cluster Blocks Production to date: 7 bi boe Actual Production: 1.6 MMboepd Producing Wells: 542 Area: 7,000 km2 Pre-salt Cluster 15,000 km2 Tupi: 5 a 8 bi boe 29
  30. 30. Santos Basin Pre-Salt Seismic Section 30
  31. 31. Pre Salt – Santos Basin BM-S-4 2 BM-S-5 2 (Corcovado) (Yara) BM-S-5 0 BM-S-1 0 (Parati) BM-S-1 1 (Tupi) BM-S-2 4 (Jupiter) BM-S-8 BM-S-9 (Guará) (Bem-te- Vi) (Carioca) BM-S-2 2 BM-S-2 1 (Caramba) BM-S-1 7 Wells Being Drilled Wells Drilled 31
  32. 32. Extended Well Test -Tupi FPSO – Leased* Capacity Water Depth 2.170 m Capacity to Process Oil 30,000 bpd Oil Range 28 – 42 º API Wells 1 Oil Production Flare Capacity 1000 thous. m3 Riser to export Gas 1 1st Oil: March/2009 * Leased from BW Offshore 32
  33. 33. Tupi Pilot System– Production Unit Capacity Water Depth 2.145 m Capacity to Process Oil 100,000. bpd Capacity of Gas 4 million m3 /d Compression Water Injection 100 mil bpd Water Production 60 mil bpd Oil degree 20 – 30 º API 5 oil production (+4 extra) Wells 2 water injection (+3 extra) 1 gas injection (+1 extra) 1st Oil: Dec./2010 33
  34. 34. Gas Pipeline for Tupi’s Pilot System UGN UTGC A RPBC 14 Km 5 PMXL 170 21 Km URG 2 Km To se 24 rv 8 ic Km e th e PMLZ-1 Pi lo t TUPI Area Existing Planned TEFRA N Under Construction 34
  35. 35. Consortia for the Pre-salt blocks in Santos Basin Block Appraisal Plan ANP Name Consortium BM-S-8 Bem-te-vi BR (66%), SHELL (20%), PETROGAL (14%) BM-S-9 SPS-50 Area Carioca BR (45%), BG (30%), REPSOL (25%) BM-S10 RJS-617 Area Parati BR (65%), BG (25%), PARTEX (10%) BM-S-11 RJS-628 Area Tupi BR (65%), BG (25%), PETROGAL (10%) BM-S-17 BR (100%) BM-S-21 SPS-51 Area Caramba BR (80%), PETROGAL (20%) BM-S-22 ESSO (40%), AMERADA (40%), BR (20%) BM-S-24 RJS-652 Area Jupiter BR (80%), PETROGAL (20%) BM-S-42 BR (100%) BM-S-50 BR (60%), BG (20%), REPSOL (20%) BM-S-52 BR (60%), BG (40%) 2 blocks 100% Petrobras 3 Appraisal Plans approved 5 blocks with partners, Petrobras operates 1 block as non-operating partner 35
  36. 36. Pre-salt discoveries in Espírito Santo State (Campos Basin) BLA 4-ESS-149 1-ESS-122 N CHT 6-CH T-4 1-ESS-116 3-ESS-110HPA 1-ESS-119 BFR JUB NAU BAZ 1-ESS-103 1-ESS-125 1-ESS-103A-ES S 4-ESS-135 MGG Gasene 4-ESS-172 CXR 3-ESS-175 PRB CTU 4-ESS-175-ES 4-ESS-172-ES 77 Well tests showed high productivities in km the pre-salt reservoirs. Cachalote Anã Argonauta Franc a Ostra 20 km Jubarte Náutil us Azul Mangangá Caxar éu Abalone Pirambú Catuá 36
  37. 37. New Rigs & Drilling Unit Contracting From Start Up Start Up Start Up Water Depth 2007 Start Up 2008 Start Up 2009 2013 to 2010 2011 2012 2017 • Pride South Atlantic •Petrobras 0-999m 5 • O. Yorktown XIV • Pride Mexico • Borgny Dolphin • Ocean Concord • Falcon-100 1000-1999m •Olinda Star 18 •Ocean Worker •Lone Star •Gold Star •Delba IV •Delba V ≥ 2000m 5 •Schahin III •Schahin I •Delba VI •Petrorig II •Norbe VI •Scorpion •Sevan Driller •Delba III •Delba VII •West Taurus •SSV •Delba VIII + 28 •West Victoria •Norbe IX new Eminence •West Orion units •Schahin 1 •Dave Beard •Schahin 2 to be leased •Norbe VIII •Petroserv •Etesco 8 •Sevan Brasil Total per year 28 6 9 7 1 12 28 Cumulative 6 15 22 23 35 63 • Stena Drillmax e Dep Water Millennium are not being considered since they are being negotiated in the Spot Market 37
  38. 38. Exploration Activity (1998 - 2007) Wells & Seismic • Espírito Santo 55 wells offshore TOTAL: • Campos 205 wells offshore 794 exploration wells • Santos 80 wells offshore • Other Basins 40% overall success ratio 335 wells onshore 2007 59% 103 wells offshore 400% 300% 200% 1998/2007 100% ~ 560,000 km 2D seismic 0% 2003 2004 2005 2006 2007 ~ 140,000 km2 3D seismic Reserve Replacement Ratio (SPE/ANP Criteria) 38
  39. 39. Equatorial Margin Exploratory Wells 2008-2012 (12) Ceara & Potiguar Solimões (23) AP (8) Potiguar (88) onshore: 70 offshore: 18 SEAL& REC & TUC (90) onshore: 70 offshore: 20 São Francisco (4) Bahia Sul (26) Esp.Santo (85) onshore: 45 offshore: 40 Exploration: Campos (74) Exploration: US$ 13.8 billion US$ 13.8 billion Santos (80) Petrobras Other Companies Pelotas (2) 39
  40. 40. E&P Concessions in Brazil Active concessions Jan/2007 Petrobras Concessions Petrobras Concessions Other Other Total Total Concessions Concessions 100% 100% Parnerships Total Companies Brazil Parnerships Total Companies Brazil W.I W.I Exploration Blocks Exploration Blocks 64 64 80 80 144 144 218 218 362 362 Exploration EP´s Exploration EP´s 5 5 5 5 10 10 0 0 10 10 Production Production 285 285 20 20 305 305 29 29 334 334 Total Total 354 354 105 105 459 459 247 247 706 706 Petrobras & Partners Other Companies Note: number of concession contracts (not considering the concessions from the 9th Bidding Round) 40
  41. 41. Downstream Overview 41
  42. 42. Domestic Oil Products Market Thous. bpd 3000 . 2,732 % p .y 2 .7 6 2,337 345 2500 2,039 138 1,918 287 2000 228 116 198 95 1105 120 1500 902 779 728 1000 173 129 84 96 281 282 281 249 500 386 432 330 340 208 217 237 257 0 2007 2010 2015 2020 LPG Gasoline Naphta Jet Fuel Diesel Fuel Oil Others 42
  43. 43. Total Downstream Spending of $29.6 Billion 21% 28% Fuel Quality 8,619 Conversion 3,938 8% Expansion 5,353 Maintaining Balanced integration HSE 1,083 between Refining and Production 8% Transportation 2,270 13% Pipelines 2,264 2,167 4% Others 6,112 18% 1,792 2,412 Year 2012 2011: New Refinery in Brazil to add 200 Total Refining Capacity (‘000s. bpd) ‘000s. Bpd cap. New Refinery in Domestic Oil Production (‘000s. boed) Texas expanded & upgraded 43
  44. 44. How Petrobras is dealing with these challenges? 30 2.191 2.296 2.374 2.421 3.000 1.792 1.950 29 2.000 API Degree 28 1.000 Thous. b/d 27 0 26 -1.000 25 -2.000 24 23 -3.000 22 -4.000 2007 2008 2009 2010 2011 2012 Average Processed API Average Produced API Domestic Production • Increasing the capacity of processing low API degree oil. • In 2012 our refineries will have the capacity to process most of our heavy oil produced 44
  45. 45. Net Exports of Oil and Oil Products Exports (‘000s barrels/day) Imports (‘000s barrels/day) 581 615 595 559 538 523 141 488 446 262 424 109 446 409 246 148 118 260 105 94 334 213 228 125 454 450 352 370 390 335 353 319 233 263 209 181 2003 2004 2005 2006 2007 2012 2003 2004 2005 2006 2007 2012 Oil Oil Products 45
  46. 46. Corporate Targets – Downstream 3800 90 100 92 3300 3,007 90 80 2800 78 348 2,409 70 2,046 2300 348 60 251 1800 50 2,061 2,659 1300 1,795 40 30 800 20 300 10 -200 2007 2012 2015 0 Throughput - Brazil Throughput - International Domestic Crude Oil as a % of total 46
  47. 47. Average Realization Price - ARP 1Q07 4Q07 1Q08 Average Average Average 120 104.25 96.77 100 71.50 89.08 96.90 80 93.90 68.86 88.69 60 57.75 40 20 Mar -06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 A R P B raz i l ( U S$ / b b l ) A ve ra ge B rent P ri ce ( U S $/ b b l ) A R P ( U S $ / b bl wi t h V ol . S o l d i n B R l) • Up to 4Q07, ARP in Brazil affirmed our policy of aligning the domestic prices with international prices in the mid/long term; • From 4Q07, due to a sustained increase in international prices, the spread between prices in Brazil and in USA led to the readjustment of diesel (15%) and gasoline (10%) prices effective as of may 2nd. 47
  48. 48. Downstream Business Strategy Complexo Petroquímico do Rio de Janeiro - COMPERJ •Total Investment: US$ 8.4 billion (Petrobras Investme nt US$4.6 billion); • Throughput capacity: 150 thousand he av y oil barrels (Marlim oil from Campos Basin); • Start Up: 2012 • Refining and Petroche mical Integrated Complex that through the use of ne w technologies proce ss he av y oil to obtain oil products and first and second generation petroche mical products. New Refinery in Pernambuco • Total Investme nt: US$ 4.1 billion (Petrobras Investment US$2.4 billion); • Throughput capacity: 200 thousand heav y oil barrels (60% Petrobras oil / 40% PDVSA oil); • Focusing diesel and LPG production maximization, the new refinery will aim the growth of oil products de mand in the Northeast. •The Northeast Region, which responds for 19% of oil products de mand and holds only one refinery in Bahia, will no longer be a fuel importer (either from refineries in Brazil or abroad); • Costs reduction: oil products transportation are more expensive than for crude oil; • Start Up: 2011 48
  49. 49. Downstream Business Strategy – Northeast Region Refinery in Rio Grande do Norte • Petrobras will deploy its 12th refinery in the state of Rio Grande do Norte. • New plant to produce gasoline and improve the quality of other oil products (Jet fuel, Diesel and LPG) produced in existing facilities in Guamaré. • Capacity: 80,000 bpd. Start-up scheduled for 2010. Premium Refinery in Ceará • Petrobras will study, together with Ceará State, the possibility of installing a Premium refinery; • Capacity: 300,000 bpd; • The refinery’s first operation phase is scheduled to start in 2014. Premium Refinery in Maranhão • Petrobras will study, together with Maranhão State, the possibility of installing a Premium refinery; • Capacity: 600,000 bpd; • The refinery’s first operation phase is scheduled to start in 2013. 49
  50. 50. Downstream Business Strategy Refinery in the USA • Petrobras has acquired 50% of the Pasadena Refinery System Inc. (PRSI), located in Texas, USA; • Capacity of 100,000 bbl/day, will be upgraded to handle up to 70,000 bbl/day of heavy oil and feedstock; Refinery in Japan • Petrobras signed the purchase document of 87.5% interest in the Japanese Company Nansei Sekiyu Kabushiki Kaisha (NSS)- with total value of approximately US$ 50 million Acquisition includes: a refinery with capacity of 100 thousand bpd, that process light crude oil and high quality products, a crude oil and products terminal with storage capacity of 9.6 million barrels, three piers with capacity to receive product vessels of up to 97 thousand deadweight tonnage (dwt), a mono buoy for Very Large Crude vessels (VLCC) of up to 280 thousand dwt. The use of terminal capacity is planned to boost the commercialization of biofuels in Japan and other Asian markets and complement current trading of crude oil and products into Asian market of approximately 100,000 bpd. 50
  51. 51. Petrochemical Overview 51
  52. 52. Petrochemical: capturing synergies Other Partners Production 1st Generation 2nd Generation 3rd Generation • Oil • Ethane • Styrene • Packages • Gas • Benzene • Ethylene Glycol • Bags • P-Xilene • Polyethylene • Bottles • Propane • PTA • Etc. • Polypropylene • Expanding operations in 1st and 2nd generation processes and capturing synergies related to the production of oil, gas, refining and petrochemicals; • Developing new technologies for the chemical industry: evolution of fluid catalytic cracking (FCC) and biodegradable polymers and biopolymers. 52
  53. 53. Current petrochemical structure in Brazil Braskem SUZANO PETROQUÍMICA (SZPQ) 1,280 kta ethane 685 kta PP 530 kta propane 76.6% PETROBRAS 1,265 kta PE 23.4% others 560 kta PP POLIETILENOS UNIÃO (PU) +DOW 6.8% PETROQUISA 44.6% Grupo Odebrecht 274 kta PE 100% UNIPAR 44.9% Others UNIÃO DIVISÃO QUÍMICA (UDQ) PETROUÍMICA PAULÍNIA (PPSA) 210 kta 100% UNIPAR 300 kta PP cumene 40% PETROQUISA COPESUL 60% Braskem 1,200 kta ethane 37.3% PETROBRAS 600 kta propane 62.7% Braskem RIOPOLÍMEROS (RIOPOL) IPIRANGA PETROQUÍMICA (IPQ) 16.7% PETROQUISA 33.3% UNIPAR 550 kta PE 40.0% PETROBRAS 540 kta PP 33.3% SZPQ 180 kta PP 60.0% Braskem 16.7% BNDES PETROQUÍMICA UNIÃ0 (PQU) PETROQUÍMICA TRIUNFO 17.44% PETROQUISA 85.04% PETROQUISA 500 kta ethane 51.4% UNIPAR 160 kta PE 14.6% PETROPLASTIC 250 kta propane 8.4% SZPQ 0.7% TRESUARY 22.76% OTHERS 53
  54. 54. Structure of petrochemical industry, upon final consolidation Sociedade Petroquímica Braskem 500 th.tpy ethane 2,480 th.tpy ethane 250 th.tpy propylene 1,130 th.tpy propylene 210 th.tpy cumene 1,975 th.tpy PE 814 th.tpy PE 1,040 th.tpy PP 685 Kta PP 25.0% PETROBRAS/PETROQUISA 40.0% PETROBRAS/PETROQUISA 37.2% Grupo Odebrecht 60.0% UNIPAR 37.8% Others Benefits to Petrobras and the Brazilian Petrochemical industry: Petrobras becomes a significant minority shareholder in each complex; Integration, scale, and synergies Ensures competitiveness of the Brazilian petrochemical industry; Expands financing and investment capacity for expansion 54
  55. 55. International Overview 55
  56. 56. International - Overview United Kingdom. New York USA Hous ton Portugal Turkey Tokyo Jordan Okina wa Beijing Libya Iran Pakistan Mexico Senegal Nigeria Venezuela India Colombia Tanzania Singapore Ecuador BRAZIL Angola Mozambique Peru Bolivia Rio de Parag ay Janeiro Uruguay Core Areas: HEAD OFFICE Argentina • Refining REPRESENTATIVE OFFIC E • Add value to Brazilian heavy oil exports REFINING • E&P: West Africa & Gulf of Mexico: TRADING EXPLORATION AND PRODUCTION • Apply deep water and deep well drilling technology. • Latin America: • Leadership as an integrated energy company 56
  57. 57. International – Investment Breakdown 70% 2008-12 Period 19% US$ 15 billion 32% 2.7 10.5 70% will be 4.9 directed to E&P 2.8 19% 1.7 1.4 1% 0.5 3.7 0.9 1% 15% 9% 6% 3% 25% USA Under Ev aluation E&P RTC P G&E D istr. Corp. Argentina Nigeria Angola Others Thous. boed 183 151 515 108 285 112 2007 2012 Target 2015 Forecast Oil and NGL Natural Gas 57
  58. 58. Cascade-Chinook Development - Petrobras America operated fields - Water Depth ~ 2,500 meters (8,200 feet) - US regulators approved Petrobras plans to bring first FPSO (*) to the US Gulf of Mexico - Technologies new to US Gulf of Mexico, including disconnectable turret buoy, allowing the vessel to move offsite during hurricanes, and transportation via shuttle tanker Shuttle FPSO Tanker Gas Export FSHR Pipeline Chinook Chinook Flowline Control Power Umbilical Umbilical Cascade Cascade Tree Manifold (*) FPSO – Floating, Production, Storage and Offloading facility. Petrobras has an extensive experience in the use of FPSO with fifteen units currently under operation offshore Brazil. SOURCE: PETROBRAS AMERICA INC 58
  59. 59. International – West Africa Start up / Production Peak: Operator of new Block OPL AGBAMI (PB 13%, Operator: Chevron): 315 with stake of 45% - First oil: 2008 / Peak: 250,000 bpd in 2009 (total) Petrobras stake: 32,500 bpd AKPO (PB 20% - Operator: Total): - First oil: 2008 / Peak: 175,000 bpd in 2009 (total) Petrobras stake: from 70,000 to 100,000 bpd 1,000m 2,000m 6 blocks (1 in production) Operator in prolific Block 18 with 30% stake (First oil: 2010) 59
  60. 60. Gas and Energy Overview 60
  61. 61. Increasing demand for Natural Gas Participation of the Natural Gas in the Brazilian Energy Matrix 9.4% Gasbol Campos Basin 4.7% 2.0% 1970 1980 1989 1990 1998 1999 2000 2002 2004 2006 • In 16 years, natural gas participation in the energy matrix increased 370%, boosted by the ramp up of Campos Basin production and Gasbol pipeline. Source: MME, BEN 2006 61

×