Petrobras at a Glance

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Petrobras at a Glance

  1. 1. PETROBRAS AT A GLANCE January, 2014
  2. 2. DISCLAIMER FORWARD-LOOKING STATEMENTS The presentation may contain forward-looking statements about future events within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are not based on historical facts and are not assurances of future results. Such forward-looking statements merely reflect the Company’s current views and estimates of future economic circumstances, industry conditions, company performance and financial results. Such terms as "anticipate", "believe", "expect", "forecast", "intend", "plan", "project", "seek", "should", along with similar or analogous expressions, are used to identify such forwardlooking statements. Readers are cautioned that these statements are only projections and may differ materially from actual future results or events. Readers are referred to the documents filed by the Company with the SEC, specifically the Company’s most recent Annual Report on Form 20-F, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including, among other things, risks relating to general economic and business conditions, including crude oil and other commodity prices, refining margins and prevailing exchange rates, uncertainties inherent in making estimates of our oil and gas reserves including recently discovered oil and gas reserves, international and Brazilian political, economic and social developments, receipt of governmental approvals and licenses and our ability to obtain financing. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events or for any other reason. Figures for 2013 on are estimates or targets. All forward-looking statements are expressly qualified in their entirety by this cautionary statement, and you should not place reliance on any forward-looking statement contained in this presentation. NON-SEC COMPLIANT OIL AND GAS RESERVES: CAUTIONARY STATEMENT FOR US INVESTORS We present certain data in this presentation, such as oil and gas resources, that we are not permitted to present in documents filed with the United States Securities and Exchange Commission (SEC) under new Subpart 1200 to Regulation S-K because such terms do not qualify as proved, probable or possible reserves under Rule 4-10(a) of Regulation S-X. 2
  3. 3. PETROBRAS TODAY Fully integrated across the hydrocarbon chain Exploration and Production Downstream • 12 refineries (Brazil) • 2.4 mm boed production • 293 production fields • 96% of Brazilian production • 34% of global DW and UDW production Gas and Power Distribution • 7,641 service stations • 2.0 mm bpd refining capacity • 38,1% of market share • Oil products sales in Brazil: 2,285 Kbpd • 9,190 km of gas pipelines in Brazil • 20% share of service stations • 3 LNG Regasification terminals by 2013 with 41 MMm³/d capacity • Oil products output in Brazil: 1,997 Kbpd 3.0 3.6 1.1 0.9 1.1 • 24 countries • 3 Biodiesel Plants • 0.7 Bn boe of 1P (SPE) • Ethanol: opening new markets • 243 th. boed production • Largest domestic producer of biodiesel • 231 th. bpd refining capacity • 3rd producer of ethanol in Brazil • 7,028 MW of generation capacity Adjusted EBITDA per Segment (US$ bn) (1) 2.2 1.7 4.2 • NG Supply: 74.9 million m³/d Biofuels International 1.3 2013 Proven Reserves (SPE Criteria) - Brazil 3.2 2.0 15.97 Billion boe 1.6 OnShore 8% 1.3 Shallow Water (0-300m) 6% 11 43.4 42.0 30.5 19.3 Ultra-Deep Water (> 1,500m) 41% -6.9 -15.6 E&P 2009 RTM G&P Distribution 2010 2011 International Deep Water (300-1,500m) 45% 2012 (1) Adjusted according average exchange rate. Excludes Corporate and Elimination. 3
  4. 4. COMPETITIVE ADVANTAGES Uniquely positioned to integrate upstream and downstream operations Abundant reserves 300 km away from the market Exploration & Production • Leader in deep-water production, with access to abundant oil reserves • New exploratory frontier, adjacent to existing operations Downstream • Dominant position in growing market, far from other refining centers • Balance and integration between production, refining and demand Gas & Power/ Biofuels/Petrochemicals • Fully developed infrastructure for processing and transporting gas • Integration accross full energy and hydrocarbon chain in Brazil 4
  5. 5. 2013-2017 BMP INVESTMENTS Projects Under Implementation x Under Evaluation = Total Under Implementation All E&P projects in Brazil and projects of the remaining segments in phase IV US$ 236.7 Billion + Under Evaluation Projects for the remaining segments, excluding E&P, currently in phase I, II and III. US$ 207.1 Billion 947 projects US$ 29.6 Billion 770 projects 177 projects 1.0% 6.1% 62.3% (US$ 147.5 Billion) (US$ 1.8 Billion) 71.2% 27.4% 20.9% (US$ 147.5 Billion) (US$ 64.8 Billion) 6.4% (US$ 43.2 Billion) (US$ 1.9 Billion) 2.9% (US$ 5.9 Billion) 0.5% 2.2% (US$ 1.1 Billion) (US$ 5.1 Billion) 1.1% 1.4% (US$ 2.9 Billion) 73.0% (US$ 2.9 Billion) (US$ 21.6 Billion) 1.1% 1.4% 0.5% (US$ 2.3 Billion) (US$ 1.0 Bililon) (US$ 1.0 Billion) 1.0% (US$ 3.2 Billion) (US$ 2.3 Billion) Downstream (US$ 4.0 Billion) (US$ 3.2 Billion) (US$ 9.9 Billion) E&P 13.5% 1.5% 4.2% 0.4% (US$ 0.3 Billion) G&E International Pbio* Distribuition ETM* Other Areas* * Pbio = Petrobras Biofuel │ETM = Engineering, Technology and Materials │Other Areas = Financial, Strategy and Corporate Phase I: Opportunity Identification; Phase II: Conceptual Project; Phase III: Basic Project ; Phase IV: Execution 5
  6. 6. E&P INVESTMENTS 2013-2017 Period US$ 147.5 Billion 16% (24.3) 73% 16% Production Development Exploration 11% Infrastructure and Support Exploration Production Development US$ 24.3 Billion US$ 106.9 Billion 6% 24% 25% 70% Post-Salt Pre-Salt Transfer of Rights Aside from Exploration and Production Development, E&P infrastructure investments total US$ 16.3 Billion. 43% 32% 6
  7. 7. PRODUCTION CURVE IN BRAZIL - OIL AND NGL Post-Salt, Pre-Salt and Transfer of Rights 2012 Baleia Azul (Cid. Anchieta) 2013 Baúna (Cid. Itajaí) Lula NE Pilot (Cid. Paraty) Papa-Terra (P-63) Roncador III (P-55) Thousand bpd 2014 Sapinhoá Pilot Sapinhoá Norte (Cid. São Paulo) (Cid. Ilhabela) Iracema Sul (Cid. Mangaratiba) 2016 2015 Iracema Norte (Cid. Itaguaí) Lula Alto Lula Central Lula Sul (P-66) Franco 1 (P-74) Total** 365 kbpd Carioca Lula Norte (P-67) Norte Pq. Baleias (P-58) Franco SW (P-75) Papa-Terra (P-61) 2,500 Total** 840 kbpd 1,980 5% (± 2%) ± 95% 93% 2011 2012 Lula Oeste (P-69) Franco Sul (P-76) Post-salt Júpiter Espadarte III Iara NW (P-71) Bonito Florim Franco Leste Deep Waters Sergipe (P-70) Carcará Parque dos Doces Entorno de Iara (P-73) 4,200 6% 19% 2,750 7% 30% 2014 2015 Pre-salt (Concession) 2020 Sul Pq. Baleias Tartaruga Verde Maromba e Mestiça Espadarte I Iara Horst 31% 35% 69% 2013 2019 1% 2,022 7% Lula Ext. Sul (P-68) 2018 NE de Tupi (P-72) Franco NW (P-77) Roncador IV (P-62) 2,022 2017 58% 2016 2017 Transfer of Rights 44% 2018 2019 2020 New Discoveries* (*) Includes new opportunities in blocks where discoveries have already been found (**) Total capacity added considering only Petrobras´ stake ´ 7
  8. 8. 2013 Production – Oil and NGL in Brazil Conclusion of 6 new units in the 4Q13 2012 2013 FPSO Cid. São Paulo 3Q12 Average 1,904 Thousand bpd (Sapinhoá) Jan/5 2Q13 Average 1,931 3Q13 Average 1,924 4Q13 P-63 (Papa-Terra) 2.300 2.250 FPSO Cidade de Itajaí (Baúna) 2.200 2.150 2.100 2.050 2.000 1.950 1.900 (Lula NE Pilot) Jun/6 Feb/16 2.110 P-58 (Parque das Baleias) FPSO Cid. Paraty FPSO Cid. De Anchieta 2.098 (Baleia Azul) P-55 (Roncador) Sep/10 2.032 1.993 1.961 1.989 1.960 1.968 1.940 1.928 1.940 1.843 1.965 1.979 1.920 1.924 1.892 1.846 1.979 1.888 1.908 1.850 P-61 (Papa-Terra) TAD (Papa-Terra) P-62 (Roncador) 50 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 » 2H13 production will be lower than expected due to: P-63 / Papa-Terra: late identification of corals led to changes in the subsea arrangement; FPSO Cidade de São Paulo / Sapinhoá: Subsea 7 delay in building, delivering and installing the Decoupled Buoyancy Supported Risers System (monobuoy); and Limited availability of PLSVs due to the difficulties of contracting in Brazil between 2010 and 2011, which has delayed well connections. »The reservoirs of producing fields have been performing above expectations. Natural Decline observed during the last 12 months was below the projected range of 10-11%. »The delivery of 6 new units in the 4Q13 will contribute to the sustained production growth during 2014. 8
  9. 9. NEW PRODUCTION UNITS - 2013-2014 New platforms built domestically and abroad will contribute to production Project Capacity 1st Oil Hull Top Side / Integration Local Content Bid Round Commit. Target Sapinhoá Pilot FPSO Cid. São Paulo 120 kbpd 01/05/2013 Cosco Shipyard China Schahin/Modec Brasfels 2 30% 65% Baúna and Piracaba FPSO Cid. Itajaí 80 kbpd 02/16/2013 Jurong Cingapura Odebrecht and Teekay Cingapura 5 60% 81% Lula NE Pilot FPSO Cid. Paraty 120 kbpd 05/28/2013 Keppel Shipyard Cingapura QGOG/SBM Brasfels 2 30% 65% Papa-Terra P-63 140 kbpd 11/11/2013 Cosco Shipyard China Quip Rio Grande 0 0% 65% Roncador Module III P-55 180 kbpd 12/31/2013 EAS Brasil Quip Rio Grande 0 0% 65% Parque das Baleias P-58 180 kbpd 1Q 2014 Queiróz Galvão Rio Grande Queiróz Galvão Rio Grande 0 0% 63% Papa-Terra P-61 TLWP load out to P-63 1Q 2014 Floatec Brasfels Floatec Brasfels 0 0% 65% Roncador Module IV P-62 180 kbpd 1Q 2014 Camargo Corrêa/IESA EAS Camargo Corrêa/IESA EAS 0 0% 63% Sapinhoá Norte FPSO Cid. Ilhabela 150 kbpd Sep/2014 QGOG/SBM China QGOG/SBM SBM/BRASA 2 30% 65% Lula - Iracema Sul FPSO Cid. Mangaratiba 150 kbpd Nov/2014 Cosco Shipyard China Not define 2 30% 65% * Note: “FPSO Cid. XX” = Leased / “P-XX” = Owned 9
  10. 10. PROJECT INSTALLATION Petrobras has a strong track record of platforms installation per year 2006-2012 2013-2016 • Petrobras has installed, on average, 5 platforms per year from 2006 to 2011. • Ramp up of these units was delayed due to limited availability of drilling rigs2: (2006: 2, 2011: 26) • Between 2013 and 2016 we expect to install an average of 4 units per year. • Petrobras will have around 40 drilling rigs² available during the next 5 years. Units and Oil Capacity 1-3 added per year 5 units 370 kbpd 7 units 590 kbpd 4 units 210 kbpd 5 units 480 kbpd Installed Manati 8MMm³/d 5 units 400 kbpd 2 units 100 kbpd 1 unit 100 kbpd To be installed 8 units 840 kbpd P-62 180mbpd P-58 180mbpd P-54 180mbpd FPSO Cid São Mateus Camarupim 10MMm³/d FPSO Cidade de Angra dos Reis 100bpd P-55 180mbpd PPER-Phase 2 Δ5.3MMm³/d FPSO E.S. PQ DAS CONCHAS 100mbpd FPSO Capixaba (reallocation) 100bpd P-61 & P-63 140mbpd FPSOPIRANEMA 30mbpd PRA-1 FPSO Cid. Niteroi MLL 100mbpd FPSO Cidade de Santos 10MMm³/d Cid. Paraty 120mbpd P-34 JUBARTE 60mbpd FSO Cid. De Macaé FPSO Cid. Rio Das Ostras 30mbpd Frade 100bpd P-57 180mbpd Mexilhao 15MMm³/d P-50 180mbpd FPSO-Cid. RJ 100mbpd P-53 – MLL 180mbpd P-51 – MLS Mód. 2180bpd SS-11 TIRO/SIDON 20mbpd P-56 100mbpd Cid. Anchieta 100mbpd Cid. São Paulo 120mbpd 2006 2007 2008 2009 2010 2011 2012 2013 PPER-Phase 1 2.7MMm³/d P-52 180mbpd FPSOCAPIXABA 100mbpd FPSO-CIDADE DE VITÓRIA 100mbpd SEILLEAN GOLFINHO 30mbpd Cid. Itajaí 80mbpd 1 - Does not include installation of Extended Well Tests / 2 - Over 2,000 meters waterdepth / 3 - Petrobras’ Total Interest in capacity added to produce oil 10
  11. 11. OPERATIONAL EFFICIENCY PROEF - Program to recover and maintain operational efficiency in Campos Basin Formula • PROEF aims to improve operational efficiency levels and integrity of production systems Operational = Efficiency Oil Production PROEF Goals •Improve Efficiency Levels •Improve Production Systems Integrity Capex/Opex • Program impacts 2 of the 3 Operational Units (UO) in Campos Basin: UO-BC and UO-RIO UO-BC Older Fields Production PROEF Actions + 30 450 kbpd Corrective UO-RIO • Actions: Workover | Well Intervention | Top Side Maintainance New Fields Production PROEF Actions 7 900 kbpd Structuring/Preventive PROEF Goals •Reach Sustainable Levels of Efficiency •Reduce Risk of Loss of Efficiency Potential US$ 5.6 Bn Capex/Opex US$ 710 M E&P Recent Operational Efficiency (%) Operational Efficiency - E&P 100 95 90 85 Operational Efficiency - UO-BC 94 95 88 87 93 94 94 92 90 88 94 90 85 81 80 76 70 65 93 93 80 75 Operational Efficiency - UO-RIO PROEF Targets 96 96 94 92 Operational Efficiency - Without UO-BC 71 2009 2010 72 2011 2012 2013 2014 2015 2016 11
  12. 12. DRILLING RIGS A parte de imagem com identificação de relação rId7 não foi encontrada no arquiv o. Needs now largely met, with increasing utilization for production development Drilling rigs in operation (Number) (Greater than 2000 meters) +7 drilling rigs 7 8 2008 2009 16 2010 26 2011 33 2Q12 40 40 2012 3Q13 7 new rigs have entered into operation since the second quarter of 2012. Of these, 6 have been allocated to production development and one to exploration New exploration policy: migration of drilling rigs from exploration to production development. Movement away from areas of higher risk 12
  13. 13. PRE-SALT PRODUCTION IS A REALITY Production reached 390 thousand barrels of oil per day in January 14th, 2014 Pre-Salt Production Data Technological Challenges Surmounted Oil Production reached 390 kbpd (Petrobras + Partners); High Resolution Seismic: higher exploratory success This level was reached with only 19 producing wells, 6 Geological in Santos Basin and 13 in Campos Basin; production behaviour forecast Level reached only 7 years after discovery: Reduction of well construction time from 134 days and numerical modelling: • Campos Basin: 11 years in 2006 to 70 day in 2012: lower costs • US Gulf of Mexico: 17 years Selection of new materials: lower costs • North Sea: 9 years better Qualification of new systems for production gathering: higher competitiveness Separation of CO2 from natural gas in deep waters and reinjection: lower emissions and increase in recovery factor 13
  14. 14. EXPLORATION AND APPRAISAL Substantial efforts already undertaken to understand pre-salt reservoirs Numbers 1.443 m Coring 67 Wells Drilled - up to April 2013 41 DSTs 72 Conventional Logs 6 EWTs 57 Production Logs 23 Discoveries 23 Discoveries West Orion Rig 14
  15. 15. PRODUCTION ACCELERATION Series of fast-tracked pilot units now producing and gathering information Lula Pilot Baleia Azul On stream since Oct/2010 On stream since Sep/2012 FPSO Cidade de Angra dos Reis FPSO Cidade de Anchieta Sapinhoá Pilot Lula NE On stream since Jan/2013 On stream since May/2013 FPSO Cidade de Sáo Paulo FPSO Cidade de Paraty 15
  16. 16. PRODUCTION ACCELERATION Existing units connected to pre-salt wells in the Campos Basin Baleia Franca (2 wells) FPSO Capixaba Carimbé (1 well) P-48 Tracajá (2 wells) P-53 Brava (1 well) P-27 16
  17. 17. PRE-SALT – WHAT IS NEXT 24 New Production Units by 2020 ES 1 8 1 Lula Iracema Jupiter NE Tupi 2 Vitória Parque das Baleias MG 1 Florim RJ 1 Sapinhoá São Paulo Rio de Janeiro 5 2 Franco Iara SP PR Curitiba Campos Basin 1 Carioca 1 1 Entorno de Iara Carcará SC Santos Basin Florianopolis 100 km 17
  18. 18. SANTOS BASIN PRE-SALT Partnership Block Consortium BM-S-8 BR (66%) PTG (14%) QG (10%) BARRA(10%) BM-S-9 BR (45%) BG (30%) RPS (25%) Field Discoveries • • • Bem-te-vi Carcará Biguá Declaration of Commerciality Recoverable Volume * ND BM-S-11 (former Guará) 12/29/2011 2.1 billion boe Lapa (former Carioca) 12/31/2013 ND Parati 03/12/2016 ND Lula BM-S-10 Sapinhoá (former Tupi) 12/29/2010 6.5 billion boe Cernambi (former Iracema) 12/29/2010 1.8 billion boe BR (65%) BG (25%) PAX (10%) BR (65%) BG (25%) PTG (10%) • • Iara 12/31/2013 3-4 billion boe BM-S-21 BR (80%) PTG (20%) • Caramba 04/30/2015 ND BM-S-24 BR (80%) PTG (20%) • Júpiter 02/28/2016 ND * Requested extension in the deadline of the Discovery Assessment Plan (PAD) 18
  19. 19. TRANSFER OF RIGHTS ACQUISITION (5 BILLION BARRELS) Development of the areas fully under way Declaration of Commerciality Exploration Production Development Duration: 4 years Extendable for 2 more years Variable, according to Development Plan Total Duration: 40 years, extendable for 5 more years according to specific criteria Area Franco lara surroundings Florim NE of Tupi South of Guará South of Tupi 2010 2011 2012 2013 2014 Resources already available for: • 7 Exploratory wells • 1 contingent Exploratory well • 1 EWT • 2 contingent EWTs • 3D Seismic 2015 2016 2017 2018 2019 2020 First 4 production units undergoing New technologies and definition of resource allocation contracting • Average Price per barrel: US$ 8.51 (Total value: US$ 42.5 billion) 19
  20. 20. NEW PRODUCTION UNITS Platforms under construction or already contracted will meet mid-term needs 8 Replicant FPSOs for Pre-Salt • Oil Production Capacity: 150,000 bpd per unit • Installation in Transfer of Rights areas • Hulls under construction at Rio Grande Shipyard • Contracts signed for the construction and integration of the topside modules of the six first units: DM/TKK, IESA, Tome/Ferrostaal, Mendes Jr/OSX, Keppel-FELS and Jurong • The two remaining topside modules and integration package contracts are expected to be awarded by the end of 2013 with the same companies. • P67 was moved to China (Cosco Shipyard) 4 VLCCs Conversion to FPSOs • Installation in Transfer of Rights Areas (Franco) • Conversion will be made at the Inhauma Shipyard • All units will be converted from 2013 to 2016 • Next ongoing stage: modules construction and integration bidding • P75, P76 and P77 were moved to China (Cosco Shipyard) 20
  21. 21. BRASFELS SHIPYARD - RJ • Onwnership /Technology: Keppel FELS – Singapore (in Brazil since 2000) On location 2 3 1 View of BrasFels Shipyard, in Angra dos Reis – RJ (08//3112). (1) P-61 (LC:65%): Construction of the HULL of the TLWP and integration of TOPSIDE (deckbox and modules constructed in Singapore). (2) FPSO Cidade de São Paulo (LC:65%): Conversion of the HULL in China and integration of 15 modules, constructed in Brasfels (5 mod), Enaval (1 mod), Thailand (8 mod) and China (2 mod). (3) FPSO Cidade de Paraty (LC:65%): Conversion of the HULL and integration of 15 modules constructed in (5), Nuclep (4), Enaval (2) and Singapore (4). 21
  22. 22. RIO GRANDE SHIPYARD – ERG1 - RS • Rio Grande - Partners: Ecovix and Engevix (created in 2010) • QUIP - Partners: Queiroz Galvão, UTC Engenharia and Iesa (in Brazil since 2005) 7 6 5 • On location 4 1 P-55 as of Dec 2013: 3 2 View of Rio Grande Shipyard ERG1 – RS (09/03/12). (1) Steel plates of Ecovix; (2) Sub-blocks of the Hulls of the replicants of Ecovix; (3) QUIP modules for Topside and integration of P-55; (4) Modules of the IESA; (5) Pre edification area, with details for the yellow blocks of the Goliath crane type of the Konecranes (biggest crane in the world: 210m high and capacity of 2 thousand ton) delivered in Aug/12; (6) Work integration of P-55; (7) Work construction of Rio Grande Shipyard ERG 2, where will be constructed 3 Drilling Rigs of Setebrasil (NS Cassino, NS Curumim e NS Salinas) 22 22
  23. 23. ATLÂNTICO SUL SHIPYARD – PE 5 4 2 3 1 • Partners: Camargo Corrêa and Queiroz Galvão (in Brazil since 2005) • Technology Partner: Ishikawajima (IHI) Atântico Sul Shipyard (Ipojuca-PE): Construction of Zumbi dos Palmares ship in drydock and integration of the P-62 on the dock of the shipyard (08.29.12). (1) P-62: Integration of the FPSO to 15 modules, including 3 built in EAS, 7 in the UTC and 5 in the Nuclep construction sites. (2) SHIP Zumbi dos Palmares of Suezmax (2nd ship of PROMEF 1) in drydock, (3) Panel manufacturing workshops and pre-assembly of blocks; (4) Future area for construction of 6 Setebrasil drilling rigs; (5) Future area for Promar Shipyard, responsible for the construction of 8 gas tankers for Promef Phase 2. 23
  24. 24. RESEARCH & DEVELOPMENT Establishing research centers enhances long term future of Brazil as hub Petrobras’ partnerships with more than 120 universities and research centers have led Brazil to have a prominent worldwide applied research complex Technological Park Companies with R&D centers in operation, construction or plans for Brazil: • Schlumberger • Baker Hughes • FMC Technologies • Halliburton • General Electric • Vallourec & Mannesman • Usiminas • TenarisConfab • Cameron • IBM • Technip • Weatherford • Wellstream 24
  25. 25. DOWNSTREAM INVESTMENTS Projects Under Implementation US$ 43.2 billion 2013-2017 HIGHLIGHTS 21% (9.2) Refining capacity expansion on the Under 11% (4.9) 9% (3.7) 45% (19.4) 1% (0.3) Implementation Portfolio: RNEST (Pernambuco) and COMPERJ 1st Phase (Rio de Janeiro) 6% 6% (2.4) (2.8) 1% (0.4) Refining capacity expansion in design phase: 6% (2,8) Premium I (Maranhão), Premium II (Ceará) and Projects Under Evaluation US$ 21.6 billion 2% (0.5) 64% (13.8) 16% (3.5) 7% (1.5) COMPERJ 2nd Phase (Rio de Janeiro) Diesel and Gasoline Quality Portfolio: REPLAN, RPBC, REGAP, REFAP and RLAM Fleet expansion: PROMEF – 45 Oil and Oil Products transportation vessels 8% (1.7) 3% (0.5) Refining Capacity Expansion Operational Improvement Quality and Conversion Logistics for Oil Fleet Expansion Petrochemical Ethanol Logistics Corporate 25
  26. 26. DEMAND WILL CREATE ADDITIONAL DEFICIT UNTIL 2020 Products’ supply gaps and abundant oil production will create opportunity for refining Domestic oil products demand is expected to grow 50% until 2020, but Brazil will be a material net exporter Oil Production, Crude Throughput* And Domestic Market Market gap for new refining projects Oil Products Demand Total Crude Oil Processed Oil and NGL Production PREMIUM I (1st phase) 300 kbpd Oct/17 kbpd 2,933 2,147 2,255 1,9441,980 1,323 1,036 181 1980 2,320 115 kbpd Nov/14 115 kbpd May/15 1,798 2000 2010 2012 3,3803,380 PREMIUM II 300 kbpd Dec/17 RNEST (Abreu e Lima) COMPERJ (1st Phase) 300 kbpd Jan/18 COMPERJ (1st Phase) 165 kbpd Aug/16 1,814 1,641 1,393 2,004 2,750 4,200 PREMIUM I (2st phase) 300 kbpd Oct/20 2017 2,320 2020 Projects Under Implementation 2020 Total Crude Oil Processed may vary depending on Projects Under Evaluation 2012 Oil Products Market considers Petrobras’ sales (not total demand). * Crude Throughput considers utilization factor. Projects Under Implementation 26
  27. 27. TRADE BALANCE A parte de imagem com identificação de relação rId7 não foi encontrada no arquiv o. Rapid demand growth in the last 4 years has led to a shift in the trade balance Diesel Sales +24% 5,000 4,700 Gasoline Sales +65% 2,500 Thousand m³ +24% 4,400 Thousand m³ 2,800 4,100 3,800 3,500 3,200 2,900 2,200 +3% 1,900 1,600 1,300 2,600 2,300 2,000 1999 1,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2009 Exports (thous. bpd) 2003 2004 2005 2006 2007 549 548 397 Imports 75 81 Balance Oil Products 2009 2010 2011 2012 798 184 156 2008 9M2013 377 433 390 195 364 346 18 Exports Imports -249 -231 Oil 2002 779 152 478 2001 2012 705 227 2000 2012 Balance 421 195 Exports Imports -226 -182 -408 Balance 27
  28. 28. OPERATION PERFORMANCE IN BRAZIL – DOWNSTREAM A parte de imagem com identificação de relação rId7 não foi encontrada no arquiv o. Refining throughput, product output and sales, and costs Oil Products Output in Brazil (kbpd) Oil Products Sale in Brazil (kbpd) +5% +3% 2,128 2,026 788 Others Gasoline 436 Diesel 2,350 752 797 569 512 3Q12 Others Gasoline Diesel 984 864 802 2,422 3Q12 3Q13 Stable total output in 3Q13 vs 2Q13, with higher diesel and gasoline production 804 587 1.031 3Q13 Diesel (+5%): Higher demand due to economic growth (especially retail) and increase of sugar cane and corn harvest. Gasoline (+3%): Larger flex-fuel vehicles fleet, associated with gasoline price advantages against ethanol in some states. Throughput (kbpd) and Utilization (%) 96% 97% 2,072 1,974 364 1.611 Utilization Imported Oil Domestic Oil + NGL 1 1.690 1 Higher volume of domestic oil throughput, despite lower total 1 382 throughput resulting from scheduled maintenance in REDUC, 0 REVAP and REGAP in 3Q13. 0 0 3Q12 3Q13 28
  29. 29. GASOLINE AND DIESEL INTERNATIONAL PRICES A parte de imagem com identificação de relação rId7 não foi encontrada no arquiv o. Taxes account for significant share of pump price in Brazil Diesel Retail Prices Gasoline Retail Prices 2012 Average 2012 Average Brazil USA Chile China Refinery Gate Price Japan Germany Anhydrous Alcohol Brazil Taxation USA Chile China Japan Germany Disttribution Margin The refinery gate price for gasoline is currently 37% of the retail price while for diesel it is 61% 29
  30. 30. Domestic and International Price Comparison Real devaluation and higher Brent price widened the price differential Average Brazil Price* x Average USGC Price** 1.100 Average Sales Price USGC 1.000 900 Prices (R$/bbl) 800 Losses 210 700 Mar Jan 180 Average Sales Price Brazil Jun 25th Jul 16th 6th 600 30th 500 Adjustments 400 Adjustments 150 300 200 120 100 Imported Volumes (Thousand bbl / d) 240 0 Jan/12 Feb/12 Mar/12 Apr/12 May/12 Jun/12 Jul/12 Aug/12 Sep/12 Oct/12 Nov/12 Dec/12 Jan/13 Feb/13 Mar/13 Apr/13 May/13 Jun/13 Jul/13 Aug/13 Sep/13 Exchange Rate (R$/US$) Brent (US$/bbl) +13% +0,3% +11% 2,29 2,03 Diesel Imports +8% 110 110 2,07 Gasoline Imports » Price differential increased in 3Q13 due to Real devaluation (11%) and higher international oil prices 102 (+8% in Dollars). 3Q12 2Q13 3Q13 * Considers Diesel, Gasoline, LPG, Jet Fuel and Fuel Oil. ** USGC price with domestic market prices. 3Q12 2Q13 3Q13 30
  31. 31. Natural Gas Demand and Supply Thermoelectric demand lower in 3Q13 SUPPLY DEMAND million m³/day +18% +18% -6% 89.4 71.0 Non-thermoelectric Thermoelectric 39,9 Downstream E&P/Fertilizers 39.3 40.3 39,3 18.6 11,7 3Q12 -7% 71.5 39,6 37,0 38.0 38,6 90.1 83.6 32.1 40,2 41.4 84.1 40.9 39.6 Domestic 30.4 24.6 30.3 Bolivia LNG 2Q13 3Q13 3Q12 2Q13 3Q13 » Thermoelectric demand reduced 16%, 3Q13 vs 2Q13 due to higher levels of water in hydroelectric reservoirs. Natural gas thermoelectric generation remained in a high level of 5.7 GW average in 3Q13. » Lower LNG demand. » Net income of G&E: -R$ 0.2 billion in 3Q13 x R$ 0.6 billion in 2Q13, mainly due to lower generation volume and energy price (PLD).
  32. 32. (Million m³/d) NATURAL GAS SUPPLY AND DEMAND 32
  33. 33. Financial Considerations
  34. 34. PROJECTS UNDER IMPLEMENTATION Financiability Assumptions 2013-2017 Period US$ 207.1 Billion Financiability Assumptions 770 projects 71.2% (US$ 147.5 Billion) • 28% 27.4% 20.9% (US$ 43.2 Billion) Investment Grade Rating maintenance: − − (US$ 64.8 bi) 2.9% (US$ 5.9 Billion) 1.5% (US$ 3.2 Billion) 1.4% Net Debt/EBITDA lower than 2.5x • No new equity issuance • Convergence with International Prices (Oil Products) • Divestments in Brazil and, mainly, abroad 0.5% (US$ 1.1 Billion) Leverage lower than 35% (US$ 2.9 Billion) 0.5% 1.1% (US$ 2.3 Billion) (US$ 1.0 Bililon) E&P Downstream G&E International Pbio* Distribuition ETM* * Pbio = Petrobras Biofuel │ETM = Engineering, Technology and Materials │Other Areas = Financial, Strategy and Corporate Other Areas* 34
  35. 35. FINANCIAL PLANNING ASSUMPTIONS Financing analysis only incorporates projects under implementation No equity issuance Investment grade maintenance Main assumptions for cash flow generation and investment levels 2013-17 BMP is based on constant currencies from 2013. Brent prices (US$/bbl) US$ 107 in 2013, declining to US$ 100 in the long term Average exchange rate (R$/US$) R$ 2.00 in 2013, strengthening to R$ 1.85 in the long term Leverage Limit: < 35% │ Maximum leverage in 2013 and 2014 (34%), declining after 2015 Net debt /EBITDA Limit : < 2.5x │ Limit will be surpassed in 2013 and will fall below 2.0x after 2015 Oil product prices in Brazil Convergence to international prices Divestments US$ 9.9 billion Returns on new E&P projects Pre-salt projects breakeven between US$ 40-45/barrel Big post-salt projects have returns similar to pre-salt’s 35
  36. 36. OPERATING CASH FLOW AND FUNDING NEEDS Free cash flow, before dividends, by 2015. 246.9 9.9 10.7 246.9 39.8 Annual borrowing needs (2013-2017) Gross – US$ 12.3 billion │Net – US$ 4.3 billion PRODESIN – Divestment Program: 61.3 US$ Billion 2010/2011 Accomplishment: US$ 1.3 billion 2012 Accomplishment: US$ 3.4 billion 2013 Accomplishment: US$ 7.4 billion 207.1 165.0 Sources Uses Divestments and restructurings Cash utilization Third-party resources (Debt) Operating cash flow (after dividends) Amortization Investments Sale of 27.3% interest in Edesur company (Argentina) Sale of 20% interest of block 6/06 (Angola) Sale of Financial Securities of BR Distribuidora as a guarantee to Petros. Sale of 20% interest in Gila asset (EUA) Sale of 50% in blocks in Africa (Agbami, Akpo, Egina and Block 2/85) Sale of 100% of Brasil PCH Sale of 100% of Pertroquímica Innova S.A. for US$ 372 million Sale of 35% stake in block BC-10 in Campos Basin to Shell (23%) and ONGC Videsh (12%) for US$ 1.636 billion Sale of 20% of voting capital of Companhia Energética Potiguar (CEP) for US$ 16 million Farm-out contracts in US Gulf of Mexico for US$ 185 million (stakes of 33% in Coulomb, 100% in Cottonwood, 60% in EW910 fields) Sale of 100% of Petrobras Colombia for US$ 380 million Sale of participation in Blocks 3 and 4 in Punta del Este Basin (Uruguay) for US$ 17 million Sale of 100% of shares issued by the subsidiary Petrobras Energia Peru (PEP) 36 for US$ 2.6 billion
  37. 37. EBITDA A parte de imagem com identificação de relação rId7 não foi encontrada no arquiv o. Growing and stable cash flow generation Adjusted EBITDA (US$ bn)* 33,7 Adjusted EBITDA Breakdown per Segment (US$ bn)** 37,3 27,6 28,4 3,0 3,6 2,1 1,4 4,1 1,3 3,2 2,0 1,3 43,4 42,0 30,6 2010 2011 2012 -6,9 LTM -15,6 2011 2010 E&P RTM G&P 2012 Distribution 1,6 3,1 2,1 1,7 37,9 -10,7 LTM International (*) IFRS (**) Adjusted according average exchange rate. Excludes Corporate and Elimination 37 37
  38. 38. CAPEX AND CASH FLOW A parte de imagem com identificação de relação rId7 não foi encontrada no arquiv o. Free cash flow turns positive with completion of downstream projects Capex vs. Operating Cash Flow US$ MM Approx. $49 billion 50.000 45,078 43,164 Capex 2011 Capex 2012 $39 billion 40.000 30.000 Approx. 27,230 20.000 10.000 0 OCF LTM E&P Downstream Capex 2013 Gas & Energy Capex 2017 Others • 2013 - 2017 Business and Management Plan Assumptions: • Capex: Downstream projects not currently under implementation only proceed supported by cash flows and balance sheet strength • Operating Cash Flow: Oil production increases by 750 thous. bpd, generating additional operating cash flow. Import parity would eliminate downstream losses 38
  39. 39. CAPITAL STRUCTURE Increase in Net Debt in 3Q13 Net debt / Net Capitalization 2 Net Debt/EBITDA 1 5,0 4,0 28% 31% 31% 34% 40% 30% 20% 3,0 2,0 36% 2,42 2,77 2,32 2,57 3,05 10% 0% 1,0 -10% 0,0 -20% 3Q12 R$ Billion 4Q12 1Q13 09/30/13 2Q13 3Q13 06/30/13 Short-term Debt 18.2 18.2 Long-term Debt 232.7 230.8 Total Debt 250.9 249.0 provided by operating activities (R$ 14.4 bi) and 57.9 72.8 use of cash (R$ 19.6 bi) for investing activities. 193.0 176.3 86.5 79.6 (-) Cash and Cash Equivalents 3 = Net Debt » Increase in net debt in 3Q13 due to lower cash US$ Billion Net Debt 1) 2) 3) Net Debt / (adjusted EBITDA 9M13/3 x 4). Adjusted EBITDA= EBITDA excluding earnings of equity-accounted investments and impairments Net debt / (Net Debt + Shareholders Equity) Includes tradable securities maturing in more than 90 days 39
  40. 40. DEBT PROFILE Diversification and long term Total Debt (US$ 112.5 billion as of 9/30/2013) By Maturity Short term 7% By Category Others 2% Intl Capital Markets 38% By Currency Brazilian State Banks 26% Euro 6% Others 3% By Rate Real 20% Fixed 49% Dolar 71% Long term 93% ECA´s + Develop. Banks 13% Floating 51% Financial Institutions 21% Long Term Debt Amortization Schedule 2014 2015 2016 2017 2018 and after 40
  41. 41. PETROBRAS RATINGS Consolidated Investment Grade position Petrobras Rating: Baa1 Brazil: Baa2 (1 notch below PB) Outlook: Negative Petrobras Rating: BBB Petrobras Rating: BBB Outlook: Negative Outlook: Stable Brazil: BBB Brazil: BBB • Investment grade rating by all three rating agencies; • Same rating as Sovereign in S&P and Fitch; 1 notch above Sovereign in Moody’s; • Petrobras’ consolidated investment grade position is strongly supported by the sovereign rating: • Company’ size and dominant position in Brazil warrants support from the government; • Maintaining investment grade rating is essential for the feasibility of the BMP 2013-17, as it reduces financing cost. 41
  42. 42. DIVIDEND POLICY Petrobras policy is to pay a minimum of 25% of adjusted net income to each class of shares Petrobras By-Laws Consistent with Brazilian Corporate Law According to Brazilian Corporate Law, companies with two classes of shares must pay a minimum amount equal to 25% of net income Regarding Petrobras By-Laws, minimum payable to non-voting shares (PN/PBR.A) is the higher of: 25% of Adjusted Net Income 3% of the PN’s proportional book value of shareholder’s equity 5% of the PN’s proportional paid-in capital Non-voting shares have priority rights to distribution of dividends The application of Petrobras policy and by-laws resulted in the following declarations of dividends based on 2012 Adjusted Net Income: SHARE ADR PN – PBR.A R$ 0.96 R$ 1.92 ON – PBR R$ 0.47 R$ 0.94 Note: 1 ADR = 2 shares PN/PBR.A received a higher dividend for 2012 results because of the requirement of a minimum distribution, based on corporate by-laws, of 3% of the book value of shareholder equity 42
  43. 43. Information: Investor Relations +55 21 3224-1510 petroinvest@petrobras.com.br investors@petrobras.com www.petrobras.com.br/ir 43

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