Petrobras at a Glance

8,839 views
8,809 views

Published on

General Presentation
Petrobras
April 2013
HSBC Latin American Investment Summit

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
8,839
On SlideShare
0
From Embeds
0
Number of Embeds
6,877
Actions
Shares
0
Downloads
63
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Petrobras at a Glance

  1. 1. PETROBRASAT A GLANCEHSBC Latin American Investment Summit April, 2013
  2. 2. DISCLAIMER FORWARD-LOOKING STATEMENTSThe presentation may contain forward-looking statements We undertake no obligation to publicly update orabout future events within the meaning of Section 27A of revise any forward-looking statements, whether asthe Securities Act of 1933, as amended, and Section 21E a result of new information or future events or forof the Securities Exchange Act of 1934, as amended, that any other reason. Figures for 2013 on areare not based on historical facts and are not assurances of estimates or targets.future results. Such forward-looking statements merelyreflect the Company’s current views and estimates offuture economic circumstances, i d tf t i i t industry conditions, diti All forward-looking statements are expresslycompany performance and financial results. Such terms qualified in their entirety by this cautionaryas "anticipate", "believe", "expect", "forecast", "intend", statement, and you should not place reliance on"plan", "project", "seek", "should", along with similar or any forward-looking statement contained in thisanalogous expressions, are used to identify such forward- presentation.looking statements. Readers are cautioned that thesestatements are only projections and may differ materiallyfrom 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 Company’s most recent Annual Report on CAUTIONARY STATEMENT FOR US INVESTORSForm 20-F, which identify important risk factors that could We present certain data in this presentation, suchcause actual results to differ from those contained in the as oil and gas resources that we are not permitted resources,forward-looking statements, including, among other to present in documents filed with the Unitedthings, risks relating to general economic and business States Securities and Exchange Commission (SEC)conditions, including crude oil and other commodity under new Subpart 1200 to Regulation S-K becauseprices, refining margins and prevailing exchange rates, such terms do not qualify as proved, probable oruncertainties inherent in making estimates of our oil and possible reserves under Rule 4-10(a) of Regulationggas reserves including recently discovered oil and gas g y g S-X. S Xreserves, international and Brazilian political, economicand social developments, receipt of governmentalapprovals and licenses and our ability to obtain financing. 2
  3. 3. Petrobras TodayFully integrated across the hydrocarbon chain Exploration and  p Downstream D t Distribution i ib i Gas and Power G dP International Biofuels i f l Production • 12 refineries (Brazil) • 7,641 service stations • 9,190 km of gas pipelines in • 24 countries • 3 Biodiesel Plants• 2.4 mm boed production Brazil • 2.0 mm bpd refining capacity • 38,1% of market share • 0.7 Bn boe of 1P (SPE) • Ethanol: opening new markets• 293 production fields • NG Supply: 74 9 million m³/d 74.9 • Oil products sales in Brazil: • 20% share of service stations • 243 th. boed production • Largest domestic producer of• 96% of Brazilian production 2,285 Kbpd • 3 LNG Regasification biodiesel terminals by 2013 with 41 • 231 th. bpd refining capacity• 34% of global DW and UDW • Oil products output in Brazil: MMm³/d capacity • 3rd producer of ethanol inproduction 1,997 Kbpd Brazil • 7,028 MW of generation capacity Adjusted EBITDA per Segment (US$ bn) (1) 2012 Proven Reserves (SPE Criteria) ‐ Brazil 3.0 3,2 3.6 1 3 1.3 1.6 15.73 Billion boe 15 73 Billion boe 2.1 2,0 1.1 1.4 1.3 4.1 Shallow Water 0.9 1.1 (0-300m) 8% 11 Onshore 43.4 42,2 8% 30.6 19.3 Deep Water (300-1,500m) 48% ‐6.9 ‐15,0 Ultra-Deep Water (> 1,500m) 1 500 ) 36% 2009 (2) 2010 (3) 2011(3) 2012 (3) E&P RTM G&P Distribution International(1) Excludes Corporate and Elimination     (2) Adjusted according to average exchange rate       (3) IFRS USD 3
  4. 4. OwnershipBroad distribution: government, Brazilian and foreign shareholders Foreign Shareholders Non-Voting 35% 19% Voting Brazilian 35% 47% Government 16% Non-Voting Voting 12% 12% 6% 18% Brazilian Non-Gov’t Shareholders Non-Voting Voting • Brazilian government, by law, must maintain control. Does so with 61% of voting shares. • In BM&FBovespa Petrobras is most actively traded stock by shares and volume BM&FBovespa, stock, volume. • 2000: ADRs listing on NYSE (PBR and PBR/A)*Includes: Federal Government, BNDES, BNDESPAR, Sov. Wealth Fund 4
  5. 5. Relative PositionRanked among the leading integrated energy companies 2012 Oil and Gas Production (mm boe/d) 2012 Oil and Gas Production (mm boe/d) 2012 Proven Reserves  SEC (bn 2012 Proven Reserves – SEC (bn boe) 25.2 4.2 3.3 3.2 16.8 2.6 2.6 13.3 12.3 2.3 11.3 10.8 1.7 1.6 8.6 6.8 5.2 0.6 Exxon BP Shell Chevron  BR Total ENI  Conoco BG Exxon BP Shell BR Chevron Total Conoco ENI Statoil Gás Oil Gas Oil g p y( / ) 2012 Refining Capacity (mm boe/d) Market Cap (US$ bn) – March 29th, 2013 p( $ ) , 5.5 404 3.7 2.9 231 209 2.3 2.2 2.1 1.9 134 114 112 0.9 82 77 0.3 73 Exxon Shell BP BR Conoco Total Chevron ENI Statoil EXXON CHEVRON SHELL BP TOTAL BR ENI STATOIL CONOCOSource: Evaluate Energy (barrels per calendar day, considering company % shareholding and including JVs) and BloombergNote: Peer companies selected above have a majority of capital traded in the public market.Note: Peer companies selected above have a majority of capital traded in the public market. 5
  6. 6. Competitive AdvantagesUniquely positioned to integrate upstream and downstream operations Abundant reserves 300 km  away from the market 13 Exploration & Production Downstream Gas & Power/ Biofuels/Petrochemicals • Dominant position in growing  • Fully developed infrastructure  • Leader in deep‐water production,  market, far from other refining  for processing and transfporting  with access to abundant oil reserves centers g gas • New exploratory frontier, adjacent  • Balance and integration between  • Integration accross full energy  to existing operations production, refining and demand and hydrocarbon chain in Brazil 6
  7. 7. 2013-17 Business and Management Plan Fundamentals PRIORITY CAPITAL PERFORMANCE DISCIPLINE Financiability Assumptions • Management • Priority for • Investment Grade rating • Guarantee the oil and maintenance focused on reaching expansion of natural gas • No new equity issuance physical and the business exploration & financial targets with solid production • Convergence with International Prices (Oil of each project financial projects in Products) indicators Brazil • Divestments in Brazil and, mainly, mainly abroad 2013 2017 7
  8. 8. 2013-2017 BMP InvestmentsApproved by Petrobras’ Board of Directors in 03/15/13 2013-2017 Period US$ 236.7 Billion Financiability Assumptions • Investment Grade Rating maintenance: 28% 27.4% − Leverage lower than 35% (US$ 64.8 bi) E&P − Net Debt/EBITDA lower than 2.5x 62.3% 4.2% • No new equity issuance (US$ 9.9 bi) (US$ 147.5 bi) 2.2% 2 2% • Convergence with International Prices (Oil (US$ 5.1 bi) Products) 1.1% • Divestments in Brazil and, mainly, abroad (US$ 2.9 bi) 0.4% 1.0% 1.4% (US$ 1.0 bi) (US$ 2.3 bi) (US$ 3.2 bi) E&P Downstream G&E International Pbio* Distribuition ETM* Other Areas** Pbio = Petrobras Biofuel │ETM = Engineering, Technology and Materials │Other Areas = Financial, Strategy and Corporate 8
  9. 9. 2013-2017 BMP InvestmentsImplementation x Evaluation Under Implementation Under Evaluation Total = All E&P projects in Brazil and projects of the remaining segments in phase IV + Projects for the remaining segments, excluding E&P, currently in phase I, II and III. US$ 236.7 Billion US$ 207.1 Billion US$ 29.6 Billion 947 projects 770 projects 177 projects 1.0% 6.1% (US$ 0.3 Billion) 62.3% 62 3% 71.2% 71 2% (US$ 1 8 Billion) 1.8(US$ 147.5 Billion) 27.4% (US$ 147.5 Billion) 20.9% 6.4% (US$ 64.8 Billion) (US$ 43.2 Billion) (US$ 1.9 Billion) 13.5% 2.9% (US$ 4.0 Billion) (US$ 5.9 Billion) 1.5% 4.2% (US$ 3.2 Billion) (US$ 9.9 Billion) 2.2% 0.5% (US$ 5.1 Billion) (US$ 1.1 Billion) 1.1% 1 1% 1.4% (US$ 2.9 Billion) (US$ 2.9 Billion) 73.0% (US$ 21.6 Billion) 0.4% 1.4% 1.1% (US$ 3.2 Billion) 0.5% (US$ 2.3 Billion) (US$ 1.0 Billion) 1.0% (US$ 1.0 Bililon) (US$ 2.3 Billion) E&P Downstream G&E International Pbio* Distribuition ETM* Other Areas** Pbio = Petrobras Biofuel │ETM = Engineering, Technology and Materials │Other Areas = Financial, Strategy and CorporatePhase I: Opportunity Identification; Phase II: Conceptual Project; Phase III: Basic Project ; Phase IV: Execution 9
  10. 10. 2013-2017 Business and Management Plan :Project Portfolio Management INVESTMENTS UNDER IMPLEMENTATION US$ 147.5 Billion US$ 43.2 Billion $ $ US$ 5.9 Billion $ US$ 3.2 Billion $ US$ 2.9 Billion $ US$ 1.1 Billion $ E&P Downstream Gas & Energy International Distribution Biofuels Implementation of Projects under US$ Evaluations contingent 207.1 207 1 bi* on:  Results of Technical- Economical Feasibility studies;  Availability of Resources US$ 29.6 bi* (financiability);  Competition for available - US$ 21.6 Billion US$ 4.0 Billion US$ 1.9 Billion US$ 0.3 Billion US$ 1.8 Billion resources. E&P Downstream Gas & Energy International Distribution Biofuels INVESTMENTS UNDER EVALUATION* US$ 207.1 Billion include ETM (US$ 2,3 bi) and Other Areas (US$ 1,0 bi) investments 10
  11. 11. Programs to Support the 2013-2017 BMP 2013-2017 BMP US$ 236.7 Billion PROEF Program to Increase PROCOP PRC-Poço Operational Operating Costs Program to Efficiency Optimization Reduce Well Costs Program UO-BC UO-RIO INFRALOG – Logistic Infrastructure Optimization Program PRODESIN – Divestment Program Petrobras Local Content Management – Take advantage of the industry´s capacity to maximize gains to Petrobras PROCOP: Focus on OPEX, operating costs of the Company activities – Manageable Operating Costs. PRC-Poço: Focus on CAPEX dedicated to Wells construction – Investments in Drilling and Completion. 11
  12. 12. PROCOP: Optimization of the Operational Activities IncreasingProductivity and Reducing Unit Costs Benefits ill B fi will come gradually and will llead to a totall economy of R$ 32 Billi b 2016 d ll d ill d f Billion by 2016. Initiatives Example Economy of R$ 32 Billion in 4 years  Exploration & Production: Consumption of chemicals and fuels; Productive drilling rig days; Maritime and air transportation; Onshore well Annual Reduction Targets interventions;  Downstream: C Consumption of chemicals and ti f h i l d 12 catalyzers; Residual production; Scheduled 9 Stoppages routine; excessive lay day at ports; Fleet 4 7 use; Delivery Schedule; Manageable Costs  T Transpetro: Intervention in vessels, terminals, oil t C R$ Billion and gas pipelines, and tanks;  Gas & Energy: NG consumption to produce ammonia; Operating cost for the gas pipeline ; p g g pp network;  Engineering, Technology and Materials: Supply and inventories of materials; IT costs per 2013 2014 2015 2016 user; Annual Reduction provided by PROCOP  Corporate e Services: Expenditures with Evolution of Manageable Costs buildings, trips and transportation; HSE* Expenditures for industrial, administrative and support installations management. 12
  13. 13. PRC-Poço: Program to Reduce Well CostsWell Construction is a Relevant Portion in Investments 236.7 Other Areas 89.2 147.5 16.3 Infra-structure and Support 24.3 Exploration Exploratory and Production E&P 147.5 Development Well Investments 106.9 Production Development total US$ 75 billion 2013-2017 BMP Brazil E&P Investments Investments  Increase of drilling rigs fleet and logistic resources • Petrobras currently has 69 floating drilling rigs for well construction and maintenance in Brazil  Well construction represents: • 32% of Petrobras investments in 2013-2017 BMP • 51% of Brazil E&P Investments 13
  14. 14. Exploration & Production 2013-2017 Period US$ 147.5 Billion 16% (24.3) 73% (106.9) 11% (16.3) Production Development Exploration Infrastructure and Support 14 4 1
  15. 15. E&P Investments 2013-2017 Period Exploration Production D l P d ti Development t US$ 24.3 Billion US$ 106.9 Billion 6% 25% (1.4) (26.2) 24% 43% (5.8) 70% (46.4) (17.1) Post-Salt 32% Pre-Salt (34.3) Transfer of Rights a s e o g ts Aside from Exploration and Production Development, E&P infrastructure investments total US$ 16.3 Billion. 15
  16. 16. Exploratory Success and Increase in ReservesMore than 3 Discoveries per month between January/2012 and February/2013 53 discoveries in the last 14 months (Jan/12 – Feb/13), from which 25 were offshore (15 in Pre-salt) Brazil  Discoveries: 53 • Offshore: 25 • Onshore: 28  Exploratory Success Ratio: 64%  Reserves: 15.7 Billion boe  RRR¹: 103% for the 21st consecutive year  R/P²: 19.3 years Pre-Salt Discoveries: 15, of which 8 pioneers Exploratory Success Ratio: 82%¹ RRI: Reserves Replacement Ratio² R/P: Reserve / Production Reserves: 300 km in the SE region, 55% of GDP16 16
  17. 17. Reserves and Recoverable VolumesRapid growth in reserves from discoveries in deep waters Proved Reserves  – SPE criteria Onshore Phase Shallow Water Phase Deep/Ultra‐Deep Water Phase 30000 25000 Pre Salt: Sapinhoá 15.73 bi boe Pre Salt: Lula & Cernambi Million Boe 20000 Park of Whales, Mexilhão  Roncador 15000 Marlim Garoupa 10000 Guaricema Namorado 5000 Carmópolis 0 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Onshore 0‐300m 300‐1500m > 1500m Pre‐salt’s Recovery Volume* Transfer of Rights* Lula/Cernambi, Iara, Sapinhoá and Whales Park, ranging from 6.7 to 7.9 Billion boe 17
  18. 18. Production Curve in Brazil – Oil and LNG Post-Salt, Pre-Salt and Transfer of Rights 2012 2013 2014 2015 2016 2017 2018 2019 2020 NE de Tupi Baleia Azul Sapinhoá Pilot  Roncador IV Iracema Norte Lula Alto Lula Ext. Sul Júpiter Espadarte III  (Cid. Anchieta) (Cid. São Paulo) (P-62) (Cid. Itaguaí) Lula Central (P-68) (P-72) Bonito Florim Iara NW Baúna  Sapinhoá Norte Lula Sul Lula Oeste (P-71) Franco Leste (Cid. (Cid Itajaí) (Cid. (Cid Ilhabela) (P-69) (P 69) (P-66) Deep Waters Lula NE Pilot Iracema Sul Franco Sul Sergipe Franco 1 (Cid. Paraty) (Cid. (P-76) (P-74) Sul Pq. Baleias Papa-Terra Mangaratiba) Tartaruga Verde Carioca Maromba (P-63) e MestiçaThousands bpd Lula Norte Espadarte I 4,200 Roncador III Iara Horst (P-67) (P 67) s (P-55) (P-70) Carcará 6% Franco SW Norte Pq. Parque dos Entorno de Iara (P-75) Baleias (P-58) Doces (P-73) 19% Papa-Terra Franco NW (P-61) (P-77) 2,500 2,750 2 750 7% 31% 1% 2,022 1,980 2,022 30% 35% 5% 7% (± 2%) 95% 4-6% p.y. Growth 44% 93% 69% 58% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Post-salt Pre-salt (Concession) Transfer of Rights New Discoveries* (*) Includes new opportunities in blocks where discoveries have already been found 18
  19. 19. NEW PRODUCTION UNITS ‐ 2013‐2014New platforms built domestically and abroad will contribute to production Local C t t L l Content Top Side / Project Capacity 1st Oil Hull Bid Integration Commit. Target Round Sapinhoá Pilot Cosco Shipyard Schahin/Modec 120 kbpd 01/05/2013 2 30% 65% FPSO Cid. São Paulo China Brasfels Baúna and Piracaba Jurong Odebrecht and Teekay 80 kbpd 02/16/2013 5 60% 81% FPSO Cid. Itajaí Cingapura Cingapura Lula NE Pilot Keppel Shipyard QGOG/SBM 120 kbpd 05/28/2013 2 30% 65% FPSO Cid. Paraty y Cingapura g p Brasfels Papa-Terra Cosco Shipyard Quip 140 kbpd 07/15/2013 0 0% 65% P-63 China Rio Grande Roncador Module III EAS Quip 180 kbpd 09/30/2013 0 0% 65% P-55 Brasil Rio Grande Parque das Baleias Queiróz Galvão Queiróz Galvão 180 kbpd 11/30/2013 0 0% 63% P-58 Rio Grande Rio Grande Papa-Terra TLWP load Floatec Floatec 12/31/2013 0 0% 65% P-61 out to P-63 Brasfels Brasfels Roncador Module IV Camargo Corrêa/IESA Camargo Corrêa/IESA 180 kbpd Mar/2014 0 0% 63% P-62 EAS EAS Sapinhoá Norte QGOG/SBM QGOG/SBM 150 kbpd Sep/2014 2 30% 65% FPSO Cid. Ilhabela China SBM/BRASA Lula - Iracema Sul Cosco Shipyard 150 kbpd Nov/2014 Not define 2 30% 65% FPSO Cid. Mangaratiba China* Note: “FPSO Cid. XX” = Leased / “P‐XX” = Owned  19
  20. 20. PROJECT INSTALLATIONPetrobras has a strong track record of platforms installation per year 2006-2012 2013-2016 • Petrobras has installed, on average, 5 platforms per year • Between 2013 and 2016 we expect to install an average of 4 from 2006 to 2011. units per year. • Ramp up of these units was delayed due to limited • Petrobras will have around 40 drilling rigs² available during the availability of drilling rigs2: (2006: 2, 2011: 26) next 5 years. 7 Track Record of Project Manati 8MMm³/d Installation1’ P‐54 180mbpd 5 5 5 5 FPSO Cid São  SO Cid Sã FPSO Cidade de PPER‐Phase 1 P‐52 Mateus Cid. Paraty Angra dos Reis 2.7MMm³/d 180mbpd Camarupim 120mbpd 4 10MMm³/d  100bpd FPSO‐ FPSO‐CIDADE  FPSO E.S. PQ  FPSO Capixaba PPER‐Phase 2 P‐61 & P‐63 CAPIXABA DE VITÓRIA DAS CONCHAS (reallocation) Δ5.3MMm³/d 140mbpd 100mbpd 100mbpd 100mbpd 100bpd SEILLEAN FPSO‐ FPSO Cid.  FPSO Cid FPSO Cidade de FPSO Cidade de P‐55 GOLFINHO PIRANEMA PRA‐1 Niteroi MLL Santos 180mbpd 30mbpd 30mbpd 100mbpd 10MMm³/d 2 FPSO Cid. Rio  P‐34 JUBARTE FSO Cid. De Frade P‐57 Mexilhao Cid. São Paulo Das Ostras 60mbpd Macaé 30mbpd 100bpd 180mbpd 15MMm³/d 1 120mbpd SS‐11 P‐50 FPSO‐Cid. RJ P‐53 – MLL P‐51 – MLS P‐56 Cid. Anchieta Cid. Itajaí j TIRO/SIDON 180mbpd 100mbpd 180mbpd Mód. 2180bpd 100mbpd 100mbpd 80mbpd 20mbpd 2006 2007 2008 2009 2010 2011 2012 2013 1 - Does not include installation of Extended Well Tests / 2 – Over 2,000 meters waterdepth 20
  21. 21. OPERATIONAL EFFICIENCYPROEF ‐ Program to recover and maintain operational efficiency in Campos Basin Improve Operational Unit  Improve production  UO-BC Efficiency Levels  systems integrityPROEF Increase the reliability to deliver GOALS production targets of BP 2012 16 production targets of BP 2012‐16 Reach Sustainable Levels of  Reduce Risk of Loss of  UO-RIO Operational Efficiency Operational Efficiency E&P Recent Operational Efficiency (%) Operational Efficiency - E&P Operational Efficiency - UO-BC Operational Efficiency - Without UO-BC Operational Efficiency - UO-RIO 100 PROEF Targets 96 96 94 93 93 94 94 94 95 94 95 90 92 93 92 90 90 85 88 88 87 85 80 81 80 75 76 70 72 71 65 2009 2010 2011 2012 2013 2014 2015 2016
  22. 22. E&P Distribution of RevenuesStable concession terms have led to higher income per barrel Breakdown of realization price per boe  produced in Brazil p p p US$/boe realization price US$/boe realization price %  share of realization price120 111 112 100%100 25% 31% 33% 31% 79 80% 80 $31 $30 $ 62 60% 23% 21% 21% 21% 60 $22 $20 $20 13% $13 40% 16% 17% 16% 40 $15 $16 $15 $12 22% $11 18% 17% $7 20% 16% 20 $14 $16 $11 $12 17% 14% 13% 15% $10 $13 $14 $ $9 0 0% 2009 2010 2011 2012 2009 2010 2011 2012 Lifting Cost Exploratory costs + DD&A + Others Income Tax Production Tax Net Income Brent*Others include tax expenses, R&D, SG&A 22 22
  23. 23. E&P PROFITABILITYProduction of oil, not gas, generates high realization price Net Production Income (US$/boe) 35 30 25 20 15 5 10 5 0 2007 2008 2009 2010 2011 2012* Peers Petrobras • Production in Brazil highly concentrated in oil: 86% oil and 14% gas • Higher net profit per barrel yields better return than its peers Higher net profit per barrel yields better return than its peers • Stable regulatory environment allows for capturing the benefits of the increase in oil pricesSource: Evaluate Energy Peers: BP, CVX, XOM,RDS, TOT       * Petrobras Preliminary
  24. 24. PROFITABILITYNew E&P projects will continue to generate attractive returns 45.00% 40.00% Key Assumptions: 35.00% • 150 000 bpd FPSOs 150,000 bpd FPSOs 30.00% • Production of 500 MM barrels 25.00% • Ramp‐up in line with industry • Historic decline rate Historic decline rate 20.00% • Oil value = 95% Brent 15.00% • Does not include exploration and  10.00% acquisition costs 5.00% .00% 60 70 80 90 100 110 US$/ bbl Case 1  US$12/boe Capex / US$5/boe Opex Case 1 – US$12/boe Capex / US$5/boe Opex (expected scenario) (expected scenario) Case 2 – US$15/boe Capex / US$7/boe Opex Case 3 – US$12/boe Capex / US$5/boe Opex without Special Interest (such as Transfer of Rights) • The graph illustrates the cost‐benefit ratio of a standard production development in Brazil, using assumptions based on previous experiences 24
  25. 25. Pre-Salt Production is a RealityProduction reached 300 thousand barrels of oil per day in Feb/20/2013 Pre-Salt Production Data Technological Challenges Surmounted Oil Production reached 300 kbpd (of which 249 kbpd  High Resolution Seismic: higher exploratory is Petrobras’ stake), 43% in Santos Basin and 57% in Campos Basin; p success This level was reached with only 17 producing wells, 6  Geological and numerical modelling: better in Santos Basin and 11 in Campos Basin; Level reached only 7 years after discovery: production behaviour forecast • C Campos B i 11 years Basin:  R d ti Reduction of well construction ti f ll t ti time f from 134 • US Gulf of Mexico: 17 years days in 2006 to 70 day in 2012: lower costs • North Sea: 9 years Production of 1 million bpd operated by Petrobras will  Selection of new materials: lower costs be reached by 2017 and the 2.1 million bpd threshold  Qualification of new systems for production will be reached by 2020. Petrobras Pre-salt production’s share: from 5% in gathering: higher competitiveness 2011 (100 3 kbpd) to 6 9% in 2012 (136 4 kbpd) (100.3 6.9% (136.4 kbpd).  Separation of CO2 from natural gas in deep waters and reinjection: lower emissions and increase in recovery factor 25
  26. 26. Drilling Rigs AvailabilityNecessity met with imported and domestic units Drilling Rigs: Imported vs. Domestic 42 42 42 42 42 000m) g Rigs  2 8 9 6 8 Water Depth > 2.0 Number of Drilling 8 17 31 42 42 23 40 41 34 26 25 19(W 16 N 8 11 9 5 7 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Imported Rigs Brazilian Rigs (Existing) Brazilian Rigs (New) 28 new domestic drilling rigs from 2016 on: Local Content between 55% and 65% • Mid‐term needs for drilling rigs are now largely satisfied.  Future intermediate demand will be  limited to specific situations and needs.  • Starting in 2016, Brazilian built rigs expected to begin replacing internationally built fleet as  their contracts expire (and subject to total fleet needs). • If for any reason the domestic rigs are not completed as scheduled, Petrobras has the possibilty  of renewing some or all of expiring leases. 26
  27. 27. Downstream Investments Projects Under Implementation US$ 43.2 billion 2013-2017 HIGHLIGHTS 21% (9.2)  Refining capacity expansion on the Under 45% 11% (19.4) (4.9) Implementation Portfolio: RNEST (Pernambuco) 9% (3.7) and COMPERJ 1st Phase (Rio de Janeiro) 6% 6% (2.4) (2 8) (2.8) 1% 6%  Refining capacity expansion in design phase: (0.3) 1% (2,8) (0.4) Premium I (Maranhão), Premium II (Ceará) and Projects Under Evaluation j COMPERJ 2nd Phase (Rio de Janeiro) ( ) US$ 21.6 billion 2% (0.5)  Diesel and Gasoline Quality Portfolio: REPLAN, RPBC, REGAP, REFAP and RLAM 16% (3.5) 64%  Fleet expansion: PROMEF – 45 (13.8) 8% Oil and Oil Products transportation vessels (1.7) 7% 3% (1.5) ( ) (0.5) Refining Capacity Expansion Operational Improvement Quality and Conversion Logistics for Oil Fleet Expansion Petrochemical Ethanol Logistics Corporate
  28. 28. Downstream2012-2016 Investments 2012-2016 Investment Profile Refining Capacity Expansion Fleet Expansion Operational Improvement Petrochemical Quality and Conversion Biofuels Logistics for Oil Projects Under Evaluation onUS$ billio 2012 2013 2014 2015 2016 2012-2016 INVESTMENT HIGHLIGHTS Projects Under Evaluation  High utilization factor on the current assets, combining Implementation of projects depends mainly on: flexibility to increase margins a. a Alignment of new refineries costs to international standards;  End of the first investment cycle in Quality b. Regulatory requirements;  RNEST and 1st Phase of COMPERJ coming online c. c Resources Availability (Financiability); d. Competition for financial capacity;  New refineries under evaluation (Phase I) 28
  29. 29. Integration and BalanceConstruction of new refineries intended to meet Brazilian demand INTEGRATION BETWEEN OIL PRODUCTION, REFINING CAPACITY AND DOMESTIC MARKET Thous bpd PREMIUM I (2nd phase) 300,000 bpd 4,200 Oct/2020 3,472 3,380 COMPERJ (2nd phase) 300,000 300 000 bpd 2,788 Jan/2018 2,500 2,255 Abreu e Lima 2,320 Refinery 2,320 2,004 2,147 1,980 (RNE) PREMIUM II 1,814 1,798 1,944 230kbpd 300,000 bpd 1,641 1) Nov/2014 Dec/2017 1,393 2) May/2015 1 323 1,323 1,036 COMPERJ PREMIUM I (1st phase) (1st phase) 165,000 bpd 300,000 bpd 181 Apr/2015 Oct/2017 ... ... ... ... 1980 2000 2010 2012 2016 2020* Oil and NGL Production ‐ Brazil Total crude oil processed – Brazil Oil Products Market (2 scenarios) Projects Under Implementation Projects Under Evaluation* 2020 Total Crude Oil Processed may vary depending on Projects Under Evaluation 29 29
  30. 30. Parity: Seeking convergence with International Prices 9 months: +21.9% in Diesel and +14.9% in Gasoline Seeking convergence with international prices prices. In the last 9 months: 4 Diesel price readjustments, totaling +21.9%, and 2 Gasoline readjustments (+14.9%). Average Brazil Price* x Average USGC Price** 260 2008 2009 2010 2011 2012 2013 900 240 800 Impo 220 700 orted Volumes (Thousand bbl / d) 200 180 Losses 600Prices (R$/bbl) 160 140 Gains 500 120 400 100 300 80 60 200 40 100 20 0 0 an/09 an/10 an/11 an/12 an/13 ar/13 ov/08 Ma Ja Ja Ja Ja Ja No ARP USGC (w/ volumes sold in Brazil) Gasoline Imports ARP Brazil Diesel Imports (*) considers Diesel, Gasoline, LPG, Jet Fuel and Fuel Oil. (**) USGC price with domestic market prices. 30
  31. 31. EBITDAGrowing and stable cash flow generation Adjusted EBITDA Breakdown per Segment (US$ bn)*** j p g ( $ ) Net Income (US$ bn) Net Income (US$ bn)* 19.2 20.1 3.0 1.3 3.2 3.6 1.6 2.0 15.5 2.2 1.3 1.1 1.7 4.2 ** 1.1 0.9 09 11.0 11 43.4 42.0 30.5 19.3 ‐6.9 2009 2010 2011 2012 ‐15.6 2009 2010 2011 2012 E&P RTM G&P Distribution International(*) US GAAP   (**) IFRS  (***)  Adjusted according average exchange rate. Excludes Corporate and Elimination.  31
  32. 32. Trade Balance The image part with relationship ID rId7 was not found in the file.Rapid demand growth in the last 4 years has led to a shift in the trade balance Diesel Sales 2009  2012 5,000 +24% (thous. bpd) (thous. bpd) 4,700 4,400 +24% 24%Thousand m³ m 4,100 4 100 3,800 779 3,500 3,200 705 2,900 2,600 227 548 2,300 549 433 2,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 152 184 2,800 Gasoline Sales Gasoline Sales +65% 478 397 156 364 2,500 346 Thousand m³ 2,200 75 1,900 +3% 81 18 1,600 Exports Imports Balance Exports Imports 1,300 ‐249 1,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 ‐231 Balance Oil Oil Products 32
  33. 33. Gasoline and Diesel International Prices The image part with relationship ID rId7 was not found in the file.Taxes account for significant share of pump price in Brazil Gasoline Retail Prices Diesel Retail Prices 2012 Average 2012 Average Brazil USA Chile China Japan Germany Brazil USA Chile China Japan Germany Refinery Gate Price Anhydrous Alcohol Taxation Disttribution Margin The refinery gate price for gasoline is currently 37% of the retail price while for  diesel it is 61% 33
  34. 34. Gas & Energy Investments Projects Under Implementation + Under Evaluation Projects Under Implementation US$ 9.9 billlion US$ 5.9 billion 32% 20% (1.9) (2.0) 8% 6% (0.8) (0.3) (0 3) 19% (1.1) 25% (2.5) 43% (2.6) (2 6) 46% (4.6) Projects Under Evaluation US$ 4.0 billion 2013-2017 HIGHLIGHTS 3% (0.1) 12% (0.5)  Conversion of Natural Gas into fertilizers and other gas chemical products: UFN III at Três Lagoas (Mato Grosso do Sul) 34%  Natural gas processing and transportation: NGPU Cabiúnas (Rio de Janeiro) (1.4) 51%  Electric energy generation: Thermal Power Plant Baixada Fluminense (Rio de (2.0) Janeiro)  LNG Regasification: Bahia Terminal (Bahia) Electric Energy LNG Network Gas-chemical plants  Units in Design Phase: UFN IV (Espírito Santo) and UFN V (Minas Gerais) 34
  35. 35. Natural Gas Supply And Demand(Million m³/d) 35
  36. 36. Financial  FinancialConsiderations
  37. 37. Financial Planning AssumptionsFinancing 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 Pre-salt projects breakeven between US$ 40-45/barrel Returns on new E&P projects Big post-salt projects have returns similar to pre-salt’s 37
  38. 38. Operating Cash Flow and Funding Needs 246.9 246.9 9.9 10.7  Additional financing needs will be funded exclusively through 39.8 new debt. No equity issuance is envisaged. 61.3  Free cash flow, before dividends, after 2015. US$ Billion Annual borrowing needs (2013-2017) g ( ) $ 207.1 Gross – US$ 12.3 billion │Net – US$ 4.3 billion 165.0  Net borrowing needs 50% below previous Plan due to: • 2017 production, versus 2012, leading to higher operating cash flows Fontes Usos Divestments and restructurings • Declining downstream investments Cash utilization Third party Third-party resources (Debt) • Long-term Brent prices ( g p (US$ 100 vs US$ 90 in the Operating cash flow (after dividends) previous Plan) and long-term F/X rate (R$ 1.85 vs R$ Investments 1.73) Amortization 38
  39. 39. Leverage Leverage Net Debt/EBITDA BMP Target (< 35%) BMP Target (< 2,5x) 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 • Declining leverage, within the Company’s self-imposed limits • Net Debt/EBITDA surpasses limit at some points in time, during the Plan period 39

×