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Petrobras Business and Management Plan 2013-2017 Webcast - March 19th

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2013-2017 Business and Management Plan. Webcast: March, 19th 2013

2013-2017 Business and Management Plan. Webcast: March, 19th 2013

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  • 1. 2013 – 2017Business and Management Plan
  • 2. 2013 – 2017Business and Management Plan Webcast March, 19th 2013
  • 3. DISCLAIMER FORWARD-LOOKING STATEMENTS: DISCLAIMER The presentation may contain forward-looking statements about future We undertake no obligation to publicly update or revise any events within the meaning of Section 27A of the Securities Act of 1933, as forward-looking statements, whether as a result of new amended, and Section 21E of the Securities Exchange Act of 1934, as information or future events or for any other reason. Figures for amended, that are not based on historical facts and are not assurances of 2013 on are estimates or targets. 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 All forward-looking statements are expressly qualified in their results. Such terms as "anticipate", "believe", "expect", "forecast", "intend", entirety by this cautionary statement, and you should not place "plan", "project", "seek", "should", along with similar or analogous reliance on any forward-looking statement contained in this expressions, are used to identify such forward-looking statements. presentation. 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 NON-SEC COMPLIANT OIL AND GAS RESERVES: Company’s most recent Annual Report on Form 20-F, which identify CAUTIONARY STATEMENT FOR US INVESTORS important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including, among other We present certain data in this presentation, such as oil and gas things, risks relating to general economic and business conditions, resources, that we are not permitted to present in documents filed including crude oil and other commodity prices, refining margins and with the United States Securities and Exchange Commission prevailing exchange rates, uncertainties inherent in making estimates of (SEC) under new Subpart 1200 to Regulation S-K because such our oil and gas reserves including recently discovered oil and gas terms do not qualify as proved, probable or possible reserves reserves, international and Brazilian political, economic and social under Rule 4-10(a) of Regulation S-X. developments, receipt of governmental approvals and licenses and our ability to obtain financing. 3
  • 4. 2013-2017 BMP: Maintenance of the Production Curve The same production targets from the 2012-16 BMP were kept. 2013 target is still ±2% of 2.022 kbpd, due to maintenance and performance of new assets: production units and drilling rigs. 5,000 5.00 5,00 • NE de Tupi Oil and NGL Production (million bpd) (P-72) • Lula Ext. Sul • Iara NW (P-68) (P-71)  Sapinhoá • Lula Oeste • Júpiter • Espadarte III • Lula Alto • Deep Waters Pilot (P-69) Sergipe • Florim (Cid. São Paulo) • Franco Sul • Sul Pq. Baleias • Bonito • Lula Central  Baúna (P-76) 4.00 4,000 4,00 (Cid. Itajaí) • Lula Sul •Tartaruga • Maromba • Franco Leste 4.2 (P-66) • Espadarte I Verde e Mestiça • Lula NE Pilot • Carcará • Franco 1 • Iara Horst (Cid. Paraty) • Entorno de (P-74) (P-70) Iara (P-73) • Papa-Terra • Parque dosMillion bpd • Roncador IV (P-63) • Carioca Doces (P-62) • Franco NW • Roncador III • Sapinhoá • Lula Norte 3,000 3.00 (P-77) 3,00 (P-55) Norte (P-67) • Iracema (Cid. Ilhabela) Norte • Franco SW • Norte Pq. (P-75) 2.75 Baleias (P-58) • Iracema Sul (Cid. Itaguaí) (Cid. • Papa-Terra Mangaratiba)  Baleia Azul (P-61) 2.5 (Cid. Anchieta) 2.00 2,000 2,00 2.0 2.0 2.0 ±2% 25 new production units will start-up between 2013-17 or 38 new production units will start-up between 2013-20 1.00 1,000 1,00 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 2020  Production units in operation 4
  • 5. 2013-2017 BMP: Maintenance of the Production Curve The same production targets from the 2012-16 BMP were kept. 2013 target is still ±2% of 2.022 kbpd, due to maintenance and performance of new assets: production units and drilling rigs. 006 5,00 6.00 Oil and NGL Production (million bpd) Oil, NGL and Natural Gas Production (million boe) 5.2 005 5.00 4,00Million boed 4.00 004 4.2 3.4 3,00 3.0 3.00 003 2.4 2.4 2.4 ±2% 2.75 2,00 2.5 2.00 002 2.0 2.0 2.0 ±2% 1.00 1,00 001 2011 1905ral 2012 1905ral 2013 1905ral 2014 1905ral 2015 1905ral 2016 1905ral 2017 1905ral 2018 1905ral 2019 1905ral 2020 1905ral 5
  • 6. Investments and Physical and Financial Monitoring2012: Alignment of Forecasts and Accomplishments: Physical Progress Tracking Financial Progress Investments in 2012 totaled R$ 84.1 Billion, which represents 101% of the projected in the Plan Annual Investment Investment by Area Main Projects 1,6% 2% 0,4% +1% 5%  E&P: Production Development Projects of Baleia 6% Azul (Cid. de Anchieta), Sapinhoá (Cid. de São 83.3 84.1 Paulo), Roncador Modules 3 and 4 (P-55 and P-62) and Papa-Terra (P-61 and P-63).R$ Billion 51%  Downstream: RNEST and Comperj. 34%  G&P: UFN-III, Bahia Regasification Terminal and UPGN Cabiúnas.  International: Production Development Projects of E&P Corporate Cascade and Saint-Malo. Projected 2012 2012 Accomplished Downstream Distribution 2012-16 BMP International Biofuels G&E Individual Physical and Financial Monitoring of 174 projects (S Curves): Average physical realization of 104.8% and financial realization of 110.6%. 6
  • 7. Physical and Financial Performance: RNEST RNEST: Physical Monitoring Curve RNEST: Financial Monitoring CurveRNEST Construction – 33 years after the last refinery (1980)Suape Industrial Complex (PE) – Feb/13Accumulated Physical Realization: 70.6%Accumulated Financial Realization: US$ 11.7 Billion 7
  • 8. Northeast Refinery (RNEST)Physical and Financial Monitoring of the Project: Planning Fullfilled RNEST: Physical Monitoring Curve 2012 Accomplished: 19.9% 2012-16 BMP: 19.7% Sep/12 Dec/12 dez/12 Mar/13 Jun/12 Dec/11 Mar/12 dez/11 RNEST: Financial Monitoring Curve 2012 Accomplished: R$ 4.9 bi* 2012-16 BMP: R$ 5.0 bi Sep/12 Dec/12 dez/12 Jun/12 Dec/11 Mar/12 Mar/13 dez/11* Considers R$ 100 Million of claimsalready negotiated 8
  • 9. Parity: Seeking convergence with International Prices 9 months: +21.9% in Diesel and +14.9% in Gasoline Seeking convergence with international 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 Imported Volumes (Thousand bbl / d) 220 200 700 180 LossesPrices (R$/bbl) 600 160 Gains 500 140 120 400 100 300 80 60 200 40 100 20 0 0 Jan/09 Jan/10 Jan/11 Jan/12 Jan/13 Mar/13 Nov/08 ARP USGC (w/ volumes sold in Brazil) Gasoline Imports ARP Brazil Diesel Imports (*) considers Diesel, Gasoline, LPG, Jet Fuel and Fuel Oil. (**) USGC price with domestic market prices. 9
  • 10. Parity: Seeking convergence with International Prices 9 months: +21.9% in Diesel and +14.9% in Gasoline Seeking convergence with international prices. In the last 9 months: 4 Diesel price readjustments, totaling +21.9%, and 2 Gasoline readjustments (+14.9%). Average Brazil Price* x Average USGC Price** 260 2008 2009 2010 2011 2012 2013 900 240 800 Imported Volumes (Thousand bbl / d) 220 200 700 180 LossesPrices (R$/bbl) 600 160 1Q12 1Q13 Gains Brent (US$/bbl): 105 113 500 140 FX Rate (R$/US$): 1.67 +19% 1.99 120 400 100 300 80 60 200 40 100 20 0 0 Jan/09 Jan/10 Jan/11 Jan/12 Jan/13 Mar/13 Nov/08 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. 10
  • 11. 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 Pres-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 GDP11 11
  • 12. 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; success This level was reached with only 17 producing wells, 6  Geological and numerical modelling: better in Campos Basin and 11 in Campos Basin; Level reached only 7 years after discovery: production behaviour forecast • Campos Basin: 11 years  Reduction of well construction time 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. gathering: higher competitiveness  Separation of CO2 from natural gas in deep waters and reinjection: lower emissions and increase in recovery factor 12
  • 13. Refining in Brazil: Oil Products Output Oil Products output increases every year and will continue to grow with the start-up of the new refineries. Successive records in oil processing have been broken. Oil Products Output in Brazil (Million bbl / day) Refineries in Operation Refineries under Construction Refineries in Design Phase 3.5 • Premium I Phase 1 • Premium I • Comperj Phase 2 Oct/17 Phase 2 Oct/20 • Comperj Jan/18 3.0 Daily Oil Processing Phase 1 records Apr/15 • Premium II Dec/17 • RNEST • RNEST Phase 2 2.5 2.11 MMbpd Phase 1 May/15 (Jan) Nov/14 2.10 MMbpd 2.12 MMbpd (Aug) (Mar) 2.0 Utilization Factor 1.5 92% 96% 93% 93% 93% 1.0 13
  • 14. MWavg 4,000 2.000 4.000 6.000 8.000 10.000 12.000 0 6,000 10,000 12,000 2,000 8,000 0 01-Jan-10 21-Jan-10 10-Feb-10 02-Mar-10 22-Mar-10 11-Apr-10 01-May-10 21-May-10¹ Where Petrobras has a stake or supplies fuel 10-Jun-10 30-Jun-10 2010 20-Jul-10 09-Aug-10 29-Aug-10 18-Sep-10 08-Oct-10 28-Oct-10 Petrobras - Gas 17-Nov-10 07-Dec-10 27-Dec-10 16-Jan-11 05-Feb-11 25-Feb-11 17-Mar-11 06-Apr-11 26-Apr-11 16-May-11 05-Jun-11 25-Jun-11 Third Parties - Gas 15-Jul-11 2011 04-Aug-11 24-Aug-11 13-Sep-11 03-Oct-11 23-Oct-11 12-Nov-11 02-Dec-11 22-Dec-11 Petrobras - Oil 11-Jan-12 31-Jan-12 20-Feb-12 10,000 MW: Petrobras Supplies Fuel for 16% of the System Needs 11-Mar-12 31-Mar-12 Thermo Power Generation in the National Grid System 20-Apr-12 10-May-12 30-May-12 We had successive power generation records in 2012 and 2013. 19-Jun-12 09-Jul-12 2012 29-Jul-12 (Nov/23) Third Parties - Oil 18-Aug-12 10,149 MWavg 07-Sep-12 27-Sep-12 17-Oct-12 06-Nov-12 26-Nov-12 16-Dec-12 05-Jan-13 25-Jan-13 Thermo power generation, Petrobras and Third Parties¹, above the 10,000 MW threshold in October/2012. 14-Feb-13 06-Mar-13 2013 (Feb/06) 14 10,485 MWavg
  • 15. 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, abroad 2013 2017 15
  • 16. 2013-2017 BMP Investments: Approved by Petrobras’ Board ofDirectors 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% • 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 16
  • 17. 2013-2017 BMP Investments: Implementation 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% 71.2% (US$ 1.8 Billion)(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% 1.4% (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 17
  • 18. 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 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 18
  • 19. 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. 19
  • 20. INFRALOG: Optimization of the Investments throughIntegrated Management of Logistic Projects Decrease in investments were incorporated in the 2013-2017 BMP, totaling US$ 2.2 Billion. Additional opportunities to reduce up to US$ 2.8 Billion between 2018-2020 were also mapped. Offshore Support Basis Natural Gas Liquids Destination E&P provides offshore support harbor and airport DOWNSTREAM and G&E developing solutions to infrastructure, focusing on Espírito Santo, Campos and improve the transportation and utilization of natural gas Santos Basins liquids produced by E&P in the Pre-Salt INFRALOG Transportation and Oil Exports Oil Products and Biofuels Supply and Distribuition DOWNSTREAM and TRANSPETRO transport E&P DOWNSTREAM, TRANSPETRO and PETROBRAS production to the refineries or export in traditional large DISTRIBUITION aiming to increase capacity for storage, vessels pipeline transportation and in multiclient distribution bases Planning, monitoring and managing projects and actions to meet the infrastructure needs of Petrobras System at lower costs. 20
  • 21. PROCOP: Optimization of the Operational Activities IncreasingProductivity and Reducing Unit Costs Benefits will come gradually and will lead to a total economy of R$ 32 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: Consumption of chemicals and 12 catalyzers; Residual production; Scheduled 9 Stoppages routine; excessive lay day at ports; Fleet 4 7 use; Delivery Schedule; Manageable Costs  Transpetro: Intervention in vessels, terminals, oil R$ Billion and gas pipelines, and tanks;  Gas & Energy: NG consumption to produce ammonia; Operating cost for the gas pipeline 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. 21
  • 22. Exploration & Production 2013-2017 Period US$ 147.5 Billion 16% (24.3) 73% (106.9) 11% (16.3) Production Development Exploration Infrastructure and Support 22 22
  • 23. E&P Investments 2013-2017 Period Exploration Production Development 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 Aside from Exploration and Production Development, E&P infrastructure investments total US$ 16.3 Billion. 23
  • 24. 2013-2017 BMP: Production Curve Maintained Production Curve in Brazil – Oil and NGL Production • NE de Tupi • Lula Ext. Sul (P-72) (P-68) • Lula Alto • Iara NW  Sapinhoá Pilots • Lula Oeste • Júpiter (P-71) • Espadarte III (Cid. São Paulo) • Lula Central (P-69) • Deep Waters • Franco Sul • Bonito  Baúna • Lula Sul Sergipe • Florim (P-76) • Maromba (Cid. Itajaí) (P-66) • Iara Horst • Sul Pq. Baleias • Franco Leste • Lula NE Piloto (P-70) • Espadarte I • Roncador IV • Franco 1 (Cid. Paraty) •Tartaruga Verde • Carcará (P-62) (P-74) • Papa-Terra e Mestiça • Entorno de (P-63) • Sapinhoá • Carioca • Parque dos Iara (P-73) • Roncador III Norte Doces • Lula Norte Million bpd (P-55) (Cid. Ilhabela) (P-67) • Franco NW • Iracema (P-77) • Norte Pq. • Iracema Sul Norte • Franco SW Baleias (P-58) (Cid. (Cid. Itaguaí) (P-75)  Baleia Azul • Papa-Terra Mangaratiba) (Cid. Anchieta) (P-61) 2.0 2.0 2.0 ±2% 25 new production units will start-up between 2013-17 or 38 new production units will start-up between 2013-20 2012 2017 2020 2.0 Million bpd 2.75 Million bpd 4.2 Million bpd Pre-Salt (Concession) Transfer of Rights New Discoveries (*) 7% 7% 6% Pre-Salt (Concession) 35% Transfer of Rights 19% 44% Post-Salt 58% Post-Salt 93% Post-Salt Pre-Salt (Concession) 31% (*) Includes opportunities in blocks where discoveries have already been found 24
  • 25. 2013-2017 BMP: Production Curve Maintained Production Curve in Brazil – Oil and NGL Production • NE de Tupi 2013 • Lula Ext. Sul (P-72) (P-68) • Iara NW • Espadarte III • Lula Alto • Lula Oeste (P-71) • Júpiter  Sapinhoá Pilot • Florim (P-69) • Deep Waters (Cid. São Paulo) • Lula Central • Franco Sul Sergipe • Bonito • Lula Sul (P-76) • Sul Pq. Baleias  Baúna • Franco Leste (Cid. Itajaí) (P-66) •Tartaruga Verde Maromba • e Mestiça • Espadarte I • Lula NE Pilot • Franco 1 • Iara Horst • Carcará (Cid. Paraty) (P-74) (P-70) • Entorno deMillion bpd • Papa-Terra • Carioca • Parque dos Iara (P-73) • Roncador IV Doces (P-63) (P-62) • Lula Norte • Franco NW • Roncador III • Sapinhoá (P-67) (P-77) (P-55) Norte • Iracema • Franco SW (Cid. Ilhabela) • Norte Pq. Norte (P-75) Baleias (P-58) • Iracema Sul (Cid. Itaguaí) (Cid. • Papa-Terra Mangaratiba)  Baleia Azul (P-61) (Cid. Anchieta) 2.0 2.0 2.0 ±2% 25 new production units will start-up between 2013-17 or 38 new production units will start-up between 2013-20  Production units in operation 25
  • 26. Sapinhoá Pilot Project: Operating since January 5th, 2013 FPSO Cidade de São Paulo: 120 kbpd Sapinhoá Pilot Project: Drilling, completion and interconnection of 13 wells to a chartered FPSO from Schahin/Modec with capacity to process120 kbpd of oil and 5 million m3/d of natural gas. 26 TOTAL PHYSICAL COMPLETION - Forecast: 59.9% / Accomplished: 54.0%FPSO Cidade de São Paulo anchored in field – Mar/13 TOTAL LOCAL CONTENT – Commitment with ANP: 30% / Planned: 57% 26
  • 27. Baúna Project: Operating since February 16th, 2013FPSO Cidade de Itajaí: 80 kbpdBaúna Project: Drilling, completion and interconnection of 13 submarine well to chartered FPSO Cidade de Itajaí, with capacity to process 80 kbpd of oil and2 million m3/d of gas. 27 TOTAL PHYSICAL COMPLETION - Forecast: 69.8% / Accomplished: 53.5%FPSO Cidade de Itajaí anchored in field - Jan/13 TOTAL LOCAL CONTENT – Commitment with ANP: 60% 27
  • 28. Lula NE Pilot Project – 1st Oil on May 28th, 2013FPSO Cidade de Paraty: 120 kbpdLula NE Pilot Project: Drilling, completion and interconnection of 14 wells to a FPSO chartered from QGOG/SBM with capacity to process 120 kbpd of oiland 5 million m3/d of gas. 28 UNITs PHYSICAL COMPLETION - Forecast: 99.0% / Accomplished: 97.8% UNITs LOCAL CONTENT – Planned: 65%FPSO Cidade de Paraty Integration at BrasFELS Shipyard, Angra dos Reis/RJ, Mar/13. TOTAL LOCAL CONTENT – Commitment with ANP: 30% / Planned: 60% 28
  • 29. Papa-Terra Project: 1st Oil of P-63 on July 15th, 2013FPSO P-63: 140 kbpdPapa-Terra Project: Drilling, completion and interconnection of 30 wells to P-61 TLWP (Tension Leg Wellhead Plataform) and P-63 (FPSO) with capacity toproduce 140 kbpd and 1 MM m2/day of gas. 29 UNIT’s PHYSICAL COMPLETION - Forecast: 98.5% / Accomplished: 94.1% UNIT’s LOCAL CONTENT – Planned: 65%P-63 Integration at Honório Bicalho Shipyard, in Rio Grande (RS) – Feb/2013 TOTAL LOCAL CONTENT – Commitment with ANP: 0% / Planned: 46% 29
  • 30. Roncador Project Module III - 1st Oil on September 30th, 2013SS P-55: 180 kbpdRoncador Project Module III: Drilling, completion and interconnection of 17 wells to SS P-55 with capacity to process 180 kbpd of oil and 6 million m3/d ofgas. 30 UNIT’s PHYSICAL COMPLETION - Forecast: 87.5% / Accomplished: 89.2% UNIT’s LOCAL CONTENT – Planned: 65%SS P-55 Integration at ERG1 Shipyard in Rio Grande/RS – Feb/2013 TOTAL LOCAL CONTENT – Commitment with ANP: 0% / Planned : 50% 30
  • 31. Parque das Baleias Project: 1st Oil on November 30th, 2013FPSO P-58: 180 kbpdParque das Baleias Project: Drilling, completion and interconnection of 24 wells to FPSO P-58, with a processing capacity of 180 kbpd of oil and 6 MMm³/d of gas. 31 UNIT’s PHYSICAL COMPLETION – Forecast: 86.0% / Accomplished: 90.6% UNIT’s LOCAL CONTENT – Planned: 62%FPSO P-58 Integration at Honório Bicalho Shipyard , in Rio Grande/RS – Mar/2013 31 TOTAL LOCAL CONTENT – Commitment with ANP: 0% / Planned : 58%
  • 32. Papa-Terra Project: 1st Oil of P-61 on December 31st, 2013TLWP P-61Papa-Terra Project: Drilling, completion and interconnection of 30 wells to P-61 – TLWP (Tension Leg Wellhead Plataform) and to P-63 (FPSO) with capacityto process 140 kbpd and 1 MM m³/day of gas. 32 UNIT’s PHYSICAL COMPLETION – Forecast: 94.9% / Accomplished: 76.2% UNIT’s LOCAL CONTENT – Planned: 65%Topside and hull of P-61 at BrasFELS Shipyard (RJ) – Jan/2013 TOTAL LOCAL CONTENT – Commitment with ANP: 0% / Planned : 46% 32
  • 33. 2013-2017 BMP: Production Curve Maintained Production Curve in Brazil – Oil and NGL Production • NE de Tupi 2014 • Lula Ext. Sul (P-72) (P-68) • Iara NW • Espadarte III • Lula Alto • Lula Oeste (P-71) • Júpiter  Sapinhoá Pilot • Florim (P-69) • Deep Waters (Cid. São Paulo) • Lula Central • Franco Sul Sergipe • Bonito • Lula Sul (P-76) • Sul Pq. Baleias  Baúna • Franco Leste (Cid. Itajaí) (P-66) •Tartaruga Verde Maromba • e Mestiça • Espadarte I • Lula NE Pilot • Franco 1 • Iara Horst • Carcará (Cid. Paraty) (P-74) (P-70) • Entorno de • Papa-Terra • Carioca • Parque dos Iara (P-73)Million bpd • Roncador IV Doces (P-63) (P-62) • Lula Norte • Franco NW • Roncador III • Sapinhoá (P-67) (P-77) (P-55) Norte • Iracema • Franco SW (Cid. Ilhabela) • Norte Pq. Norte (P-75) Baleias (P-58) • Iracema Sul (Cid. Itaguaí) (Cid. • Papa-Terra Mangaratiba)  Baleia Azul (P-61) (Cid. Anchieta) 2.0 2.0 2.0 ±2%  Production units in operation 33
  • 34. Roncador Project Module IV – 1st Oil on March/2014FPSO P-62: 180 kbpdRoncador Project Module IV: Drilling, completion and interconnection of 17 wells to FPSO P-62 with a processing capacity of 180 kbpd of oil and 6 MMm³/d of gas. 34 UNIT’s PHYSICAL COMPLETION – Forecast: 70.5% / Accomplished: 88.4% UNIT’s LOCAL CONTENT – Planned: 64%P-62 Integration at Atlântico Sul Shipyard, Ipojuca (PE) – Jan/2013 TOTAL LOCAL CONTENT – Commitment with ANP: 0% / Planned : 56% 34
  • 35. Sapinhoá Norte Project: 1st Oil on September/2014FPSO Cidade de Ilhabela: 150 kbpdSapinhoá Norte Project: Drilling, completion and interconnection of 15 wells to a production unit chartered from QGOG/SBM with processing capacity of 150kbpd of oil and compression of 6 MM m³/day of gas. 35 UNIT’s PHYSICAL COMPLETION – Forecast: 41% / Accomplished: 62% UNIT’s LOCAL CONTENT – Planned: 65%FPSO Cidade de Ilhabela’s Hull Conversion at CSSC Shipyard, in China - Feb/2013 TOTAL LOCAL CONTENT – Commitment with ANP: 30% / Planned : 56.3% 35
  • 36. Lula Project - Iracema Sul: 1st Oil on November/2014FPSO Cidade de Mangaratiba: 150 kbpdLula Project – Iracema Sul Area: Drilling, Completion and interconnection of 15 wells to a FPSO charted from Schahin/Modec with processing capacity of150 kbpd and compression of 8MM m³/day of gas. 36 UNIT’s PHYSICAL COMPLETION – Forecast: 58.3% / Accomplished: 47.7% UNIT’s LOCAL CONTENT – Planned: 65%FPSO Mangaratiba’s Hull Conversion at Cosco Shipyard, in China – Mar/13 TOTAL LOCAL CONTENT – Commitment with ANP: 30% / Planned : 68% 36
  • 37. 2013-2017 BMP: 24 Contracted Units and 15 to Be Contracted between 2013-17 Production Curve in Brazil – Oil and LGN Production • NE de Tupi (P-72) (**) • Lula Ext. Sul (P-68) (**) • Iara NW (P-71) (**) • Espadarte III • Lula Alto (*) • Lula Oeste • Júpiter  Sapinhoá Pilot • Deep Waters (P-69) (**) • Florim (Cid. São Paulo) • Lula Central (*) • Franco Sul Sergipe • Bonito • Sul Pq. Baleias (P-76) (***)  Baúna • Lula Sul • Maromba •Tartaruga • Franco Leste (Cid. Itajaí) (P-66) (**) • Espadarte I Verde e Mestiça • Franco 1 • Carcará • Lula NE Pilot (P-74) (***) • Iara Horst • Entorno de (Cid. Paraty) (P-70) (**) Iara (P-73) (**)Million bpd • Papa-Terra • Carioca • Parque dos • Roncador IV (P-63) (P-62) Doces • Lula Norte • Franco NW • Roncador III • Sapinhoá (P-67) (**) (P-77) (***) (P-55) Norte • Iracema • Franco SW (Cid. Ilhabela) • Norte Pq. Norte (P-75) (***) Baleias (P-58) • Iracema Sul (Cid. Itaguaí) (Cid. • Papa-Terra Mangaratiba)  Baleia Azul (P-61) (Cid. Anchieta) 2.0 2.0 2.0 ±2% • 24 Production Units contracted, 3 already in operation (**) Hull being built in Rio Grande Shipyard (RS) (***) Hull being converted in Inhaúma Shipyard (RJ) • 15 new Production Units to be contracted between 2013-17  Production units in operation (*) Units in final contraction phase 37
  • 38. Exploration Investments in BrazilTarget: Keep R/P > 12 Minimizing Dry-Well Risks Consolidation and delimitation of Pre-Salt and Transfer of Rights areas, besides Post-Salt Sergipe-Alagoas and Espirito Santo basins. Selective investments in New Frontiers: Equatorial and East Margin. US$ 24.3 Billion Sergipe-Alagoas, Espírito Santo, Consolidation and 24% Pre-Salt Equatorial Delimitation (5.8) Margin New Frontiers 6% (1.4) Transfer 70% of Rights (17.1) East Post-Salt Margin Finding Cost (US$ / boe) 1.96 Concession Areas 1.56 March, 2012 1.15 Petrobras 0.58 0.64 0.76 Other Companies 2007 2008 2009 2010 2011 2012 Petrobras Costs Lower than Majors Majors (2007-2011): US$ 3.2 to 4.5 / boe 38
  • 39. PROEF: Program Now Includes UO-RIO Accomplished PROEF TargetsOperational Efficiency (%) HC/PAD Fields Assets UO-BC Assets UO-RIO 39
  • 40. 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 40
  • 41. PRC-Poço: Program to Reduce Well CostsStructure, Initiatives and Expected Gains  The PRC-Poço corporate governance involves all E&P executive managers and big portion of technical and management structure of E&P, with quarterly reports to the executive board. Program to Reduce Well Costs comprises 23 initiatives Unit Cost Number of Activities Term of Each Activity GROUP 1 GROUP 2 GROUP 3 PRC-Poço Reduce Unit Optimize Projects Seek Productivity Structure Costs Scope Gains 4 Prioritized 7 Prioritized 12 Prioritized Initiatives Initiatives Initiatives  2013-2017 BMP has already incorporated gains of US$ 1.4 Bn from initiatives aiming to decrease well construction time and optimization of operational sequencing.  Initiatives in final structuring phase have already identified significant additional gains. These gains will be quantified by May/2013, when each initiative will be linked to an investment project. 41
  • 42. Downstream Projects Under Implementation + Evaluation US$ 64.8 Billion 15% (9.7) 13% 51% (8.4) (33.3) 8% (5.4) 5% 6% (3.3) (4.0) 1% 1% (0.3) (0.4) Refining Capacity Expansion Fleet Expansion Operational Improvement Petrochemical Quality and Conversion Ethanol Logistics Logistics for Oil Corporate 42 42
  • 43. 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) 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 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 43
  • 44. Northeast Refinery (RNEST): Start-up on November/14 Processing capacity: 230 kbpd 9 5 1 2 8 8 4 1 4 6 3 8 8 6 6 7 6 6 6 7 44 TOTAL PHYSICAL PROGRESS- Forecast: 70.3% / Accomplished: 70.6% RNEST construction – Feb/13 LOCAL CONTENT- Target: 75% / Planned: 86.5%(1) Oil and oil products storage area; (2) Atmospheric distillation unit; (3) Power House; (4) Coking Unit; (5) Intermediary products tanks; (6) Contractors yard; (7) Acid water treatmentunit; (8) Pipelines; (9) Hydrotreatment units 44
  • 45. Relevance of refining capacity expansion for the oilproduct market supply and demand balance Brazil’s oil product market in 2020 Demand for oil products in Brazil grows 4.2% p.a. between 2012 and 2020. Without Premium I, Premium II and Comperj 2nd phase, Brazil will import 29% of its oil product demand (kbpd) New Refineries New Refineries Under Implemantation in Design Phase • Premium I – 1st Phase • RNEST: under construction 300 kbpd - Oct/17 1st phase - 115 kbpd - Nov/14 2408 3380 2nd phase - 115 kbpd - May/15 • Premium II - Trem 1 300 kbpd - Dec/17 • Comperj – 2nd Phase • Comperj 1st phase: under - 972 300 kbpd - Jan/18 construction 165 kbpd - Apr/15 • Premium I - 2nd Phase Processing Demand Deficit capacity 300 kbpd - Oct/20 45
  • 46. Gas & Energy Projects Under Implementation + Under Evaluation US$ 9.9 billlion 20% (2.0) 8% (0.8) 25% (2.5) 46% (4.6) Electric Energy LNG Network Gas-chemical plants 46 46
  • 47. Gas & Energy Investments Projects Under Implementation US$ 5.9 billion 32% (1.9) 6% 2013-2017 HIGHLIGHTS (0.3) 19% (1.1)  Conversion of Natural Gas into fertilizers and other gas chemical products: UFN III at Três 43% (2.6) Lagoas (Mato Grosso do Sul) Projects Under Evaluation  Natural gas processing and transportation: US$ 4.0 billion NGPU Cabiúnas (Rio de Janeiro) 3% (0.1)  Electric energy generation: Thermal Power 12% (0.5) Plant Baixada Fluminense (Rio de Janeiro)  LNG Regasification: Bahia Terminal (Bahia) 34% (1.4)  Units in Design Phase: UFN IV (Espírito Santo) 51% (2.0) and UFN V (Minas Gerais) Electric Energy LNG Network Gas-chemical plants 47
  • 48. Natural Gas Supply And Demand(Million m³/d) 48
  • 49. Financiability 49 49
  • 50. 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 50
  • 51. 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) 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 resources (Debt) • Long-term Brent prices (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 51
  • 52. 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 52
  • 53. The End 53

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