"8º Foro Latibex - Petrobras Overview – Petroleum, Gas and Petrochemical”
1. PETROBRAS
PETROBRAS OVERVIEW
Petroleum, Gas and Petrochemical
Latibex
Almir Barbassa
CFO and Investor Relations Officer
November 15, 2006
1
2. PETROBRAS
The presentation may contain forecasts about future events. Such forecasts
merely reflect the expectations of the Company's management. Such terms
as "anticipate", "believe", "expect", "forecast", "intend", "plan", "project",
"seek", "should", along with similar or analogous expressions, are used to
identify such forecasts. These predictions evidently involve risks and
uncertainties, whether foreseen or not by the Company. Therefore, the future
results of operations may differ from current expectations, and readers must
not base their expectations exclusively on the information presented herein.
The Company is not obliged to update the presentation/such forecasts in
light of new information or future developments.
Cautionary Statement for US investors
The United States Securities and Exchange Commission permits oil and gas
companies, in their filings with the SEC, to disclose only proved reserves that
a company has demonstrated by actual production or conclusive formation
tests to be economically and legally producible under existing economic and
operating conditions. We use certain terms in this presentation, such as oil
and gas resources, that the SEC’s guidelines strictly prohibit us from
including in filings with the SEC.
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3. PETROBRAS
Integration of the Company's Activities
Petrochemical Imported Imported Oil
Plants H - Bio
Oil Products
Biodiesel Oil Products
Throughput
Brazilian Oil sold in Brazil
in Brazil
Production
Ethanol
International Oil International International
Production Refining Sales
Domestic
Natural Gas
Other
Production Energy
Renewables
Imported Gas Infrastructure
Industry
LNG
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4. PETROBRAS
Vertical Integration Comparison
Majors Average *
4,793
3,176
2,735
National Oil Companies Average **
1,579
1,630
4,329
2011: Petrobras
New Refinery will add 200
thous. bpd capacity 2,296
2010:
Pasadena Refinery revamp
concluded – processing 70
2,114
thous. bpd of heavy oil
Product Sales (thous. bpd)
2,217
Refining (thous. bpd)
3,400 Production (thous. boed)
Year 2011
* Majors: BP, Exxon, Total, Royal Dutch Shell, Chevron, Conoco and Repsol-YPF *** 2004 figures, except for Petrobras (2005)
** NOC: PEMEX, PDVSA, Saudi Amraco, KPC, Pertamina and Sonatrach Source: PIW Intelligence and Petrobras
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5. PETROBRAS
Investment Plan
Business Plan 2007-2011
US$ 87.1 billion
56% 14%
49.3 U
S$
12
49.3 .1
bi
31.0
23.0 US$ 75.0 bi
1.8
1.8
2.3 3.3 23.0
3% 2.2 3.3 7.5 26%
7.5
1.0
3% 1.0
4% 12.4
9% 86%
E&P Downstream G&E Brazil International
Petrochemical Distribution Corporate
Note: Includes International
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6. PETROBRAS
Main Projects contributing to the production growth in 2006
FPSO Cidade do
P-50 FPSO Capixaba P-34 Rio de Janeiro
Albacora Leste Golfinho Mod. 1 Jubarte Phase 1
Espadarte Mod. II
Capacity 180,000 bpd Capacity 100,000 bpd Capacity 60,000 bpd
Cap.: 100,000 bpd
April 2006 May 2006 November 2006
December 2006
In 2006, two platforms, P-50 and FPSO Capixaba, have started operating. Until the
end of the year, other two platforms will start-up operation, adding a production
capacity of 440 thousand bpd to the country.
• P-50 is currently producing 164,000 bpd and should reach its production peak by the end of the year.
• FPSO Capixaba is producing 35,000 bpd and should reach its full capacity in 2007.
• P-34 is being tested on the ocean and its start-up is scheduled to November.
• The start-up of FPSO Rio de Janeiro was anticipated form 2007 to December 2006.
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8. PETROBRAS
Natural gas domestic supply
Million m3/day
Roncador
SPS25 RJS633 Cavalo (P-55)
80 ESS164
2008
2009 2010 Marinho
2010
2011
Urucu
Natural gas Mexilhão 70
70 sales
2007
2009
70.6
Roncador Golfinho 65.2 Parque das
60 (P-54)
2007
Mod 2
2007
Canapu
2008 Tambaú/Uruguá
Conchas
2011
2010
Peroá- Frade
50 Cangoa 2009
Jubarte Fase 2
NG non associated
NG associated
(P-57)
Phase 1 49.4 Marlim Leste
(P-53) 2010
2006 Marlim Sul
40 Manati
ESS130 Mod 2
2009
2008 (P-51)
2006 2008
34.1
30 Piranema Peroá-
Cangoa
27.5 2006
Roncador Phase 2
20 Jubarte
(P-52)
2007
2007
Albacora
Albacora (P-34)
Complemental
Leste 2006 Espadarte
10 (P-50) Mod. 2
2007
2007
2006 Golfinho Mod 1
2006
0
2006 2007 2008 2009 2010 2011
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9. PETROBRAS
Natural Gas supply extension in Southeast 2006 - 2008
New investments will reduce the country’s dependence on imported gas.
• Production will raise from the current 15.8
million to 40 million m3 per day in 2008 in
the Southeast.
• Development of two new oil and gas
fields in Espírito Santo;
• Increase of natural gas supply from
the Marlim field (Campos Basin);
• Expansion of gas production in the
Merluza field (Santos Basin).
• Demand Flexibilization
• Refineries, Distributors and flex-fuel
thermoelectric plants ( LNG, diesel
and alcohol)
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10. PETROBRAS
PLANGÁS – Dec. 2008
Cacimbas (20 MM m3/d)
Peroá (10 MM m3/d)
Lagoa parda
Belo Horizonte
Vitória
Pólo Golfinho
ESS-164
ESS-
+16,3 MM m3/d (*)
Ubu Golfinho + Canapu
Pq. Baleias +
Pq.
BC10
Campinas
Cabiúnas Total Southeast:
Garoupa ESS-130
ESS-
Caraguatatuba
Rio de Janeiro 40 MM m3/d
Namorado
Enchova
(+ 24,2 MM m3/d)
REDUC Pampo
RPBC
Plataformas da
UN-BC e UN-RIO
UN- UN-
Tambaú
+6,4 MM m3/d (*)
Mexilhão Uruguá
Merluza - II Merluza
•Development of new fields in Espírito Santos field
Lagosta
(BM-S-3/ BM-S-7,
(BM- BM- (1-ESS-164 and 1-ESS-130)
SPS-25)
SPS-
+1,5 MM m3/d (*) • Increase in Marlim supply (Campos Basin)
(*) Schedules under evaluation • Merluza production expansion (Santos Basin)
(*) Additional to the current supply
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11. PETROBRAS
Investment Plan – Downstream
US$ 23.1 billion in the downstream ...of which US$ 14.2 billion in refining
segment…
14% 24%
19%
US$ 3.4
US$ 3.2 US$ 2.7
12% US$ 2.8 61%
US$ 14.2
US$ 4.4 US$ 3.7
0
3.
$
26%
US
13% 31%
Refining Expansion
Pipelines & Terminals Transport Product Quality
Ship Transport Conversion
Petrochemical HSE, Maintenance and Other
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12. PETROBRAS
Additional refining capacity
New Refinery in Pernambuco
• Investment: US$ 2.5 billion;
• Throughput capacity: 200 thousand heavy oil barrels (50%
Petrobras oil / 50% PDVSA oil);
• Focusing diesel and LPG production maximization, the new
refinery will aim the growth of oil products demand in the
Northeast.
•The Northeast Region, which responds for 19% of oil products demand and holds only one refinery
in Bahia, will no longer be a fuel importer (either from refineries in Brazil or abroad);
• Costs reduction: oil products transportation are more expensive than for crude oil.
New Refinery in the USA
• Petrobras has acquired 50% of the Passadena Refinery System
Inc. (PRSI), located in Texas, USA;
•Total Investment: US$ 370 million;
•The refinery, which already has a capacity of 100,000 bbl/day, will
be upgraded to handle 70,000 bbl/day of heavy oil and feedstock
(including Marlim field’s production);
• The upgraded refinery will be ready in four years. After the revamp project all products will match
USA highest standards.
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13. PETROBRAS
Downstream Investments - Petrochemical investments
Main Projects Basic Petrochemical Unit:
- 150,000 bbl/d of Marlim Oil;
- Products: Diesel, LPG, Ethylene,
Rio de Janeiro Petrochemical Propylene, PX, Benzene and Coke.
Complex
Petrochemical Integrated Complex:
- Polypropylene;
Acrylic Complex /SAP - Polyethylene;
- PTA;
PTA Pernambuco - Ethylene glycol;
- PET;
- Styrene;
Nitrogenated Fertilizers Unit III - Phenol.
Fafen BA
• Investments of US$ 3.3 billion in Petrochemicals;
• Reducing the Brazilian deficit and adding value to
Downstream production.
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