Press Release Business Plan 2011-2015 Presentation

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Press Release Business Plan 2011-2015 Presentation

  1. 1. Press ConferenceJosé Sergio GabrielliCEOJuly 25th, 2011 1
  2. 2. DISCLAIMER This presentation may contain forward-looking Cautionary statement for U.S. investors: statements. Such statements reflect only the expectations of the Companys management The United States Securities and Exchange regarding the future conditions of the economy, Commission permits oil and gas companies, the industry, the performance and financial in their filings with the SEC, to disclose results of the Company, among other factors. proved reserves that a company has Such terms as "anticipate", "believe", "expect", demonstrated by actual production or "forecast", "intend", "plan", "project", "seek", conclusive formation tests to be economically "should", along with similar expressions, are and legally viable under existing economic used to identify such statements. These and operating conditions. We use certain predictions evidently involve risks and terms in this presentation, such as uncertainties, whether foreseen or not by the discoveries, that the SEC’s guidelines strictly Company. Consequently, these statements do prohibit us from including in filings with the not represent assurance of future results of the SEC. Company. Therefore, the Companys future results of operations may differ from current expectations, and readers must not base their expectations solely on the information presented herein. The Company is not obliged to update the presentation and forward-looking statements in light of new information or future developments. Amounts informed for the year 2011 and upcoming years are either estimates or targets. 2
  3. 3. Business Plan Context 3
  4. 4. INVESTMENT REQUIREMENT DUE TO GROWING WORLDWIDE OIL DEMAND LIQUIDS DEMAND SCENARIO (Global Liquids Demand in MM bpd)110 110 Probable and100 Probable and developing projects, 100 developing projects and new discoveries* 90 90 OPEC 80 Projected 80 Projected Decline OPEC Decline 70 No n Non-OPEC -O P 70 EC 60 60 50 50 40 40 30 30 20 20 2000 2005 2010 2015 2020 2000 2005 2010 2015 2020 • Additional capacity required in 2020: 38 MM bpd • Incorporation of new discoveries • Alternative energy sources • Increased energy efficiency Source: WoodMackenzie 4
  5. 5. BRAZIL IS THE SEVENTH LARGEST WORLD OIL CONSUMER Total Oil Consumption per Country* – 2010 (MM bpd) Above 3 MM bpd Between 2‐3 MM bpd Under 2 MM bpd 19,15 9.1 4.5 Brazil oil consumption grows  3.3 3.2 2.8 2.6 2.4 2.4 2.3 2.0 2.1% p.y.; 1.8 1.7 1.6 EUA United Kingdom India Russia Saudi Arabia Canada South Corea Brazil Japan Mexico Iran China  German France Total Oil Consumption 230 (Índex 1999 = 100) * Including Ethanol + Biodiesel Brazil 210 EUA 190 World OECD 170 India OECD oil consumption decreases  China 150 0,04% p.y. 130 110 90 1999 2001 2003 2005 2007 2009Source: BP Statistical Review 2011 55
  6. 6. SUPPLIER CHAIN DEVELOPMENT POLICY Maximize Local Content Strategic Guidelines Qualification Industrial Policy Industrial Performance Technological  Industrial  Financeability Regulation Sustainability Competitiveness Qualification Capacity Health,  Foment micro  Professional  Safety and  Fiscal Policy and small  Qualification the  companies Environment Phase I Phase II Phase III Stimulate Supplier  Increase in Demand Technology Chain • Industrial  • Consolidation of  • Professional  Reactivation Production Chain Qualification • Consolidation of  • Technological  Shipyards Research and  • Establishment of  Development Supplier Chain International  Local Content > Local Content Competitive Level 6
  7. 7. OIL, LNG AND NATURAL GAS PRODUCTION – BRAZIL AND INTERNATIONAL  6,418 142 246 1.120 3,993 4.9% p.Y. 125 180 + 35 Systems 2,575 2,772 618 2,386 2,516 +10 Post‐Salt Projects 93 96 96 141 +8 Pre‐Salt Projects 4,910 99’000 boe/day 132 144 435 111 317 334 321 +1 Transfer of Rights 845 3,070 Transfer of Rights Added Capacity 13 1.855 1.971 2.004 2.100  Oil: 2,300,000 bpd Pre-Salt 1,148 543 2008 2009 2010 2011 2015 2020 Oil Production‐ Brazil Natural Gas Production ‐ Brazil Oil Production ‐ International Natural Gas Production ‐ International • Accomplishment of 30 EWTs from 2011 to 2015: 13 in the Pre‐Salt, 7 in the transfer of rights area and 10 in the  post‐salt; •Pre‐Salt participation in the total production will enhance from the current 2% to 18% in 2015 and 40.5% in  2020. Note: Does not include Non‐Consolidated International Production. 7
  8. 8. INCREASE IN SALES VOLUMES Sales Volume (thousand boe/day)  6.6% p.y. 8.000 7,142 Fertilizers 79 141 7.000 El ectri c Energy 401 5.6% p.y. 906 6.000 Bi ofuel s 4,958 38 480 5.000 106 3,848 290 Interna ti ona l  Sa l es(**) 3,773 3,464 17 17 738 4.000 17 94 97 2,317 94 136 147 436 Na tura l  Ga s (***) 125 593 634 3.000 542 997 312 320 231 Exports 699 586 2.000 706 1,739 1,453 1,204 1,315 Other Di s tri bui tors 1,097 1.000 731 899 1,078 652 718 Sa l es  to BR 0 *2009 *2010 2011 2015 2020 BP 2011‐15 ‐ Petrobras Total Sales Volume (*) Accomplished (**) International area sales and offshore trading operations free from eliminations. (***) Natural Gas was converted to boe/d. 8
  9. 9. Investments Program 2011‐15 9
  10. 10. BP 2011‐2015 INVESTMENTS VS. BP 2010‐14 2010‐14 Business Plan 2011‐15 Business Plan US$224.1 billion US$224.7 billion 2% 1% 2% 1% 2% 1% 2% 1% 8% 6% 53% 31% 57%33% (*) US$22.8 billion in Exploration E&P RTC RTM Natural Gas, Energy and Gas Gás,Energia & Gás Química Petrochemicals Petroquímica Chemic Distribuição Downstream Biocombustíveis Biofuels Corporativo Corporate • 5% of investments will be made overseas, 87%  of which in E&P. 10
  11. 11. MAIN CHANGES: BP 2010‐2014 VS. BP 2011‐2015 (US$ billion)  230,0 225,0 1,5 220,0 10.8 10,8 8.6 8,6 215,0 23,7 210,0 213,2 23.7 32.1 213.2 32,1 205,0 224.7 224,7 224,0 224.0 200,0 0,6 195,0 6,4 6.4 change in investments carried  190,0 over from 2010‐14 BP to 2011‐15 BP 192.6 192,6 185,0 180,0 2010‐14 BP Exclusions Forex rate  Change in  Change in  Change in  Change in  New  2011‐15 BP impact Budget Schedule Business Model Scope Projects • 87% of new projects focused in E&P, highlight to the transfer of rights area (US$12.4 billion). 11
  12. 12. MAIN CHANGES: BP 2010‐2014 VS. 2011‐2015440.0 (R$ billion) 420.0 20.6400.0 399.1 11.2 5.0380.0 41.6360.0 419.7 53.3 6.5 389.0340.0 9.0 change in investments carried over from 2010‐14 BP to 2011‐15 BP 335.7320.0300.0 2010‐14 BP Exclusions Forex rate  Change in  Change in  Change in  Change in  New  2011‐15 BP impact Budget Schedule Business Model Scope Projects 12
  13. 13. KEY CHANGES IN PORTFOLIOReassignment of E&P investments   Exploration & Production Supply  Gas & Energy (includes Petrochemicals) + US$8.7 billion ‐ US$4.3 billion ‐ US$4.6 billion New Projects New Projects New Projects • Inclusion of the Transfer of Rights • Lubricants unit (Comperj) • New HPPs •New Pre‐Salt Units (Lula) • Pipelines • Operating Infrastructure • Expansion of the monobuoys system (São Francisco do Sul) • New Discoveries and R&D • Revaps adequacy Excluded, Revised and/or  Excluded, Revised and/or  Postponed Projects Postponed Projects Excluded, Revised and/or  Postponed Projects • Projects discontinued after  • Fuel oil storage for thermal  power plants • Revision of the construction of gas  unsuccessful exploratory phase pipeline and compressor station • Revision of Production  • Jet fuel logistics for Brasília • Exclusion of HPP projects from  Development Projects • Postponement of Premium I  2010 auctions Refinery 13
  14. 14. Corporate Challenges 14
  15. 15. HUMAN RESOURCES “To become an international benchmark  for people management in the  energy sector, its employees being its greatest asset.” Human Resources Planning Human Resources Planning HR Policies  HR Policies  Competency management Competency management Service provider management Service provider management Attraction and  Attraction and  retention retention Training and  Training and • Foment workforce • Foment workforce education development developmenteducation• Maintenance of • Maintenance of  Career and  Career and relations with universities  • Managerial  • Managerial relations with universities  movement movementand  technical colleges development developmentand  technical colleges• Competitive • Competitive  • Training of new  • Training of new  • Internal and external  Knowledge  Knowledge  managers/succession • Internal and external remuneration managers/succession managementremuneration mobility  mobility  management• Retention program • Rotation of managers  • Rotation of managers  • Dissemination of • Retention program • Allocation of new  • Allocation of new  • Dissemination of  and specialists and specialists knowledge knowledge• Sustainable health and  employees employees• Sustainable health and pension plan • On‐site training • On‐site training • Petrobras Mentor • Petrobras Mentorpension plan • Career plan • Career plan • Lessons learned • Lessons learned Environmental Management Environmental Management Commitment and  Commitment and  Culture and values  Culture and values  Union relations Union relations HR communications HR communications satisfaction satisfaction 15
  16. 16. HUMAN RESOURCES Projeção de Efetivo do Sistema Petrobras Human Resources Projection 103.030 96.953 92.693 89.201 85.417 28.608 27.985 26.722 25.528 24.347 • PN 2011‐2015 requires extra human resources •51% of the personnel were admitted less than  10 years ago, while 46% work for Petrobras for  68.968 74.422 61.070 63.673 65.971 over 20 years 2011 2012 2013 2014 2015 35.000 3000 Controladora Outras Empresas do Sistema Petrobras d a te 30.000 E stimE&P Personnel 2500 Production (thous. bbl/d) 25.000 55% 2000 20.000 • Upstream segment will be the main  1500 sponsor of the personnel increase, which  15.000 follows production growth. 1000 10.000 5.000 500 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 In Jan/11 Personnel Production 16
  17. 17. COMMITMENT TO ENERGY EFFICIENCY AND REDUCING GHG EMISSIONS Objective Maximize energy efficiency  and reduce the intensity of  greenhouse gas (GHG) emissions  Voluntary  • Reduce the energy intensity of RTM and Gas & Power operations by 10% and 5%,  respectively; Commitments • Reduce the intensity of natural gas flaring in E&P operations by 65%;  (2009‐2015) • Reduce the intensity of GHG emissions in E&P, Refining and Thermal Power operations  by 15%, 8% and 5%, respectively. US$ 1.2 billion will be invested in:  Investments • RTM energy efficiency (US$ 270 million) (2010‐2015) • Reducing natural gas flaring in E&P operations (US$ 322 million) • Conversion of thermal power plants into combined cycle plants (US$ 373 million) • R&D (US$ 200 million) 17
  18. 18. TECHNOLOGICAL CHELLENGES Expanding the limits Expanding the limitsNew Exploratory Maximazing Developing Development of Sediments and Solutions for Operational Middle destillates Frontiers Recovery Factor production, new generation fluids natural gas optimazation maximization operations and pre- sea and subsea characterization of logistic in harsh salt logistics Production the pre-salt and environments systems other complex reservoirs Adding value and Sustainability diversifying products Water CO2 and other gases management management EnergeticFuels, lubricants Efficiency and special products Other renewable innovation Petrochemicals Gas chemic Biofuels energy sources 18
  19. 19. PETROBRAS TECNOLOGICAL MANAGEMENT International Research  Institutions Other operators Suppliers Universities and  Brazilian Research  Institutions Expenses (investments and costs): US$ 1.3 bi / year• 4 Petrobras suppliers’ R&D centers in construction;• To meet local content requirements several companies intend to develop technological centers in Brazil.  19
  20. 20. STRATEGIC PARTNERS 50 thematic network with 80 institutions ANP CENPES Scientific Institution Institution(manager) Committee partner 1 partner 5 Institution Institution partner 2 Institution partner 4 MCT partner 3 FINEP CNPq Research Centers - Physical and Human infrastructure UNIVERSITIES - RH training - R & D Projects SUPPLIERS - Technological Services INCUBATOR 20
  21. 21. Analysis of  the Plan’sFinanceability 21
  22. 22. OIL PRICE 2010‐2015 US$/bbl 95 Petrobras’s Outlook 80 Based on 2011‐2012 forecasts: Banks (Source: Bloomberg) Based on 2013‐2015 forecasts: PIRA, DOE, CERA, WoodMackenzie, IEA 22
  23. 23. KEY VARIABLES THAT IMPACT THE CASH FLOW AND FINANCEABILITY Key variables for Cash Generation and Investment Level • Oil price  • Foreign Exchange Rate • Growth of the Brazilian Market • Average Realization Price (ARP) – Brazil »International Parity »International margins per product • Oil and products exports and imports • Investment Program  • Disinvestment and business restructuring • Raising of third‐party funds  Propositions Not carry out new Capitalization Keep the investment grade 23
  24. 24. CASH GENERATION AND INVESTMENTSDisinvestment and traditional funding sources that suit the Plan Scenario A Scenario B US$ 256.1 US$ 256.1 US$ 255.6 US$ 255.6 Key assumptions 13,6 13,6 31,4 30,9 Scenario A  26,1 26,1 (Basis) Scenario B Exchange rate  1.73 1,73 67,0 (R$/US$) 91,4 2011 – 110 2011 – 110 2012 – 80 2012 – 95 224,7 224,7 Brent (US$/bbl) 2013 – 80 2013 – 95 2014 – 80 2014 – 95 148,9 125,0 2015 – 80 2015 – 95 Leveraging 29% 26% (Average) Net Debt/EBITDA  1.9 1.5 Sources Use Sources Use (Average) ARP (R$/bbl) 158 177 Disinvestment and Restructuring Debt Amortization Cash Investments Third‐Party Resources (Debt) Operating Cash Flow (After Dividends) 24
  25. 25. Exploration & Production  US$127.5 billion 25
  26. 26. TOTAL E&P INVESTMENTS IN BRAZIL– 2011‐15 BUSINESS PLAN Exploration E&P investments in Brazil: US$117.7 bn Pre‐Salt Post‐Salt 26% Pre‐salt US$ 53.4 billion US$ 64.3 billion Infrastructure 68% Other areas 6% Assignment   17% Agreement 18% Exploration 65% Production Development Production  Development  Pre‐salt Other areas 37% 48%• Annual  investments  of  more  than  US$  4  billion  in  exploration;  15%• Investments of US$ 12.4 billion in the assignment agreement  Assignment   Agreement areas in 2011‐15• In  the  BP  2010‐2014,  the  forcasted investment  for  the  Pre‐ Salt was of US$33 billion Note: Pre‐salt includes Basins in Santos, Campos and Espírito Santo 26
  27. 27. LARGE PROJECTS SUSTAIN THE INCREASE IN PRODUCTION NG Projects  Pre‐Salt Projects Uruguá Juruá NG FPSO Cidade de  Lula NE Post‐Salt Projects Santos Marlim Sul FPSO Cid. de  Module 2 35,000 bpd Paraty Assignment  Agreement  SS P‐51 Lula Piloto 120,000 bpd Projects 180,000 bpd FPSO Cidade de  Guará Piloto 2 24‐Jan‐09 Angra dos Reis Guará (North)  FPSO Cid. São  Marlim Leste 100,000 bpd Paulo FPSO 150,000  FPSO Cidade de  120,000 bpd bpd Niterói Cachalote and Franco 1 FPSO  ’000  Baleia Franca  Mexilhão Cernambi 150,000 bpd 100,000 bpd Jaqueta Parque das  bpd 26‐Feb‐09 FPSO Capixaba Baleia Azul Baleias FPSO 150,000  100,000 bpd NG bpd FPSO Cid. de  FPSO P‐58 LulaTLD Tambaú Anchieta 180,000 bpd 3.070 FPSO BW Cidade Guará TLD 100,000 bpd3000 FPSO Cidade de S. Vicente FPSO Dynamic  de Santos 30,000 bpd Producer Lula 3 Central  NG 01‐May‐09 30,000 bpd BALEIA AZUL FPSO 2500 Post‐Salt 150,000 bpd 2.100 Papa‐Terra  FPSO 1.971 2.004 TLWP P‐61 & 60,000 bpd Lula 4 Alto 2000 Roncador FPSO P‐63 SS P‐55 FPSO  Marlim Sul 150,000 bpd SIRI FPSO Frade Jubarte 150,000 bpd Module 3 100,000 bpd FPSO P‐57 SS P‐56 Roncador 2 Jaquetas e 1500 180,000 bpd Maromba 20‐Jun‐09 180,000 bpd Module 3  FPSO P‐62 FPSO 100,000 bpd 100,000 bpd FPSO  FPSO Cid. de  Module 4   Parque das Tiro Piloto 100,000 bpd1000 Itajaí 180,000 bpd Conchas SS‐11 80,000 bpd FPSO E. Santo ESP/MARIMBÁ 30,000 bpd ARUANÃ 100,000 bpd FPSO  FPSO 500 40,000 bpd 29‐Sept‐09 100,000 bpd 0 2009 2010 2011 2012 2013 2014 2015 27
  28. 28. VARREDURA PROJECT: TECHNOLOGICAL DEVELOPMENT AND EXPLORATORY OPTIMIZATION Operation Sweep Descobertas in Campos Discoveries do Pré-sal Pre-salt basin 2009/10 na Bacia de Campos • Additional recoverable volume from discoveries: (Varredura) 2009/10 (VARREDURA) • Post‐salt:  Marimbá,  Marlim Sul and  Pampo:  1,105  MM  boe; • Pre‐salt:  Barracuda,  Caratinga,  Marlim,  Marlim Leste,  Albacora and Albacora Leste: 1,130 MM boe*.  • Well productivity exceeds 20,000 bpd 67 exploratory wells will be drilled between 2011 and 2015 New technologies generate E&P efficiency gains and lead to production growth between 2011 and 2015 Underwater Electric  Sea Water Capture  Underwater  Multi‐stage  Pump in Skid  and Injection  VASPS Fractured Wells TLWP Oil/Water Separation *No volumes have been  announced regarding the Marlim Leste and Albacora Leste discoveries.  28
  29. 29. DEVELOPMENT OF THE TRANSFER OF RIGHTS UNDER IMPLEMENTATION Commerciality Statement Exploration Stage Production Stage Development Stage Duration: 4 years Variable, according to  Extendable for 2 more years Development Plan Total Duration: 40 years, extendable for 5 more years according to specific criteria Area 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Franco Resources already  lara surroundings available for: First 4  • 8 Exploratory wells production  New technologies  Florim • 2 contingent Exploratory  units  and resource  NE of Tupi wells  undergoing  allocation  • 1 EWT contracting  determination South of Guará • 3 contingent EWTs (*) • 3D Seismic  South of Tupi * Conversion at the Inhaúma shipyard 29
  30. 30. Refining, Transportation &  Commercialization (RTC),  and Petrochemicals US$74.4 billion 30
  31. 31. NEW REFINERIES, FUEL QUALITY AND MODERNIZATION SUM UPTO 74% OF RTM INVESTMENTS US$70.6 billion • Expansion of the downstream segment:  4.5% 4.9% 1.0% 1.1% Refinery in the NE, Premium I and II, and  0.8% Comperj; 15.2% 13.9% • Serving the local market: Modernization,  conversion, and hydrodesulfurization; • Operating improvement: maintenance and  26.4% 23.9% optimization of the industry, SMES, and R&D; • Fleet Increase • Allocation of the national oil: oil supply for  Expansion of the downstream segment Serving the local market refineries and infrastructure for oil exports. Operating improvement Fleet Expansion Investments in Petrochemicals amount to US$3.8  Allocation of the national oil International billion 31
  32. 32. PRODUCTION, DOWNSTREAM AND DEMAND IN BRAZIL PREMIUM IThous bpd (2ª phase) COMPERJ 300 mil bpd (1º phase) 5,000 165 mil bpd (2019) (2013) COMPERJ Refinaria  (2º phase) 165 mil bpd 4,000 Abreu e Lima  (2018) (RNE) 230 mil bpd 3,327 (2012) PREMIUM II 3,000 2,643 300 mil bpd 3,095 (2017) 4,910 2,536 PREMIUM I 2,000 (1ª phase) 3,070 3,217 300 mil bpd (2016) 2,147 2,205 2,208 2,100 2,004 1,971 1,933 1,811 1,798 1,792 1,000 0 2009  2010 2011 2015 2020 OIL and LNG Production ‐ Brazil Processed Feedstock ‐ Brazil Oil Product  Market Scenario A • Investments in refining capacity expansion to support the Brazilian market growth 32
  33. 33. INVESTMENTS IN DOWNSTREAM EXPANSION – 2011‐15 BP REPRE I Nordeste Refinery Comperj REPRE II Capacity: 230,000 bpd Capacity: 330,000 bpd Stage: Implementation Stage: Implementation Startup: 2012 Startups: 2013 and 2018 RNE Premium I Refinery Premium II Refinery Capacity: 600,000 bpd Capacity: 300,000 bpd Comperj Stage: Earthworks Stage: Preliminary License issued Startup: 2016 and 2019 Startup: 2017 Launch of Petrobras’ Refineries PREMIUM II PREMIUM I COMPERJ REPLAN REMAN REDUC  REGAP  REVAP REPARRECAP RNEST REFAPRLAMRPBC  32 years 50’s 60’s 70’s 80’s 90’s 00’s 10’s• Learning curve from the two new refineries (RNEST and Comperj) to reduce the CAPEX at the Premium  refineries 33
  34. 34. INVESTMENTS IN OIL PRODUCT QUALITY AND CONVERSION PROGRAMS TOTALAPPROXIMATELY US$ 16 BILLION* IN 2011‐15 BUSINESS PLAN GASOLINE QUALITY DIESEL QUALITY 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015Regular Transition Regular Gasoline Diesel S-1800Gasoline 0.005% S Diesel S-500 REDUC RECAP REPLAN Gasoline Diesel and Gasoline Gasoline Diesel S-50 REFAP REPAR Gasoline Gasoline Diesel S-10 REVAP Gasoline RECAP REGAP REFAP REDUC REPAR Diesel Diesel and Diesel Diesel Diesel REGAP Gasoline Gasoline RLAM REPLAN RPBC RPBC Diesel Diesel Diesel Gasoline REGAP Revamp RLAM HDT Gasoline • Investments in oil product quality meet environmental and emission reduction regulations; • Higher quality oil products lead to better margins. *Includes investments in coking units  34
  35. 35. Natural Gas, Electric Energy  and Fertilizers US$13.2 billion 35
  36. 36. INVESTMENTS IN GAS, ENERGY, AND GAS‐CHEMICALS 2011‐2015 2011‐15 Investments US$13.2 billion 2% 6% • Cycle  of  investments  in  the  expansion  of  the  transportation  network  to  be  completed  in  0,8 2011; 26% 0,3 21% • Consolidated  investment  in  thermal  power  3,4 2,8 generation; • Operating  in  the  LNG  chain,  and  serving  the  thermal power market; 5,9 • Increased  portion  of  investments  allocated  to  the  conversion  of  natural  gas  into  urea,  ammonia,  methanol,  and  other  fertilizers,  and  gas‐chemicals.  45% LNG Electric Energy Gas‐chemicals plants  Network (Nitrogenized) International 36
  37. 37. 2ND INVESTMENT CYCLE: MONETIZATION OF THE PRE‐SALT RESERVES 1st Investment Cycle 2nd Investment Cycle COMPLETED 2011‐2015 BP 2011‐ 100% LNG  LNG BGUA  Acquisition TPPs Pecém UFN III (Sept/14) 90% Cubatão UFN V (Dec/14) Conversion of Biofuel TPP Ammonium Sulfate (May/13) Termoaçu 80% ARLA 32  (October/11) 70% % of Total Investment  UFN IV (Dec/17)  60% Gasduc III 50% Gasbel II Gasene Regás Bahia  Gas FSO 40% (Sept/13) (Dec/15) Pilar‐Ipojuca New NG HPPs 30% Japeri‐Reduc 20% Cacimbas‐Vitória Gastau Catu‐Pilar Gascav Gaspal II Gascar 10% Atalaia‐Itaporanga Gasan II UPGN Cabiúnas – Route 2 Pre‐Salt Urucu‐Manaus  (Aug/14) Ecomps + Delivery Spots + Network Maintenance 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Adaptation of the Gas Pipelines Network (US$3.3 billion) TPP Commitments (US$0.9 billion) Adequação da Malha de Gasodutos New TPPs run on Natural Gas (US$1.7 billion) UTEs Compromissos Novas UTEs a Gás Natural Renewable Energy: Wind Power and Biomass (US$0.02 billion) Energia Renovável: Eólica e Biomassa LNG regasification (US$0.8 billion) Regaseificação de GNL Natural Gas Liquefaction (US$1.8 billion) Gás Natural Liquefação de Transformação Química do GN Chemical Transformation of NG (US$5.5 billion) 37
  38. 38. NEW ASSETS USING HIGHER NATURAL GAS PRODUCTION Fertilizer Production Generation Intalled Capacity UFN IV (Jun/2017) 4.000 UFN V (Sep/2015)  30 11.000 70 9,475 UFN III (Sep/2014)  2,936 25 9.000 581 60 Million cm/dThous.ton /year 3.000 7,114 Million cm/day 2,271 20 6,518 44 50 7.000 420 13 420 2.000 15 34 40 MW 5.000 30 1,109 6 30 10 1.000 813 813 3.000 3 8.894 5 20 291 6.098 6.694 1.000 10 0 - 2011 2015 2020 -1.000 2011 2015 2020 0 Ammonia Urea Natural Gas Consumption UTE Renewable Natural Gas Consumption • Brazil currently imports 53% of the total ammonia consumption in the country. Will be self‐sufficient in 2015; • We currently import 53% of the total urea consumed. This amount will reduce to 28% in 2015, 16% in  2017 and 22%  in 2020. 38
  39. 39. NATURAL GAS SUPPLY & DEMAND BALANCE (MILLION M3/D)PCS 9.400 kcal/m³ SUPPLY DEMANDNational NG Supply to the Market Demand from Thermal Power Plants: Petrobras + Third parties 102 78 9 Northern Region 76 (15.1 GW) 55 9 59 (10.7 GW) To be contracted (5.5 GW 6 93 38 Other Regions (6.7 GW) 69 49 37 40 Flexible 25 13 Inflexible 2011 2015 2020 2011 2015 2020Supply via LNG Regasification Terminals Demand from NG Distributors 41 41 14 14 Bahia Non‐thermal power 21 Pecém 14 20 20 Guanabara Bay 2011 2015 2020 2011 2015 2020Bolivian Supply Petrobras’ Demand: Downstream + Fertilizers 61 Fertilizers 39 30 30 30 16 UPGN Flexible 17 24 24 24 25 32 Downstream Firm 2011 2015 2020 2011 2015 2020 Total  Total 106 149 173 96 151 200 Supply Demand 39
  40. 40. DistributionUS$ 3,1 billion 40
  41. 41. INVESTMENTS IN DISTRIBUTION 2011‐2015 BP US$3.1 billion Automotive Market Mercado Automotivo   Mercado Consumidor Consumer Market 21% 42% Operações e Logística Operations & Logistics Liquigás  18% Internacional 6%   International 13% Share in the automotive and global markets 50 40.6 38.6 38.8 38.5 40 30 20 30.6 30.9 31.3 33.7 10 0 2009 2010 2011 2015 Automotive Market (%) Global Market (%) 41
  42. 42. BiofuelsUS$ 4.1 billion 42
  43. 43. INVESTMENTS IN BIOFUELS 2011‐2015 INVESTMENTS  US$4.1 billion 7% 14% 0,3 Etanol 0,6 Logística para Etanol 1,9 47% Biodiesel 1,3 R&D 32% Ethanol supply (million m³) Biodiesel supply (’000 m³)Market‐share Pbio+Partners: Market Share Pbio+Partners:• 2011: 5.3% • 2011: 28% 5.6• 2015: 12% • 2015: 26% 273% 2.5 16%    855 735 1.5 143 143 3.1 0.6 592 712 0.9 2011 2015 2011 2015 Pbio Partners Pbio Partners 43
  44. 44. InternationalUS$ 11 billion 44
  45. 45. INVESTMENTS: INTERNATIONAL AREA Activities in 27 countries in the E&P, RTCP, Distribution, and G&E segments US$11 billion Gulf of Mexico 7% 1% Key Projects: 3% 2% • Cascade / Chinook E&P G&E • Saint‐Malo  RTCP • Tiber Distribution 87% Corporate Africa’s West Coast Latin America Key Projects:  Key Projects: • Nigéria • Bolivia Akpo San Alberto / San Antonio  Agbami Serving the Brazilian market Egina • Peru • Angola Integrated Gas Project – Lots 57 and 58  Block 26 Oil Production – Lot X 45
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