2. DISCLAIMER
The presentation may contain forecasts CAUTIONARY STATEMENT
about future events. Such forecasts merely FOR US INVESTORS
reflect the expectations of the Company's
management. Such terms as "anticipate", The United States Securities and Exchange
"believe", "expect", "forecast", "intend", Commission permits oil and gas companies,
"plan", "project", "seek", "should", along with in their filings with the SEC, to disclose only
similar or analogous expressions, are used proved reserves that a company has
to identify such forecasts. These predictions demonstrated by actual production or
evidently involve risks and uncertainties,
conclusive formation tests to be
whether foreseen or not by the Company.
Therefore, the future results of operations economically and legally producible under
may differ from current expectations, and existing economic and operating conditions.
readers must not base their expectations We use certain terms in this
exclusively on the information presented presentation, such as oil and gas
herein. The Company is not obliged to resources, that the SEC’s guidelines
update the presentation/such forecasts strictly prohibit us from including in
in light of new information or future filings with the SEC.
developments.
3.
4. ANNOUNCED RECOVERABLE
VOLUMES IN SANTOS PRE-SALT
Santos Pre-Salt announced recoverable volumes, can
almost double Brazilian reserves.
mi boe ~22 - 26 bn boe
30,000
25,000
20,000
15,000
10,000 Higher estimates
+4,000
5,000
14,093 Lower estimates
8,000
0
2008 Proven Santos Pre-Salt Proven Reserves +
Reserves Announced Santos Pre-Salt
Discoveries Announced
(Tupi and Iara)
Discoveries
(Tupi and Iara)
*SPE Criteria
5. PURSUING NEW PROJECTS WHILE MAXIMIZING
PRODUCTION FROM EXISTING ASSETS
Petrobras Total Production (x 1000 boe/d) 5,729
223
7.5% p.y. 409
1.177
3,655
5.6% p.y. 8.8% p.y. 131
2,758 210
634
2,400 103
2,217 2,297 2,301 142
1,810 2,037 2,020 101 110 100
1,635 96 124 463
22 85 94 163 142 126
24 35 277 273 321
161 168 274 3.920
44 251
252 265
232 2.680
1.855 2.050*
1.684 1.778 1.792
1.500 1.540
1.493
1.335
2001 2002 2003 2004 2005 2006 2007 2008 2009 ..... 2013 ..... 2020
Oil production - Brazil Gas production - Brazil Oil production - International Gas production - International
* Consider +- 2,5%
7. Santos Pre-Salt Cluster Vs. Campos Basin
ACCELERATED PROJECT
DEVELOPMENT
Fast Track Project Vs. Standard Project
Anticipation of revenues
• Uncertainties
Possible optimized
• Capex Optimization recovery
• Time to First Oil
Year 0
Year 2
Year 4
Year 6
Year 8
Year 10
Year 12
Year 14
Year 16
Year 18
Year 20
Year 22
Year 24
Year 26
Year 28
Year 30
Year 32
Year 34
Year 10
Year 12
Year 14
Year 16
Year 18
Year 20
Year 22
Year 24
Year 26
Year 28
Year 30
Year 32
Fast Trac k Project Standard Projec t
8. BRAZILIAN SE BASINS IN – 2009-2013
BRAZILIAN SE BASINS PNCOMPARISON WITH GULF OF MEXICO
IN
COMPARISON WITH GULF OF MEXICO
8
9. SANTOS PRE-SALT CLUSTER VS. Vs. Campos Basin
Santos Pre-Salt Cluster
CAMPOS BASIN
Blocks Consortium
BMS-8 BR (66%), SH (20%) e PTG (14%)
BMS-9 BR (45%), BG (30%) e RPS (25%)
BMS-10 BR (65%), BG (25%) e PAX (10%)
BMS-11 BR (65%), BG (25%) e PTG (10%)
BMS-21 BR (80%), PTG (20%)
BMS-22 EXX (40%), HES (40%) e BR (20%)
BMS-24 BR (80%), PTG (20%)
Shore Distance = 400 km
Total Area = 15.000 km2
10. PRE-SALT ACCOMPLISHMENTS TIMELINE
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
2000-2001: BIDs 2 and 3:
Acquisition of Santos Basin Pre-
Salt blocks
2001-2004: Largest seismic
acquisition and interpretation in the
world
11. PRE-SALT ACCOMPLISHMENTS TIMELINE
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
2005-2006: 1st wildcat well:
2000-2001: BIDs 2 and 3: Parati
Acquisition of Santos Basin Pre-
Salt blocks
11 exploratory wells drilled to
date by Petrobras as operator:
2001-2004: Largest seismic 100% success rate in Santos
acquisition and interpretation in the Basin Pre-Salt Cluster
world
2009: Santos Basin Pre-Salt
First Oil: Tupi EWT (May 1st)
12. PRE-SALT ACCOMPLISHMENTS TIMELINE
2008 2009 2010 2011 2012 2013 2014 2015 2016
Phase 0:Information gathering, Appraisal
wells, Small scale production (EWTs)
Last Updates 2009:
• 5 Rigs currently working in the cluster:
• 3 are drilling new wells –TUPI NORDESTE +
TUPI SUL P1 wells for EWT/Pilot in BMS-11 +
ABARÉ OESTE in BMS-9;
• 2 are doing Formation Tests – IARA and GUARÁ;
• 2 new rigs will be allocated to the pre salt cluster
shortly.
14. USING CONTRACTS AND LEASES TO SECURE
NEEDED DRILLING ASSETS
Water Depth 2008 2009 2010 2011 2012 2013 - 2017
.: Petrobras XVI .: Ocean Yorktown .: Petrobras XIV
.: Petrobras XVII .: Pride Mexico
.: Alaskan Star .: Borgny Dolphin
0-999m .: Atlantic Star .: Ocean Concord
.: Ocean Wittington .: Falcon-100
.: P. South Atlantic
.: Petrobras X .: Petrobras X .: Olinda Star
.: Petrobras XXIII .: Petrobras XXIII .: Ocean Worker
.: P. South America .: P. South America
1000- .: P. Portland
.: P. Rio de Janeiro
.: P. Portland
.: P. Rio de Janeiro
1999m .: P. Brazil .: P. Brazil
.: P. Carlos Walter .: P. Carlos Walter
.: Ocean Yatzi .: Ocean Yatzi
.: Ocean Alliance .: Ocean Alliance
.: Sedco 707 .: West Taurus .: Gold Star .: Delba III .: Delba IV .: + 28 new units to
.: Dw . Navigator .: Pantanal .: Schain TBN1 .: Delba V be leased
.: West Eminence .: Norbe VI .: Sevan Brasil .: Delba VI
.: N. Roger Eason
.: O. Clipper .: SS Victoria .: West Orion .: DS Carolina .: Delba VII
≥ 2000m .: N. Paul Wolf .: Lone Start .: Norbe IX .: Delba VIII
.: Stena* .: Amazonia .: Schain TBN2 .: Scorpion
.: Noble Dave .: Sevan Brasil
.: West Polaris* Beard .: Norbe VIII
.: Sevan Driller .: Etesco 8
.: Cajun Express
Total per
34 7 9 7 9 28
year
Cumulative 7 14 21 30 57
30 LONG TERM CONTRACTED RIGS PLUS 28 TO BE LEASED UP TO 2017, MAKING A TOTAL OF 60 NEW DRILLING RIGS
* SLOT
15. WELLS DRILLED AND TESTED IN SANTOS
BASIN PRE SALT CLUSTER BLOCKS
BLOCK PROSPECTS WELL TESTED/
BMS-8 TESTING
BEM-TE-VI SPS-52 X
BMS-9
CARIOCA SPS-50 X
GUARÁ SPS-55 X
IGUAÇU SPS-60
ABARÉ OESTE SPS-66 *
BMS-10
PARATI RJS-617 X
BMS11
TUPI RJS-628 X
TUPI RJS-646 X
IRACEMA RJS-647
IARA RJS-656 X
TUPI P1 RJS-660 *
TUPI NE RJS-662 *
BMS21
CARAMBA SPS-51
BMS-22
ESSO-2
ESSO-3
BMS-24
JUPITER RJS-652
* on drilling
16. ACID RATE E OTHER CONTENTS PRESENT IN
SANTOS BASIN PRE SALT HYDROCARBONS
First oil from Tupi presented low sulfur
content and a high yield of middle distillates
(28ºAPI)
Tupi Marlim
(Campos)
Acids 1,5
(mgKOH/g) 0,23 - 0,27
CO2 (%) 1 - 35 0,42
H2S 0,2 - 6,0 20
(ppmv)
Sulfur 0,37 - 0,39 0,75
(% m/m)
17. 10 NEW FPSOS
2012 2013 Phase 1A 2017 2020
…
Phase 1B
Phase 1A - Projects Phase 1B - Projects
• 2nd phase of definitive development
Phase 1a: 1st phase of definitive development,
• Use of consolidated or rapidly-consolidating • Significant production increase
technologies to achieve production targets
• Generate cash-flow to support Phase 1b • Innovation acceleration
First 2 FPSOs to be chartered (2013-2014)
• Oil Production: 120,000 bpd
• Massive use of new technologies specially
tailored for Pre-Salt conditions
• Gas Compression: 5 M m³/d
Additional 8 FPSOs (2015-2016)
• Construction of the hulls at the Rio Grande
Shipyard
• All identical units, manufactured in series
• Process plant under study:
− Oil Production: 150,000 bpd
− Gas Compression: 5.5 M m³/d
− Water-Alternating-Gas injection
capability
18. PRE-SALT – Managing Reservoir Uncertainties
Reservoir Quality Predictability
- best EOR method
Subsea Layout
Production System Integrity
Flexible FPSOs’ Topsides
CO2 Processing & Handling
Flow Assurance
19. PHASE 1a – COMMERCIAL CHALLENGES
• Take advantage of possible synergies
and scale to pursue cost reduction
• Local content – current successfull
examples:
• Supply boat construction
• Subsea equipment
• Tubulars
• Motors, Valves etc
• Repeatability and scale
• Hull “Factory”
• Batch contracts for process modules
• Standardization program for well and
subsea hardware (trees, lines, …)
• FPSO “Flex”
20. DEVELOPMENT STRATEGY
Scenario for the Pre-Salt
Several blocks Operational Similar geological
acquired at the Partnerships characteristics
same period
… Operational
Partnerships
Challenging Water
depth, shore
distance, salt layer,
After massive exploratory efforts led to huge discoveries …
Major High Investment Impact on several
Technological Need areas of Petrobras
Challenges
PLANSAL
Santos Basin Pre-Salt Development Master Plan
21. DISTINCTIVE DISCIPLINES
PLANSAL
Production Technology Oil Transfer and Critical
Gas Transfer and
Exploration Infrastructure
Development Development Transportation Resources E&P
Transportation
Exploration FPUs
Unitization Oil Transfer Unitization
HSSE
Oil HSSE
Critical Resources
Engineering Transportation
JV Management
Production
Critical Resources (E&P , Infrastructure
Development Engineering) Gas Transfer
Technology
Development
Gas Technology Development (FPUs, CO2, Wells and Gas)
Technology
Gas Development
Transportation CO2
Competences
JV
Human Technology
Management
Planning, Monitoring and Management Development
Competences
Wells
Long term optimum development = CAPEX and OPEX optimization
22. MAJOR TECHNOLOGICAL
DEVELOPMENTS UNDER EVALUATION
PLANSAL - Pre-Salt Development Master Plan
Offshore
logistical hub
Water-alternating- Offshore
gas (HC or CO2) produced fluid
injection handling hubs
CO2 storage in
Extended-reach saline aquifers,
and deviated depleted fields, salt
wells (salt) caves
Pre-Salt
Flow Assurance
Definitive Deepwater
and formation
CALM buoy
damage control Development
Dry completion
systems (SPAR, Reservoir
TLP, FPDSO, …) Characterization
Offshore gas
Floating LNG storage in salt
caves
CO2 separation /
capture technology
23. PROGRAM INVESTMENT FORECAST
Oil Transfer Exploratory Appraisal
4.7% 1.9%
Gas Transfer
5.2%
Production
Infrastructure
0.5%
Production
Development
87.7%
Investment Program (%)
19%
Subsea
49%
32% Wells
Units
24. CONTINUOUS OPTIMIZATION PROCESS
Improving hydrocarbon recovery... Reducing CAPEX...
Planned CAPEX
Planned Recovered Volume
127% 100%
100%
84%
February 2008 December 2008 February 2008 December 2008
25. PETROBRAS EXPERTISE RECOGNITION
Petroleum Economist Award: For the 4º year, Petrobras
was the winner in some of the awarded categories. In 2009
the company won as the Most Enterprising Exploration
Company and also in Project Innovation (Siri extra-heavy
oil offshore project).
DJSI: Petrobras for the 4º year in a row it has earned the
right to be listed on the Dow Jones Sustainability World
Index (DJSI), the world’s most important sustainability
index.
IR Magazine (2009), Platts Award as Hydrocarbon
Producer of the Year (2008), Latin American Deal of the
Year (2007), OTC Awards (Company and Individual) and
many others…
26. IMPRESSIVE RECORD OF
ACCELERATING DEVELOPMENT
2.000.00 0
1.800.00
1.600.00
• Pre–Salt Complete Potential View vs. Campos Basin
Production (bpd)
1.200.00 Incremental View
1.000.00 • Petrobras and Oil Industry expertise in deep water
exploitation
800.00
• Petrobras and Brazilian macroeconomics
• Price Scenario vs. Estimated costs
400.00
0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55
Numbers of Years
Production since founding Discovery of Garoupa in Discovery of giant fields in Campos Discovery of the Pre-Salt,
of Petrobras (1954) the Campos basin (1954) basin including Albacora/Marlim since Parati (2006)
