GENERAL PRESENTATION




INVESTOR RELATIONS
PETROBRAS
APRIL, 2010




                                            1
DISCLAIMER




The presentation may contain forecasts about        CAUTIONARY STATEMENT FOR
future events. Such forecasts ...
PETROBRAS: AN INVESTMENT GRADE, PUBLICLY TRADED, MAJOR
INTERNATIONAL OIL COMPANY

         Incorporated in 1953 as governm...
60% OF THE EQUITY CAPITAL OF PETROBRAS IS PUBLICLY TRADED


                        9 ,5%                                 ...
PETROBRAS IS THE MOST LIQUID STOCK IN VALUE TRADED ON BOTH
THE BOVESPA AND NYSE


                                        ...
CORPORATE ORGANIZATION AND KEY OPERATING RESULTS




Exploration &               Downstream                               ...
A WORLD-CLASS, PUBLIC, INTEGRATED ENERGY COMPANY

                                                                        ...
DOMESTIC E&P PROFILE




              2009 Production                             2009 Proven Reserves (SPE)


          ...
COMPETITIVE ADVANTAGE IN THE DEEPWATER

                                Petrobras operates 22% of global deepwater
       ...
DOMESTIC PROVEN RESERVES PROFILE


                     Proven Reserves as of Dec/2009 (ANP/SPE)
                         ...
ENHANCING RESERVES


                 Santos Pre-Salt announced recoverable volumes including the
                 transfe...
IMPRESSIVE RECORD OF ACCELERATING DEVELOPMENT



                        2.000.000



                         1.800.00


...
INDUSTRY-LEADING PRODUCTION GROWTH

                                                                                      ...
STRATEGIC VISION: TO BE ONE OF THE WORLD’S FIVE LARGEST
PUBLICLY TRADED OIL PRODUCERS


                                  ...
BRAZILIAN ECONOMY IS GROWING WITH STABILITY AND FISCAL
RESPONSIBILITY
                                                    ...
INCREASING INVESTMENTS WITH CAREFULLY CRAFTED SPENDING
PROGRAM

                           Business Plan 2009-2013
       ...
PEERS CAPEX

          U$S MM                                      Capex by Quarter: 1Q07 – 4Q09
 12.000                  ...
PETROBRAS RESEARCH CENTER: TECHNOLOGICAL INNOVATION FOR
THE NEXT DECADES

                                    Partnership ...
UPSTREAM




           19
           19
17TH CONSECUTIVE YEAR OF FULLY REPLACING BRAZILIAN
PRODUCTION


   o 110% reserve replacement rate in 2009.               ...
PETROBRAS PRODUCTION GROWTH


                                Petrobras Total Production (x 1000 boe/d)                   ...
ESTIMATED OIL PRODUCTION IN BRAZIL


  Out of the 824 kb/d in                     The biggest                          The...
ROBUST PROJECT PIPELINE: 2010-2013


                                                  CANAPU
                     MANATI
...
RESERVES IN ULTRA-DEEP WATER CAN BE DEVELOPED AT A
RELATIVELY LOW COST


                                                 ...
LIFTING COSTS STABLE, IN SPITE OF HIGHER OIL PRICES


                            R$/barrel                               ...
DISTRIBUTION OF UPSTREAM REVENUES


                                                        Distribution of the Realizatio...
NEW PRODUCTION UNITS

          Project              Start up   Type   Oil and Gas Capacity       Shipyard           Lease...
NEW TECHNOLOGIES TO INCREASE RECOVERY FACTOR

                                                         Vertical Annular Se...
EXPLORING TO LEVERAGE EXCITING FRONTIER PLAYS IN OUR OWN
BACKYARD

     Exploration
       Capex                          ...
MAIN DISCOVERIES IN THE POST-SALT REGION (1)

                                                             Estimated      ...
EXPLORATION PORTFOLIO AT DIFFERENT STAGES OF DEVELOPMENT



                               Margem Equatorial   o Brazil
  ...
INCREASE IN THE NUMBER OF FIELDS ANDS BLOCKS HELD WITH
PARTNERS


   o Petrobras’ current domestic production comes mainly...
PRE-SALT OVERVIEW




                    33
PRE-SALT JOINT VENTURES

                                •        Total Area: 149,000 km2
                                ...
BRAZILIAN SE BASINS IN COMPARISON WITH GULF OF MEXICO




       USA




                                   t
            ...
2009 and 2010 PRE-SALT:
Accelerating activities in the santos cluster
 o EWT currently producing 20 thous. bpd
 o 2 wells ...
GAS PIPELINE FOR TUPI`S PILOT SYSTEM




                           UGN        UTGCA

                           RPBC




...
CAPEX DISTRIBUTION:
PRE-SALT VS. CAMPOS BASIN
                   Pre-salt
              CAPEX DISTRIBUTION
       26%     ...
DEVELOPMENT STRATEGY (example: TUPI)


              1st Oil – EWT           1st Oil – Tupi                               ...
PRE-SALT ACCOMPLISHMENTS TIMELINE

   2008        Phase 0          2013       Phase 1A         2017              Phase 1B ...
MAJOR TECHNOLOGICAL DEVELOPMENTS UNDER EVALUATION

                    PLANSAL - Pre-Salt Development Master Plan
        ...
ESPÍRITO SANTO PRE SALT


                 n to                             UTG Cacimbas
               Sa
               ...
PRE-SALT OIL PRODUCTION



              Petrobras Pre-salt Oil Production (000 b/d)
                                     ...
E&P REGULATORY FRAMEWORK
       Pre-Salt and Strategic Areas




                                      44
NEW REGULATORY MODEL



         Production                                                        Transfer
          Shar...
PRODUCTION SHARING AGREEMENTS

                                   Production sharing agreements
 o Petrobras will operate ...
E&P TRANSFER OF RIGHTS WITH COMPENSATION


 o Government may transfer to Petrobras, for compensation, without bidding, the...
TRANSFER OF RIGHTS APPRAISAL

                     Appraisal need to consider


                       Production        C...
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General Presentation

  1. 1. GENERAL PRESENTATION INVESTOR RELATIONS PETROBRAS APRIL, 2010 1
  2. 2. DISCLAIMER The presentation may contain forecasts about CAUTIONARY STATEMENT FOR future events. Such forecasts merely reflect the US INVESTORS expectations of the Company's management. Such terms as "anticipate", "believe", "expect", The United States Securities and Exchange "forecast", "intend", "plan", "project", "seek", Commission permits oil and gas companies, in "should", along with similar or analogous their filings with the SEC, to disclose only proved expressions, are used to identify such forecasts. reserves that a company has demonstrated by These predictions evidently involve risks and actual production or conclusive formation tests to uncertainties, whether foreseen or not by the be economically and legally producible under Company. Therefore, the future results of existing economic and operating conditions. We operations may differ from current expectations, use certain terms in this presentation, such as oil and readers must not base their expectations and gas resources, that the SEC’s guidelines exclusively on the information presented herein. strictly prohibit us from including in filings with the The Company is not obliged to update the SEC. presentation/such forecasts in light of new information or future developments. 2
  3. 3. PETROBRAS: AN INVESTMENT GRADE, PUBLICLY TRADED, MAJOR INTERNATIONAL OIL COMPANY Incorporated in 1953 as government monopoly for all hydrocarbon activities in Government maintains controlling Brazil interest with 55% of voting shares Originally established as a refinery of imported crude oil Market cap of approximately US$ 200 billion as of March 16th, 2010 Became net exporter in 2006 Foreign currency ratings from Moody’s 60% of total equity capital (common and (Baa1), Standard & Poors (BBB-), and preferred) is now publicly traded Fitch (BBB). Petroleum 2MM bpd, A New E&P Law and ANP First Public Full Upgraded to Crossed the Brazil Self Petrobras $200MM market Regulatory (National Oil Auction of Oil Deregulation Investment US$100 billion Sufficient in NYSE Listing cap, Discovery Framework. Agency) Exploration Grade Issuer Market Oil Cap mark of new oil Pre-Salt and creation: Areas frontier: Pre Strategic End of Salt (Tupi field) Areas Monopoly 1997 June 1999 Aug 2000 Jan 2002 Oct 2005 2006 Apr 2006 2007 Aug 2009 3
  4. 4. 60% OF THE EQUITY CAPITAL OF PETROBRAS IS PUBLICLY TRADED 9 ,5% Shareholder Base 20 ,3% 2 6 ,4 % 10,9 % 2 9,5 % 46 ,4 % 10,3 % Foreign 18,0 % 9 ,9 % 7 ,9 % 37.4% 2 5 ,1% 23 ,1% 2 2,8 % Brazilian 22.8% 61,6% 53,6% 44,4% 40,6% 39,8% Government 39.8% Oct/1992 Jul/2000 After Aug/00 After Jul/01 offering Dec/2009 offering Gov ernment (1) Bov espa Brazil Bov espa Foreign ADRs o On August, 2000 the Brazilian Government reduced its ownership share to 55% of the voting shares through an SEC registered secondary public offering (PBR) o In July 2001, BNDESPar, sold a portion of its non-voting shares (PBRA) o Since the offering in July, 2001 the ownership structure has remained virtually unchanged. (1) Includes BNDES / BNDESPAR
  5. 5. PETROBRAS IS THE MOST LIQUID STOCK IN VALUE TRADED ON BOTH THE BOVESPA AND NYSE Turnover NYSE & Bovespa (Daily Average Turnover) Turnover 2009/2005 = 596% (US$ MM) (% category and US$MM) 1,930 1,308 43% 47% 43% 50% 52% Nyse PBR 992 PBR/A Nyse PBR 20% PBR/A 25% 21% 20% 19% 483 6% 6% 5% 5% 6% Bovespa 219 31% PETR3 Bovespa 25% 27% 26% PETR4 PETR3 23% PETR4 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 PETR4 (Bovespa) PETR3 (Bovespa) PBR/A (Nyse) PBR (Nyse) o Turnover of PBR 3 times the volume of PBRA on the NYSE o Turnover of PN 5 times the volume of the ON o Probable explanation: Cultural. Brazilians familiar with PN´s and would not pay premium for ON´s 5
  6. 6. CORPORATE ORGANIZATION AND KEY OPERATING RESULTS Exploration & Downstream Gas & Production Distribution Energy International Biofuels (Supply) Petrochemicals Summary Financials Operating Income* (US$ billion- USGAAP) (US$ billion- USGAAP) 2007 2008 2009 20 18,9 13,1 15,5 Net Revenues 87.7 118.3 91.9 EBITDA 25.6 31.1 28.9 15 Net Income 13.1 18.9 15.5 10 Capex 21.0 29.9 35.1 Total Debt(1) 21.9 27.1 57.1 Cash & Cash Equivalents 7.0 6.5 16.2 5 Net Debt 14.9 20.6 40.9 Total Equity 65.2 61.9 94.1 0 Total Assets 129.7 125.7 200.3 -5 2007 2008 2009 (1) Includes capital leases Domestic E&P Downstream Gas &Energy * Excludes Corporate and Elimination Distribution International 6
  7. 7. A WORLD-CLASS, PUBLIC, INTEGRATED ENERGY COMPANY 2009 Oil & Gas Production 3.9 3.9 Gas Production boe/d 3.2 Oil Production boe/d 2.7 (mmboe/d) 2.5 2.5 2.2 1.7 84% (oil) 0.6 BP XOM RDS CVX PBR COP Total ENI BG Source: Evaluate Energy and Company reports 2008* Refining Capacity Market Value as of April 9th, 2010 325 5, 57 3 (thousand boe/d) 3 , 9 33 (US$ bn) 189 186 186 3 , 1 3 3 2 , 6 79 160 2 , 6 5 8 2 , 1 64 2 , 1 1 5 141 95 85 78 83 3 315 X OM RDS BP COP T OT PBR CVX ENI ST L X OM PBR RD S BP CV X T OT ENI COP ST L Source: PFC Energy *Report December 2009 Source: Bloomberg 7 Note: Peer companies selected above have a majority of capital traded in the public markets.
  8. 8. DOMESTIC E&P PROFILE 2009 Production 2009 Proven Reserves (SPE) 14% 10% 9% 10% 19% 24% 57% 57% 2,287 thousand boed 14.17 billion boe Onshore Shallow water (0-300m) Deep water (300-1500m) Ultra-deep water (> 1500m) 8 Source: Petrobras
  9. 9. COMPETITIVE ADVANTAGE IN THE DEEPWATER Petrobras operates 22% of global deepwater production and 18% of all operating vessels 2008 Gross Global Operated FPS Operators Deepwater Production All Contracted Vessels (252 Vessels Total) REL HES MUR HES REL MUR 1% 1% 0 20 40 60 80 100 120 2% 1% 2% 1% BG Petrobras 45 APC 4% PBR Shell 15 5% 22% StatoilHydro 15 CVX ExxonMobil 13 6% BP 12 APC TOT 6% Chevron 12 8% Anadarko 10 XOM 14% Total 9 CNOOC 8 BP 9% ConocoPhillips 8 XOM ENI/Agip 5 STL RDS Others 100 14% 14% FPSO Semi Spar TLP Other Source: (1) PFC Energy | Note: Estimated volumes above reflect what operators are responsible for producing, not what they keep on a net working interest or entitlement basis. Minimum water depth is 300 meters; twelve operators above account for 94% of global deepwater production in 2008. (2) Copyright © 2008 ODS-Petrodata, Inc. 9
  10. 10. DOMESTIC PROVEN RESERVES PROFILE Proven Reserves as of Dec/2009 (ANP/SPE) (14,17 billion boe) < 22º API 22º Oil + Condensate (heavy) 85% 50% 29% 22 – 31 º API (intermediate) 10% 5% 15% 6% Gas > 31 º API (light) Associated Gas Non-Associated Gas Non- 43% Undeveloped 57% Developed Proven Reserves Proven Reserves 10
  11. 11. ENHANCING RESERVES Santos Pre-Salt announced recoverable volumes including the transfer of rights, can more than double Brazilian reserves. million boe ~ 30-35 bn boe 35,000 +5,000 30,000 Higher estimates 25,000 +5,400 20,000 Lower estimates 10,600 15,000 10,000 5,000 14,169 0 2009 Proven Santos and Campos Basins Transfer of Proven Reserves* Reserves* Pre-Salt Rights with + (Tupi, Iara, Guará and Whale’s Compensation Santos and Campos Basins Park)** Pre-Salt (Tupi, Iara, Guará and Whale’s Park)** *SPE Criteria + Transfer of Right ** include Petrobras and Partners 11
  12. 12. IMPRESSIVE RECORD OF ACCELERATING DEVELOPMENT 2.000.000 1.800.00 16 anos 54 anos 1.600.00 Production (bpd) 22 anos 1.200.00 1.000.00 27 anos 12 anos 45 anos 800.00 400.00 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 Discovery of giant fields in Campos Discovery of Garoupa in Discovery of the Pre-Salt, incorporation of Petrobras basin including Albacora/Marlim the Campos basin (1974) since Parati (2006) (1953) (80´s & 90’s) 12
  13. 13. INDUSTRY-LEADING PRODUCTION GROWTH CAGR (2004-2009) - % 6,61 4,56 3,96 3,52 2,44 1,66 0,00 -1,38 -2,59 -3,26 -4,94 * * Ex x onM obil R D Shell PetroChina Luk oil T otal R eps ol YPF Conoc oPhillips BP C hev ron Petrobras ENI * 9M09 Annualized Petrobras Oil and Gas Production (000 boe/d) 4.6% CAGR 2.525 2.400 2,297 2.301 2.217 2.020 2004 2005 2006 2007 2008 2009 13 Source: Evaluate Energy
  14. 14. STRATEGIC VISION: TO BE ONE OF THE WORLD’S FIVE LARGEST PUBLICLY TRADED OIL PRODUCERS Petrobras 30,000 Target: 2020 25,000 Reserves (mm boe) Petrobras XOM 20,000 Target: 2013 BP 15,000 PBR 10,000 CVX RDS TOT COP 5,000 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 Production (mboe/d) Petrobras 2009 (SEC) reserves and production 2009 production and 2008 (SEC) reserves 14 Source: PFC Energy
  15. 15. BRAZILIAN ECONOMY IS GROWING WITH STABILITY AND FISCAL RESPONSIBILITY GDP Growth (%) Trade Balance (US$ Billion) 6 5.7 5.7 Forecast 250 Forecast Exports Imports 5.1 5 4.7 198 189 187 200 4.0 173 171 162 161 GDP Growth (%) 4 153 3.2 150 138 121 128 119 3 97 100 91 63 74 2 1.2 50 1 0.2 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2003 2004 2005 2006 2007 2008 2009 2010 Nominal Fiscal Deficit/GDP (%) International Reserves (US$ billion) 20 Brazilian Debt (as % of GDP) 60 Net Debt/GDP (%) 300 2009 52,1 50,0 47,7 46,6 50 44,2 39,9 41,4 250 239 15 207 40 200 180 10 30 150 86 5,1 20 100 3,3 3,5 3,3 49 53 54 5 2,7 2,6 1,9 50 10 0 0 0 2003 2004 2005 2006 2007 2008 2009 abr mar out ago set jan jun mai jul dez nov fev 2003 2004 2005 2006 2007 2008 15 Source: Brazilian Central Bank
  16. 16. INCREASING INVESTMENTS WITH CAREFULLY CRAFTED SPENDING PROGRAM Business Plan 2009-2013 PN 2009-13 | Brazil/International 2% 2% 2% 3% US$ 174.4 billion 9% 7% 5.6 3.0 E&P 16.2 US$ 174.4 billion 11.8 2.8 RTC 3.2 Brazil G&E International Petrochemicals 158.2 43.4 104.6 (*) Distribution 25% 59% Biofuels 91% Corporate (*) US$ 17.0 billion allocated to Exploration Business Plan 2008-12 2% 1% 2% 4% US$ 112.4 billion 6% 4.3 2.6 o Petrobras strategy gives first priority to meeting 6.7 1.5 E&P production targets 2.5 RTC G&E Petrochemicals 26% 29.6 65.1 o E&P accounts for 76% of new project spending 59% Distribution Biofuels (US$ 28.9 bn for pre-salt) Corporate 16
  17. 17. PEERS CAPEX U$S MM Capex by Quarter: 1Q07 – 4Q09 12.000 Petrobras 10.000 Super Majors Average 8.000 (Exxon, Shell, BP) 6.000 Peer Group Average (without Petrobras) 4.000 2.000 0 1Q07 1T07 2Q07 2T07 3Q07 3T07 4Q07 4T07 1Q08 1T08 2Q08 2T08 3Q08 3T08 4Q08 4T08 1Q09 1T09 2Q09 2T09 3Q09 3T09 4Q09 4T09 Capex for 2010: 2009 vs. 2010E 50.000 U$S MM 45.000 40.000 35.000 30.000 2009 Average 25.000 without 20.000 Petrobras 15.000 2010 Average 10.000 without Petrobras 5.000 0 (1) 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 Source: Evaluate Energy and Company Reports 17 (1) R$ 88.5 billion converted by FX rate of 1,87 R$/US$ (Petrobras forecast to 2010)
  18. 18. PETROBRAS RESEARCH CENTER: TECHNOLOGICAL INNOVATION FOR THE NEXT DECADES Partnership with over 120 universities and research centers in Brazil, and 70 Institutions abroad Technological Strategy Investments in Technology 2009-2013 US$ 4.0 billion 25% 1.0 1.9 47% 5% 0.2 0.9 23% E&P Downstream G&E Corp. (Cenpes) 18
  19. 19. UPSTREAM 19 19
  20. 20. 17TH CONSECUTIVE YEAR OF FULLY REPLACING BRAZILIAN PRODUCTION o 110% reserve replacement rate in 2009. o Targeting a reserves to Over the past decade, reserve production life over 18 years replacement has principally been driven by internal additions in Brazil 13,75 13,92 14,09 14,17 13,23 0,92 0,86 1,23 0,88 Production Production Production Production (0.70 bn boe) (0.70 bn boe) (0.75 bn boe) (0.79 bn boe) Reserves Reserves 13,04 Reserves 13,17 Reserves 13,31 Replacement 12,52 Replacement Replacement Replacement Index Index Index Index (110%) (174%) (124%) (123%) 2005 2006 2007 2008 2009 * According to SPE (Society of Petroleum Engineers) criteria 20
  21. 21. PETROBRAS PRODUCTION GROWTH Petrobras Total Production (x 1000 boe/d) 5,729 223 409 7.7% p.y. 1,177 3,655 5.6% p.y. 131 9.7% p.y. 210 2,525 634 2,400 97 2,217 2,297 2,301 141 1,810 2,037 2,020 101 110 100 1,635 96 124 316 22 85 94 142 126 24 35 163 277 273 321 161 168 274 3,920 44 251 252 265 232 2,680 1,855 1,971 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% 21
  22. 22. ESTIMATED OIL PRODUCTION IN BRAZIL Out of the 824 kb/d in The biggest The PN 2008-2012 Brazil domestic production contribution in the oil target for 2015 was growth through 2013, 566 domestic production 2,812 k b/d. The new kb/d will come from fields growth of 1,240 kb/d target represents an where we have already between 2013 and increase of 19% (+528 declared commerciality 2020 will come from kb/d) pre salt production Petrobras Total Production (000 b/d) 3,920 3,340 2,680 1,971 1,855 2008 2009 2013 2015 2020 Light Oil ≥ 31º API Medium Oil Heavy Oil ≤ 22º API 22
  23. 23. ROBUST PROJECT PIPELINE: 2010-2013 CANAPU MANATI expansion URUGUÁ JURUÁ TAMBAÚ ARACANGA LAGOSTA 3.32 MEXILHÃO 3.20 Oil and gas CAMARUPIM 3.02 URUCU 2.79 million boe/d 2.68 2.28 2.58 Oil 2.43 P-62 2.25 RONCADOR 1.97 P55 RONCADOR P-57 BALEIA AZUL JUBARTE P-61 JABUTI PAPA-TERRA TUPI P-56 MARLIM SUL P-63 EWT Tupi Pilot PAPA-TERRA P-51 CACHALOTE. MARLIM SUL BALEIA FRANCA, GUARÁ 1 BALEIA ANÃ FRADE TUPI 1 PARQUE DAS Pilot Expansion CONCHAS 2009 2010 2011 2012 2013 Pre-salt Heavy oil Natural Gas 23
  24. 24. RESERVES IN ULTRA-DEEP WATER CAN BE DEVELOPED AT A RELATIVELY LOW COST Expected Costs of Production 140 Deepwater and Production costs (US$/bbl-2008) 120 Ultra-deep water 100 Oil Gas to Coal to 80 Shales liquids liquids Arctic CO₂ - EOR 60 EOR Heavy oil and bitumen 40 Other 20 Produced convention Petrobras expected MENA al oil maximum break-even cost 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 Reserves (bn bbls) 24 Source: IEA – Outlook 2008
  25. 25. LIFTING COSTS STABLE, IN SPITE OF HIGHER OIL PRICES R$/barrel US$/barrel 75.00 68.28 54.91 58.79 44.40 41.48 38.86 41.62 43.04 34.24 24.74 22.39 19.50 22.86 16.33 21.28 24.78 26.53 18.11 14.69 10.78 10.78 15.23 9.87 6.87 19.09 17.91 17.58 16.84 16.51 8.24 7.82 8.72 9.51 7.82 4Q08 1Q09 2Q09 3Q09 4Q09 4Q08 1Q09 2Q09 3Q09 4Q09 Lifting Cost Gov. Take Lifting Cost Gov. Take Brent o Lower lifting costs without government take, in Reais, despite increase in international oil prices o In Dollars, the increase was due to FX rate appreciation o Increase in the government take due to higher international oil prices 25
  26. 26. DISTRIBUTION OF UPSTREAM REVENUES Distribution of the Realization Price of a Barrel of Domestically Produced Oil $80,00 100,0% 90,0% $70,00 80,0% $ per Barrel Realization Price % Share of Realization Price $60,00 70,0% $50,00 60,0% $40,00 50,0% 40,0% $30,00 30,0% $20,00 20,0% $10,00 10,0% $- 0,0% 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 Lifting Other COGS DD&A Income Tax Other SG&A Net Income R&D Exploratory Costs Government Take 26
  27. 27. NEW PRODUCTION UNITS Project Start up Type Oil and Gas Capacity Shipyard Leased Uruguá-Tambaú 25,000 bpd 1Q/10 FPSO Cosco (China) Modec Cidade de Santos 10.0 MM m3/d Mauá Jurong Mexilhão 2Q/10 Fix 15 MM m3/d (Brazil) Cachalote/Baleia Franca 100,000 bpd 2Q/10 FPSO Keppel (Singapore) SBM FPSO Capixaba 3.2 MM m3/d Tupi Pilot 100,000 bpd 4Q/10 FPSO Cosco (China) Modec Cidade de Angra dos Reis 5.0 MM m3/d Marlim Sul Mod. 3 - P-56 (P- 100,000 bpd Brasfels-Keppel 2H/11 SS 51 Clone) 6.0 MM m3/d (Brazil) 180,000 bpd Brasfels-Keppel Jubarte Mod. 2 - P-57 2H/11 FPSO 2.0 MM m3/d (Brazil) 180,000 bpd Keppel Papa Terra - P-61 2H/13 TLWP FloaTec 1.0 MM m3/d (Brazil) 150,000 bpd Rio Grande Papa Terra - P-63 2H/13 FPSO BW Offshore 1.0 MM m3/d (Brazil) 120,000 bpd Guará Pilot 2H/13 FPSO Bid in progress 5.0 MM m3/d Atlântico Sul and 180,000 bpd Roncador Mod 3 - P-55 2H/13 SS Rio Grande 6.0 MM m3/d (Brazil) 27
  28. 28. NEW TECHNOLOGIES TO INCREASE RECOVERY FACTOR Vertical Annular Separation and ESP in a skid on the sea-bed Pumping System 4D Seismic (Espadarte-Fase III) (Marlim; Marlim Sul; (Congro; Malhado; Corvina) (Parque dos Albacora) VASPS Temperos; ) Bonito CAISSON 2011 2009 2010 2012 Oil Water Subsea Christmas Subsea Tree. Separation “Piggy-back” (Marlim) (Marimbá; Barracuda) TLWP (Papa-terra) SBMS - Subsea RWI – Raw Multiphase Pumping Water Injection Multifractured Well System (Albacora) (Bonito) (Marlim) 28
  29. 29. EXPLORING TO LEVERAGE EXCITING FRONTIER PLAYS IN OUR OWN BACKYARD Exploration Capex Success Rate US$ mm 70% 2.750 2.500 60% 2.250 50% 2.000 1.750 40% 1.500 1.250 30% 1.000 20% 750 500 10% 250 0 0% 2002 2003 2004 2005 2006 2007 2008 2009-2013 29
  30. 30. MAIN DISCOVERIES IN THE POST-SALT REGION (1) Estimated Water Date Field Participation Fluids Recoverable Depth (m) Volume Mar-2010 Piranema BR (100%) Light Oil 15 million 800 barrels Fev-2010 Barracuda BR (100%) Oil 40 million 860 barrels Fev-2010 Pampo BR (100%) Oil 25 million 200 barrels Nov-2009 Rig Fence BR(100%) Light Oil 25 million 400 Marimbá barrels Aug-2009 BM-C-36 BR (100%) Light Oil 280 million 976 Aruanã barrels BR(35%), May-2009 BM-S-48 Repsol(40%), N. Gas and Not disclosed 161 Panoramix Vale(12,5%), Condensate Voodside(12,5%) Piranema Nov-2008 BM-J-3 BR (60%), Oil Not disclosed 2,354 Jequitinhonha STATOIL (40%) Sep-2008 BM-S-40/Sidon BR (100%) Light Oil 150 million 274 barrels Jul-2008 Golfinho BR (100%) Light Oil 150 million 1,374 Marimbá barrels Aruanã Barracuda Pampo May-2008 BM-S-40/Tiro BR (100%) Light Oil Not disclosed 235 Dec-2007 BM-ES-5/ BR (65%), N. Gas and Not disclosed 708 Camarupim EL PASO (35%) Condensate May-2007 BM-ES-5/ BR (65%), N. Gas and Not disclosed 763 Camarupim EL PASO (35%) Condensate Mar-2007 BR (100%) Light Oil 570 million 1,011 BC-60/Caxaréu barrels * (1) 2007 to March 2010 * Volume in place 30
  31. 31. EXPLORATION PORTFOLIO AT DIFFERENT STAGES OF DEVELOPMENT Margem Equatorial o Brazil Ceara & Potiguar Exploration: 2009-13 US$ Solimões 13.8 bn Potiguar o Exploratory Area: 155.0 thousand SEAL& REC & TUC km² Bahia Sul o 265 exploratory São Francisco blocks Espírito Santo o 35 appraisal plans Campos Petrobras Santos o 313 production Others concessions Pelotas 31
  32. 32. INCREASE IN THE NUMBER OF FIELDS ANDS BLOCKS HELD WITH PARTNERS o Petrobras’ current domestic production comes mainly from concessions (97%) owned by the company alone o For the areas under development, the percentage of concession held without partners falls to 62% o More than half (53%) of the blocks under exploration or appraisal are joint ventures Concessions Under Production Production Development Exploration + Evaluation (247) Concessions (66) Concessions (54) 97% 53% 38% 62% 47% 3% Petrobras (100%) Petrobras in Partnerships 34 Oil and Gas Companies (2008) 32 SINN, July 2009
  33. 33. PRE-SALT OVERVIEW 33
  34. 34. PRE-SALT JOINT VENTURES • Total Area: 149,000 km2 • Area Under Concession: 41,772 km2 (28%) • Area Not Under Concession: 107,228 km² (72%) • Area With Petrobras Interest: 35,739 km2 (24%) JUBARTE ESS-103 CHL-4 BFR-1 Blocks Consortium 1-2 Bi boer BAZ-1 BC-60 BR (100%) Jubarte Cachalote Shore Distance = 60 km Balia Franca Total Area = 3.000 km2 Baleia Azul Baleia Anã Blocks Consortium BMS-8 BR (66%), SH (20%) e PTG (14%) BMS-9 BR (45%), BG (30%) e RPS (25%) BM-S-11 BM- (Tupi) BMS-10 BR (65%), BG (25%) e PAX (10%) BMS-11 BR (65%), BG (25%) e PTG (10%) BMS-21 BR (80%), PTG (20%) 1.1-2 bi BMS-22 EXX (40%), HES (40%) e BR (20%) Shore Distance = 300 km boer BMS-24 BR (80%), PTG (20%) Total Area = 15.000 km2 34
  35. 35. BRAZILIAN SE BASINS IN COMPARISON WITH GULF OF MEXICO USA t 35
  36. 36. 2009 and 2010 PRE-SALT: Accelerating activities in the santos cluster o EWT currently producing 20 thous. bpd o 2 wells being drilled: North of Guará and North of Iara (for ANP) o 1 well being completed and evaluated in Guará and tests were finished in Tupi O/W and Tupi NE which proved to have high productivity of 30 th. bpd o During 2010, 11 new wells expect to be drilled in the pre salt cluster o Bids in progress: Parati (i) FPSO for Guará pilot Iara (ii) FPSO for the second pilot in the BM-S-11 (still IracemaTupi NE being defined) Tupi O/A (iii) 8 hulls for the Santos cluster Tupi Jupiter Guará North Bem-te-vi Carioca Tupi 660 Tupi Iguaçu Guará South Abaré Tupi 646 Wells drilled Drilling for ANP Azulão Guarani Drilling Caramba Completing / testing EWT 36
  37. 37. GAS PIPELINE FOR TUPI`S PILOT SYSTEM UGN UTGCA RPBC 14 5 Km PMXL 170 Km 21 2K URG m To 24 8 se Km rv i ce t he PMLZ-1 Pi lo t TUPI Area Existing Planned TEFRA Under N Construction
  38. 38. CAPEX DISTRIBUTION: PRE-SALT VS. CAMPOS BASIN Pre-salt CAPEX DISTRIBUTION 26% 18% 56% Gathering Completion + Drilling Units Deepwater Projects in Campos Basin* CAPEX DISTRIBUTION 33.3% 33.3% o The biggest difference between the capex distribution in the pre-salt and in the general deepwater projects in Campos Basin is a higher percentage in drilling and completion in the pre- 33.3% salt area. Gathering Completion + Drilling Units 38 * Generic example, considering that these rates can change among the different existing projects in Campos Basin
  39. 39. DEVELOPMENT STRATEGY (example: TUPI) 1st Oil – EWT 1st Oil – Tupi Significant Tupi (May/09) Pilot (Dec/10) production level ..... ..... t 2007 2009 2010 2012 2017 Information Acquisition Definitive Development Phases Phase 0 Phase 1A Phase 1B EWT (Mar/2009), Tupi Pilot Implementation of 8 production units Implementation of “X” Focus and appraisal wells (Replicated FPSOs) production units o Area Delimitation o Analyze water and gas/CO2 injection behavior o Analyze reservoir flow o Test adjustments on FPU related to CO2 o Fractured well o Test improvements in well projects Objective performance o Apply previous dominated concepts and technologies with necessary o Complete sampled core adjustments to reach significant production by 2017 o Material analysis vs. CO2 o Aggregate innovative technical solutions to optimize project performance 39
  40. 40. PRE-SALT ACCOMPLISHMENTS TIMELINE 2008 Phase 0 2013 Phase 1A 2017 Phase 1B 2020 … Phase 1A - Projects Phase 0:Information gathering Phase 1a: 1st phase of definitive development, use of Appraisal wells, EWTs and consolidated or rapidly-consolidating technologies to Tupi Pilot achieve production targets, generate cash-flow to support Phase 1b First 2 FPSOs to be chartered (2013-2014) • Oil Production: 120,000 bpd Phase 1B - Projects • Gas Compression: 5 M m³/d • 2nd phase of definitive development Additional 8 FPSOs (2015-2016) • Construction of the hulls at the Rio Grande • Significant production increase Shipyard • All identical units, manufactured in series • Innovation acceleration • Process plant under study: • Massive use of new technologies specially − Oil Production: 150,000 bpd tailored for Pre-Salt conditions − Gas Compression: 5.5 M m³/d − Water-Alternating-Gas injection capability 40
  41. 41. MAJOR TECHNOLOGICAL DEVELOPMENTS UNDER EVALUATION PLANSAL - Pre-Salt Development Master Plan Pre- 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 41
  42. 42. ESPÍRITO SANTO PRE SALT n to UTG Cacimbas Sa Linhares Rio Doce Cangoá o Infrastructure in-place: diversified and flexible portfolio; MG Peroá ito UPGN Lagoa Parda p ír 24” – 66 km Aracruz 25 MM m3/d o P-34 at Jubarte field, first pre-salt production (Sep/08): Es Terminal Barra do Riacho Camarupim excellent results/light oil (30ºAPI); Canapu Golfinho o FPSO Capixaba (100 Mb/d) moved from Golfinho field VITÓRIA Vila Velha Carapó and is being adapted to produce in Cachalote (CHT)/Baleia Franca (BFR) in 1H10; Sul-Norte Capixaba UTG Sul Capixaba Sul Capixaba Gas pipeline Guarapari Gas pipeline 12 a 24” – 160 km 12” – 83 km 7 a 15 MM m3/d 4,5 MM m3/d o Baleia Azul first definitive production unit by 4Q12; Anchieta Presidente Marataizes Kennedy ARG CHT Baleia Franca o Natural gas production transported via pipeline. JUB OST NAU RJ Baleia Azul CXR ABA PRB Catuá Whales Park* 42 *Whales Park comprehends the fields: Jubarte, Cachalote, Baleia Franca, Baleia Azul and Baleia Anã
  43. 43. PRE-SALT OIL PRODUCTION Petrobras Pre-salt Oil Production (000 b/d) 1,815 1,336 632 582 463 219 160 873 1,183 62 422 157 2013 2015 2017 2020 Pre-Salt Petrobras Pre-Salt Partners Pre-salt Capex Through 2020 (US$ billion) 2009-2013 2009-2020 Petrobras Total Pre-salt Capex (Production Development) 28.9 111.4 Santos Basin Pre-salt 18.6 98.8 Espírito Santo Pre-salt (includes post-salt fields) 10.3 12.6 43
  44. 44. E&P REGULATORY FRAMEWORK Pre-Salt and Strategic Areas 44
  45. 45. NEW REGULATORY MODEL Production Transfer Sharing Pre-salt of Rights with Agreement and compensation Strategic Areas Petrobras 100% Petrobras Operator Other companies trough Bidding Process Current Other Areas Concession Model There will be no regulatory changes in the areas under concession, including the pre- salt area already granted 45
  46. 46. PRODUCTION SHARING AGREEMENTS Production sharing agreements o Petrobras will operate all blocks under this regime, with a minimum stake of 30% o Consortium between Petrobras, Petro-sal and the winning bidder will be managed by the Operational Committee o Petrobras will be able to participate in the bidding process to increase its stake o The winning bidder will be the Companies company that offers the highest percentage of “profit oil” for the Profit Brazilian Government Oil o Petrobras will have to follow Government the same percentage offered by the winning bidder o The Brazilian Government will not assume the risks of the activities, except when it decides to invest Cost directly Oil o Prior to contracting, the Government may evaluate the potential of the areas and may contract Petrobras directly 46 Graphs are showing only hypothetical values
  47. 47. E&P TRANSFER OF RIGHTS WITH COMPENSATION o Government may transfer to Petrobras, for compensation, without bidding, the rights to explore and produce oil in the pre-salt areas not under concession. These areas may or may not be contiguous o Transfer of rights limited to a maximum produced of 5 billion boe. Petrobras will be the owner of produced volumes o Oil values shall be determined by technical reports prepared by qualified third parties contracted by the government (ANP) and Petrobras, taking into account best industry practices o The transaction includes a clause of reappraisal of reserves value o If the value of appraisal rises, Petrobras will pay the difference to the Government. If price falls, the contrary will happen o Royalties will be paid by Petrobras and distributed according to the Law nº 9.478/97. No special participation payment is expected 47
  48. 48. TRANSFER OF RIGHTS APPRAISAL Appraisal need to consider Production Capex Curve Production Oil Volume Costs Oil reservoir Future Oil Discount prices Rate Reserves Fiscal development/ Environment Knowledge (government participation) 48

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