2. Disclaimer
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.
2
3. Vision 2020 and Characteristics
Vision 2020
We will be one of the five largest integrated
energy companies in the world and the
preferred choice among our stakeholders
Vision 2020 Characteristics
Our operations will be notable for:
• Strong international presence
• World scale prominence in biofuels
• Operational excellence in management, technology and
human resources
• Profitability
• Benchmark in social and environmental responsibility
• Commitment to sustainable development
3
4. Business Segment Strategy
Corporate Strategy
Commitment to sustainable development
Social and Environmental
Integrated Growth Profitability
Responsibility
Expand operations in target markets for oil, oil products, petrochemicals, gas
and energy, biofuels and distribution, being a world benchmark as an
Corporate Strategy
integrated energy company
To grow To expand Develop and lead Expand operations in Operate on a global
production and oil integrated the Brazilian petrochemicals in Brazil basis in biofuels
and gas reserves operations in natural gas market and South America on commercialization and
sustainably, being refining, and operate on an an integrated basis logistics, leading the
recognized for commercialization, integrated basis in with the PETROBRAS domestic production
excellence in E&P logistics and the gas and electric Group’s other of biodiesel and
operations distribution with a energy markets businesses expanding
focus on the with a focus on participation in the
Atlantic Basin South ethanol segment
America
Operational, management, technological and human resources excellence
Downstream Biofuels
E&P Distribution Gas & Energy Petrochemicals
(RTC)
4
5. Macroeconomic Assumptions
Indexes 2007-2011 2008-2012
GDP – World (% p.y.) – PPP(*) 4.2 4.3
GDP – Latin America (% p.y.) –
3.7 3.9
PPP
GDP – Brazil (% p.y.) 4.0 4.0
FX rate (R$/US$) 2.50 2.18
Linked to international Linked to international
Oil Products Prices market prices, without market prices, without
changes in relative prices changes in relative prices
(*) PPP – purchase power parity
5
6. Oil prices: Brent curves
55
Price curve BP 2008/12
50
45 35
40 35 35 35 35
Price curve BP 2007/11
2008 2009 2010 2011 2012
BP – Business Plan
6
7. Investment Plan by Business Segment
2008-12 Period
58% US$ 112.4 billion
13%
65.1 15.0
1.5 97.4
29.6
2.6 2.6
1%
2% 4.3
6.7 87%
26%
2% 4%
6%
Brasil Internacional
E&P RTC G&E
Petrochemical Distribution Corporate Biofuel
• US$ 65,1 billion directed to E&P:
• Exploration: US$ 11.6 billion
• Production: US$ 53.5 billion Note: Includes International
7
8. Investment Plan
US$ billion
Petrobras Petrobras Difference
Business Segment
2007-11 2008-12 (%)
E&P 49.3 65.1 32
RTC 21.9* 29.6 29
G&E 7.3* 6.7 -2
Petrochemical 3.3 4.3 30
Distribution 2.3 2.6 13
Biofuels 0.7 1.5 114
Corporate 1.8 2.5 39
Total 87.1 112.4 29
The forecast indicates annual average capital investment of US$ 22.5
billion for the period 2008 - 2012.
* 2007-2011 Plan included biofuels investments. 8
9. Investment Plan
Of the 34% increase in total capital spending, US$ 13.3 billion (or 16%) was due to
the inclusion of new projects
New Projects
• Exploration & Production:
• Exploration
• Enhanced Recovery from Mature
Fields
• Support and Infra-structure
• Plangás
• Refining, Transportation and
Distribution: New Projects
Projetos Novos
FX Rate Change Others
• Plangás Downstream 13.267
Alteração da US$ 13,267 mi Outros
• Petrochemical Taxa de Câm bio
US$ 4,224 mi -2,435
-2.435
• New units COMPERJ 4.224
Melhoria do
Better
• 5% increase in CAPEX due to grau de
degree of
change in FX Rate premise Definição
Definition
2.835
2,835
• 13% increase in costs, in Costs Increase
Aum ento de
alignment with industry pressures US$ Custo mi
10,912
10.912
*
PN 2007-11
83.571
83,571
* 2008-2012 Amounts 9
10. Sources and Uses – BP 2008-2012
(US$ 123.8 Billion) (US$ 123.8 Billion)
19.4 11.4
(15,7%) (9,2%)
104.4 112.4
(90,8 %)
(84,3%)
2004-2010 Debt Amortization
Financing
CAPEX
Cash Flow
In the BP 2007-11, required financing was 13%
10
11. Main Financial Indicators
Average Average
Indicators
BP 2007-2011 BP 2008-2012
Return on Capital Employed (ROCE) (%) 16 14
Long Term Funding (US$ billion per year)* 3.1 3.9
Cash Balance (end of the year) (US$ billion) 3.5 3.1
Net Debt/ Net Debt + Shareholders’ Equity
25 20
(Leverage) (%)
Free Operating Cash Flow (US$ billion) 1.5 1.4
11
12. E&P - rapidly growing production profile
3 5 0 0
1Y
3 0 0 0
g ro wth in L1
9 % p.y. 2,298
Thousand boed
2,217
2 5 0 0
2,036 2,020
1,810
2 4 3
1,636 2 5 9
2 0 0 0 1,565 5 8 2 4 6 2 6 2
1,505 6 8 2 7 7
7 3 2 5 0 2 7 4
1,238 2 5 2 2 6 5
15 0 0 1,090 7 6 2 3 2
2 2 1
1,008 5 5
885 5 8 19 7
4 7 17 9
10 0 0 3 5 16 3
15 2 1. 6 8 4 1. 7 7 8
13 4 1. 5 0 0 1. 5 4 0 1. 4 9 3
1. 2 7 1 1. 3 3 6
1. 13 2
5 0 0 8 6 9 1. 0 0 4
7 16 8 0 9
0
19 9 5 19 9 6 19 9 7 19 9 8 19 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6
Oi l and NGL - B r az i l Nat ur al Gas - B r azi l Oi l and NGL & Nat ur al Gas - I nt er nat i onal
12
13. Total Production – Oil, NGL and Natural Gas - Targets
6.8% p.y.
Thousand boed 4,153
7.2% p.y.
3,494 1 8 3*
515*
1 5 1*
285 * 643
2,298
2,217 637
2,020 101
96
94 142
163
274 277
168
265
2, 812
2, 421
1, 778
1, 684
1, 493
2004 2005 2006 Target 2012 For ecast
Oi l + NGL Br az i l N at ur al Gas B r az i l 2015
Oi l + N GL I nt er nat i onal N a t ur a l Ga s I nt e r na t i ona l
* Includes non consolidated production 13
15. Main Projects
Rio de Janeiro
Rio de Janeiro
Espadarte Mod II
Espadarte Mod II
100.000 bpd
100.000 bpd
6/Jan/07
6/Jan/07
Espadarte
Espadarte
Piranema
Piranema Cidade Niterói
Cidade Niterói Marlim Sul Mod. 3
Mod. 3
30.000 bpd
30.000 bpd Albacora
Albacora Marlim Sul
Jabuti
Jabuti
2,600 September 2007
September 2007 (Water Mod. 3 -- P-56
Mod. 3 P-56 100.000 bpd
(FPSO)
(FPSO) (Water 100.000 bpd
Injection)
Injection) 100.000 bpd
100.000 bpd
100.000 bpd
100.000 bpd 2012
2012
Cidade de Vitória
Cidade de Vitória 23.000 bpd
23.000 bpd 2011
2011
2008
2008
Golfinho Mod. 2
Golfinho Mod. 2 2010
2010
2,400 100.000 bpd
100.000 bpd Marlim Sul
Marlim Sul
Frade
Frade
October 2007
October 2007 Mod. 2
Mod. 2
100.000 bpd
100.000 bpd 2,421
P-51
P-51
2009
2009 2,374
Roncador
Roncador 2,296 Jubarte
Jubarte
Thousand bpd
180.000 bpd
180.000 bpd
2,200 P-52
P-52 2008
2008 P-57
P-57
180.000 bpd
180.000 bpd
October 2007
October 2007
2,191 180.000 bpd
180.000 bpd
Barracuda
Barracuda
2,000 2012
2012
2,050 Parque das
Parque das (Infill Brilling)
(Infill Brilling)
Conchas
Conchas
50.000 bpd
50.000 bpd
1,840/50 100.000 bpd
100.000 bpd
1,800 Marlim Leste
Marlim Leste 2010
2010
Roncador P-53
P-53 2009
2009
Roncador
P-54 180.000 bpd
180.000 bpd
P-54
180.000 bpd 2008
2008
180.000 bpd
1,600 October 2007
October 2007
1,400
2007 2008 2009 2010 2011 2012
Main Changes in relation to PN 2007-11: P-55 from 2011 to 2013; P-56 from 2013 to 2011; P-57 from 2010 to 2012
15
16. Main Projects for the Period 2013 - 2015
To sustain oil production growth, several projects will be implemented between
2013 and 2015.
Thousand bpd
2900
• Roncador P-55 2,812
2800 • Papa-Terra
• Maromba
2700 • Cachalote e Baleia Franca
• Baleia Azul
2600 • Caxaréu
• Pirambu
2500 • BMS-11 Tupi
2,421
2400
2300
2200
2012 2015
16
17. E&P Brazil Production Curve - PN 2008-2012
2.500 2.374
2.296
2.191
2.050
Production Net 596
2.000 1.875
1.778 Increase
1.778
Thousand bpd
1,533
1.500 1.615 Production Natural
Decline 937
1.443
1.256
1.000
1.055
845
500
Total installed capacity in the period = 1,533 mbpd
-
2006 2007 2008 2009 2010 2011
17
18. Corporate Targets
Internal Replacement Proven Reserve Rate (SPE)
Discoveries in Exploratory Blocks:
• Maromba, in the Campos Basin; Discoveries in exploratory blocks incorporated
• Camarupim Catuá, in the Espírito Santos Basin - Offshore; to already existing production fields
Araracanga in the Solimões Basin;
• Mexilhão, in the Rio de Janeiro E&P Business Unit;
• Jaçanã and Pintassilgo in the Rio Grande do Norte Basin;
• Baleia Azul and Golfinho in the Espírito Santo E&P
• Tangará in the Recôncavo Basin; Business Unit.
• Saíra, Seriema and Tabuiaiá , in the Espírito Santos Basin
– Onshore.
13.23 13.75 Revisions in existing fields in 2006
1.22
• Mainly in Marlim and Albacora, in the
12.53 Campos Basin E&P Business Unit;
• Roncador and Marlim Sul, in the Rio de
Production Janeiro E&P Business Unit.
(0.70 billion boe)
2006 Internal Replacement
1.22
= 174 %
0.70
2005 2006
18
19. Domestic Lifting Costs in U.S.$’s vs. Real
US$/bbl R$/bbl
20%
9 71%
16 14.20 14.66
7.65 13.80
8
6.59 14 12.30
7
5.73 12
6
10
5 4.28
8
4
6
3
2 4
1 2
0 0
2004 2005 2006 3Q07 2004 2005 2006 3Q07
Accounting Data in Reais only maintained since 2004
• From 2003 to 3Q07 USD lifting cost was severely affected by FX behavior.
19
21. New Discoveries – Pre-salt Section
BM-S-11 Block (Tupi)
• 28º API light oil was found below the salt layer in a new exploratory frontier of the Santos Basin.
• Further investments will be required for a full evaluation of the oil volume in the discovered reserve
Caxaréu Field
• The discovery well 4-ESS-172-ES has located reservoirs saturated with light oil (approximately 30° API) under a thick layer of
salt.
• It has shown to have excellent productivity in a formation test.
Pirambu Field (Espírito Santos Basin)
• The 4-ESS-175-ES well found deeper reservoirs saturated with light oil (nearly 29° API) positioned on the pre-salt section.
• Results confirm the potentiality of this producer interval.
21
22. Tupi Area
Caxaréu and
Pirambu
BMS-9 and
BMS-10 TESTED WELLS
BMS-11
(Tupi)
22
23. Long-Term Record of Increasing Reserves
Proven Reserves by Category Worldwide Proved Reserves of Petrobras
Oil vs. Gas By Depth
Assoc. Gas
Non-Assoc. 7% 11%
Gas 9% 10%
23% 16,0 14,9 14,9 15,0
14,5
Oil and Condensate
14,0
84% 56% 12,1
Reserves (in billion BO E)
Onshore 12,0 10,7
10,4
Offshore (0-300m) 10,0
Offshore (300-1500m) 8,0
Offshore (>1500m)
6,0
4,0
By By Gravity 2,0
location
0,0
11% 2000 2001 2002 2003 2004 2005 2006
Year
26% 74%
89% Note: Based on SPE method and reflect both Brazilian and international reserves
Brazil > 31o API
Light
Reviewed and Certified by DeGolyer and MacNaughton since 2001
International < 31o API
Heavy/Intermediate
23
25. Exploration Activity (1998 - 2006)Wells & Seismic
TOTAL:
• Espirito Santo 45 wells offshore
681 exploration wells
• Campos 190 wells offshore
31% overall success ratio
• Santos 75 wells offshore
2005 55%
• Other Basins
265 wells onshore 2006 49%
110 wells offshore
400%
300%
Seismic 200%
Average 206% for 2002-2006
~ 550,000 km 2D seismic 100%
~ 130,000 km2 3D seismic 0%
2003 2004 2005 2006
Reserve Replacement
Ratio (SPE/ANP Criteria)
25
26. Petrobras’ Current Exploration Portfolio
EXPLORATORY AREA Santos
Santos
152.8 thousand km2 39.4 mil km22
39.4 mil km
Campos
Campos
Other (*) 13.1 mil km22
Pará Maranhão-Barreirinhas 13.1 mil km
4% 3% 25%
Sergipe Alagoas 5%
Potiguar-Ceará 6% 8%
Santos
Bahia Sul 9%
Campos 6%
10%
Espírito Santo Solimões 11% 11%
São Francisco Foz do Amazonas Espírito
Espírito
Santo
Other Basins* Santo
10.1 mil km22
10.1 mil km
40 % of the concession areas in Campos, Espírito Santo e Santos basins.
Other basins: Pelotas (2%), Ceará (0.8%) and Recôncavo (0,2%)
*
26
27. Petrobras’ Drilling Rigs
2003 2004 2005 2006
Total Total Total Brazil Intern. Total
Onshore 25 47 41 19 22 41
Offshore 41 43 46 44 5 49
Total 66 90 87 63 27 90 Owned Rigs: 31
Leased: 56
• Petrobras’ leasing contracts are long term, averaging a 5 years length;
• In 2006, 15 offshore drilling rigs were owned by Petrobras;
• In August 2005, Petrobras renewed 24 drilling rigs contracts.
• In July 2006, Petrobras signed contracts worth R$ 10.5 billion for the charter of six drilling
units:
• 4 rigs will operate in water depths of up to 2,000 meters (seven-year term contract,
renewable for further seven years);
• 2 rigs will operate at depths down to 2,400 meters (units chartered for 5 years,
renewable for the same period);
• In September 2006, the Company contracted two ultra-deepwater rigs for its drilling
operations in the Gulf of Mexico. The contracts have 5 and 6 years term.
27
28. Royalties
• Monthly payment due from concessionaires for the exploration and production of oil and
natural gas;
• Rates vary, according to the area, from 5% to 10% (per producing field) and are established
in each concession contract;
• Production Volume x Reference Price (published by the regulator, the National Petroleum
Agency - ANP), in relation to each field
9,000
8,000 7,630
R$ Million
7,000
6,366
6,000
5,020
5,000 4,372
4,000 3,509
3,000
2,000
1,000
0
2002 2003 2004 2005 2006
28
29. Special Participation – Progressive Tax
• Special Participation is the progressive tax applied over the net income from production.
• Tax depends on the year of production, daily production and location (Land, Offshore Shallow
Water or Offshore Deep Water)
• Bellow, the characteristics of the special participation for deep water shelves:
40%
30% 35%
10% 20%
Tax Rates
Daily production (thousand m3/day)
First Year
of 15 20 25 30 35
Production
6.3 conversion Factor
Second Year
of 11.7 16.7 21.7 26.7 31.7
Production
Third Year
of 8.3 13.3 18.3 23.3 28.3
Production
After the Third
Year of 5 10 15 20 25
Production
29
30. Distribution of the Realization Price of a Barrel of Domestically Produced Oil (%)
100.0%
90.0%
80.0%
% Share of Realization Price
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
2001 2002 2003 2004 2005 2006
Lifting DD&A Exploratory costs SG&A R&D Other Other COGS Income Tax Government take Net Income
30
31. Distribution of the Realization Price of a Barrel of Domestically Produced Oil ($)
$50.00
$45.00
$40.00
$35.00
$ per Barrel Realization Price
$30.00
$25.00
$20.00
$15.00
$10.00
$5.00
$-
2001 2002 2003 2004 2005 2006
Lifting DD&A Exploratory costs SG&A R&D Other Other COGS Income Tax Government take Net Income
31
32. Vertical Integration
Upstream Operations Downstream Operations
Domestic Reserves SPE (as of 12/31/2006) 11 refineries in Brazil
- Proved Reserves of 13,75 Billion BOE - 8 in the south/ southeast region
- Reserve / Production 19,5 years - Installed capacity of 1,986 k bpd
- Campos Basin accounts for more than 80% of
Brazil’s oil production
32
34. Downstream Investments
US$ 29.6 billion investments in the Downstream area
21%
US$ million
28% Fuel Quality 8,619
Conversion 3,938
Expansion 5,353
8% HSE 1,083
Transportation 2,270
Pipelines 2,264
8%
Others 6,112
13%
4%
18%
Includes Downstream International investment (US$ 3.513 million)
34
35. The production flow of liquids in 2012 shows the high degree of integration among
the business segments in the Brazil and abroad.
Thousand bpd
International Production Brazil
114 Oil Products Consumption
285** 2.421
in Brazil ** 2.170
256* 29 296 158 1.853
Oil Purchase Throughput in
Abroad 23 Brazil 2.061
5
Throughput Abroad 208
348 Oil Products
Imported Oil Exports ***
256
(*) Includes non-consolidated production
International Oil and Products Sales (**) Biodiesel Portion not included
(***) Liquid Exports of Oil Products
762
35
37. Business Strategies
New Refinery in Pernambuco
•Total Investment: US$ 4.1 billion (Petrobras Investment US$2.4 billion);
• Throughput capacity: 200 thousand heavy oil barrels (60% Petrobras oil / 40% PDVSA oil);
• Focusing diesel and LPG production maximization, the new refinery will aim the growth of oil products demand in the
Northeast.
•The Northeast Region, which responds for 19% of oil products demand and holds only one refinery in Bahia, will
no longer be a fuel importer (either from refineries in Brazil or abroad);
• Costs reduction: oil products transportation are more expensive than for crude oil.
Refinery in the USA
• Petrobras has acquired 50% of the Pasadena Refinery System Inc. (PRSI), located in Texas, USA;
•The refinery, which already has a capacity of 100,000 bbl/day, will be upgraded to handle 70,000 bbl/day of heavy oil
and feedstock (including Marlim field’s production);
• Planned expansion to 200,000 BPD. After the revamp project all products will match USA highest standards.
Refinery in Japan
• Petrobras has acquired 87.5% of the Japanese Company Nansei Sekiyu Kabushiki Kaisha (NSS), located in
Japan, for the value of approximately US$ 50 million;
•The refinery, which already has a capacity of 100,000 bbl/day, that process light crude oil and high quality
products, a crude oil and products terminal with storage capacity of 9.6 million barrels, three piers with
capacity to receive product vessels of up to 97 thousand deadweight tonnage (dwt) and a mono buoy for
Very Large Crude vessels (VLCC) of up to 280 thousand dwt.
37
38. Corporate Targets – Downstream
Throughput (Brazil and Abroad) and Processing of Domestic Oil
Production in Brasil (Thousand bpd)
3,007
3,500 94
2,409
92 92
3,000
1,997 348 90
2,500 90 88
348 86
2,000 205 84
1,500 82
80 2,659
2,061 80
1,000 1,792
78
500 76
0 74
2008 2012 2015
BP 2008-12 - Throughput - International (thousand bpd)
BP 2008-12 - Throughput - Brazil (thousand bpd)
Domestic Crude Oil as a % of Total
38
39. Corporate Targets – Distribution
BR Participation in the Brazilan Market (%)
41
36
31
24
2006 2012
BR Participation in Total Brazilian Market (%)
BR Participation in the Brazilian Automotive Market (%)
39
40. Main Projects: Petrochemical Segment
Main Projects
COMPERJ – Basic Petrochemicals Unit
COMPERJ – Thermoplastic Resin ( Polyethylene, Polypropylene and PET)
COMPERJ - Intermediate (Styrene, PTA and Ethylene glycol)
Petroquímica SUAPE (PTA)
Companhia Integrada Têxtil de Pernambuco – CITEP (POY)
Companhia de Coque Calcinado de Petróleo
International Petrochemical Projects
Petroquímica Paulínia - Polypropylene
Total investments: US$ 4.3 billion
40
41. Business Strategies
COMPLEXO PETROQUÍMICO DO RIO DE JANEIRO - COMPERJ
•Total Investment: US$ 8.4 billion (Petrobras Investment US$4.6 billion);
• Throughput capacity: 150 thousand heavy oil barrels (Marlim oil from Campos Basin);
• Start Up: 2012
• Refining and Petrochemical Integrated Complex that through the use of new
technologies process heavy oil to obtain oil products and first and second generation
petrochemical products
41
42. Domestic Natural Gas Market*
160 Million m3/day
134 134
140
120 y. 31.1 LNG
p. 43.9
.4 %
100 19
30.0 Bolívia
80 46.3
42.1
60
E&P**
40 16.2 72.9
20 48.0
24
0 6.1
2006 2012 Supply 2012
Thermoelectric Industry Other
(*) considering maximum dispatch of every thermoelectric power plant
• Other: vehicular, residential / commercial, refineries and fertilizer units.
(**) Adjusted to STD Heat Value (9,400 Kcal/kg)
42
43. Main Projects: E&P Brazil Natural Gas
Urucu
Urucu
Sales Start-up
Sales Start-up Uruguá --
Uruguá
Peroá-Cangoá
80 Peroá-Cangoá
Phase 2
Phase 2
2008
2008 Tambaú
Tambaú
Nov 2007 2010
2010
Nov 2007 Bacia Campos
Bacia Campos Mexilhão
Mexilhão
2008
2008 2009
2009
70 Manati
Manati
Canapu
Canapu
15/jan/2007
15/jan/2007
2008
2008
71,1 71,3 70,8
Rio de Janeiro
Rio de Janeiro
60 Espadarte Mod II
Espadarte Mod II Camarupim
Camarupim
2008
64,1
Albacora
Marlim Sul
Marlim Sul
Espadarte
Espadarte
6/jan/07
6/jan/07 2008 Albacora
Mod. III -- P-56
Mod. III P-56 Mod. III
Mod. III
Frade
Frade (Water
(Water
Piranema
Piranema Injection) 2011
2011
50 Sep 2007
45,7 2009
2009 Injection) 2012
2012
Millon m3/day
Sep 2007 2010
2010
Cidade de Vitória Jubarte
Jubarte
Cidade de Vitória Parque das
Parque das
Golfinho Mod. II
Golfinho Mod. II Conchas
Conchas Barracuda P-57
P-57
40 Oct 2007
Oct 2007
Lagosta
Lagosta
2008
2008 2009
Barracuda
2012
2009 (Infill Drilling)
(Infill Drilling) 2012
Cidade Niterói
Cidade Niterói
28 Jabuti
2010
2010
30 Jabuti
(FPSO)
(FPSO) Pirapitanga
Pirapitanga
2008
2008 Mod. II
Mod.
Roncador
Roncador 2012
2012
Marlim Sul
Marlim Sul
20 P-52
P-52 Mod. II
Mod. II
Oct 2007
Oct 2007 P-51
P-51
Roncador
2008
2008 Non Associated NG
10 Roncador
P-54
P-54 Marlim Leste
Marlim Leste
Oct 2007
Oct 2007 P-53
P-53 Associated NG
2008
2008
0
2007 2008 2009 2010 2011 2012
Main Changes in relation to PN 2007-11: P-55 from 2011 to 2013; P-56 from 2013 to 2011; P-57 from 2010 to 2012 43
44. Main Projects: Gas & Energy
US$ million
Main Projects
Gas Pipelines: Gasene, Northeast and Southeast Network,
Urucu-Coari-Manaus and Gasduc III
LNG – Liquified Natural Gas
Thermo-Electrics: Cubatão, Três Lagoas, Canoas and
Termoaçu
Wind Power Generation
G&E in Argentina and Other Countries
Total investments US$ 6.7 billion
44
45. Corporate Targets – G&E
3
Domestic Natural Gas Sales – G&E* (million m /day)
82
p.y.
6 ,2 %
57
2008 2012
BP 2008-12 - Domestic Natural Gas Sales – G&E (million m3/day)
* Does not include Petrobras consumption
45
46. Natural Gas supply in Southeast 2006 - 2008
New investments will reduce the country’s dependence on imported gas.
• Supply 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 reallocation
• Refineries, Distributors and flex-fuel
thermoelectric plants (LNG, diesel
and alcohol)
46
47. Natural Gas supply extension in Southeast 2006 - 2008
PLANGAS 2008 targets
Cacimbas
Peroá/Cangoá
Lagoa Parda
Belo Horizonte
Barra do Riacho Terminal Espírito Santo
Vitória Basin
Camarupim Canapu
Ubu
Golfinho 2
Cacimbas fence
Cabiúnas
Campinas
P-52 (RO)
18 MM m3/d
Rio de Janeiro
P-54 (RO) (+16,7 MM m3/d)
Garoup
Guararem Namorado
a JABUTI
a
Caraguatatuba Ilha d’Água / Ilha REDUC Enchova P-51 (MLS)
RPBC
Comprida
Terminals
Cabiúnas fence
Campos Basin
19,5 MM m3/d
(+6,3 MM m3/d)
Merluza
Lagosta
Cubatão fence
Santos Basin
2,5 MM m3/d Total Southeast 08: 40 MM m3/d
(+1,5 MM m3/d) Additional: (+ 24,5 MM m3/d)
47
48. Flexible LNG Project
Facilitates the adjustment of the offer to the market’s characteristic:
Flexible Offer (with guarantee) to the thermoelectric plants.
More efficient than Diesel in the thermo plants;
Mitigates the risk of failing to supply the gas due to abnormalities;
Diversifies the sources of imported gas;
Projects under evaluation: (up to 31 MM m3/d of re-gasification)
FSRU
Floating Storage and
Regasification Unit
48
49. Corporate Targets – G&E
Power Sales – PETROBRAS
(TOTAL Brazil + International) (Average MW)
6,000 5,439
5,000 976
4,000
3,070
3,000 118
3,741
2,000 2,234
1,000
718 722
0
2008 2012
BP 2008-12 - Expansion Opportunities in Thermoplants (Average MW)
BP 2008-12 - Thermoplants and Co-generation - Brazil (Average MW)
BP 2008-12 - International (Average MW)
BP 2008-12 - PETROBRAS (TOTAL Brazil + International) (Average MW)
49
50. International - Overview
United Kingdom.
New York
USA
Houston Portugal Turkey
Tokyo
Jordan Beijing
Libya Iran
Pakistan
Mexico Trinidad & Senegal Saudi Arabia
Tobago Nigeria
Venezuela India
Colombia
Equatorial Guinea Tanzania Singapore
Ecuador
BRAZIL Angola Mozambique
Peru
Bolivia Rio de
Janeiro
Uruguay
Core Areas:
HEAD OFFICE Argentina
• Refining
REPRESENTATIVE OFFICE
• Add value to Brazilian heavy oil exports
REFINING
TRADING • E&P: West Africa (Nigeria and Angola) & Gulf of Mexico:
EXPLORATION AND PRODUCTION • Apply deep water and deep well drilling technology.
UNDER EVALUATION • Latin America:
• Leadership as an integrated energy company
50
51. Successful Discoveries, Production in Cottonwood, Development in the Lower Tertiary
UNITED STATES
New Orleans
Houston
COULOMB NORTH
COTTOWOOD CASCADE
CHINOOK
ST. MALO
DISCOVERIES
2002 - Cascade
Gulf of Mexico - Petrobras 2003 - Chinook & St. Malo
2004 - Coulomb North
participates in 338 blocks, and 2005 - Cottonwood
MEXICO
operates 200.
51
52. International - Main Projects in the Gulf of Mexico
Cottonwood Chinook Cascade
(Development) (Under Evaluation) (Under Evaluation)
• Petrobras (100%) - operator • Petrobras (67%) - operator • Petrobras (50%) - operator
• Total (33%) • Devon (50%)
Saint Malo Blackbeard, Megamata (deep gas)
(Under Evaluation) Andromeda (WGoM), Alsace (GBanks)
• Petrobras (25%) • EXPLORATION WELLS
•Petrobras (20% to 100%)
• Unocal (20%) - operator
• Chevron (13%) • Various partners (Exxon, Newfield, BP,
• BHPBilliton, Dominion, Carrizo, Hess,
• Encana (6%) • Kerr McGee
• Devon (23%)
LONG TERM COMMITMENTS
• Exxon (4%) Two drilling units on long term contracts
• ENI (1%)
52
53. U.S. Gulf to become important source of international growth for Petrobras
By 2013 production is
expected to reach 130
thousand boed.
US regulators approve Petrobras plans
to bring first FPSO to the Gulf of Mexico 2005 2006 2013
Same technological concepts successfully
applied in Brazil Petrobras America to invest $5 BN
(60% E&P) 2008-2012
CASCADE AND CHINOOK
• First FPSO Deployment
• First Oil: 2009
• Hurricane factor: Run!
53
54. International – West Africa
Start up / Production Peak:
Operator of new Block OPL
AGBAMI:
315 with stake of 45%
- First oil: 2008 / Peak: 250,000 bpd in 2009 (total)
AKPO:
- First oil: 2008 / Peak: 175,000 bpd in 2009 (total)
Petrobras stake: from 70,000 to 100,000 bpd
1,000m
2,000m
6 blocks (1 in production)
Operator in prolific Block
18 with 30% stake
54
55. Main Projects: Biofuels
US$ 1.5 billion Investments
4%
21% 29%
46%
Biodiesel Pipelines and Ethanol Pipelines Others H-Bio
55
57. Business Strategies
Future Markets for biodiesel
Law 11.097/2005 – established minimal percentage for biodiesel mix in diesel
2008
2005
to From 2013
to
2012 on
2007
(2% demanding) (5% demanding)
(2% allowable)
(5% allowable)
Brazilian market Brazilian market Brazilian market
0 - 840 million litters 0,8 - 2,5 billion litters 2,5 billion litters
57
58. Bio-diesel production facilities
3 Projects Being Implemented Quixadá
Capacity: 171 thou m3/year (~1 million bpy)
CE
Investments (2008-12): US$ 40 million (*)
Inputs
Family Agriculture: castor, cotton, and palm.
Complementary: soy. BA
Jobs Generation: Candeias
Construction: 1,200 direct and 400 indirect
Operation: 105 direct MG
Montes
Raw material production:70,000 families Claros
Start up: 4 Q/2007 semi-arid region
All Petrobras Biodiesel has Social Fuel Seal
(*) Total Investment – US$ 158 million
58
60. A New Opportunity for Business
Ethanol global market – 46.5 Billions Liters
North and Central Europe
America
9.8%
37%
Brazil
35%
South America Asia
38% 16.2%
• Today the ethanol consumption is 2.6% of gasoline MKT
• 10% of ethanol in gasoline will represent 118 Billions Lt
60
61. Raw Material Comparison
Energy
Production / ha Quantity of out/ Energy
RAW MATERIAL (kg) Ethanol/ ha in
SUGAR CANE 85,000 7.080 liter 8,3
CORN 10,000 4.000 liter 1,3 - 1,8
Area
Type (Land use in Brazil)
(MMha)
• Total country 851
• Native Amazon Forest 370
• Secondary Amazon Forest and Others 180
• Native Forests 6
• Pasture 197
• Temporary Crops 59
• Permanent Crops 7,6
• Available land 263
• Available land with low impact (*) 90
Source: FAO, 2002 and EMBRAPA (*) 61
62. Ethanol Logistic to Export
Ethanol Export
Petrobras target:
4.75 Million m3 in 2012
Marine Terminal Rio de
Janeiro
Marine Terminal São
Paulo
• Petrobras, Mitsui and Camargo Correa signed an Memorandum of Understanding
(MOU) to study the economic viability of a pipeline for ethanol exports.
• A pipeline network connecting the interior of the states of São Paulo and Goias to
marine terminals in Rio and SP.
62
63. H-BIO - a complementary use of vegetable oil
2007
• H-BIO in 4 refineries (by year end)– using up to 256 thousand m3/year of
vegetable oil
• Equivalent to 15% of Diesel imports
• REGAP pre-operation license (ANP). Definitive license in two months.
2008
• H-BIO in 3 more refineries
• Using up to 425 thousand m3/year of vegetable oil
• 15.1 % of total soy oil export
• Equivalent to 25% of Diesel imports
Main advantages:
• No waste
• Simple logistics
• Improves diesel quality
• Flexible vegetable oil source
* Of total of Soybean oil exported, 2288 thousand m³ is crude oil, and 535 thousand m³ is refined oil
** Estimated volume of imported diesel in 2006 = 1.709 thousand m3 Sources: Abiove and Petrobras 63
64. Diversified Shareholder Base
• 60% of the economic value of Petrobras in private hands, but Government maintains control w/55% of voting
shares
• More than 500,000 investors in Brazil and abroad
• NYSE Listed, quarterly disclosure in US GAAP
• Investment Grade: Baa1 (Moody’s), BBB- (S&P) and BBB- (Fitch)
9.5% 20.3%
10.9% 26.4% 31.2% 32.0% Foreign
46.4% 10.3% 39,7%
18.0% 9.9% 8.0% 7.7%
25.1% 23.1% Bovespa
20.7% 20.4%
28,1%
53.6% 61.6%
44.4% 40.6% 40.1% 39.9%
Oct/1992 Jul/2000 After Aug/00 After Jul/01 Dec/2003 Sep/07
offering offering
Governm ent (1) (%) Bovespa Brazil Bovespa Foreign ADRs
Free
Float
46,4 38,4 55,6 59,4 59,9 60,2
(1) Includes BNDES / BNDESPAR 64
65. Final Comments
Vertical Integration Comparison
Majors Average *
4,661
3,136
2,776
National Oil Companies Average **
1,632
1,629
4,307
2011: Petrobras
New Refinery will add 200
thous. bpd capacity 2,557
2010:
Pasadena Refinery revamp
concluded – processing 70
2,156
thous. bpd of heavy oil
Product Sales (thous. bpd)
2,217
Refining (thous. bpd)
3,500 Production (thous. boed)
Year 2012
* Majors: BP, Exxon, Total, Royal Dutch Shell, Chevron, Conoco and Repsol-YPF Source: PIW Intelligence, 2005
** NOC: PEMEX, PDVSA, Saudi Amraco, KPC, Pertamina and Sonatrach
65
67. DOMESTIC OIL AND NGL PRODUCTION
• Domestic Oil and NGL
production slightly higher Δ = 0.45%
1,789 1,797
compared to the 2Q07;
Thous. bpd
• Expected growth lower than
expected due primarily to
scheduled stoppages and delays in
the delivery of some production
projects;
2Q07 3Q07
67
68. DOMESTIC OIL AND NGL PRODUCTION: MAIN PROJECTS IN 2006 AND 2007
FPSO - Capixaba P - 34 FPSO – Cidade do Rio de Janeiro
P - 50
Golfinho Jubarte Espadarte
Albacora Leste
100,000 bpd 60,000 bpd 100,000 bpd
180,000 bpd
May 06 December 06 January 07
April 06
New Systems
Δ +203 thous. bpd
Existing Systems* 1,796
1,763 Δ -170 thous. bpd
Δ +33 thous. bpd
Jan-Sept 2006 Jan-Sept 2007
Unity 9M06 (thous. bpd) 9M07 (thous. bpd) Change
P-50 (Albacora Leste) 31 148 117
FPSO-Capixaba (Golfinho) 20 38 18
P-34 (Jubarte) - 40 40
FPSO-Cidade do Rio de Janeiro (Espadarte) - 28 28
Total New Systems 203
* Natural decline and production stoppages
68
