"Petrobras Strategy: Focus on Social and Environmental Performance"

3,884 views

Published on

1 Comment
3 Likes
Statistics
Notes
No Downloads
Views
Total views
3,884
On SlideShare
0
From Embeds
0
Number of Embeds
6
Actions
Shares
0
Downloads
76
Comments
1
Likes
3
Embeds 0
No embeds

No notes for slide

"Petrobras Strategy: Focus on Social and Environmental Performance"

  1. 1. PETROBRAS Petrobras Strategy: Focus on Social and Environmental Performance 1
  2. 2. PETROBRAS 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. 3. PETROBRAS Summary Petrobras Strategic Planning Governance Economical Sustainability Environmental Social Responsibility Acknowledgment 3
  4. 4. PETROBRAS Petrobras Strategic Planning Governance Economical Sustainability Environmental Responsibility Social Responsibility Acknowledgment 4
  5. 5. PETROBRAS Company Overview An integrated energy company with US$ 74 billion in gross revenue (2005 US GAAP) Exploration • Proven Reserves: 11.8 billion boe (SEC 2005) and Production • Oil and Gas Production: 2.22 million boed (2005) Refining, • 16 Refineries • Capacity: 2,114 thousand bpd Transport • Pipelines: 18,854 miles • Vessels (own fleet): 50 and Marketing • 6,933 service stations (34% share in the Brazilian Distribution market), 746 in Argentina and 105 in Bolivia Natural Gas • Sales of Natural Gas: 1.83 bcf/day • Ethene Production: 460,000 tons/year Petrochemicals • Styrene Production: 250,000 tons/year • Polystyrene Production: 120,000 tons/year Operational data includes Petrobras Energia 5
  6. 6. PETROBRAS Activities in the World Regional Presence New York United Kingdom USA Japan Houston Iran China Pakistan Libya Mexico Nigeria Colombia Venezuela Equatorial Tanzania Ecuador BRASIL Guinea Angola Peru Bolivia Rio de Janeiro Paraguay Uruguay Argentina Headquarters Refining Gas & Power Trading E&P Representation Office 6
  7. 7. PETROBRAS Publicly traded peer comparison Proven reserves (SEC - billion boe) – Dec. 2005 Oil and gas production (million boe) - 2005 ExxonMobil 22,4 ExxonMobil 1.484 Lukoil* 20,1 BP 1.448 Petrochina* 18,5 Shell 1.267 BP 17,6 Petrochina* 945 Yukos* 13,0 Chevron Texaco 919 Chevron Texaco 12,1 Total 908 11,8 7th Petrobras 809 Petrobras ConocoPhillips 660 7th Shell 11,5 Total 11,1 Yukos* 624 ConocoPhillips 9,4 Lukoil* 614 ENI 6,8 ENI 593 Statoil 427 Statoil 4,3 Repsol 416 Sinopec* 3,8 3,3 Sinopec 309 Repsol Reserve life (years) – Dec. 2005 Refining capacity (thousand bpd) - 2005 Lukoil* 32,7 XOM 6.343 Yukos* 20,8 RDS 4.026 Petrochina* 19,6 Sinopec 2.998 ExxonMobil 15,1 BP 2.747 Petrobras 14,6 TOT 2.708 ConocoPhillips 14,2 5th COP 2.275 Chevron Texaco 13,1 PetroChina 2.202 Sinopec 12,3 CVX 2.195 Total 12,2 Petrobras 2.114 9th BP 12,2 Yukos 1.223 ENI 11,5 Repsol 1.175 Statoil 10,1 Lukoil 1.139 Shell 9,0 ENI** 524 Repsol 8,0 Statoil 296 Source: Evaluate Energy and Company Reports 7
  8. 8. PETROBRAS Vertical Integration Comparison Majors Average * 4,793 3,176 2,735 National Oil Companies Average ** 1,579 1,630 4,329 2011: Petrobras New Refinery will add 200 thous. bpd capacity 2,296 2010: Pasadena Refinery revamp concluded – processing 70 2,114 thous. bpd of heavy oil Product Sales (thous. bpd) 2,217 Refining (thous. bpd) 3,400 Production (thous. boed) Year 2011 * Majors: BP, Exxon, Total, Royal Dutch Shell, Chevron, Conoco and Repsol-YPF *** 2004 figures, except for Petrobras (2005) ** NOIC: PEMEX, PDVSA, Saudi Amraco, KPC, Pertamina and Sonatrach Source: PIW Intelligence and Petrobras 8
  9. 9. PETROBRAS Diversified Shareholder Base • More than 400,000 investors in Brazil and abroad • 60% of the economic value of Petrobras in private hands • Almost 40% of the stocks with international investors 9.5% 10.9% 20.3% 26.4% 31.2% 31.5% Foreign 46.4% 10.3% 39,8% 18.0% 9.9% 8.0% 8.3% 25.1% 23.1% Bovespa 20.7% 20.4% 28,7% 53.6% 61.6% 44.4% 40.6% 40.1% 39.8% Oct/1992 Jul/2000 After Aug/00 After Jul/01 Dec/2003 Sep/06 offering offering Governm ent (1) (%) Bovespa Brazil Bovespa Foreign ADRs Free 46,4 38,4 55,6 59,4 59,9 60,2 Float (1) Includes BNDES / BNDESPAR 9
  10. 10. PETROBRAS Dividend Payout and Dividend Yield 52, 06% Dividend Payout 43, 37% 34, 82% 30, 7% 32, 22% 29, 7% 31, 5% 25, 9% 26, 60% 5% 26, 28, 3% 28, 17% 6% 29, 28, 20% 29, 9% 29, 90% 1998 1999 2000 2001 2002 2003 2004 2005 % o f Net P ro fit % o f A djusted Net P ro fit Dividend Yield 6 ,5% 6 ,8 % 6 ,3 % 6 ,2 % 5, 4 % 4 ,9 % 4 ,8 % 4 ,6 % 4 ,6 % 4 , 3 %4 , 7% 3 ,9 %4 ,3 % 3 ,4 % 2 , 0 % 1,8 % 1998 1999 2000 2001 2002 2003 2004 2005 Ordinary Shares Preferential Shares Dividend Yield: Dividend declared for each year / Share price at end of same 10 year
  11. 11. US$ million - Pe 50 100 150 200 250 300 350 400 Ci a. tr V al ob ra e s* do Ri US$ 359 million o Do PETROBRAS ce * US$ 256 million BP US$ 247 million No ki Am a ér ic US$ 223 million a M óv il* El US$ 150 million an Co rp . US$ 128 million 1H06 daily average Ce m ex BH US$ 123 million P Bi ll Turnover (traded volume) in NYSE ito n US$ 118 million To ta l US$ 111 million Te na ris US$ 101 million * All firm's ADR programs Source: Bloomberg 11 Market Focus
  12. 12. PETROBRAS A Petrobras Strategic Planning Governance Economical Sustainability Environmental Responsibility Social Responsibility Acknowledgment 12
  13. 13. PETROBRAS Corporate Strategy Corporate Strategy Social and Environmental Growth Profitability Responsibility Lead the Latin American oil, natural gas, oil products and biofuels market, working as an Liderar o mercado de petróleo, gás natural e derivados na América Latina, integrated energy company, empresa integrada de energia, com expansão renewable energy and atuando como with selective expansion in petrochemical, seletiva international activities. da petroquímica e da atividade internacional. Consolidate and Develop and lead Selectively Selectively Expand participation increase the domestic expand expand interest in biofuels market, competitive natural gas market international in the lead the domestic advantages in and perform in an activities in an petrochemicals biodiesel production the Brazilian and integrated manner integrated market and increase South American in the gas and manner with the participation in the oil and oil power market in Company’s ethanol business products market South America business Operational, management, technological and human resources excellence 13
  14. 14. PETROBRAS Drivers & Strategies Drivers Business Strategies E&P Develop market and monetize • Focus on light oil and natural gas natural gas reserves in Brazil production and reserve growth Downstream Reduce dependence on light oil • Expand conversion capacity and improve and oil product imports quality of refined products • Increase bio-refining capacity, biomass, Improve oil product quality in petrochemical and fertilizers businesses Brazil and abroad • Promote Brazilian biodiesel production and export ethanol Reduce carbon intensity of Distribution operations and products • Increase market-share in Brazil for oil products and biofuels Assure future demand and add Gas & Energy value to heavy oil exports • Develop and establish a profitable and reliable natural gas market including LNG Exploit competitive advantage International from deep water exploration • Expand E&P in Gulf of Mexico and Africa technology abroad • Undertake investments in refining conversion capacity and quality 14
  15. 15. PETROBRAS Vision 2015 Petrobras will be an integrated energy company with a strong international presence and a leading force in Latin America, working with a focus on profitability and social and environmental responsibility. 15
  16. 16. PETROBRAS Investment Plan Business Plan 2007-2011 US$ 87.1 billion 56% 14% 49.3 U S$ 12 49,3 .1 bi 31.0 23,0 US$ 75.0 bi 1.8 1,8 2.3 3.3 23.0 3% 2,2 3,3 7,5 26% 7.5 1.0 3% 1.0 4% 12.4 9% 86% E&P Downstream G&E Brazil International Petrochemical Distribution Corporate Note: Includes International 16
  17. 17. PETROBRAS Technological Programs: Research & Development PROFEX PROCAP Exploration Deep Water PROTER PROGER Refining PROAMB Renewable Environment Energy PROPES PROMOB Heavy Oil Basin Modeling PROREC INOVA PROGAS PRAVAP PROTRAN Optimization & Fuel Innovation Gas Enranced Oil Recovery Transportation Reliability 17
  18. 18. PETROBRAS Petrobras Strategic Planning Governance Economical Sustainability Environmental Responsibility Social Responsibility Acknowledgment 18
  19. 19. PETROBRAS Corporate Governance Structure Board Committees: Fiscal Council Board • Audit Strategic Board of Directors Commit tees • Environment definitions and • Compensation and Succession supervision Audit Board Ombudsman Rapporteur Management Committees: CEO • Downstream Executive Board • E&P • Gas and Energy Strategy Officers • Human Resources execution and • HSE development of operations Business • Analysis of Corporate Committees Structure and Management • Information Technology Management • Internal Control Committees • Information Security • Risk • Social and Environmental Responsibility • Marketing and Brands 19
  20. 20. PETROBRAS Governance Petrobras Audit System Federal Accounts Court - TCU Fiscal Council Audit Committee External Audit SEC Internal Audit CVM Business Unit Audits CNV Corporate Audits • ISO 9000 • Management Quality • BS 8800/OHSAS Audit 18001 • HSE • ISO 14001 • etc • etc 20
  21. 21. PETROBRAS Transparency Transparency with Stakeholders • Signed the Partnering Against Corruption Initiative (PACI) - January/2005 • Signed the Global Compact – October/2003 – board member • Website, Webcasts, roadshows, chats with investors and press • Ombudsman in all subsidies • Client Channel, Supplier channel, call center, Green telephone, emergency telephone, 0800 service phone • Extractive Industry Transparency Initiative (EITI) • Public selection of corporate sponsorship projects 21
  22. 22. PETROBRAS General Ombudsman Communication and Denunciation Line • Reports directly to the Board of Directors • Receives suggestions, complaints, claims, denunciation or exposes general problems; • Guarantees confidentiality, independence, impartiality and neutrality • Follows all Sarbanes-Oxley requirements; • Forwards to the audit committee financial reports, accounting, audit and internal controls issues; 16000 14000 Number of Demands 12000 10000 Internal 8000 Demands 6000 External Demands 4000 2000 Total 0 2003 2004 2005 22
  23. 23. PETROBRAS Petrobras Strategic Planning Governance Economical Sustainability Environmental Responsibility Social Responsibility Acknowledgement 23
  24. 24. PETROBRAS Oil and Gas Production • 632 thous. bpd of oil exports in Thousand boed 7.5% p.a. 2011; 4,556 • US$ 49.3 billion CAPEX in the 278 2007-2011 period; 7.8% p.a. • 3 new refineries 3,493 742 185 383 724 2,403 2,036 2,020 2,217 101 96 551 85 94 133 163 289 161 168 274 250 265 2, 812 2, 374 1, 880 1, 540 1, 684 1, 493 2003 2004 2005 T a r ge t 2 0 0 6 T a rg e t 2 0 1 1 2015 For ecas t Oi l and N GL - B r az i l N at ur al Gas - B r az i l Oi l a nd N GL - I nt e r nac i ona l N at ur al Gas - I nt er naci onal 24
  25. 25. PETROBRAS Natural Gas Supply Extension New investments will reduce the country’s dependence on imported gas Belém • In 2011 domestic natural gas production will Manaus double compared to 2005. Recife • US$ 22 billion investments in the natural gas Salvador chain in the 2007-2011 period Brasília • Demand Flexibilization – studying LNG imports Existing thourgh the Brazilian coast using floating Gaspipes storage and regasification units (FSRU or SRV) São Paulo New Gaspipes 2007-11 BP • Quickest way to respond to increases in Porto Alegre demand; • More efficient and less polluting than diesel; • ~20MM m3/day up to the end of 2008. • US$ 1.6 billion investments up to 2011 25
  26. 26. PETROBRAS Oil & Gas Reserves • Strong investments in production will optimize the development of Petrobras’ proven reserves, aiming light oil production and a minimum reserve/production ratio of 15 years. • Petrobras had a 55% success ratio for our exploration wells during 2005, with 38 wells classified as discovery or producing wells. Undeveloped Reserves / Total Reserves* (2005) 60,0% 54,3% 53,1% 51,5% 50,5% 50,0% 43,8% 40,5% 39,7% 40,0% 34,3% 30,0% 29,7% 30,0% 25,0% 20,3% 20,0% 12,9% 10,0% 0,0% n C na l as il c BP s PF l l il ta el oi ro ko pe ob llip O i To Sh at br ev Ch -Y O Lu no nM i St tr o Ph CN ol Ch tr o Si xo ps Pe co Pe Ex Re no 17 Co * Source: Evaluate Energy 26
  27. 27. PETROBRAS Petrobras Biofuels Experience: Going Beyond Legal Compliance - Brazilian Conditions - Legal Requirements - Petrobras Strategy - Research and Development 27
  28. 28. PETROBRAS Brazilian Conditions Land use in Brazil: Type Area (Mha) • Total country 851 • Native Amazon Forest 370 • Secondary Amazon Forest and Others 180 • Native Forests 6 • Pasture 197 • Temporary Cultures 59 • Permanent Cultures 7.6 • Available land 263 • Available land with low impact (*) 90 Source: FAO, 2002 and EMBRAPA (*) 28
  29. 29. PETROBRAS Brazilian Conditions Biodiesel Brazilian Seeds Castor oil seed Sunflower Soy Palm Cotton Crop yield (kg/ha) 1,500 1,500 3,000 20,000 3,000 Oil contents 47% 42% 18% 20% 15% Oil yield (kg/ha) 705 630 540 4,000 450 2005 Production in Brazil (m3/yr) 90,000 23,000 5,600,000 151,000 315,000 29
  30. 30. PETROBRAS Brazilian Conditions Raw Material Comparison Raw Material Energy Output / Energy Input Wheat 1.2 Corn 1.3 – 1.8 Sugar Beet 1.9 Sugar Cane (under Brazilian production conditions) 8.3 Production / ha Quantity of Ethanol Energy Output / Raw Material (kg) / ha Energy Input Sugar Cane 85,000 7,080 liter 8.3 Corn 10,000 4,000 liter 1.3 – 1.8 30
  31. 31. PETROBRAS Brazilian Experience Fuel Ethanol Program Evolution Ethanol Program of Program Gasohol and Emission Renewable Implanted Ethanol Cars Controls Gasohol and Hydrogen (BLENDS) (2nd oil shock) (PROCONVE) Flex fuel Cars Program for oil imports reduction Environmental Benefits 70’s 80´S 90´S 00´S Future 31
  32. 32. PETROBRAS Ethanol Production Brazilian Ethanol Production 18,000 Anhydrous Hydrous Total 16,000 14,000 12,000 2006/07 thousand (m³/ton) 10,000 Estimates 8,000 6,000 4,000 2,000 0 80/81 81/82 82/83 83/84 84/85 85/86 86/87 87/88 88/89 89/90 90/91 91/92 92/93 93/94 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 Crop Year 32
  33. 33. PETROBRAS Ethanol: Learning Curve More than 400 types of Sugar-Cane Trend (Anhydrous Ethanol Prices) Trend (Rotterdam Gasoline Prices) Accumulated Ethanol Production (thous. m3) Source: Prof. Goldemberg, Coelho, Nastari and Lucon - USP 33
  34. 34. PETROBRAS Brazilian Conditions Flex-Fuel Vehicles • Consumer wants to decide the fuel at the gas station • Fuel price is one the most important factor • Consumer is aware of pollution and renewable fuels • Today cars manufacturer is producing 80% of FFV in Brazil LIGHT VEHICLES TOTAL SALES units 150,000 Ethanol Gasoline FFV 140,000 130,000 120,000 110,000 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Nov-05 Feb-06 Aug-05 Nov-03 Nov-04 Aug-03 Aug-04 Feb-05 Feb-03 Feb-04 Dec-05 Sep-05 Oct-05 Jan-06 Apr-04 Apr-05 Apr-03 May-03 May-04 May-05 Jun-03 Jun-04 Jun-05 Mar-06 Sep-03 Dec-03 Sep-04 Dec-04 Oct-03 Jan-03 Jul-04 Jan-05 Oct-04 Jul-03 Jan-04 Jul-05 Mar-05 Mar-03 Mar-04 34
  35. 35. PETROBRAS Gradual Replacement of Conventional Engines 20,000 LIGHT VEHICLES FLEET CNG vehicles (thousand units) FFV since 2003 335 1,108 (6%) 44 18,000 807 439 626 1,004 (5%) 288 764 782 810 143 734 843 (4%) 16,000 57 686 18 1,996 1,820 632 2,230 1,678 9 597 2,449 (9%) 14,000 546 2,712 5 2,972 499 3,221 3,471 12,000 3,716 10,000 8,000 14,439 14,680 14,431 14,075 13,506 (76%) 12,755 6,000 11,399 12,019 10,463 9,088 4,000 2,000 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Gasoline Ethanol Diesel Oil CNG FFV 35
  36. 36. PETROBRAS Legal Requirements Biodiesel Requirement Law 11.097/2005 – established minimal percentage for biodiesel mix in diesel 2008 2005 to From 2012 to 2012 on 2007 (2% required) (5% required) (2% allowable) (5% allowable) Brazilian market Brazilian market Brazilian market 0 – 5.2 million barrels 5.2 – 15.7 million barrels 15.7 million barrels Anhydrous Ethanol Requirement • Addition of 20-25% of anhydrous ethyl alcohol fuel to gasoline as per Agriculture Ministry determination 36
  37. 37. PETROBRAS Legal Requirements Voluntary Social Seal • Given to biodiesel producers that: • Purchase a minimum percentage of raw materials from family agriculture: • 50% NE and semi-arid region • 10% NW and CW region • 30% SE and S region • Sing a formal contracts with the family agriculture that includes: • Contract period • Value to purchase and price readjustment criteria • Raw material delivery conditions • Safeguards for each party • Identification and agreement that a representative of the farmers participated in the negotiations • Assure assistance and technical training for the agriculture families 37
  38. 38. PETROBRAS Federal Taxes Alíquotas de PIS/COFINS (em R$/litro) R$ 0,151 / litro General 0,218 R$ 0,0 / litro Agrobusiness + N/NE + Semi-Árid + 0,151 mamona/palma Family Agriculture in any reqion 0,070 R$ 0,218 / litro Family Agriculture + N/NE + Semi-Árid + mamona/palma 0 R$ 0,070 / litro 38
  39. 39. PETROBRAS Petrobras Strategy Business Plan (2007-2011) 2007-2011 Investments 2011 Target Biodiesel Production 855 Thous. m3/year Process 425 Thous. m3/year H-Bio (Bio-Refining) of vegetable oil Alcohol pipelines 3.5 million m3 Ethanol Exports Alcohol Vessel Project Wind Power Additional 240 MW Installed Capacity of Photovoltaic Power Generation from Renewable Sources Other Renewable Energy Sources Investments of US$ 0.7 billion in development of renewable energy sources and biofuels Petrobras currently has 280 MW of renewable energy installed capacity 39
  40. 40. PETROBRAS Petrobras Strategy 3 Biodiesel Production Projects Quixadá Capacity: 171 thousand m3/year CE Investments: ~ US$ 60 million Inputs Family Agriculture: castor, pinhão manso, cotton, and palm. Complementary: soy. BA Start up: 4 Q/2007 Candeias Raw Material Costs US$/bbl Pinhão Manso Oil 43 MG Montes Palm Oil 46 Claros Soy Oil 73 Animal Fat 41 semi-arid region Source: UOP All Petrobras Biodiesel has Social Fuel Seal 40
  41. 41. PETROBRAS Biodiesel Production Cost Capacity Ton/year 10,000 35,000 65,000 100,000 Chemicals R$/litro 0.11 0.10 0.10 0.10 Energy R$/litro 0.05 0.02 0.02 0.02 Depreciation R$/litro 0.08 0.08 0.05 0.04 Labor R$/litro 0.11 0.04 0.02 0.015 Maintenance R$/litro 0.05 0.04 0.03 0.03 Oper Cost R$/litro 0.40 0.30 0.22 0.21 Investment US$ MM 5 8 10 12 Laboratory US$ 500,000 Source: Dedini, Intecnial, Lurgi 41
  42. 42. PETROBRAS Petrobras Strategy Already over 2900 stations offering Biodiesel January 2007 September 2006 January 2007 October 2006 October 2007 September 2006 B100 sales estimates up to Dec 2006: • 26,688 m3 for 3520 stations • 25,000 m3 for 3000 large consumers 42
  43. 43. PETROBRAS Petrobras Strategy Biodiesel Sales in ANP´s Auction (B100 m3 ) Quantity Price Auction Delivery (R$/L) (mil m3) 10 NOV/2005 70 JAN/DEZ/2006 1,90 + ICMS 20 MAR/2006 170 JUL/2006 TO JUN/2007 1,86+ICMS 30 11/JUL/2006 Ofertado 1.266 JAN/DEC/2007 1,75+ICMS Arrematado 600 40 12/JUL/2006 Voluntary Participation of Petrobras and Refap – start sales ahead of schedule 43
  44. 44. PETROBRAS Production Chain and Technology Paths • H-Bio: refining process that utilizes vegetable oils as an input, in order to obtain diesel oil; • Hydrogenation of a blend of diesel and vegetable oils; Hydrogen Diesel Agribusiness Processed Fractions Seeds Oil Farming Crushing Refinery or Diesel or Transerestification Biodiesel Ethanol Distributors or or B2 or B5 Diesel Methanol mixture Stations Glycerin + Others Complementary and not competitive processes 44
  45. 45. PETROBRAS Renewable Energy Research Program Vegetable/animal oil hydrogenation 100 liters soy bean oil + + + 2,1 Nm3 fuel gas 96 liters 2,2 Nm3 8,8 liters propane water diesel oil 45
  46. 46. PETROBRAS Petrobras Strategy Potential H-Bio Use 2006-2007 • H-BIO in 4 refineries – using up to 256 thousand m3/year of vegetable oil • 9.1% of total soy oil export • Equivalent to 15% of Diesel imports 2008 • H-BIO in 5 refineries • Using up tp 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 *do total de óleo de soja exportado 2288 mil m³ são de óleo bruto e 535 mil m³ de óleo refinado **volume estimado de diesel a ser importado em 2006 = 1.709 mil m3 Sources: Abiove e Petrobras 46
  47. 47. PETROBRAS Facts about Ethanol Market in 2005 • Ethanol global market is 46.5 Billion Liters (2005) • Ethanol as a Fuel is 30.6 Billion Liters (67% of total ethanol production) • Today the ethanol consumption is 2.6% of gasoline MKT • 10% of ethanol in gasoline will represent 118 Billion Lt 1 Ton Sugar Cane ~ = 1.2 boe SUGAR 153 KG 608 x 103 KCAL BAGASSE (50% UMIDADE) 276 KG 598 x 103 KCAL LEAVES (*) (15% HUMIDY) 512 x 103 KCAL 165 KG 1 Ton-Field 1 boe 1718 x 103 KCAL 1718 x 103 KCAL 1,386 x 103 KCAL 47
  48. 48. PETROBRAS Petrobras Strategy Ethanol Export Logistics New Ethanol Pipeline (800 km) New Water Way for Ethanol Ethanol Export 8.0 Million m3 in 2012 Marine Terminal Rio de Janeiro Marine Terminal São Paulo 48
  49. 49. PETROBRAS Petrobras Strategy Brazil-Japan Ethanol Inc. • Recently, Petrobras incorporated Brazil-Japan Ethanol Inc. • The company will import and distribute Brazilian-produced ethanol in Japan; • Development of technical and commercial solutions for the reliable and long term supply of alcohol in the Japanese market; • Petrobras will break into one of the most complex and important energy markets in the World: • ethanol logistics distribution • fuel distribution sector in Japan. Others • Exploiting opportunities for sales and technology transfer in Ecuador, Venezuela, Cuba and Nigeria. 49
  50. 50. PETROBRAS Solar and Wind Solar Energy • Photovoltaic pumping units • Largest photovoltaic park in Latin America installed in the Research Center (CENPES) • Thermo-solar energy in business units • Development of Brazilian photovoltaic cells Hybrid System • Community with 200 inhabitants and 62 residences (S. Tomé – Pará) • Objective: autonomous and sustainable management by the community Wind Energy • Wind plant in Macau and Rio Grande • Identification of wind potential in strategic interest areas • Currently studying partnership projects 50
  51. 51. PETROBRAS Renewable Energy Research Program • Budget: US$ 32 million • 66 R&D projects • 6 Research Lines • Biofuels • Solar Photovoltaic • Biomass • Solar Thermal • Wind • Other renewables Example: Hydrogen • H2 sustainable production Hydrogen Hybrid Bus • Bio-hydrogen • High-end technology • H2 storage in nanotubes • Development with local partners • Distribution and supply technologies • Operation will start Dec 2006 51
  52. 52. PS8 PETROBRAS Renewable Energy Research Program Lignocellulosic Bioethanol • Raw material: sugar cane bagasse • Proprietary process • Successful ongoing bench-scale experiments • Patent issued • End of tests: 4thQ 2006 • Pilot plant start-up: 1sQ 2008 • Demonstration plant start-up: 3rdQ 2010 52
  53. 53. Slide 52 PS8 PETROBRAS S.A.; 24/5/2004
  54. 54. PS9 PETROBRAS Renewable Energy Research Program Synthetic bio-fuel (BTL) • GTL small pilot-plant on stream since 1st Q 2004 • High yield FT Catalysts patented (2004-2005) • Combinatorial Catalysis Unit on stream since 4th Q 2005 • Start-up cold prototype unit for fluid dynamic tests: 4th Q 2006 • Start-up GTL 1 bpd pilot plant: 4th Q 2007 • Start-up integrated biomass gasification pilot plant: 2nd Q 2008 • Start-up 300 bpd demonstration plant: 4th Q 2011 53
  55. 55. Slide 53 PS9 PETROBRAS S.A.; 24/5/2004
  56. 56. PETROBRAS Agenda Petrobras Strategic Planning Governance Economic Sustainability Environmental Responsibility Social Responsibility Acknowledgement 54
  57. 57. PETROBRAS Evolution of HSE Management Strategic PSP – Agenda – Process HSE Safety Excellence Pipeline Program Integrity Program Program of HSE Certification Excellence in Corporate ISO 14.001/ Environmental Guidelines OHSAS Management 18.001 (PEGASO) 1997 2000 2001 2002 2005 Investment: Jan / 2000 to Dec / 2005: R$ 3.8 billion in more than 4.000 projects 55
  58. 58. PETROBRAS Eco-efficiency of Operations Spills – cubic meters SOx Emissions – tons 3.00 Oil and NGL Production (Mbpd) HSE Excellence Insurance Premium/ Insurance Value 2.82 Program 2.50 1,846 2.00 5,983 1.90 PSP – Process Safety Program 158,620 1.53 1.50 Pipeline Integrity Program 1.00 0.95 PEGASO 0.90 MPL* 2011 = 137,210 t 1,323 0.50 0.42 HSE Corporate MPL* 2011 = 601 m3 151,617 Guidelines 269 0.00 2000 1 2001 2 2002 3 2003 4 2004 5 2005 6 *MPL = Maximum Permissible Limit 56
  59. 59. PETROBRAS Eco-efficiency of Operations • Waste, Effluent and Emissions Inventory • Emissions Inventory includes: CO2, CH4, CO, SOx, NOx, N2O, MP, COV , flare and fuel consumption • Water availability assessment in critical watersheds • Pre-qualification and audit water treatment companies Petrobras and Peers - Spills (m3) * spilled oil (m3)/ production (bpd) 12000 3,50 10000 3,00 2,50 spilled oil (m3) 8000 2,00 6000 1,50 4000 1,00 2000 0,50 0 0,00 bp shell Total ExxonMobil Statoil Petrobras 2002 2003 2004 2005 spill/prod *spilled oil that reached the environment 57
  60. 60. PETROBRAS Biodiversity • Investments around US$ 6.9 million in E&P: • Baseline and impact assessment of Deep Water in UN-BC (2001-2004) • Monitoring of Sergipe and Alagoas Basin (2001-2004) • Monitoring of Potiguar and Ceará Basins (2001 - 2005) • Integrated remote sensing for surface monitoring for hydrocarbons from accidental or natural events • Environmental sensitivity study around 108 mil km2 of pipelines and 6 thousand km around coastal terminals • R$ 9 million research for ecosystems in Guanabara Bay 58
  61. 61. PETROBRAS Climate Change • Goal 2006-2011: Avoided GHG emissions of 18.49 million ton of CO2eq GHG Reduction Strategy based on: • Carbon credits 25,00 • Eco-Efficiency of operation and 160,00 products • Carbon sequestration 140,00 • Change fuels to natural gas and 20,00 renewables 120,00 • Energy Efficiency M Ton/Mbpd 100,00 15,00 M Ton 80,00 10,00 60,00 40,00 5,00 20,00 0,00 0,00 bp Chevron Exxon Shell Total 2004 Petrobras 2005 Petrobras Direct CO2 Eq (M ton) Emissions Carbon Intensity: Direct CO2 Eq/Production+processed load (Mbpd) 59
  62. 62. PETROBRAS Climate Change Carbon Sequestration Projects Portfolio • CO2 Separation and Capture (4 projects) • Underground Geologic Repositories (1 project) • CO2 Carbonation (1 project) • Carbon fixation in biomass (8 projects) • Reforestation pilot (até 50 ha) • Consortium with cultures for income generation • Methodology validation to estimate amount of fixed carbon • Biomes: Atlantic Forest, Amazonia Rainforest, Cerrado, Araucária, Restinga, Caatinga • Species accelerated growth • Microalgaes 60
  63. 63. PETROBRAS Energy Efficiency CONPET Program • EconomizAr Project – Reduced 13% of diesel consumption, equal to approximately 50,000 bpd • Transportar – Up to 12/05, 530 11,5 Number of Times 4,600 evaluations in 2,300 520 11,1 522 510 10,8 11,0 vehicles from 300 Million GJ 500 488 10,5 companies. 57,279 490 479 479 10,5 ton/year CO2 avoided 480 10,4 465 470 10,2 471 10,0 emissions. 460 • Natural gas bus powered 450 9,7 9,5 440 • CONPET in School 430 9,0 • National Award 2000 2001 2002 2003 2004 2005 • Brazilian Label Program – Conpet Seal Petrobras Enegy Consumption Sales/Petrobras Energy Consumption • Energy Efficiency Program in Petrobras – since 1991 61
  64. 64. PETROBRAS Sponsored Projects – Petrobras Ambiental Theme: WATER - Freshwater and Marine, including their biodiversity Modules I and II Requirements: The projects shall • Module I : Public Selection contemplate the following actions: • Module II : Local Initiatives • Self-sufficiency Planning • Module III : Existing Projects • Environmental Education • Processes, Experiences and Results • Module IV : Volunteers Systematization • Accompanying and valuation instruments The Program admits four main types of guidance: • Recovery and conservation of environments that have a water body (surface, underground, coastal or marine) • Implementation of integrated water resources management • Promotion of rational use of water resources • Environmental integrity of the water bodies around Petrobras facilities. Investments of US$ 15 million in 186 projects *Free conversion using average exchange rate 62
  65. 65. PETROBRAS Agenda Petrobras Strategic Planning Governance Economic Sustainability Environmental Responsibility Social Responsibility Acknowledgement 63
  66. 66. PETROBRAS Human Resources HR Practices in Petrobras Employees Satisfaction Index goal • Gender Commission 80% • Ambiance Survey 70% • Ethics Code 60% • Woman Assistance Program • Petrobras University – 154 50% hours per year average of 40% training per employee 30% • Personal Performance 1996 1998 2000 2002 2003 2004 2005 Management • New employees training % of Women in Management Positions • Leader Performance 11 • Result: 3,17% turnover 10,4 • Petrobras chosen by university students as the dream 9,6 9,5 company* 9,4 2001 2002 2003 2004 2005 * Source: Research accomplished in 2005 by RH Júnior Consulting 64

×