1. Petrochemical and
Refining Integration -
Petrobras Panorama
Paulo Roberto Costa
Downstream Director
Downstream Director
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2. Agenda
:: Strategic Plan - 2020
:: Strategic Plan - 2020
:: Refining Investments
:: Refining Investments
:: Petrochemical Industry
:: Petrochemical Industry
:: Petrochemical-Refining Integration
:: Petrochemical-Refining Integration
:: Petrochemical Investments
:: Petrochemical Investments
:: Conclusions
:: Conclusions
2

3. Petrobras – An Energy Integrated Company
• Proven reserves : 11.7 Billion boe (not including the Tupi, Jupiter, Carioca,
Exploration and
Exploration and Iara and Bem-Te-Vi discoveries)
Production
Production • Oil and gas production: 2.065 millions boe/d (SEC 2007)
Refining, • 16 Refineries – Brazil (12); Argentina (2); USA (1); Japan (1)
Refining,
• Capacity: 2269 thousand bpd
Transportation
Transportation • Oil and gas pipelines: 11,000 km
and Marketing
and Marketing • Ships (own fleet): 54
• Over 7,000 service stations, constituting the largest and the unique
station network spread throughout brazilian territory.
Distribution
Distribution • Over 10,000 clients among industries, thermoelectric companies, airlines
and vehicle fleets.
• Gas Sales: 50 millions of m³/day (brazilian production and imports)
Natural Gas
Natural Gas
• 15 Thermoelectric plants – 5,300 MW installed
Energy
Energy • 15 Small hydroelectric plants and 12 Thermal plants – under
Generation
Generation construction – 1,800 MW
• Petrobras has relevant shares of the two main brazilian petrochemical companies,
Quattor (40%) and Braskem (30%). These two companies run 27 petrochemical plants,
Petrochemical
Petrochemical producing basic petrochemicals and plastic resins.
• The fertilizers plants, located at Bahia and Sergipe states, produced together, during
and Fertilizers
and Fertilizers 2007 campaign, 235,000 t of ammonia and 824,000 t of urea, most of them to Brazilian
market.

4. Petrobras – Company’s Integrated Activities

5. Strategic Plan - 2020
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6. Business Segment Strategy - 2020
Corporate Strategy
Corporate Strategy

7. Investment Plan by Business Segment
PETROBRAS
2008-12 Period
US$ 112,4 bi
DOWNSTREAM
2008-12 Period
US$ 31,4 bi
13%
3% 4,2
1,1
26,1
RTC
84%
Petroquímica
Biocombustível

8. Supply Challenges

9. Refining
Investments
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10. Current Refining Infrastructure in Brazil
Refining Capacity (Thousand barrels/day) REMAN 46
LUBNOR 6
RLAM 323
REGAP 151
REDUC 242
REVAP 251
RECAP 53
REPLAN 365
RPBC 170
REPAR 189
REFAP 189
RPI 15
TOTAL BRAZIL 2,000
ARGENTINA 69
USA 100
JAPAN 100
TOTAL PETROBRAS 2,269

11. Refining New Projects
PREMIUM I PREMIUM II
Guamaré
RNEST
(Abreu e Lima)
COMPERJ

12. New Refineries Proposals
Premium I -
GUAMARÉ Abreu e Lima - PE Premium II - CE
MA
600 thousand 300 thousand
Capacity 30 thousand bpd 200 thousand bpd
bpd bpd
Sep/2013 and Sep/2014 and
Operation Aug/2010 Aug/2010 Sep/2015 Sep2016
(2 phasis) (2 phasis)
Investment US$ 191 Milllion US$ 4.05 Billion US$ 19.8 Billion US$ 11.07 Billion
Gasoline and
Porducts and Diesel GLP and Diesel GLP, Naphta and QAV (Brazil) and
Market Rio Grande North and Northeast Diesel 10 ppm of sulfur
do Norte (RN)
BC 16 (50%) and
BC-20 / BC- 18, BC-16 and
Oil RN mix Carabobo (50% -
BC-16 mixes with Tupi
Venezuela)
100% Agreement in March 2008
Partnership Petrobras 60% Petrobras 100% Petrobras
40% PDVSA

13. Incrising Refining Capacity
Refining Capacity in the Brazil (thousand bbd) REMAN 46
LUBNOR 6
Premium-II/CE
RLAM 323
REGAP 151
REDUC 242
REVAP 251
Premium-I/MA RECAP 53
Guamaré/RN REPLAN 365
RNEST/PE RPBC 170
REPAR 189
REFAP 189
RPI 15
Comperj/RJ TOTAL 2,000
New Capacities
Premium I 600
Premium II 300
RNEST 200
COMPERJ 150
Guamaré 30
TOTAL 3,280

14. Petrochemical
Industry
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15. Petrochemical Industry Value Chain
Exploration Olefins and
Polymer
and Refining Aromatics Moulding Final Usage
Production
Production Production
Polyolefins
Natural
(HDPE,
Gas Packages
Olefins LDPE,
Films
(Ethylene, LLDPE) Processes: Automotive
Propilene) Extrusion, components
Polypropylene Blow-moulding, Tubes
Aromatics Injection Cables
Refineries (Benzene, Styrene/PS
Wires
Oil (Nafta and p-xylene) PTA/PET
Electronic
Propylene) AA/SAP equipments
Fibers
No integreted oil companies Petrochemical
Companies
Integrated Oil Companies Plastic Manufacturers
Oil companies seek to maximize their profits integrating throughout the supply chain

16. Simplified Plan of the petrochemical chain
Basic Input 1st Genetation 2nd Genetation 3rd Genetation End-users
Natural Gas Films, packaging.
Retail
Ethylene Polyethylene (PE) bottles, housewares
sales
wires and cables
Ethane Butene
Tubes and
Ethylene connections, film
PVC Buildings
Dichloride wiers and cables
Autopieces, casings
Propylene Polypropylene (PP) and packages
Foodstuffs
Styrene
Butadiene
Nafta Electronic equipments
Ethylbenzene Poliystyrene (PS) Automotive
and packages
industry
Benzene
ABS Automotive parts,
Oil
eletronic equipments Personal
SBR and telephones care
DMT
Para-xylene
Textile fibers and
PTA PET
bottles Other
Other Other

17. Petrochemical –
Refining
Integration
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18. REFINING
+ PETROCHEMICAL
What are companies seeking?
Integration
Lower Costs in Operation Proximity to the Proximity to the
Refining and
and Accomplishment Consumer Market Feedstocks
Petrochemical
Companies decisions on petrochemical investments are based on:
Sense of balance between petrochemical and refining cycles (i.e. hedge)
Diversification into higher value added products
Partnerships focusing on access to competitive feedstocks
Develop a leadership position on costs of select products through leverage of synergies
Competitiviness through high production scale and cost reductions
Upstream integration and flexibility: refining streams as feedstocks
Oil and gas major companies, private or state-owned, have important positions in
petrochemical and continously seek growth with diverse strategies.

19. Refining and Petrochemical Profitability
Petrochemical Refining
Refining and petrochemical integration hedges both segments against
profitability cyclical performance, mitigating financial risks

20. Oportunities for Petrochemical and Refining Integration
Product Integration
refinery streams as feedstock as feedstock for petrochemical plants
Example: naphta, propylen, propane, ethane and refinery gas
petrochemical streams as blendstock for refining operations
Example : pyrolysis gasoline
Product and Energy Integration
product integration and power generation
Example : COMPERJ, an integrated solution
Technology Integration
Example : automation technology for petrochemical companies
Integration for Scheduled Maintenance
Synchronization of the scheduled maintenance plans in order to optimize the
maintenance efforts and avoid production gaps
Example : petrochemical refinery plant

21. Petrochemical
Investments
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22. Petrochemical Segment Strategies on Strategic Plan - 2020
Expand operations in 1st and 2nd generation processes,
increasing the production of petrochemicals, while adding value
to the products of the Group’s refineries by capturing synergies
related to the production of oil, gas, refining and petrochemicals
Develop new technologies for the chemical industry based on
the technological evolution of petrochemical fluid catalytic
cracking (FCC), biodegradable polymers and biopolymers

23. Refinery Propylene Sppliter Projects
Objective: Provide petrochemical feedstock for polypropilene and other
plants, through the extraction of the propylene from LPG stream, adding
value to Company’s products.
Investiments: US$ 688 MM
Start-up: 2008 -
Units: REGAP, REPLAN, REPAR and REVAP
Total capacity: 741 kty

24. Petrochemical Projects
Petroquímica Suape
Location: Suape/PE;
Capacity: 640 kty PTA;
Total investment: US$ 632 million;
Raw material: imported p-xylene until 2012 and COMPERJ from
2013 onwards;
Start-up: 4thQ 2009.
Companhia Têxtil de Pernambuco - CITEPE
Location: Suape/PE;
Capacity: 240 kty POY;
Total investment: US$ 342 million;
Raw Material: imported POY until 2009 and Petroquímica Saupe
from 2009 onwards;
Start-up: 2thQ 2008.

25. COMPERJ –Petrochemical Complex of Rio de Janeiro
COMPERJ’s main purpose is to increase the production of petrochemicals in
Brazil, using as feedstock 150 thousand bpd of domestic heavy crude, the Marlim
oil from Campos Basin.
Area: 45 million sq. ft.
Location: Itaboraí - RJ
Investments: US$ 8.38 billion
Capacity:
• Basic Petrochemicals: 1,300 kty ethene; 700 kty p-xylene; 881 kty propylene;
608 kty benzene; 157 kty butadiene;
• Downstream: 800 kty PE; 850 kty PP; 500 kty styrene; 600 kty ethylene
glycol; 500 kty PTA; 600 kty PET;
Start-up: 2012
Technology: Petrochemical FCC – deep fluid catalytic cracking technology
• This technology allow the production of huge amounts of olefins (ethene and
propylene) and will enable tighter integration between refining and basic
petrochemicals production technologies

26. COMPERJ – Petrochemical Complex of Rio de Janeiro
POLYPROPILENE
850 kta

27. COMPERJ Location
Pipelines:
Cabiunas - REDUC
Quattor
Guapimirim’s APA
REDUC
PETROCHEMICAL
COMPLEX
Islands: Redonda
CENPES and d´Água
SÃO GONÇALO’S CENTRAL
DISTRIBUTION BASE
INTEGRATION CENTER
TRAINING COORDINATION

28. COMPERJ Production
Production Production
Products (kty) Products (kty)
Basics Downstream
Diesel 535
Polypropylene 850
Fuels Naphtha 284
Coke 700 Polyethylene 800
Ethylene 1,300
Styrene 500
Propylene 881
Ethylene
Petrochemicals Benzene 608 600
glycol
Butadiene 157
PTA 500
p-Xylene 700
Sulphur 45 PET 600

29. COMPERJ Main Framework
FEL 3 Conclusions Dez/08
Contracting of the Integrator Oct/07
End of the Integration Center Construction Oct/08
FEED Elaboration Oct/08
Acquisition of the Main Access Area Dec/08
Start of Embankment Mar/08
*UPB LI Feb/09
*Main Access Road LI Apr/09
*345 kV Transmission Line LI Jun/09
*Terminal and Pipeline LI Aug/09
*Submarine Emissary LI Dec/09
ANP Authorization Oct/09
Start of EPCs Contracting Feb/09
Expected Start-up Jun/12
Expected Full Operation Aug/13
*LI – Licenciamento de Instalações (Facilities Licensing)

30. COMPERJ Schedule
Step
Step 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Accomplishment
Business Planning
(FEL 1)
Conceptual Engineering
(FEL 2)
Basic Engineering
(FEL 3)
Constr. and Assembly
Units Start-up
UPB Conditioning
and Start-up
Concluded In progress To be started
Full Operation

31. Conclusions
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32. Motivation for Petrochemical-Refining Integration
Benefits for Petrobras, adding value to the supply chain, capturing
synergies related to both segments and following a global trend of
upstream integration among large companies;
Techonological challenges with the use of heavy crude oils for
petrochemical purposes, using innovative Petrochemical FCC technology,
developed internally and adopetd at COMPERJ, integrating refining
operations and the production of basic petrochemicals;
Strengthening of Brazilian Petrochemical Industry, promoting training,
technology development, employment and income for the country.

33. www.petrobras.com.br
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