Francisco Nepomuceno from Petrobras gave a presentation on their experience with deepwater exploration and production, with a focus on pre-salt discoveries. Key points included: - Petrobras has revealed four major geological plays in deepwater Brazil over the past 30 years, including pre-salt carbonate reservoirs. - Recent pre-salt discoveries in the Santos Basin have exceeded 9-14 billion barrels of oil and gas. - Producing pre-salt reservoirs poses technological challenges like extreme depths over 2,000 meters, fractured carbonate reservoirs, and long distances to shore. - However, initial well tests in the pre-salt are highly productive, exceeding 50,000 barrels per day

1. Francisco Nepomuceno
Petrobras E&P London Office
Francisco Nepomuceno
Petrobras E&P London Office
London, June 23th 2010
World National Oil Companies Congress 2010World National Oil Companies Congress 2010
Petrobras Deep water experience -Overcoming
the technological challenges
Petrobras Deep water experience -Overcoming
the technological challenges
THE END OF EASY OIL - DEEPWATER AND FRONTIER E&P
Laboratory Tank for Testing Offshore Platforms

2. PETROBRAS - OVERVIEW
PRE-SALT DISCOVERIES IN PACE WITH TECHNOLOGY
ECONOMICS
REMARKS
PRESENTATION SUMMARY

3. Petrobras Overview
2000 2009
Reserves (SPE) 10.4 14.9* billion boe
Production 1.6 2.5 million boe/d
Revenues 35.5 115.9 billion US$
Total CAPEX 3.6 35.1 billion US$
Current Petrobras Technology Strategy - An Overview
* Not included the new discoveries of the pre-salt in Santos Basin

4. (Thous.boe/day)
1,500 1,540 1,493 1,684 1,778 1,792 1,855 1,971 2,100
2,980
3,950
252 251 265
274 277 273 321
316
384
623
1109
35 161 168
163 142 126 124
141
146
176
203
85
94 96
101 110 100
97
93
128
120
22
2002 2003 2004 2005 2006 2007 2008 2009 2010 2014 2020
Oil Production - Brazil Gas Production - Brazil Oil Production - International Gas Production - International
2,4002,301
2,2972,217
2,0202,0371,810
2,525
4.9% p.y.
2,723
5,382
3,907
7.1% p.y.
9.4% p.y.
1.183
152
Pre-Salt
241
1, 078
PETROBRAS PRODUCTION GROWTHPETROBRAS PRODUCTION GROWTH

5. PETROBRAS STRATEGYPETROBRAS STRATEGY
New Frontier Exploration in pace
with the advance in Technology
Petrobras reveals four major geological plays in deep
water in the last 30 years:
- Tertiary turbidites
- Cretaceous turbidites
- Albian carbonates
- Aptian (pre-salt) carbonates
PRE-SALT DISCOVERIES IN PACE WITH TECHNOLOGY

6. 400m
400m
1.000m
1.000m
2.000m
2.000m
0 20 40 60 km
Cabo Frio
Campos
Rio de
Janeiro
Macaé
AlbacoraAlbacora
175 km
RoncadorRoncador
BarracudaBarracuda
MarlimMarlim
Marlim SulMarlim Sul
CaratingaCaratinga
Tertiary Turbidites:
Deep Water Oil / Gas Discoveries 1974-2002

7. High productive Well
Well Productivity - 6000 bpd (vertical Wells)
- 15 – 40.000 bpd (Horizontal Wells)
Horizontal wells - 4 - 6 months to drill and complete (1990’s)
2 – 3 months (2009)
Gravel Packer – Efficient to avoid sand Production
Horizontal well Injection – 40.000 bpd of water
Reservoir Characteristics.
Shallow oil reservoir
Unconsolidated sandstone
Heavy Oil
Petrobras has drilled more than 300 horizontal in deep water

8. Cretaceous Turbidites:
Expanding Frontiers: Oil beyond Campos Basin Oil / Gas Discoveries 2003-2006
Cretaceous Turbidites:
Expanding Frontiers: Oil beyond Campos Basin Oil / Gas Discoveries 2003-2006
Mexilhão
Tambau
Urugua
Merluza
Papa
terra
Golfinho
Whale
park

9. Pre-salt Discoveries
Deep Water Oil/Gas Discoveries 2006-2009
Deep water oil fields 1984-2002
Pre-Salt discoveries 2007-2008
Recent discoveries 2008-2009
Shallow water oil fields 1974-1984
Campos Basin
Santos Basin
Peroá
Mexilhão
Tambau
Urugua
Tiro/sidon
Merluza
Piracuca
Papa
terra
Whale
park
Golfinho
Cluster
pre-salt

10. The big blue area represents the expected Pre-salt location, with great potential for oil presence
The Pre-salt RegionThe Pre-salt Region
Wells drilled
Santos
Whale’s Park
Wells tested
Fields
Exploratory blocks
Pre salt
Total area of the Province: 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%)
C ≈ 800 km
L ≈ 200 km

11. 150 km 150 km
20 km
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
0
Lâmina d’água atual
Internal High
Structural Low
External High
SaltSalt
Pre-salt Ultra Deep Water – Petroleum System Conception

12. World Energy Outlook-2009
Pre
salt
Pre-Salt Challenges: EconomicsPre-Salt Challenges: Economics
Long-term oil-supply cost curve

13. Economic Challenges
CAPEX DISTRIBUTION
18%
19%
31%
9%
20%
2%
0%1%
Residual Value Processing Plants Exportation Gathering
FPU Completion Drilling Abandonment

14. Productivity of all the wells tested until
now exceeded 10.000 bpd
Tupi well extended testing has
produced 15.000 bpd since apr/2009,
restricted by gas flaring limited to 500
thousand m3/d.
The last two well tests (Iracema and
Guara) have shown that both wells may
produce more than 50.000 bpd.
This high productivity is due to the
highly fractured reservoir.
Pre-Salt CharacteristicsPre-Salt Characteristics

15. Logistic Issues
– Approximately 300 km to shore
– People transport (air and sea)
– Fluids and cargo transportation
Reservoir Issues
– Carbonate Reservoir
Characterization
– High productivity wells
CO2 Issues
– Capture, Separation, Storage and Re‐
injection
– All CO2 will be injected into the reservoir
– WAG: Environmental and EOR
Main Pre-salt ChallengesMain Pre-salt Challenges

16. Closing RemarksClosing Remarks
Petrobras and its partners are revealing the potential of a very
promising play at Santos Basin, offshore Brazil. So far we have
announced 9.1 to 14 billion barrels of oil and gas equivalent in 3
of the 8 exploration areas operated by Petrobras in that area.
Petrobras has technology to develop these field in a economic
base. Domestic production growth between 2013 and 2020 to
more than 5 millions boepd and almost half will come from pre
salt production.
HMS is the most strong value in Petrobras exploration and
production.
Technology, people and strategic partnerships with IOCs,
service contractors and suppliers: key to success

17. Thank You.Thank You.